Today the Dow Jones plunges more than 500 points while silver falls over $3. The Dow has given up everything it gained this year in less than 2 weeks. Investors are buying into Treasuries sending yields to Oct of 2010 lows. If yields on the 10 year T-bond get to 2% or lower, it would be time to short treasuries if they even get that low. I bet with some more QE; quantitative easing they can get that low. I mean, for crying out loud, the Switzerland national bank and the bank of Japan have both intervened this week in the international currency markets by essentially flooding them with extra capital. Look up "currency war". Now that the US government has raised the debt limit authorizing it to borrow more means the Federal Reserve will create more 'Federal Reserve Notes' (money) out of nothing and loan it to the banks, who then are able to loan the Government, collecting interest. If the stock market slips any more, Bernanke might shoot up the economy with another dose of QE, essentially like Japan and Switzerland. This is why gold is only down 2% during this sell off from an all time high that was reached yesterday. As a matter of fact, the Dow/Gold ratio is now at 6.9. Silver is down more significantly only because it's subject to more volatility. There are some economic numbers coming out tomorrow, unemployment i think, that aren't looking so good. If there was a genuine economic recovery where unemployment got back below 5%, the jobs would be back by now after 3 years. Unemployment is expected to stay at high levels for a few more years. If there hasn't been a real recovery by now, then there isn't going to be one. Ron Paul 2012.
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