Jeff Christian's clients were being carried out on stretchers today as the Fed made it rather clear to any who were still in doubt that they do have a printing press and, by hell's heart, they are going to use it.
The Fed clearly signalled their intent to spend, and gave some indications of their willingness to 'do whatever it takes' in their own Draghi moment. What will restrain them? The difference is that the US has no Merkel, just Urkel(D). Or Herman Munster(R).
Remember that in this sort of reserve fiat currency the only limiting factor to their printing is the value of the bonds and the dollar, which is after all a bond of zero coupon and unrestricted duration. Well, unrestricted until there is a default, but that is another matter. And they all do it, sooner or later.
|Gustav Klimt, Portrait of Adele Bloch-Bauer|
So what next. Gold has made its 'cup' which I showed intraday. What happens next will determine what we will make of it. We need to see it stick the rim, and then form a decent handle. I will review the technical rules soon if that happens. Remember the retracements.
Blythe Masters had an interesting addition to her CV at JP Morgan which was noted in intraday commentary. As you may recall, Blythe is of special interest to us because she is the Captain of the USS Silver Short Position, currently racing through the North Atlantic at top speed with its running lights off.
I am reading a Berlin Noir novel Prague Fatale by Philip Kerr, a remarkable writer who ornaments his well structured and researched story with an amazing, almost exuberant display of wide learning and broad cultural erudition. I am curious to know how he accumulated such an array of knowledge. He weaves it together well.
It was very entertaining and is his latest work. I intend to read more of his other books to see if this was the full flowering or more par for the course.
Have a pleasant evening.