By John Galt
November 21, 2011 – 07:15 ET
With futures looking pretty ugly already, the blame game has begun.
Blame the Spanish election.
Blame the Italians.
Blame the Greeks.
Blame the ECB.
Blame the extra-Constitutional super-committee.
In reality these entities have been the problem all along, creating a nightmarish if not illegal Ponzi economy which as it implodes takes layer upon layer of their citizen’s wealth with them. The desperation expressed by the financial and political elites to preserve their power base and the status quo is at levels unseen since GS was trading in the $50 price range. There is an abject hysteria developing at the highest levels but the American sheeple and political power brokers are oblivious to the implications. This destructive ignorance will shock the masses when it hits and cause a contraction in confidence and spending far greater than the 2008 shock and awe event.
This morning, the one chart flashing a huge warning signal is our old friend the EUR/JPY which is in danger of testing the 102 level once again:
(chart from ForexPros.com)
The other chart screaming about an impending economic crisis is not the usual suspect, the Treasury complex, but instead the most liquid asset of them all:
(chart from ForexPros.com)
Once gold breaks below the $1630 level, which could happen in less than a two week time period, then the deflationary collapse is approaching at full speed. The ECB, Fed, and JCB can not contain the individual nation’s decisions on sovereignty or austerity and as the European Union, the United States and Asia shall follow. Watch today’s support level of 1194 on the S&P 500 which should fail rapidly opening the door to the next support region around 1149 followed by hysteria.
This could be the start of a very ugly week and the American political elites could make it much, much worse with their ineptitude and inaction.
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