RE: Nothing has changedRight, on both!
Liquidity,helicopter drop all over
On Thursday and Friday of this past week you have witnessed the largest injection of liquidity in the history of man in only two days.
There are conclusions evident from the events and reactions to events of Thursday and Friday:
Anything and everything at an unlimited amount will be done in terms of creating more paper money in order to keep the financial system liquid to hopefully prevent a meltdown in Over the Counter Derivatives on debt.
That puts the last nail in the dollar coffin, most certainly when you know earnings are not going to keep up and less taxes will be paid. The Federal budget will balloon and we will have a negative TIC report.
Since it is axiomatic that the dollar rules gold and logical that the Formula rules the dollar, gold will go to and through all the Angels.
The US dollar, for starters, is headed to .7200.
The equity markets are anyone’s guess as liquidity historically is the grease of the wheels of stocks. Give the perma-bulls liquidity and guess where it goes. In the Weimar Republic as there currency went to zero their stock market went to infinity.
History is being made yesterday and today. It may well not be over even in this time span. The actions of Thursday and Friday are greater even than the Bernanke Helicopter Drop in the two day time period. This event will reverberate through the world financial market for years to come. This is only an indication of what will happen as all this economic sin, instant gratification, profit at any cost economy begins to unwind in the form of the Over The Counter Derivative implosion. Be careful here.
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