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The coming calamity for the people of Earth is going to be a much greater magnitude then we saw in the great depression. We are going to see, war, a worldwide currency crisis, deflation, debt default, a global depression, and the rise of the police state and wealth confiscation by major governments. Expect the public to get to the “enough is enough” stage and revolt against governments.
All of these trends are underway but an escalation in the magnitude and velocity is scheduled to accelerate after mid-2015.
Get your helmets and face mask ready as huge fans are being wheeled in alongside of large buckets.
Note; Gold technical analysis follows articles below.
Deflation watch
Say Goodbye To Mid-2015 Rate Hikes: Revised "Hourly Compensation" Crashes
Submitted by Tyler Durden on 12/03/2014
But all the clever talking heads (the same ones that to-a-man saw rising rates this year) keep telling us that wage inflation is coming any minute, it has to right, and will create escape velocity and nirvana on American soil. Sorry, nope. Unit labor costs dropped 1.0% in Q3 against a 0.3% preliminary print and expectations of a mere 0.2% drop (the 4th missing quarter of the last 5 and lowest growth since Q4 2013. What is more problematic is real hourly compensation was revised drastically lower - quite a plunge.
Crude Slides After Saudis Suggest Oil Stabilizes Around $60
Submitted by Tyler Durden on 12/03/2014
Just when industry experts were eying zee stability in oil prices in the last 12 hours, this happens...
*SAUDI ARABIA SAID TO SEE OIL AROUND $60/BARREL: WSJ
And crude oil prices begin to dip once again.
Economic Watch
US Services PMI Tumbles For 5th Month As "Domestic Demand Weakens"
Submitted by Tyler Durden on 12/03/2014
For the 5th month in a row since the record-breaking June highs that proved the recovery narrative was working, US Services PMI dropped. At 56.2 (missing expectations of 56.5), this is the lowest in 7 months. As Markit notes, this is a problem, since "whereas the manufacturing slowdown was largely linked to weaker global demand and a renewed fall in export orders, moderating growth in the service sector is a sign of domestic demand weakening." This points to a significant slowdown in GDP growth to a mere 2.5% from a hopeful 3.9% in Q3.
ADP Employment Misses, Worst November In 4 Years
Submitted by Tyler Durden on 12/03/2014 - 08:21
Following 2 months of improving growth and beats after a mid-year slump, ADP Employment in November dropped to 208k (from a revised 233k in Oct) missing expectations of 222k by the most since August. November has historically seen a significant bump higher in employment but 2014 saw a drop (the first since 2008) with the lowest November print since 2010.
"Clearly a Negative Signal": BofA Shows Thanksgiving Spending Was Biggest Dud Since Lehman
Submitted by Tyler Durden on 12/03/2014 -
First it was Shoppertrak, then it was the National Retail Federation, then it was IBM, and now, with its own set of internal data, here is Bank of America slamming the door shut on US retail spending as a source of Q4 growth, and proving once and for all that the extended Thanksgiving-weekend, and the start to US holiday spending season, was the biggest dud since Lehman.
Russian Central Bank Defends Record Low 55 Level, Bonds Tumble
Submitted by Tyler Durden on 12/03/2014 - 09:36
Since the top in oil in June, crude has dropped around 37%... and so has the Russian Ruble. Monday saw the Russian Central Bank (rumored) to intervene to protect the 54 Ruble to the US Dollar level. Yesterday saw weakness resume as oil prices slipped and today it appears 55 is the new line in the sand as the USDRUB was smashed 2 handles lower earlier today (only to begin selling off once again since). Russian 10Y bond yields are leaking higher however, +20bps to break the 11% line in the sand.
Venezuela Default Risk Surges To Jan 2009 Highs
Submitted by Tyler Durden on 12/03/2014 - 11:24
Venezuela CDS is surging once again this morning, even as oil prices stabilize on the day, to its highest since January 2009 as traders increase hedges or speculation that the nation will be forced to default on its bonds. Current prices imply around an 85% chance of default (likely not helped by President Maduro's insistence that all is well and that he will try to destrout the black market for dollars that implies a massive devaluation is afoot for the Bolivar)
Our thanks to www.zerohedge.com for the above articles.
Gold Short term
The flushout on Friday and Sunday night is complete. A retest of the downtrend line from October was met and dramatically reversed. Remove trades after the NY close on Friday, and the Sunday night drive by shooting flush out, and prices would have remained inside the uptrend channel. Odds favor prices begin to move higher sometime between De 3rd-9th and continue up into Dec 23rd. Two channel lines of support are at 1188-1192 and 1163-1172, with the PIVOT being 1180. Odds favor 1172-1180 should be strong support. We either bottom there, or we already have yesterday (1188-1192). If we get a pullback into Thursday, odds favor we make a low there and into possibly Monday. Regardless, A close above the black upper dotted trendline favors higher to the red channel line and we suspect possibly the 1255-1272 area in December. Resistance is 1217-1222. Closes above there favor higher with the short term cycle low already in place. As far as today, 1190-1194 is support. We need to see the BLUE moving average above the Green for short term neutral to become bullish.
 
Cycles
The short term cycle is due to bottom Dec 6th (plus or minus 72 hours) so we are now in the window of time. Once underway, odds favor higher into Dec 23rd (plus or minus 72 hours). A blue cycle low here favors higher into the medium term cycle due Dec 23rd (plus or minus 72 hours). The odds are 70% higher and 30% for a cycle inversion. The reversal from Monday leaves that potential open as it’s possible that we are actually making a BLUE cycle high instead of a low this week.
Caution is urged.
Silver
Silver has reached the channel downtrend line and a weekly close above it favors higher towards 1700 for starters and potentially more. Support is the 1585-1609 area. Additional support is the 1525 area.
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