Dennis Gartman writes that he is scared. Scared that we have passed the tipping point. He especially outlines the cross between certain currencies such as the Euro/Yen, the movements of which are the most radical he has ever seen and then some.

Dennis might not always get the direction of gold right, but he has been an astute student of the markets for decades now and you have to listen to what he says. He is scared for the future of the capital markets.

Right now he is saying that the U.S. Dollar and Japanese Yen reign supreme. The former in part due to the fear and uncertainty surrounding the Euro and even its very ability to survive this current currency crisis.

Mr. Gartman feels we will see strong and ever stronger governmental action in the markets and against its participants. This may include closing of markets (Russia has already done this at least twice in the past weeks) and perhaps limiting bank withdrawals. All of this in return for guaranteeing your deposits, of course.

Further, we are likely to see more left leaning, and in the case of Mr. Obama, left falling off a cliff he’s so far left, government action and resulting higher taxes; much higher taxes. (But not for you, Mr. Obama will tell you, just your neighbors and those companies whose stocks are in your 401(k) that earn gazillions of dollars in undeserved profits.)

The Yen, on the other hand, is strong and crushing such currencies as the Australian dollar as Mr. & Mrs. Japan sell those higher yielding investments in other currencies and bring the cash home to Japan. This isn’t to say that Japan is in good shape by any means, only that they are a nation of savers - old and aging all the more savers.

We may see the Euro unravel as the individual governments act individually and in their own best interests as we saw Ireland do just a few days ago and guarantee all bank deposits. Other Euro zone countries, while denouncing Ireland’s action, have had no choice but to follow suit.

We may see rate cuts this week; although the Euro power’s that be decided against that last week. They may regret that.

Gold is not responding as many of us would like it to. In fact, radio DJ’s and local news people telling us to buy gold has actually got this writer a wee bit scared about its future (short term) price direction.

If you have the nerve to be buyer at these ridiculously low prices, why not take a risk free trial subscription to Big Gold or the International Speculator?