THE CLOWN SUMMIT

                                EU Summit List Of Participants

It’s only Tuesday, yet once again markets are held hostage through the next weekend, as the caterers ramp up yet again for another clown summit that is going to “fix” things in Europe.

“No seriously, this time we really, really mean it. As soon as the shrimp cerviche is finished we are going to really tackle the issues. Well, maybe after the raspberry soufflé for sure.”

“Uhm, yea whatever.”

So, expect the usual Central Planner nonsense all week; yup it’s fixed, Merkel says “Nien”. That the beggars, also known as “PIGS”, will be yakking all week with hand out and then trying to coerce Germany for more money, should be good entertainment. After all, when you are totally bankrupt and threaten to bring the system down, you are entitled to name your conditions – natch.

Anybody but me noticing hardly anybody is trading gold anymore? Volume is down, and except when the Central Planners got a 10,000 lot at-the-market to send prices down sharply in 2 seconds, intra day ranges and volatility aren’t that hot either. Gee, who could have seen this coming?

Once the weekend buffet summit is over, expect nothing new and the assault of the EURUSD to begin in earnest. It should be quite a show.

Have a good day everyone.

-vegas

SEND IN THE CLOWNS

                                Politicians Speak Markets Plunge

Schaeuble: “Being a member of EU is a voluntary decision”.

German Finance Minister Checklist:

Step 1: Ok, first tell mistress to sell EURUSD at 17:00 [check],

Step 2: Tell mistress to cover EURUSD after the drop and before she goes shopping [check].

Step 3: Go find a TV camera and say something stupid [move the market lower] [check],

Step 4: End interview and go meet mistress with Dominique Strauss Kahn [check].

Sounds like an awfully productive day. Use the cover of a U.S. NFP report as cover so you can deflect blame for the move. And who says these guys are stupid?

Meanwhile ……….. at the U.S. BLS [Bureau of Lies & Statistics]

                                         Chief Statistician BLS

More lies, damned lies and then statistics out of the U.S. today that sent gold and other financial markets on a double reversal move guaranteed to allow you to pursue those 2012 tax loss strategies you have been thinking about.

Add to that the du jour “loose lips sink ships” talk from Europe, the Central Planners lurking about, and you have markets that are approaching mental breakdown.

This chart [courtesy of zerohedge.com] pretty much sums up Amerika today:

It’s easy to lower the unemployment rate when the number of workers in the economy plunges compared to the number of jobs lost. Duhhhhhhhhh.

I weep for the future.

And, as all this plays out gold sits precariously right at support in the 1620 – 1630 range. I don’t like the action right now in gold; maybe I’m wrong, but my guts tell me gold is about one inch away from getting clobbered to the downside. We’ll see next week, but with the break in oil and the dollar rallying, it’s going to be tough to get this stuff back over 1680.

Have a good weekend everyone.

-vegas