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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: GROUND ZERO™ who wrote (28349)1/11/2012 11:21:18 AM
From: FCom7771 Recommendation  Read Replies (2) | Respond to of 222624
 
I think if we look through the rear view mirror, the Fed is that powerful.

The question is, going forward, will they retain that power ?

The walls sure do seem to be closing in - many more people are aware of their antics and shenanigans than years past. One would also think that there should be some natural economic limit to the printing of paper dollars and the suppression of gold and silver prices.

But based on recent market behavior - I'm not seeing cracks appearing in their armor. The dollar is strengthening, gold/silver just got spanked down and bond prices are still being maintained at ridiculous levels ...

I'm sure not liking what I'm seeing, but I'm seeing what I'm seeing ....



To: GROUND ZERO™ who wrote (28349)1/12/2012 7:11:49 AM
From: Jopps  Read Replies (1) | Respond to of 222624
 
Agreed. Zero interest rates may be here to stay, Austrian economics be damned!

Here's an interesting interview that will elaborate the point. Paul McCulley, Director of the Global Interdependence Center and former PIMCO Portfolio Manager, flippantly pointed out that we are caught in a "liquidity trap" from which he implied there is no escape. When asked whether interest rates must eventually increase and "normalize," he pointed to Japan as the model of how a liquidity trap can continue indefinitely.

video.cnbc.com