Things That Make You Go Hmmm…

Posted by John Mauldin: Mauldin Economis

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Contents:

Three Days that Saved the World Financial System

Does a Yes to the Swiss Gold Referendum Imply an End of the CHF Cap?

Texas Wants its Gold Back! Wait, What?

Cyprus and the Unraveling of Fractional-Reserve Banking

Slovenia Faces Contagion from Cyprus as Banking Crisis Deepens

Luxembourg Warns of Investor Flight from Europe

The German Professor Who Wants to Get Rid of the Euro in Order to Save Europe

CHARTS THAT MAKE YOU GO HMMM…

One of the more fascinating reminders of what may be to come for the remainder of this gold bull market, is the charted history of the dow/gold ratio. Below are two charts illustrating the upward potential in gold which remains for the duration of this market.

The first chart is a normal 200-year look at the dow/gold ratio. What’s particularly shocking here is the staggering levels of volatility injected into the economy and financial system following the US Federal Reserve’s formation in 1913…. [This] volatility has wreaked havoc on many, while creating excellent one-way bets for long term speculators…. [T]he second and more alarming ratio chart is illustrated with a “confidence trend band”:

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WORDS THAT MAKE YOU GO HMMM…

.…….read it all HERE (Delay Of Game. Five (point eight) Yards)