“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” ~Lao Tzu

By Catherine Austin Fitts

While equity markets improved last week, reports on both the US and global economy keep flashing signals of recession and deflation.

The US Dollar Index and the gold and silver markets continue to be the indicators to watch.  If you have not heard the latest Solari Report with Franklin Sanders on gold and silver, I recommend it. Franklin makes a good case that this years run up in the precious metals is different than last year’s run up.   The potential variance in the market is aptly demonstrated by these quotes from Goldman Sachs:

“Bottom line, although 1,200-1,202 might hold in the near-term, there’s scope to extend much higher over time.” – Goldman Sachs, Feb 10, 2016

“As we maintain our view of rising US rates and hence lower gold prices with a 3-month target of $1100/toz and 12-month target of $1000/oz, we are recommending shorting gold through a GSCI-style rolling index” – Goldman Sachs, Feb 15, 2016

The only confidence I heard from investors last week was that they are sure Judge Scalaia’s death was not natural. It was, they said, a reason to buy more gold.

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