Did The Shit Just Hit The Fan?

The following chart is a big problem for the central planners and their fiat currency fantasy economies:

The chart shows the bottoming process of gold, a monetary metal with no counter-party risk and no yield is beginning to outperform.

This is a big problem for debt addicted central bankers and the economies they represent.

With overnight interest rates at central banks near, at, or below the zero threshold, an alternative currency threatens each bankers little kingdom.

Stakes are high in this central planning game of currency devaluation.  Sometimes we see glimmers of truth that the central bankers themselves are quite worried.

The recent event that shows us this is the Federal Reserve leaving rates on hold a few days ago.  A follow up event that confirms our suspicions is the demeanor of Janet Yellen at today's speech in Boston.  

Fed's Yellen appears to fall ill during speech

Yellen faltered the better part of an hour into an address on monetary policy and inflation, given to a large audience at the college at a brightly lit podium. On a livestream of the event, she could be seen to pause just before the last lines of the text she had prepared, which was available online. She seemed to become confused about her place in the speech, went silent for long periods of time, and coughed severely.
Given the circumstances of the real economy, and the continued problem of too big to fail banks, perhaps Yellen had a Minsky moment during the speech.  Perhaps she realized she will oversee the world's reserve currency and largest economy during a second financial crisis.

One bank to continue to monitor over the next few months is Deutsche Bank.  It is loaded up with toxic Greek debt and continues to show up on our radar as a potentially insolvent institution.  We alluded to this issue in February in a previous post here.

Our final thought is one regarding LIBOR.  It continues to climb as the risk to the financial system also increases.