Posted Aug 24, 2012 by Martin Armstrong
Silver is rallying into the next turning point ahead. The Monthly Bullish stand at 3412 and 3575. Moving up into this time frame is a warning that we could fail at the reversals, and the turn down. This appears to be a cycle inversion. That means the turning point does not change, it just produces the opposite effect.
This is still consistent with the long-term. The major high still appears to be around 2017, The debt is getting far worse. But the bankers & the government are fighting the trend fiercely. They will not reform until the markets forced them to do so. We may start to see that next year at the earliest with the possibility of extending into 2014.
With tax increased jumping dramatically in January, the deflationary trend appears to be reemerging as capital contracts and refuses to invest. They will reduce the VELOCITY and increase unemployment.