It's hard to believe or even fathom that the United States should be paying over $1 trillion a year in welfare benefits. This is an unsustainable number by anyone's math.
Because of this massive expenditure, we're going to see gold skyrocket as paper money becomes worth less and less when reality sets in.
If you were around in the 70's and thought inflation was bad then, it's going to pale in comparison to what's coming up. The only value will be held in land, gold, and raw commodities that can be traded on a barter system.
I hate to sound so negative, but the reality is we did this to ourselves and have no one else to blame.
Let me put this whole scenario in perspective: If you had spent $1 million dollars a day, every day since the time of Jesus Christ, you would not have spent even close to $1 trillion. I think that illustrates just how much money we are in the hole for.
Even the president of Iran is predicting the impending downfall of the US empire. His analysis is based on the collapse of the country's massive debt. Here is his direct quote: "How long can a government with a $16 trillion foreign debt remain a world power?"
Like it or not, the situation the US is facing now is dire. We must get real, we cannot listen to pie-in-the-sky politicians anymore. It's time we all do some hard digging and forget all this class warfare. We all have to get out of this hole together.
Enough on that subject, let's take a look at what is going on right now in the markets.
QUICK TAKE ON THE MARKETS:
EQUITIES: Trading range. The trend is your friend and the major trend according to our Trade Triangle technology is still positive.
CRUDE OIL: On our watch list. The long-term trend is positive for crude and the intermediate-term trend remains negative based on our Trade Triangle technology. Watch this one closely.
EURO: All systems are go. All three of our Trade Triangles are green and are bullish for the Euro. Watch the resistance at the 1.3160 level. Target Zone of 1.3500.
GOLD: Long-term Trade Triangle positive. Look for support around the $1,725 level. A move over the $1,760 level turns the trend back to the upside.
COPPER: Long-term Trade Triangle positive. Two of our three Trade Triangles are green.
SILVER: Treading water. Long-term Trade Triangle remains green and bullish on silver.
WILD CARDS: No changes. Here are the usual suspects: Syria, Turkey, Israel. The general election, Fiscal Cliff, and let's not forget Greece and Europe.
Every success in your trading today, tomorrow and in the future,
President of INO.com and co-founder of MarketClub.com