The Bernank: Man Of The Moment
Next week, the world literally turns its lonely eyes to the Mariner Eccles building for more “Hope & Change”.
“Ohhhhhhhh, Chalky Soetero is giving his umpteenth campaign speech?”
“Errrrrr, not quite.”
The world is hoping, praying really, that Weimar Ben opens the
money printing monetary easing floodgates
at the June Fed meeting. As with all things, the devil is in the details, and
even if he comes through, the key will be if it was enough. Hide the kids if he
The monkey wrench in the equation is Greece; with a newly elected socialist government only a couple of days old, and ready to tell the banksters in Brussels to go pound sand, how much of the taxpayers money does Ben give away?
Not to worry, Vampire Squid [GS] will let the moneycrats know what to deliver early next week before the meeting. The real question is which Belgian or French caterer is doing lunch. Remember, “The private sector is doing fine.”
Gold especially is subject to the “buy the rumor sell the fact” mantra of Trading 101. How many times have I warned [and been right by the way] that the rock gets rolled up the proverbial hill, only to be rolled back down when the Central Planners sense the public is now just a tad long the yellow stuff?
And on cue today, the EURUSD put on a blistering short covering rally because of course too many people are short the pair. Forget the disappointing retail sales figures; it’s all about QE and the “Hope” the Fed bails out Europe and saves the day; the “Change” of course is that something but failure will be the result. Now that’s what I call “Hope & Change” trader style.
Too bad it won’t change anything because Italy is next; say goodnight Europe, the party is over in 3 …. 2 ….. 1
Have a good day everyone.