Contrary to the herd mentality, upward mobility is dead in its tracks, and the real movement of the middle class is now in reverse. Hopeful reversal of the 4 year job collapse was given a death knell with Friday's Jobs report. This was not a one-off. In spite of constant manipulation and "adjustments" the managed recovery suffered a devastating body blow when the CNBS pundits announced the weak numbers. Gold responded with a move up signalling that the Fed's nonsense of "ending QE" was nothing more than jawboning. If you expect the dramatic collapse to occur tomorrow as the world implodes you may be surprised to find out that collapse may take longer than a weekend to occur.
Up until now the developed nations have managed to play ball with one another and Central banks have managed the Supercycle debt collapse remarkably well at least from a headline perspective. NOT allowing the deflationary cleansing of malinvestment and the natural movement of assets into strong hands but perpetuating the malinvestment will only accentuate the crisis when it becomes full scale.
Many pundits have tried to pick what type of scenario will force the debt issue over the cliff....ranging from Eurozone collapse to Japan's Bond binge. What the Central Bank up until now did NOT want to see was Gold sending a signal to the investment community that the global printing frenzy was destroying currencies. Holding gold in its place bought them an enormous amount of time but unfortunately as stated previously there has been NO repair made to the malinvestments that have created the structural impairments stifling real economic recovery.
The productive element of any healthy country is its middle class. The engineers, the small business owners, the welders, the architects, the scientists, the carpenters, the doctors, software developers..... you get the picture.... This is the class that's going to be crushed as we head into the final deflationary washout and the following development of cost push inflation. Make no mistake this is what you are facing. There will be no nirvana as promised by the paper magicians. There is only a price to pay. You were given as clear a signal as they will give you on Friday....you had better listen. Their path was laid out in Cyprus and as their own operatives have said publicly THAT is the template they will follow....gl