I was looking at a photo of Obama, Merkel, and Osborne and was struck with how little our president has in common with them. Osborne was swept in by UK revulsion over the fiscal calamity that adopting US-style QE and deficit spending has brought upon them. Merkel represents a country whose citizens are in an uproar over the use of the German industrial cash machine to support socialist doctrine elsewhere in Europe. As they stood looking at each other I imagine Merkel thinking "This man is telling me that his planet is made of green cheese". Merkel will cut spending to the bone, so will Osborne. They know that Obama will not, but they have to make pretty-talk. G-20 is no longer a stalking horse for the US. Indeed, it is the other way around, as the US seeks to foster the impression that they are a major player in a world fragmenting into self-interests having nothing to do with US doctrine.
Anyway, gold tested all-time highs and fell back hard. Stocks on their way to 10,260. Once stocks peak then gold should fall like lead.
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