It was 'Risk On' today as stocks rallied and went out on their highs and gold followed.
The US Dollar dropped to a post WW II low against the Yen on talk of QE3. I suspect strongly that someone in Treasury shared some prospective monetary actions with their Asian counterparts today. Apparently they are not so sanguine about the benign affects of modern monetary theory, even of the more benign and traditional Keynesian sort.
The Fed Is Laying the Groundwork for Further Easing - Thoma
Stimulus will not work in a system that remains unbalanced and broken, with the real economy skewed to support a non-productive financial class. And austerity will merely bring the final crash and counter reaction more quickly. It will not 'get it over with.' It is more like driving faster so you can impact with this bridge abutment rather than one further down the road. A flaming wreck is rarely a good outcome. We might consider fixing the car instead. But that would require a change of drivers.
See you Sunday night.
