What is that SMELL? Two things...................................from Rico

Fiat is in its death throes.

- Doctor FED is firmly holding the pillow over Patient Dollar's face. If QE stops (or tapers), the Dollar dies; but if QE doesn't stop, the Dollar dies. It doesn't look good for the Patient either way.

While the FED's debauching of the currency to buy 'just a little more time' proceeds unabated, the Cartel is also doing it's part to delay the death of the Dollar. This Summer has seen blatant price suppression of the Precious Metals.

- The "2:15 am Algo" has 'hit' Precious Metals on 80 of the last 89 trading days...including 14 of the past 15 trading days, despite 'flat' prices.

WHY? With equities at all-time nominal highs, politicians and the Financial Media bleating about 'recovery' and 'better things' just ahead, why?

- Because, with 47-48 million Americans now on Food Stamps, ever-increasing government debt, and QEternity (the biggest 'bubble' ever created by the FED), the smell of FEAR hangs in the air. Fear of the failure of the debt-based fiat currency and of the financial system it supports, that's why.

No, not tomorrow. Maybe not even next year, but quien sabe? Who knows?

- Therein lies the rub. Nobody 'knows' ...it's all being flown by the seat of the pants now, the instruments (the numbers: official statistics, markets) having been so distorted they cannot be used, or be useful.

Here are TWO things to watch for:

- 1. Interest rates on US Treasuries rise steeply and/or suddenly.

- 2. The price of oil goes above $120/bbl.

Either or both mean the economic 'glide pattern' will be that of a rock.

There are TWO options when it gets to this point:

- 1. Look for your parachute and get to the emergency exit most pronto-like.

- 2. Brace, and assume the 'crash' position.

Either way, this thing is going down hard, and crashing.