The Yen

If you had bought the Yen two months ago and shorted everything else, all markets and all asset classes people would have called you crazy. Now, you'd be seen as a genius.

Today, however, even the Yen is starting to lose is strength. The NIKKEI index reached a 28 year low yesterday, and those that think the Japanese central bank will intervene are starting to sell the Yen.

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U.S. military helicopters launched an attack Sunday on Syrian territory close to the border with Iraq, killing eight people in a strike the government in Damascus condemned as "serious aggression."

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The economic problems in Pakistan are exacerbating the already troubling battles between militants and the new Pakistani government. Pakistan needs to be foreign policy issue #1. It is more important than Iran, more important than Iraq and more important than Afghanistan. Pakistan is a nuclear country that is teetering on the brink.

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The Dow traded in a 5% range and closed down 203 to 8,175. The NASDAQ and S&P were both down approximately 3%.

Paper gold contract prices on the Comex were relatively stable and are currently trading at $728. The physical gold market is another story entirely. Physical gold in the retail market is selling at a 10 - 15% premium to the paper gold price (if you can find it, which you cannot). In my opinion, we'll see Comex contracts in default in the not too distant future. The paper shorts are going to get crushed.