Wednesday, February 29, 2012

Hey gold bugs...what happened???

For the past week you had all these gold bugs and other "very smart people" telling us how the world is being "flooded with money" by the central banks and that the ECB's coming LTRO (II) would be another example that. Then the ECB does a larger than expected, 529 bln euro ($700 bln) and what happens? Gold tanks. Great call, gold bugs. Great call.

MMT had it right, once again! Central bank monetary operations are NOT inflationary.

The Fed cannot print money, even if it wanted to. Only the Federal Government can and it's currently "un-printing" money, as are nearly ALL governments of the industrialized nations of the world.

Good call, gold bugs...good call!


Anonymous said...

Well 10 years ago when it was in the $250 range a man could buy PMs monthly as a strategy held by Eric Janszen of because he and others saw what was coming. You would of crushed the markets for the last 10 years. Now you want to make fun of success while you missed the whole damn move? LOL! Bitter?

BS Police said...

Don't let it bother you...Normo the Clown did this endzone dancing in December, only to have gold/silver rally 20-30%. Keep dancing old man!

Anonymous said...

Ya, I imagine when you missed a move over a decade with better than 5 round trips, it's a be-atch to think about, so you rationalize it away with taunting on an off day for PMs. What people like this fail to understand is that more and more people understand that the govt. is stealing their money by currency debasement and lost puchasing power. Every time they knock it down, it's a chance to dip buy, and that's exactly what is occurring.

Tom Hickey said...

@ Anonymous

It's still a misperception of what is actually happening. But astute traders interested in what other traders believe more than what is true.

As long as enough people think that QE is inflationary, inflation hedges like PMs will benefit. Notice how everyone keeps saying, just wait, hyperinflation is right around the corner. As long as this misperception is driving the market, it's a trading opportunity.

On the other hand, many of the same people shorted tsys, expecting inflation to drive down bond prices as yields ratcheted up due to inflationary expectations. They lost their shorts (pun untended).

Anonymous said...

Hey Stockmarketbugs, what happened to Bershire Hathaway? When priced in Gold, he's had his ass kicked repeatedly like a one legged man in an ass kicking contest!