the situation The US has a budget deficit of 45%, that means that the government has to borrow $ 1.6 trillion each year to be able to spend the $ 3.5 trillion budget they have, they borrow it from the Fed.. at interest... If the Fed stops lending it to them, interest rates will explode, and the US would have been like Greece years ago ... Nobody wants to finance a broke country at 2-3% interest... Look at Greece, their interest rates went through the roof because they didn't have a Fed to finance them..
This budget deficit cannot resolve itself because there is no growth. All growth reported is nominal. So the figure of 2,5 % growth of GDP is not corrected for inflation. Deduct real inflation, and not the bogus numbers you get from the Fed, and you would have real falling GDP, with about 5% a year. That's why the man on the street doesn't notice anything of a so called recovery.
Portugal and Spain are dead. With the rest of them not far behind. Their interest rate for all bonds is going exponential as we speak. This means they will have to print more money in Europe very soon. Van Rompuy will look like a fool (if he doesn't already, the Bilderberg puppet) saying just a week ago that "we're out of the woods" and "we can look up again, finally we settled all financial matters in Europe"...
The lullabys Bernanke and Van Rompuy sing put many people asleep, but it will not be a nice dream. Everybody will rudely awaken soon in a real nightmare of either immediate system collapse or money printing. Most likely they will choose the latter and try to do it as clandestine as possible. For if they say it out loud, prices will go up in advance and there will be even more inflation at the pump...
Iran could be used as an excuse for high oil prices. An all out new war would take attention away from their money printing ponzi scheme. It would also ensure the US of effectively surrounding Russia and China completely. They're in Alaska, Canada, Europe, Turkey, Iraq, Iran then, Afghanistan, Pakistan, Japan and the Philippines. Russia and China do not like that.. They're lucky Russia has vast resources. The high prices will be blamed on the war. Watch out for more false flag operations like 9-11..
What does this mean for our stocks? There will be huge volatility as you can already see. Just check our chart of the last year..! TA is worhtless in this environment. Best thing to do is buy when everybody sells and do it in small lots so you have some powder left when it goes down more. Also sell a bit going up so when the stocks get hit again you can buy more.. Keep a core holding at all times. It sounds simple but it's hard to do when your emotions tell you to do the reverse: buy high, sell low..... Majors need new gold sources, their resources are depleting.... And peak gold is here already. Easy gold is almost no where to be mined. Unless the whole world breaks down and we live in caves again, good juniors should do well eventually. During WOII or the great depression, mining continued. It will also continue when we leave the eye of the hurricane.