Peak Stupid., page-2

It looks like gold will bounce between 1325 and 1370 until the next round of fireworks pushes POG higher. But will the fireworks begin in Japan? It seems that tsunamis, nuclear meltdowns, and interest on debt which currently drains 43% of Japanese tax revenue, doesn't deter the Japanese spirit. But its near impossible for the Japanese government to maintain the status quo. Something has to give.

Not far behind Japanese woes is China's massive sub-prime loan exposure which threatens to wipe USD 4T from Chinese books in the not too distant future. Like Leehmans, this could collapse without warning.

Then there is the chatter of bank runs on Italy's atm's which could become more mainstream in coming weeks. The Italians fear their savings will be confiscated (as per EU rules) to help pay $540 billion Euro's in non-performing loans. French and German banks aren't much better so must be experiencing a similar run on their savings as well.

Its good to be invested in Gold miners. Demand for Gold has the potential to rocket in the not too distant future.