Much of the recent unpleasantness has been centered on the future of the dollar.
Those who see the dollar as the sine quo non of the current incarnation of the gobal economy are desperate to see a recovery in the dollar...hence the plunge in gold recently.
Others think it's too late to save the dollar without economically devastating rate hikes that will destroy the economy...
Still others see the recent panic selling as just a normal "sucker flush" after a big spring run up during the 401k and pension funding season, just ended.
My hunch is that it's going to be the latter....merely a season flush of retail investors who were lured into the markets by ever higher prices... The Street does "do" this kind of thing from time to time...
Yes, the "crisis" seems real...because if it didn't people would not dump their positions.
But after the public has been fleeced...yet again...the Street stabilizes and the happy talk comes back...
That said the dollar is structurally weak...and no amount of gold shorting and central bank shilling will change that.
SO AT SOME POINT THE DROP IN THE DOLLAR WILL BE REAL AND IT WILL DAMAGE THE ECONOMY WITH PERMANENTLY HIGHER PRICES...
THIS COULD BE THAT TIME... BUT I DON'T THINK SO.
RECENT ACTION HAS BEEN TOO TARGETED ON GOLD AND THE DOLLAR.
I SEE THIS AS A "PLANNED" SEASONAL PANIC THAT WILL STABILIZE BEFORE LABOR DAY...AND THE HAPPY TALK AND BULL MARKET WILL THEN CONTINUE...WITH THE RETAIL INVESTOR...SADDER BUT WISER...YET AGAIN.
