If gold closes the month sub $1200, get ready for a crazy USD rally!

Trouble brewing in Italy. Bank of Italy governor is calling for bail-in rules as prescribed by the EU to be shelved. Having experienced bank runs caused by the bail-in rules a fretful BoI is favoring bail-outs in dealing with troubled banks.

Problem is, Italy's non-performing loans are the equivalent of a fifth of its GDP. A hefty sum enough to sucker punch Europe as we know it.

With a brexit looming large, Italy will probably have to defy Brussels, institute a selective bail-out(save some and let some banks collapse) then play hard ball threatening to quit the EU.

http://www.reuters.com/a...-of-italy-idUSL8N18S1YR

NFP just printed 38k......USD bulls getting hammered. Gold rallying hard. Rate hike probabilities this year getting slimmer.

http://www.acting-man.com/?p=45176

This article elucidates on my suspicions all along. The Fed may not be as data dependent as they always claim to be.It may be the case that they claim to be data dependent while in the real sense they are tracking the real interest rates/real market feedback in real time. This would be the better strategy in all honesty.

All these data metrics that are touted to give guidance to the Fed are a very mixed bag and to some extent would explain why yellen has been all over the place flip-flopping from one course of action to the next.

But the most troubling scenario in my opinion is as follows:The data metrics that informs its decision are mostly lagging indicators. If each of them is assessed independently it advocates for a particular course of action some of which are complete opposites of each other/contradictory/in direct competition.

This therefore would give rise to the probability of the Fed being behind the curve (lagging) and worse still, pursuing the wrong policy action which would further magnify/exacerbate the economic malaise. I shudder to think of what the implications could be.

Ground beneath junk bonds is shifting slowly. When the time comes there is going to be a stampede/panic exits with no floor. http://www.businessinsid...t-on-shaky-ground-2016-6

Global Investors Are Fleeing U.S. Stocks at a Record Pace

This will absolutely make no sense, but I expect US markets to keep grinding higher! Too many bears - opposite of 2007. If US stocks do slip by 20% that will be a nice opportunity to buy. I don't see why Dow will not test the 20K level.

Using mainstream media as a sentiment gauge indicates bears will get squeezed out of town and cause a spike rally in the next parabolic melt up.

Commerzbank considers hoarding billions to avoid ECB charges



Just a small percentage increase in global govts bond yields will see a spectacular investor wipe out. When sovereign bond debt crisis hits town, GFC will just be a small flash in the pan. Hoarding cash will be listed as a financial crime!

This one will be apocalyptic. The ECJ will make a decision on this lawsuit in a month's time and instead of handing some form of reprieve it is about to go ballistic.

The Spanish banks were to do refunds on mortgages with floor clauses issued from May 2013 but this could be backdated to the day of commencement of the mortgage.

June/July period is sure living up to its pin up credentials it exhibited a while back.