"Do you know where your money is? And if you want it, will you be able to get it?"

Labor Day Market Bloodbath: Gold Tops $1,900

by Gerald Celente

As Americans celebrate Labor Day (the worker's holiday for workers lucky enough to have jobs), the financial news from across the pond is anything but celebratory. Today, the equity market meltdown – that saw US stocks logging their worst August in 10 years – hit Europe even harder and sank major Asian indices to yearly lows.

Today's sell-off, which began with the Asian markets falling some 2.5 percent followed by a 5 percent drop in European markets, is setting off frantic alarm signals. Just two of the 45 markets tracked by Standard & Poor's Indices rose during August, and September has begun on an ominous note.

The summer collapse I predicted is underway, and there is much worse to come. (See Trend Alert®, 13 June 2011, 'COLLAPSE: IT'S COMING! ARE YOU READY?')

Trend-conscious Trends Journal subscribers around the globe take note: The world markets are in meltdown, and nothing, but NOTHING, that 'policy makers' make up will reverse it.

American subscribers, who may well be tuned out of the news and in a holiday mode today, could find – if Europe is a harbinger of what to expect tomorrow – the day after tomorrow bringing panic to the Street.

Do you know where your money is? And if you want it, will you be able to get it? European, American, Chinese … it doesn't matter. The banks are taking a battering. Just today, The Royal Bank of Scotland fell 12.3 percent, Deutsche Bank 8.9 percent, and Societe Generale 8.6 percent. In the last six months, major US and European banks have lost about half of their value.

Fears are mounting that some European banks would not be able to meet their debt obligations if they were forced to recognize the existing losses in their balance sheets. Despite years of promises to remedy the sovereign debt problems by the European Central Bank and the International Monetary Fund, it is becoming obvious they will not be able to do so.

Is that why, as ECB data reveals, European banks have been withdrawing their cash from the European banking system and transferring it to the US … as indicated in data released by the US Federal Reserve on Friday?

Take action as appropriate. With gold closing today above $1,900 an ounce, my forecast for 'Gold $2,000,' once roundly ridiculed, is now, for all intents and purposes, realized.

Link:
http://lewrockwell.com/celente/celente78.1.html