The author claims that a long experiment with authoritarian government "is reaching a peak with the current administration." I wish this were true, but I don't think it is.
The peaking part, I mean, because that would seem to suggest that the experiment - which I think can only be viewed as a failure - is coming to an end.
Good article.
A Few Comments On The Gold Sector
May 18th, 2011 | Author: Pater Tenebrarum
Leads And Lags
First, a general observation. As several market observers have noted, we have for some time – since roughly 2002/2003 as it were – observed what Bob Prechter has termed the 'all one market phenomenon' (Bob Hoye also uses this terminology). In essence it describes the 'dollar down, everything else up' (and vice-versa) inter-market relationship. The 'everything else' is what people nowadays term 'risk assets', i.e., stocks, commodities, non-government bonds including junk bonds and non-dollar currencies. In short, what these markets do is in essence a function of the Fed's efforts to devalue the dollar. Extremely low interest rates have invited people to use the dollar as a funding currency for various investments/speculations, and the more such dollar funding is employed, the stronger the negative correlation between the dollar and these items of speculation tends to become. Naturally, this is not a one-to-one negative correlation with all these assets at all times, there are sometimes short term leads and lags and the correlation is at times stronger or weaker. However, it has been in evidence for so long that most market participants accept it as a given. We would argue that since the 2008 crisis, the negative correlation between the dollar and various asset prices has become even more dependent on Fed policy, as the commercial banks have more or less stopped their inflationary lending to the private sector.
Full article: http://www.acting-man.com/?p=7623
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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