Harken, if you will, to the glorious days of times gone past when the stimulus flowed like honey and the unicorns of government-created prosperity roamed the land dropping their spoor of jobs and skittles hither and yon.
Does the frog really just sit in the pot while the heat is turned up, and slowly boil to death? Or does the frog actually realize at some point that he is getting really uncomfortable and that he better jump if he wants to live?
We know you have been to the 4th circle of hell, broken through support there, and kept dropping into the 6th circle. We know that you refer to the mining stock table on your computer as “The Red Sea”. Nevertheless, I am making a list and checking it twice.
What if Chinese prominently announced their gold holdings, then publicly called into question the status of US gold reserves (unaudited since 1952, probably for good reason). What if they announced this fact while at the same time prominently noting all of the separate trade agreements they have signed in the last two years that cut out the US Dollar from trade settlement- you know, the agreements they have signed with Russia, India, Japan, France, Australia, Brazil, and others?
Today, the market is what the Fed says it is. Simple as that. Supply and demand, productivity, projected earnings… all have become mostly irrelevant, or at least vastly subservient to actions of the all-powerful Federal Reserve. Therefore, understanding what a Janet Yellen-led Federal Reserve will look like might be the single most crucial factor in planning our investment strategies for the coming years.
