IT’S QE OR ELSE

                              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 does nothing.

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.

-vegas

SCHOOLYARD BULLIES

                                   This Is Who Represents You

What happens when a collective group of people are pushed to the edge of sanity by politicians? Well, if you live in Europe, you are about to find out. Italy declares bank “Holidays”; Switzerland is considering capital controls and travel controls; and to top it off, Saxo Bank [Netherlands] has quadrupled trading margins involving Swiss Francs [CHF].

The pain of Greece is clearly spreading. And while you will suffer, the politicians will conference somewhere where the hookers are plentiful and the caterers superb. If there are any companies out there whose biz is booming it is A) caterers, and B) those that make paper for Drachmas.

Markets are on the proverbial “pins and needles” Defcon 1 red alert.

Gold was its usual self [as of this year], going $20 in 20 minutes; the new normal is to see just how fast money destruction can occur in the span of the shortest amount of time possible. Makes no difference up or down, although stop destruction on the down side has always been a crowd favorite amongst professional traders.

Record short EURUSD spec positions at the Crimex [let’s face it, that’s what they are – just ask any former MF Global customer] means that any burp from a Pol in Europe will jerk the market one way or the other; today was no different. Although today isn’t over as I write this, we definitely got the "Flying Wedge of Death" going on in most pairs.

What needs to happen isn’t going to happen; shut the politicians up and get them in a room until something concrete and credible is brought forth they can agree. And just to be clear; no hookers and sea bass in white wine sauce until you got something – understand?

“How do you expect us to live?”

Of course, as the world knows to well, this weekend comes the Greek elections. I’m just thinkin’ out loud here; by any chance is there a full moon this Sunday?

Maybe what the continent needs is some Chalky Soetero “Hope & Change”. Given how his campaign for “Preeeezy” is going, putting him in Europe for a few weeks would probably improve his poll numbers.

If this wasn’t so serious and affecting so many people it would be hilarious.

Have a good day everyone.

-vegas