"There are those who have been waiting to buy undilutable precious metals in
response to a headline announcement from the Fed that it is starting to buy up
hundreds of billions of Treasurys or MBS. This is understandable - after all
that is precisely the trigger that the headline scanning robots which account
for 90% of market action in the past year are programmed to do. And the worst
thing that one can do is put on the right trade at the wrong time. Yet it may
come as a surprise to some, that while the world was waiting, and waiting, and
waiting, for Bernanke to hit the Print button, virtually every other
central bank was quietly unleashing it own mini tsunami of liquidity.
In fact, as Morgan Stanley puts it, "the Great Monetary Easing Part 2
is in full swing." But wait, there's more: in an Austrian
world, where fundamentals don't matter and only how much additional nominal
fiat is created is relevant, it is sheer idiocy to assume that the printers will
stop here... or anywhere for that matter. They simply can't, now that the
marginal utility of every dollars is sub 1.00 relative to GDP creation. This
means that by the time the Global Weimar is in full swing, we will see much,
much more easing. Sure enough, MS anticipates an unprecedented additional round
of easing in the months ahead. So for those waiting to buy gold et al at the
same time as DE Shaw's correlation quants do, the time will be long gone.
Because slowly everyone is realizing that it is not the Fed that is the marginal
creator of fake money. It is everyone.
Behold, the Great Monetary Easing part 2:
at http://www.zerohedge.com/news/while-you-were-sleeping-central-banks-flooded-world-liquidity
Behold, the Great Monetary Easing part 2:
at http://www.zerohedge.com/news/while-you-were-sleeping-central-banks-flooded-world-liquidity
