The BIG RALLY yesterday was likely caused by desperate shorts looking for stock to cover their positions...
But the inflation story and the dollar story are still here...
It's important not to confuse one day of hype...with real structural solutions. There are no sturctural solutions yet...there is only talk about solutions for the weak dollar; like slamming down gold, and raising rates.
Of course, the real solution to the dollar is to elect a Kongress that would raise taxes...and make the rich pay their fair share of the budget burden again, since the US working classes have been imporverished by low wages and the "global economy."
REALITY SIMPLY WILL NOT GO AWAY....SUCKER FLUSH OR NO SUCKER FLUSH...
THIS ECONOMY HAS PROBLEMS. THE LOOTING AND THE CORRUPTION HAVE GONE ON FOR TOO LONG TO BE QUICKLY SOLVED BY BASHING GOLD OR OTHER TRICKS.
AND WE HAVE YET TO MOVE THE REPUBLICANS OUT OF POWER; SO THE UNWINDING OF THE MESS CAN EVEN GET STARTED!
THE BEST WE CAN HOPE FOR IS TO TREAD WATER...UNTIL SOMETHING CHANGES IN WASHINGTON. BUT UNFORTUNATELY, THAT'S A LONG TIME TO TREAD WATER.
As FED officials try to put solutions on the table...likely the markets will be having hissy fits all summer!
Yesterday's wild rally for example was stupid...if it was NOT technical. But the public doesn't see the real machine behind the curtain...they take everything at face value.
Our week of frenzy on the up and down side have done nothing and solved nothing. Frenzy and talk are not the answer...good policy is...but good policy will have to wait for new leadership.
