Case Shiller housing index for May: -3.61 %
Chicago Purchasing Managers report for May: 56.6 VS 67.6
These statistics show an economy that is clearly stalling - and from an extraordinarily low level of activity.
Yet the markets rallied heartily today on news that "the perceived risk of immediate Greek debt restructuring has eased."
Why eased? Because Germany announced it may consider lending Greece more money.
Is this really why markets rallied? Do the guys at Goldman Sachs not see that Greece will eventually default? Are they stupid?
No, they're really smart. They know Greece will default. They're betting on it. So why did the market rally?
Because it's not a market at all. It's a rigged casino. That's very different from a market. And if you don't understand that, eventually all your money will be Goldman Sachs' money. Even if you think you're really smart, and your doing well gambling against their gamblers.
The one market they can't control over any period of time is the Gold market.
Why? Because they're playing against the world's central banks. And even Goldman Sachs are real little guys compared to the Chinese Central Bank, and the Brazilian Central Bank, and the Russian Central Bank. And all those banks are just waiting for Goldman Sachs to knock down the gold market so they can step in an buy cheaper gold.
They can afford to wait. You can't.
Buy steadily and systematically. It will protect you from the inevitable results of the rigged casino.
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