Possible Pins To Pop Asset Bubble

Several charts show a culmination of events that are likely candidates to pop the re-blown asset bubble the Fed has blown through Quantitative Easing and tinkering with interest rates.

The price of oil appears to be failing to breakout to new highs on so called "growth" and renewed demand.  The current projection suggest mid $70 range should the pattern break down.  Note that all the QE of the past 5 years has failed to help oil take out the $140 peak price.

The Canadian dollar pattern shows a break below support, retest of neckline, and suggests a fall to 88 cents.  This does not bode well for the commodity and export dependant Canadian economy.

US 10 year bond yields are quickly rising and have broken a multi year downtrend.  The target based on the pattern is over 4%.

Consider how this translates into higher borrowing costs which drag down the price of housing.
So much for a great recovery of US housing prices.

Canadians, you have been warned about this for years, the housing bust is now at hand.

Gold prices tend to benefit when the ravages of deflation strike.  


Gold is the oldest, purest form of money and deflation strike debt holders hardest.
There is no debt that gold owes.
There are massive debts that fiat currency governments owe, and they will attempt to pay them by debasing their currencies further.  

While our longer term view is gold to reached the measured move of $1700, is seems likely to eventually reach new all time highs as debt is squeezed out of the financial system.
For now, gold looks ready to have a small pullback to the $1350 level or so.

Keep in mind that our current financial system is based on a fiat currency/central bank backed/anti-gold system of continually increasing debt levels.

It should not be surprising to any logical thinker that this is completely unsustainable.

All that has happened is the creation of a middle class of debt slaves.

In the last century of central banking experiments, the wealthy elite class has grown exceedingly powerful.  They will not easily give up on the system that keeps them very comfortable.