Meanwhile In the US: It's Raining Pennies From Heaven

Money Supply: A Primer

Tokyo Weather: Rain Mixed With Radioactive Iodine and Cesium

SP 500 and NDX Futures Daily Charts

I think there is a good chance of a 15 to 20% correction in US equities sometime between now and the end of July. I am not at all sure of the timing, in part because the Fed is adding enormous amounts of liquidity which seeks out beta, AND the volumes remain light, so this liquidity can do its work in a relatively straightfoward manner.

But as with all sugar high bubbles, this one is going to pop. We are in bubble territory, so a trigger event is able to quickly deflate the stock indices. The higher stocks go, the less of a trigger event will be required. It could also come as a series of event that together bear enough weight to shake the Fed's policy errors back to some more realistic base level.

Most of the economic discussion I read is either complete book-talking puffery, or naively pedantic. I wonder how many bubbles it will take before this Ancien Régime of crony capitalism is overthrown, and how difficult this transition might be.

Gold Daily and Silver Weekly Charts - Blythe Gets Spanked

Gold and silver moved higher today, and are both up against overhead resistance.

Intraday commentary here.

I seem to recall saying that the Yen intervention by the G7 was not so much for the Japanese and their rebuilding as it was for the benefit of the financial global carry trade. Et, la voila.

Yen action sets scene for return of carry trade - FT