"...It's time to face the facts Fed monetary stimulus is now useless at best. It's
also time to face the facts the rally in gold has little if anything to do with
inflation.
Gold is clearly reacting to further stimulus efforts by the Fed, Eurozone bank stress, or US bank stress. It is always difficult to say "why" something is happening but in this case, bank stress in both the Eurozone and the US is the likely reason for the renewed push higher.
Gold may become even more volatile as the ECB and IMF attempt more futile efforts to "save the Euro". These foolish efforts to "save Greece" (in reality save stupid European banks that made foolish loans to Greece) has tripled or quadrupled the pain those banks are going to feel.
What may initially have been a 40 billion Euro boondoggle now likely approaches a 150 billion Euro boondoggle and the EU wants to throw yet another 100 billion Euros at it. In the meantime, Italy looks prepared to blow again.
How much more of this will citizens of Germany, Finland, and Austria put up with? How much austerity can citizens of Greece, Spain, Portugal, and Italy take?
This can easily come to a crisis head as soon as next month, or even next week..."
at http://globaleconomicanalysis.blogspot.com/2011/09/2-year-10-year-treasury-yields-at.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29
Gold is clearly reacting to further stimulus efforts by the Fed, Eurozone bank stress, or US bank stress. It is always difficult to say "why" something is happening but in this case, bank stress in both the Eurozone and the US is the likely reason for the renewed push higher.
Gold may become even more volatile as the ECB and IMF attempt more futile efforts to "save the Euro". These foolish efforts to "save Greece" (in reality save stupid European banks that made foolish loans to Greece) has tripled or quadrupled the pain those banks are going to feel.
What may initially have been a 40 billion Euro boondoggle now likely approaches a 150 billion Euro boondoggle and the EU wants to throw yet another 100 billion Euros at it. In the meantime, Italy looks prepared to blow again.
How much more of this will citizens of Germany, Finland, and Austria put up with? How much austerity can citizens of Greece, Spain, Portugal, and Italy take?
This can easily come to a crisis head as soon as next month, or even next week..."
at http://globaleconomicanalysis.blogspot.com/2011/09/2-year-10-year-treasury-yields-at.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29
