POTC is concerned the price of gold will surpass the S&P index soon. Gold has stabilized at historic highs of $1,040/oz today. What IF the S&P breaks below 1,000 and gold sustains above $1,000/oz? This sort of technical phenomenon has never occurred until this year, and we hope it will not become the new abnormal theme.
Perhaps gold becoming sticky above $1,000/oz and S&P falling below 1,000 will force Larry Kudlow to take a stronger stance against this Administration. We believe Kudlow is the only cable 'talking head' supply sider fighting for King Dollar. As for Jim Cramer, Capitalist Pig Bob (CPB) views him as a stock market pimp, nothing more. CPB thinks Cramer is selling his soul for a sawbuck and soapbox, but not Kudlow, uh uh, he is too patriotic!..
King Gold in lieu of King Dollar could subsidize Russia's Putin as he becomes the most dangerous dictator on Earth (Medvedev is just a red shirt freshman pawn in our opinion).
POTC does not want King Dollar turning into Queen Dollar. Yet this Administration's fiscal policies are very anti dollar, causing us to be very suspicious and depressed about the future of the U.S. equity market.
POTC hopes Obama's advisors do a 180 before King Putin's riches create all sorts of incredibly difficult-to-solve geopolitical problems. We can only hope patriotic fiscal conservatives like Kudlow become more vocal against weak dollar policies, but especially as the S&P struggles to stay above that 1,000 level.
As free-market forward-thinkers, we refuse to turn a patriotic cheek to the potential ramifications of gold prices rising as the S&P and dollar fall, you?
The Psychology of the Call along with Capitalist Pig Bob thank you for your Wednesday attention.