Oct. 31 – Halloween – is a scary day but not because of the costumes or black cats. The 31st of October is the end of the fiscal year for the US government.
Once the fiscal year ends the books need to be produced and that’s what would make Nov. 2 even scarier, because that is the first day the stock and bond markets and dollar traders can react to the numbers.
As I write this the national debt stands at $12T and a $1.29T budget deficit. I see the dollar hitting the low 73s on the dollar index in the week Nov.2 on this report.
Unfortunately with Fed chief Ben Bernanke, Treasury’s Tim Geithner and the plunge protection team in the markets there is no guarantee this mark will be hit. But gold surging $20 could be attainable.
For more on Wall and Washington and the economy see: http://mgray12.wordpress.com