From goldrunner:
(goldrunner) Jan 24, 20:08
I for a longtime have said that "You ain't seen nothing, yet." And that goes for all areas of life at this time. Bottom line- It is ALL very positive for the PM sectors. I have also stated, "Throw out all the old rules, cause they just don't care." Several then told me that "They could not get money into the system if there was no 'loan demand'. Bullshitoney, they can/ are monetize debt, give money away in terms of loans to unqualified people in a Real Estate Bubble, hand out credit cards by the droves, send out check-loans in the mail........they chose their course a longtime, ago, and cannot change. What difference does it make if they hand it out to the people.......isn't that better than using the newly printed money to bail out banks and corporations?
Crazy? Yes, of course, but you better watch out what you wish for because the other choice at this time is "1929." Does this lead to "1929 anyhow?".....I don't know, but a chance to avoid 1929 sounds a bit better to me than a guaranteed 1929........unless you like thin soup in groups, eh?
It has been said that "Action speak louder than words." A 3/4 point cut means very little to the individuals and companies who are underwater at this time. Yet, the emergency 3/4 point cut does mean something very important to those who seek refuge in the PM sector. That emergency 3/4 point cut very clearly screamed........"Inflate of die a deflationary death?"........."We will pull out all the stops by cutting rates aggressively into an inflationary currency environment........we'll hand out newly printed dollars.........whatever it takes!"......"GOlD and SILVER and PM STOCKS to DA MOON!!!!"
The Fed absolutely needs the inflation indicators like Gold and Silver up at this time. In terms of deflation versus stagflation, the Fed absolutely needs the PM stocks up at this time. Why is that? It is because the last bubble they need to blow to protect the paper system has to be the parabolic bubble of PM stocks, along with Gold and Silver. If they fail that.......they die a deflationary death........the paper system..........RIP.
The Fed will be clearly behind the PM sector in general until the next intermediate-term top when the depths of this particular deflationary scare will act like gravity to take the PM sector down into a bottom along with the general markets. That drop will be called a re-test of historical highs by all of the TA techies. Then the real parabola starts with the Fed behind the PM sector, once again.
It's really kind of ironic. The Fed can really control nothing.....all they can do is to allow a market to trade in the direction of "trend" while using their influence to guarantee that a normal Elliot Wave pattern as expected by traders does not get panicked into outerspace prematurely. YET, if the Fed was not willing to go with a plan of massive USD inflation, the trend would be pure deflationary.....1929.
7 come 11.........Come on, Fed.....Make our PM DAY!
Only my opinion, of course.
GR
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