THE MARKETS SEEM TO BE TREADING WATER...DISTRIBUTING THE BIG GAIN FROM YESTERDAY...TO A FEW RETAIL SUCKERS. PERHAPS WITH A LITTLE SHORT COVERING STILL TO COME...
BUT THE FED MOVE TO 1% WILL BE HIGHLY NEGATIVE...AND WILL CONVINCE EVERYONE THAT THE US ECONOMY IS IN BIG TROUBLE...
GOLD IS ALREADY HIGHER...AND WILL LIKELY STAY HIGH IN THE WAKE OF THE RECORD LOW FED CUT... BUT THE SYSTEM IS AWASH WITH MONEY ANYWAY...AND LITTLE OF IT WILL COME OUT TO MAIN STREET ANY TIME SOON...
SO THE FED SEEMS TO BE IN A LIQUIDITY TRAP...THE ONLY PLACE FOR THE MONEY TO GO IS INTO MORE SPECULATION IN ASSETS...BUT THE HEDGE FUNDS AND OTHER PLUNGERS HAVE BEEN BURNED AND WILL LIKELY BE OUT OF THE BUBBLE BUSINESS FOR A WHILE LONGER...
AT SOME POINT .... THE WORLD WILL REALIZE THAT THE US DOES NOT REALLY HAVE A SUSTAINABLE ECONOMY... AND THE DOLLAR WILL START DROPPING...
GOLD SHOULD RISE... BUT THE "KEYSTONE EVENT" IS WHEN CHINA, RUSSIA ET AL START DUMPING THEIR US DOLLARS AND BONDS...
THAT COULD START HAPPENING AFTER THE BIG "NEW BRETTON WOODS" MEETING AFTER THE ELECTION ON NOVEMBER 15....
THE WORLD IS STILL STRUGGLING WITH THE POST-DOLLAR GLOBAL ECONOMY...THE ONLY PROBLEM IS THAT THEY DON'T KNOW IT YET...
BUT THEY ARE FINDING OUT THE TRUTH A LITTLE BIT EVERYDAY...
