SP, if it starts to accelerate towards $1,000 again, without...

SP, if it starts to accelerate towards $1,000 again, without dropping back into the channel, then I reckon all bets are off as to where it could end up.

Much as I like Sinclair and think he's been bang on with his macro calls, I cringe when he calls for things to happen by certain dates, because he's often been badly off in his timing calls.

Anyway, there's a lot of momentum building in all things gold at the moment. I'm sure the powers-that-be can see this, too.

Timmy Geithner was just humiliated in China, when those Chinese uni students laughed at him, when he said that China's US reserves were safe. There may be one, last attempted pull down, with official blessing, if they can.

The last few days, money has been propping up the equity markets. Now that GM has gone under with no 1,000 point slide on the Dow, they might change their focus.

The bond market is a real spot fire for them at the moment and is probably the next thing they focus on.

The problem is quickly becoming the realization that, when the Fed and the Govt are the only players left in the game, they have to keep all of the balls (banks, bonds, industry, agencies, mortgages, municipals, dollar, and on, and on) in the air. You can do that for a while, but not forever.

They have now been doing this at an every-more frenzied rate since Bear Sterns went under in March 08. Far from being under control and seeing signs of recovery, I see signs of it all spinning out of control. As to exactly when that might happen, I don't know, but before this year is up, I'd bet.