72 Hour Call for June 13, 2011

Today’s Call:  Price of Gold to fall.  Currently $1,534.80.

Rationale:  Nearly all asset classes are going to begin to cave in to a perceived deflationary spiral that is taking hold as inflation in food and energy costs begins to take its toll.  This will temporarily bring Gold and other precious metals down with it.  Government likely to announce new stimulus plans in the near future.

Result of Call for June 8, 2011:  Yield on 10yr US Treasury bond to fall (price to rise).  Was 2.962%, Currently 2.991%.  Bad Call. 

Calls to Date:  Good Calls: 28, Bad Calls: 20, Batting .583

Key Indicators for Monday, June 13, 2011

Copper Price per Lb: $4.03
Oil Price per Barrel:  $97.00

Corn Price per Bushel:  $7.82
10 Yr US Treasury Bond:  2.99%

Gold Price Per Ounce:  $1,534

MINT Perceived Target Rate*:  2.25%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.4%
Dow Jones Industrial Average:  11,953
M1 Monetary Base:  $2,022,700,000,000 RED ALERT!!!
M2 Monetary Base:  $9,005,800,000,000 STARTING TO DRY UP?  NOT!

 *See FED Perceived Economic Effect Rate Chart at bottom of blog.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.