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The Fed is working overtime on the creation of a mass perspective of a non inflationary economy. The media is working overtime to call the end of the commodity market. Crude oil is being painted as a rotten apple ready to and in fact dropping from the tree.
The item that allows this game is not energy or metals of edibles, but rather the US dollar. Argue if you wish, but if today the US dollar was below .8500 the impact of all this misinformation would have been quite limited.
The goldilocks economy is being repeated on the airwaves today. It claims the economy is slowing perfectly and the cooling of commodity prices proves the wisdom, timing and depth of intellect of the new Conan the Money Man, Professor Bernanke. Greenspan has, like an old soldier, just faded away.
The Fed’s Poole has just come out and said everything the market wanted to hear to fit the Goldilocks economy. We are right back on the 1930 Plateau of Prosperity as the markets seem to have forgotten about the Cinderella Economy that was in play a few months ago. I guess Goldilocks with its implication of the 3 BEARS is even better than a Cinderella (she vanishes at midnight).
Right behind Poole was Cathy Minehan of the Fed repeating the perfect balance now existing economically by the Fed’s sage actions. This Monday 9/11 has got to be the best day ever in media reporting of the health of the US economy. There is hardly a challenge out there.
Geopolitically, both Iran and North Korea are ready to lay down their arms and beat them into plow shares.
Today Afghanistan and Iraq do not even exist.
Forgotten is every fundamental for which there is neither fix nor today attention. Every black box has gone bear oil and bear energy, yet the dollar remains the key. Gold is all in the US dollar.
It is inhumane to lecture people who are suffering. All I can say is damn margin, damn writing options, damn credit card use in investments and damn personal loans to speculate. They are the killer today as no one can stand pat and change the channel when the margin call person is banging on your front door looking for your first born.
If anything proves Wag the Dog is in action it is the concerted commentary from all corners of government and international banking TODAY concerning the miracle of the perfect Federal Reserve management of the economy with geopolitics falling directly into orderly control.
Gold is going to set the bear trap of all time, but those hanging on by a thumbnail might just be the means by which the wash out occurs. They always are.
As far as I am concerned:
The “Formula” is absolutely correct.
1.Gold is headed for $1650.
2.This is an attempt to break the back of inflationary psychology before October 1st.
3.The amount of gold, silver and precious metals shares on margin is shocking. Even the most conservative I have spoken to has been nursing margin debt for the past month. I feel so deeply for their pain. |
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發表於 2006-9-12 08:03:10
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