The Train That's Coming!
March 18th 2009 19:04
Well, isn't that interesting!
Gold was down over $25 and below $900, when along came the announcement that the FED was going to buy back $300 Billion with a "B" of long term, 30 year treasury bonds. Do my ears hear "monitize the debt"?
Lo and behold, the market which was down 68 starts flying and Gold goes back to $935 up $20!!!
Inflation is coming down the tracks, my friend, and we can run to the safety of precious metals or be squashed like the penny I put on the tracks when I was a kid.
The USD has fallen out of bed. Investors know what's coming!
Gold was down over $25 and below $900, when along came the announcement that the FED was going to buy back $300 Billion with a "B" of long term, 30 year treasury bonds. Do my ears hear "monitize the debt"?
Lo and behold, the market which was down 68 starts flying and Gold goes back to $935 up $20!!!
The Fed also said it will buy more mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help that battered market. The central bank will buy an additional $750 billion, bringing its total purchases of these securities to $1.25 trillion. It also will boost its purchase of Fannie and Freddie debt.
The USD has fallen out of bed. Investors know what's coming!
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Comment by Edward Allen
Sanity Road
With all the money spent already and those funds promised in the future, I see no way out of this problem without drastically increasing inflation to diminish the reality of such huge sums in the future. Hang on for the ride. Bumpy is a good word for it.
I like your penny on the track analogy.
Comment by ZZMike
And wait a minute - who do you buy these bonds from?
Comment by Mike Landfair
Market Bugle