Today was pretty much what I had expected. It was Christmas meat on the table from the Fed, mostly roasted jawbone.
The 'taper' was meaningless, except to take the talk about when it would start off the table. The FOMC went out of its way in the verbage to signal accommodative policy and money for nothing for the foreseeable future.
Despite the big rally in stocks, what did the Treasuries market do? Nada. I rest my case.
The hit on gold and silver was consequential only because JPM has locked up most of the registered inventory on the Comex, and after all, today was an FOMC day when monetary inflation was affirmed. Rik Green has some interesting observations about this here.
The problem these jokers are going to run into is that as they increasingly run policy to form a dual economy, with the wealthiest few taking the majority of the gains, the lack of demand in aggregate is going to continued to pressure the real economy, and eventually stretch the social fabric to the breaking point.
And some may expect this, and look at it as an opportunity. Winning.
Have a pleasant evening.
