GOLD SOARS

EMPLOYMENT REPORT DISSAPOINTS

Gold has broken above $1,000 and the US $ is sinking making imports more expensive fueling INFLATION speculation the desired of the 2 possible outcomes (deflation)

BUT folks, we are approaching historical one sidedness with barely 3% DOLLAR BULLS.

One "count" I have seen calls for a gold splurt to around $1,033 but followed by an UGLY GUT WRENCHING DROP to around $700 down the road.....we'll see...the market doesn't mind inflation prospects? and a dying dollar.

Cards on table as to how many US $$'s have to be printed to pay for GOV interevention......The GOV is now mostly SOLE buyer of mortgages.....how will they back out out of all they have gotten into?

from Doug NOland's Credit Bubble Report

"There is the appearance that government intervention throughout the mortgage marketplace provides a free lunch: Households, once again, enjoy access to plentiful cheap mortgage Credit, while there’s no impact to the cost of federal borrowings. Why would anyone in their right mind even contemplate an Exit – especially when things remain so fragile? Why not wait a year or two or a few…

Yet I would argue that there is a huge and festering (latent) cost to Washington’s mortgage operations. At some point along the way – and you can count on it being a rather inconvenient juncture for the markets and economy - creditworthiness will become a hot issue. The market will finally demand higher yields for Treasuries, agencies, and GSE MBS – and will surely be less than enamored with our currency. MBS backed by today’s artifically low mortgages will come back to bite. And when the market turns against “federal” debt obligations, you can count on the market really, really turning sour on mortgage risk. That will mark the point when years of government market interventions and distortions come home to roost."

Today will open with UPWARD BIAS as per futures.....

D