EU fiscal discipline treaty good for europe, gold.

Now when I say this is good for europe, I mean this in a mother beating her child for bad behavior sort of way.  Many of the nations involved in this treaty are going to have SIGNIFICANT difficulty limiting their national debt to 0.5% of GDP.  This will bring about depression-like environments in countries relying on their debt to preserve their prosperity.  If the treaty is stuck too, it solidifies default or depression in portugal, italy, spain, ireland, and greece... maybe even others.

Why this is in any way, shape or form good for gold:  Significant concessions have been made by debt ridden countries to conform to merkel and a a debt free future.  In return these countries are going to need a bigger bailout package to keep on this stringent track.  Like always, +bailout = +gold.  I expect some finance professional to come out with an article stating these points in a few hours when America wakes up.  I'll post the link when it happens.

VIX!!!!

lol, just one day after my analysis on the VIX, zero hedge comes out with an article saying roundabouts the same exact thing!!!  winning.

http://www.zerohedge.com/news/long-dated-vix-still-priced-depression-risk

The VIX

The VIX, aka the fear index.   It is a hovering close to 52 week lows at ~18$ (52 week lows around 14.50). Since its inception in 2007, the VIX has been a tool that has been known to see fast and furious spikes to the upside during times of panic in the markets.  The VIX has yet to stay below 20$ for more than 6 months before spiking, often in dramatic fashion.  Looking at some of the yearly trends below, it seems clear we are going into the calm before a storm.  If the trend holds, I anticipate ~4-5 more months of calm.  Surely it is possible for European woes to put a damper on that parade, but I think the most likely solutions in Europe will postpone rather than fix problems.  

The VIX is an attractive buy at ~18.00, but I think it could go as low as 14$ before we see some real action. I am going to start entering into positions (6-8 month expiry) in a month or so, and if the VIX dips further in the coming months I will essentially double down on these positions.  I will not be left behind the next time the VIX decides to climb the slopes.

A Good Paper on Averting Inevitable Currency Armageddon

http://www.zerohedge.com/news/guest-post-gold-bonds-averting-financial-armageddon

Gold glitters as much as the Euros future.

It seems the Fed and the ECB are in an arms race to print.  Euro printing makes for a stronger dollar which is largely a negative thing for all stocks and equities.  With Euro stimulus and bailout packages dominating Europe right now the Fed has been keen to attempt to keep relatively constant balance sheet with ECB, which means more dollar printing.   This is very good for gold, the ultimate safe haven from currency printing.  The only downside to gold would come if the US decides not to keep pace with Europe, and that would likely take us to depression levels the year of an election.  I'm not saying this isn't possible, but the safe bet is always on politicians doing whats best for the next election, not the country.  That being said, gold has a lot of upside going into the new year.