US trade deficit narrows to near three-year low

A rise in US exports in December has helped the country to close its trade gap with the rest of the world.

Figures show the trade deficit shrank to $38.5bn, the smallest level in nearly three years.

Record petroleum exports helped to push total exports to $186.4bn, up $3.9bn from November. Imports fell $6.2bn to $224.9bn.

The data suggests that the US economy was stronger in the fourth quarter than initially estimated.

The 0.1% annualised contraction in Gross Domestic Product (GDP) in the quarter was calculated before these figures were available and were based on projections of a widening trade gap.

Chris Williamson, chief economist at financial information firm Markit, says the latest release shows that "the economy did not fare as badly as the initial GDP estimate suggested in the fourth quarter".

"The data also add to an increasingly bright picture of the global economy at the turn of the year."

GLOBAL MARKETS-Shares up on ECB rate hopes, China data; euro flat

* World shares rise as China's trade data beats forecasts

* Euro near two-week low on renewed hopes for ECB rate cut

* European shares rise 0.6 pct but on course for weekly drop

* Copper, oil rise on firmer demand outlook

By Marc Jones and Richard Hubbard

LONDON, Feb 8 (Reuters) - World shares rose and the euro hovered near a two-week low on Friday, on course for its biggest weekly loss in seven months after the European Central Bank rekindled speculation about another cut in interest rates.

Strong Chinese trade data also lifted optimism about global growth prospects, boosting oil, copper and shares, although U.S. stocks were poised for a mixed start with the key S&P 500 index expected to record its first weekly drop of the year..

The ECB left rates at a record low 0.75 percent on Thursday but the bank's President Mario Draghi levered the door to a cut back open by indicating it would monitor whether the euro's rise over recent months could push inflation below its comfort zone.

European shares were enjoying their best day of the month on the better Chinese data and hopes lower rates -- or at least the threat of them -- would reverse some of the 8 percent rise in the trade-weighted value of the euro since August.

"The ECB had quite an impact on the euro-dollar and the positive Chinese data we have had has helped shares," said ABN Amro economist Aline Schuiling.

"Draghi signalled quite clearly yesterday that with the rise in the euro, the risks to price stability are to the downside. We expect the dollar to continue to strengthen, but if that reverses then markets would price in a rate cut."

London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX were up 0.4, 0.45 and 0.2 percent respectively by 1230 GMT pushing the pan-European FTSEurofirst 300 up 0.6 percent, though it was still on course for its second consecutive weekly fall.

Draghi said the euro's recent surge was a sign of a return of confidence, but cautioned: "We certainly want to see whether the appreciation is sustained and will alter our risk assessment as far as price stability is concerned."

The common currency was little changed at around $1.3440 , after having fallen 0.9 percent on Thursday in response to Draghi's comments to briefly touch $1.33705, the lowest level since Jan. 25.

The yen was the other key focus of foreign exchange markets following the push by Japan's government to ease monetary policy, and it rose sharply after the country'sfinance minister said the currency's recent drop had been overdone.

The euro fell as much as 1.5 percent against the yen to 123.54 yen while the dollar shed more than 1 percent to hit a session low of 92.17 yen before both currencies staged modest recoveries.

HAPPY LUNAR NEW YEAR

Helping to bolster strengthening global growth hopes, China said its exports grew 25 percent in January from a year ago, the strongest showing since April 2011 and well ahead of market expectations, while imports also beat forecasts, surging 28.8 percent on the year.

The prospect for stronger Chinese demand lifted all industrial commodities, including copper which snapped a three-day losing streak to gain 0.4 percent to $8,229 a tonne .

Brent crude oil edged towards a nine-month high above $118 a barrel on the robust trade data, which augurs well for fuel demand, while supply worries stemming from tensions in the Middle East have also supported prices.

Earlier MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3 percent and Australian shares rallied 0.7 percent to 34-month highs on the data.

China's markets are closed next week for the Lunar New Year holiday, while Hong Kong will resume trading on Thursday.  Despite Friday's gains, MSCI's world equity index was on course for a weekly fall of nearly one percent, which would be its biggest drop since November and the first weekly decline of 2013.

However, the global index is still up four percent for the year to date and not far from its best levels since mid-2008.

BANK REPAYMENTS

Money markets rates reversed some of their recent gains following Draghi's insistence that the ECB's policy will remain accommodative.

The central bank also said on Friday that banks will return another 5 billion euros of its crisis loans next week, suggesting the initial flood of repayments has turned into a steady trickle.

In the bond market, benchmark German Bund futures continued to push higher as Draghi's cautious tone on the euro zone's economy underpinned demand for low risk assets.

Nagging concerns about political stability in Spain and Italy were piling pressure on higher-yielding peripheral bonds to the benefit of Bunds, overshadowing an Irish bank debt deal that will cut Dublin's borrowing costs over the next decade.

"On the 10-year Spanish bonds, we could go significantly above 5.5 percent and reach the 5.6 area and it can be quite fast," BNP Paribas strategist Patrick Jacq said.

But "On a longer-term view we still expect market friendly outcomes of the political issues, and the setbacks offer some opportunities to enter long positions."

Spanish 10-year yields were last at 5.42 percent while equivalent Italian yields were about 1 basis point up at 4.58 percent.

EUR/JPY Technical Analysis

EUR/JPY Technical Analysis- Prices are testing support at 123.63, the 38.2% Fibonacci retracement, after reversing below rising trend line support. A push downward from here targets the 50% level at 122.37. Near-term resistance is at 125.18, the 23.6% Fib

FOREX-Yen climbs broadly; euro remains weighed by Draghi

Yen gains sharply, but rebound may be short-lived

The yen jumped on Friday after Japan's finance minister said the currency's recent drop had gone too far, too fast and doubts crept in about whether the next governor of the Bank of Japanwill ease policy aggressively.

The yen, which fell to its low against the euro since April 2010 and its lowest against the dollar since May 2010 on Wednesday, got a boost from Finance Minister Taro Aso's comments that the yen's slide from 78 to 90 per dollar was steeper than intended.

It was also helped by a Reuters report that Japanese Prime Minister Shinzo Abe faces opposition from within his own cabinet and financial bureaucrats to appoint a new BoJ governor who will pursue aggressive easing policies.

Comments from European Central Bank chief Mario Draghi on Thursday, who said the exchange rate is important for growth and price stability, were perceived by investors as a sign the bank is concerned with the single currency's recent advance and continued to weigh on the single currency.

"Central bank and government officials from around the world have given FX markets the gift of volatility this year," said Win Thin, senior currency strategist at Brown Brothers Harriman in New York. "Yesterday, it was ECB President Draghi's second press conference in a row that caught markets by surprise. Today, it was Japan Finance Minister Aso's turn, as he apparently told reporters that the recent pace of yen weakness has been too fast."

The euro fell as low as 123.40 yen, before paring losses to last trade down 1.6 percent on the day at 123.48 yen.

The dollar also slid against the yen to 92.15 yen, and was last trading at 92.38 yen, down 1.4 percent.

Earlier this month, BoJ governor Masaaki Shirakawa said he will step down on March 19, weeks ahead of schedule, allowing Abe to appoint a chief who is more amenable to making drastic policy changes to get Japan out of deflation.

Expectations that the BoJ will aggressively ease monetary policy in coming months have driven the yen lower in recent months.

Some strategists said gains were likely to be temporary after Japanese balance of payments data added to worries about the economy. Japan posted a current account deficit for the second month running December.

POLICY OUTLOOK

The euro fell 0.2 percent against the dollar to $1.3370 , with the session trough of $1.3359, the lowest since Jan. 25.

Draghi said economic activity in the euro area should recover gradually in 2013 but added there are more negative risks than positive, and said the exchange rate was important for growth and stability.

Investors interpreted the remarks as setting the scene for a possible future interest rate cut by the ECB, in the event that the euro zone economy slows further.

At the moment the ECB is still withdrawing some of its unconventional policy easing at a time when both the Federal Reserve and the BoJ are expanding their balance sheets.

Euro Coal-Producers hike prices as Colombian miners go on strike

European coal into Amsterdam/Rotterdam/Antwerp (DES ARA) for delivery in April was offered at $89.50 for March cargoes, compared with a previous settlement of $86.65 a tonne.

Producers were asking $92 a tonne for coal delivered in April, $4.10 higher than Thursday's close, sending the physical market to levels last seen in late December as traders priced in potential disruption at three Colombian mines responsible for 85 percent of the country's exports.

"The issues at Colombian mines could have a big impact on the availability of coal in Europe and we have seen European power prices respond strongly," said one trader.

Baseload German power rose to 42.30 euros/megawatt hour, up almost a euro from Thursday's close of 41.55 euros, the contract's highest trade for two weeks.

Colombia is the world's fourth-largest exporter and produced 88 million tonnes in 2012, according to government figures. The strike at Cerrejon impacts operations responsible for 36 percent of the country's output.

This means European utilities may have to buy more coal from the United States, South Africa andRussia.

Prices for South African coal for April delivery rose $1 to $86.00, with 50,000 traded according to brokers.

Coal had already posted strong gains on Thursday after U.S coal miner Drummond, which owns Colombia's second-biggest mine, had its export licence revoked on Wednesday following reports that it dumped coal into the sea mid-January in an emergency involving a barge at Santa Marta port.

Drummond produces around 80,000 tonnes a day or almost 30 million tonnes of coal a year in Colombia.

A third producer - Colombian Natural Resource's La Francia thermal mine - has remained shut since late January due to a pay dispute with the operator, according to union officials.

La Francia produces around 10,000-20,000 tonnes per day.

Coal swaps for 2014 delivery hit an intraday high of $101.10, up from a close on Thursday of $99.60, although prices slipped to $100.75, up over 1 percent on the day.

I would first like to say that tonight’s report is out of my norm. Generally I do not focus on the big picture negative stuff and I like to avoid it for a few reasons...... One, it’s just downright depressing to talk and think about. And Second I don’t want to be labelled as one of those “The Sky Is Falling” kinds of guys.
So, that being said I think these charts above show a situation what is very possible to happen in the coming 6-12 months. Keep in mind that my focus is on short term time frames as it allows me to avoid and actually profit from major market moves while providing enough information for my followers to learn technical analysis and trade management. And the obvious idea of not looking too far into the future with a negative outlook.......
 
With headline risk changing the market direction on a weekly basis, this negative outlook could easily change in a couple months. I will recap on the big picture as things unfold in January/February.

Turkey will not halt gold flow to Iran, demand may fall

* U.S. concerned gold-for-gas trade gives Iran lifeline

* Turkish gold exports to Iran via UAE drying up

* Halkbank to continue Iran transactions, minister says (Adds quotes, background)

By Asli Kandemir and Evrim Ergin

ISTANBUL, Feb 7 (Reuters) - Turkey will not be swayed by U.S. sanctions pressure to halt gold exports to Iran but Tehran's demand for the metal may fall this year, Economy Minister Zafer Caglayan said on Thursday.

U.S. officials are concerned that Turkey's gold sales, which allow Iran to export natural gas, provides a financial lifeline to Tehran, which is largely frozen out of the global banking system by Western sanctions imposed over its nuclear programme.

Trade in Turkish gold bars to Iran via Dubai is drying up as banks and dealers increasingly refuse to buy the bullion to avoid sanctions risks associated with the trade.

Turkey has a six-month U.S. waiver exempting it from financial sanctions against Iran, which is due to expire in July.

"We will continue to make our gold exports this year to whoever seeks them. We have no restrictions and are not bound by restrictions imposed by others," the Turkish minister told reporters.

"There may be a decline in demand for gold exports. This is nothing to do with sanctions. We are not subject to these sanctions until July anyway, but there may be a decline in demand from Iran," he said.

Caglayan declined to say why he anticipated Iranian demand might fall.

Turkey, Iran's biggest natural gas customer, has been paying the Islamic Republic for oil and gas imports with Turkish liras, because sanctions prevent it from paying in dollars or euros.

Iranians then buy gold in Turkey, and couriers carry bullion worth millions of dollars in hand luggage to Dubai, where it can be sold for foreign currency or shipped to Iran.

Caglayan, who has repeatedly said that Turkey's gold trade with Iran is carried out by private firms and is not subject to U.S. sanctions, said other firms, including U.S. and European companies, were continuing their exports to Tehran.

"Turkey is doing whatever is required by international obligations. The companies of those imposing an embargo on Iran today, forbidding product exports to Iran, are exporting to Iran under different guises," he said.

The U.S. State Department said in December that diplomats were in talks with Ankara over the flow of gold to Iran after the Senate approved expanded sanctions on trade with Iran's energy and shipping sectors, which would also restrict trade in precious metals.

That increasing U.S. pressure has already started to create troublesome repercussions for exporters of Turkish gold.

The spotlight on the gold-for-gas exchange contributed to a cut in Turkey's gold exports to the United Arab Emirates (UAE) to some $400 million in December from nearly $2 billion in August, according to the latest official trade data.

Separately, Caglayan said Turkish state-owned Halkbank will continue its existing transactions with Iran but some other banks, with activities in the United States, had pulled back in response to U.S. pressure.

Asked about a decision by India no longer to use Halkbank to pay for its Iranian oil imports, he said: "This is India's decision not Halkbank's."

A Turkish official told Reuters that trade with Iran through a third party was no longer allowed under tighter U.S. sanctions which went into effect on Wednesday.

"For example, Halkbank would not be able to be an intermediary in India's oil purchases from Iran," he said. (Writing by Daren Butler; Editing by Nick Tattersall and Anthony Barker)

Global Research Gold & Silver Marketwatch Daily Update Market Commentary

Overnight strength in the dollar pushed gold lower, opening at 
1396.25/1397.25. Profit taking over worries about Japan quickly took 
the metal to an intraday low of 1381.10/1382.10. As the selling frenzy 
subsided, renewed buying interest brought gold back up to an intraday 
high of 1403.25/1404.25 mid session. Unable to find support at this 
level, the metal eased back quietly to close the day at 1392.50/1393.50.
Commodities overall being down on Japanese worries, silver opened 
the day significantly lower at 33.77/33.81, quickly reaching an intraday 
low of 33.57/33.61. Buying interest as crude and base metals began to 
reverse their slide lower took silver to an intraday high of 34.80/34.84 
mid session. As with gold, another round of profit taking took the metal 
to its close of 34.12/34.16.
Technical Commentary
A risk aversion induced rally in the USD has put significant downward 
pressure on gold. The metal dropped rapidly through several layers of 
support, with support only being found at the 100-day moving average 
of 1379. After today's test, this level has strengthened and gold will now 
require a significant catalyst to break below here. Should downward 
pressure emerge again tomorrow, the risk is that gold will test down to 
the psychologically important $1,350. 
Silver also had a technically bearish day, however the chart continues 
to be more encouraging than gold's. Support for the metal lies at late 
February congestion of $32.15, followed by the 50-day moving average 
of $30.96. The MACD has turned bearish, but most other technical 
studies are still clinging to bullish signals. Tomorrow's trading pattern 
will be key. Confirmation of today's down move would open up the 
potential of more selling.
Market Commentary
Gold marginally improved overnight, opening at 
1674.25/1675.25, before dipping to an intraday low of 
1672.00/1673.00. A quick recovery had the metal trading up to 
a high of 1679.50/1680.50, before an extended period of range 
trading. The metal returned to its high late in the session before 
concluding the day at 1678.00/1679.00. 
Silver commenced the day virtually unchanged at 31.80/31.85, 
before dropping to a low of 31.58/31.63 as the dollar extended 
gains. A slow recovery alongside gold until end of day interest 
pushed the metal to a high of 31.87/31.92 just prior to 
concluding the session at 31.83/31.88.
Technical Commentary
Gold is firmer today at current 1677. The price of Gold has been 
trapped between 1652 and 1695 for a month. The market 
appears to be building a base with price working on its second 
consecutive up week. We do not expect any speculative buying 
until the market can break 1695 - a level which has held since 
mid December.
Silver is largely unchanged today at current 31.84. Silver looks 
bid overall with price making higher lows over the past week. 
Key levels for Silver lie at 31.40 and 32.06 on a triangular 
formation. A break of either side yields 30.75 or 32.46. The Gold 
Silver ratio is higher today at 52.68. The ratio seems to have 
found a base at the 52.29 level after falling from 55.46 over the 
course of January. We are still bearish Gold Silver while it holds 
below 53.56.

Economic growth may slump to decade low at 5 percent.

India's economic growth is estimated to slump to 5 percent in the current financial year, the lowest in a decade, due to poor performance of manufacturing, agriculture as well as services sector, the government data showed Thursday.
In the advance estimate of national income, the Central Statistics Office (CSO) drastically cut the gross domestic product (GDP) growth forecast to 5 percent for the year ending March 31, 2013 as compared to 6.2 percent in the previous year.
This will be the worst performance of the Indian economy since 2002-03 when the growth was recorded at 4 percent.
Services sector, which accounts for more than half of India's GDP, is estimated to register a sluggish 5.2 percent growth in the current financial year as compared to 7 percent in the previous year.
The growth of industry sector is expected to decline to 1.9 percent in the year ending March 31, while the farm sector growth is likely to slump to 1.8 percent.
The latest official projection is sharply lower than the budgetary estimate and projections by the central bank and other organisations.
In the union budget for 2012-13 presented in March last year, the government had pegged the economic growth at 7.6 percent.
In the quarterly monetary policy review last week the Reserve Bank of India has projected 5.5 percent growth for the current financial year. While Finance Minister P. Chidambaram has projected a growth of 5.7 percent.
In the first half of 2012-13, Indian economy grew by 5.4 percent. The new projection indicate that the growth will be around 4.6 percent in the second half of the year.
Reacting on the CSO data, Chidambaram said the government was monitoring the situation and would take appropriate measures to revive growth.
"The CSO's growth estimate, no doubt, is below what we in the finance ministry had expected it to be. We are keeping a watch on the situation. We have taken and will continue to take appropriate measures to revive growth," Chidambaram said.
The finance minister hoped that the actual growth would be higher than the projection helped by the economic reform measures taken by the government.
"This projection is based on extrapolation of numbers till November 2012. Since then, leading indicators have turned up, suggesting some hope that we will end the year on a better note. Also, sectors such as trade and transport, which are related to industry, would also tend to get revised upwards, if growth outcomes are better," he said.
Chairman of the Prime Minister's Economic Advisory Council C. Rangarajan also expressed similar view, although terming the figure "disappointing".
"It can be revised upward," Rangarajan said.
Industry bodies urged the government to push forward the reform process to help improve sentiments and revive growth.
"Though this was anticipated but the number is astonishingly low. Several overriding risks continue to remain dominant and it is important that we firm up steps to give a thrust to the flagging growth," said Naina Lal Kidwai, president, Federation of Indian Chambers of Commerce and Industry (FICCI).
"While the reform measures taken by the government in the last few months have improved sentiments, there is a need to continue this momentum," she said.

Tata Steel investing in high-strength steel for automobiles.

Tata Steel (NSI:TATASTEEL.NS - News) Europe said it is investing 2.3 million euros at its IJmuiden facility in the Netherlands to develop next-generation steels for the auto industry that are lighter, stronger and better able to withstand crashes.
The Indian company's European branch, Tata Steel UK Ltd (CSRUK.UL), is Europe's second largest steel producer.
European steelmakers have been struggling to make profits in the last couple of years, in a fast shrinking market.
"The R&D investment follows close collaboration between Tata Steel and three major European car manufacturers to understand their requirements for future car models," Tata said in a statement.
The automotive sector, a major market for the steel industry, has come under pressure to produce lighter and more environmentally friendly cars and this has pushed steelmakers to invest in developing new, lighter materials.
Tata and other producers are speeding up a switch to products that add more value and help them withstand aggressive imports of basic grades of steel.

Gold extends losses on euro zone concerns; China data eyed.

Gold fell further on Friday as the euro weakened on renewed concerns over the health of the euro zone economy, while investors eyed China trade data for more trading cues.
China's economic rebound should show signs of strengthening when the first hard economic numbers of the year are released, although distortions caused by the Lunar New Year holiday will make it difficult to gauge momentum.
FUNDAMENTALS
* Gold fell $2.25 an ounce to $1,668.44 by 0050 GMT, but prices were still headed a slight gain this week -- its second straight weekly rise. U.S. gold futures were at $1,669.50 an ounce, down $1.80 .
* Platinum and palladium extended losses, having rallied to their highest level since September 2011 earlier this week on hopes of a better economic outlook.
* The European Central Bank will monitor the economic impact of a strengthening euro, ECB President Mario Draghi said on Thursday, feeding expectations the climbing currency could open the door to an interest rate cut.
* Draghi said the economic weakness in the euro zone was expected to prevail in the early part of 2013 but that later in the year, activity should gradually recover.
* China's gold production rose for a sixth consecutive year and hit a record 403 tonnes in 2012, keeping its ranking as the world's largest bullion producer, the Shanghai Securities News said on Thursday.
MARKET NEWS
* The euro hovered near two-week low on Friday after the ECB chief said he would monitor the impact of the currency's strength, making more straightforward remarks on the exchange rate than many had expected.
* U.S. crude steadied under $96 per barrel, weighed by higher domestic supplies, which may be aggravated by the possible delayed restart of BP's Indiana refinery.

World stocks dip after ECB meeting.

Major stock markets edged lower on Thursday and the euro hit a near two-week low against the dollar after the European Central Bank's chief said policymakers will monitor the impact of a rising currency and cited downside risks to the bloc's economy.
On Wall Street, shares ended lower but were off earlier steep losses. Traders cited the less-upbeat comments on the economy from ECB President Mario Draghi in the market decline. U.S. stocks have been on an uptrend so far this year, with the S&P 500 up more than 5 percent.
U.S. Treasury prices rose as the retreat in stocks lifted safe-haven demand.
Irish government debt rallied, with yields falling to their lowest levels since early 2007 after Dublin reached a deal that will reduce its borrowing costs.
After the ECB's policy meeting, at which the main interest rate was left at 0.75 percent, Draghi told a press conference that the exchange rate was not a policy target but is important for growth and price stability.
He also said risks to the economy were on the downside and that economic weakness in the euro zone will likely prevail in coming months.
The Dow Jones industrial average ended down 42.47 points, or 0.30 percent, to 13,944.05. The Standard & Poor's 500 Index closed down 2.73 points, or 0.18 percent, to 1,509.39. The Nasdaq Composite Index dropped 3.34 points, or 0.11 percent, to 3,165.13.
"Whether (Draghi's comments) ignite renewed concerns about the euro debt struggles and Europe in general is yet to be seen, but the market is looking for any reason to take a profit," said Andre Bakhos, director of market analytics at LEK Securities in New York.
"It is just consolidating near multi-year highs, taking a respite, before we advance higher."
The pan-European FTSEurofirst slipped 0.3 percent to 1,148.28, while MSCI's all-country world equity index was down 0.5 percent at 353.80.
The euro was last at $1.3398, down 0.9 percent on the day, with the session low at $1.3369, the weakest since January 25. Against the yen, the euro fell 1 percent to 125.34 yen, with the session low at 124.48 yen.
"Clearly (Draghi) does not want to see the euro go much higher," said Boris Schlossberg, managing director at BK Asset Management in New York. "There is massive pressure from the French. He is signaling displeasure that it ran up so much."
Before Thursday's declines, the euro had risen more than 2 percent against the greenback so far this year and over 10 percent against the yen.
The benchmark 10-year U.S. Treasury note was up 3/32, the yield at 1.953 percent.
The October 2020 Irish bond yield fell as low as 3.955 percent, the lowest in an equivalent Irish benchmark bond since early 2007, before the subprime crisis started, according to Reuters data.
Ireland struck a long-awaited deal on Thursday with the ECB to ease the burden of debts it took on to rescue its banking system in a way that will cut its budget deficit and borrowing needs and put it on track to end its reliance on EU-IMF loans this year.
Spanish bond yields fell after healthy demand at a sale of Spanish debt, though political uncertainty over a corruption scandal forced the country to pay more to borrow.
In commodities trading, Brent crude oil rose to a near five-month high above $117 a barrel after Iran rejected calls for direct talks with the United States, while U.S. crude prices fell on concerns about growing domestic stockpiles in the Midwest.
Brent finished 51 cents higher to settle at $117.24 a barrel, the highest close since mid-September.
U.S. crude dropped 79 cents to $95.83 a barrel. The Brent-WTI spread finished at $21.41 a barrel, the highest since mid-December.
Gold fell in a volatile session, trading in tandem with U.S. equities and industrial commodities after Draghi's comments stoked fears about the euro zone's economy. Spot gold lost 0.3 percent to $1,671.44 an ounce.

The Currency War Big Picture Analysis for Gold, Silver & Stocks

I think you will admit that we are in the middle of one major crazy financial mess. The part that makes things really crazy is that it’s not just in the United States anymore but rather serious global problem which if not handled properly could change the way we live our lives going forward or possibly even spark some type of war, hopefully things don’t get that crazy...... But I do know one thing. Fear is the most powerful force on the planet and people do some crazy things when they are backed into a corner.
 
Anyways, on a more positive tone…... today China decided to help provide more liquidity for the financial system along with the central banks. This news triggered a monster rally in overnight trading making the market gap up sharply at the opening bell. This news did hit the US dollar index hard sending it sharply lower but the question remains “Will today’s news be a one week hiccup in the market?” If Euroland starts printing money it will likely send the dollar higher and stocks lower for 6 -12 months.
 
Just today I was joking with Kerry Lutz of the Financial Survivor Network about how each country should just give each other country a second chance. Wipe the dept clean and start over knowing this time around exactly how each country truly operates at a financial level allowing everyone to avoid a repeat of this BS. Some countries will get off way better than others because they would get so much dept wiped clean. But isn’t it better than years of problems and possibly wars over food, gold, guns, oil and Canadian water?