22 January 2015

Europe's Reaction To The European Central Bank's QE Program

Every time the rumours and pre-announcements of Europe's 'asset purchase' program swirled, gold took another step higher against the euro.

Like the dollar, of course. 

And it certainly looks like the purveyors of fiatscos are engaged in a 'race to the bottom,' in order to devalue their currencies to promote exports as a means of growth.  
Not the dollar though.  The holders of the reserve currency must make sacrifices, jobs-wise, to achieve banking supremacy.   The US middle class will serve as cannon fodder.

This is what passes for stimulus, where you do not wish to stimulate aggregate demand in your own nation by allowing the broader public to have better paying jobs.  The policy in the West seems to be sending packages of money directly to the overlords, so as not to upset the balance of inequality, where a very few have most of the money and power.

The difference in this 'currency rigging' is that no one owns a gold bullion printing press.

Well, one could make the case that leveraged and rehypothecated gold is one way to devalue it.  And add a significant amount of mispriced counterparty risk along the way as well, which is what they jokers seem best equipped to do.

While the rigging music keeps playing, that is, and people are content to hold claim checks rather than the real thing.

But once the rush to obtain the real thing starts, my, won't that be a sight to see.