Tuesday, December 18, 2012
Stocks soar, gold stalls
Yes, stocks soar, gold stalls out at 1700.
Well, in a market economy it would have to be because the crisis is over, and world economies are on their way back to productive efficiency, and therefor paper currencies are strong, and consumer confidence his high.
After all, Europe is holding together; the US economy is still growing at over 2 percent, unemployment figures are coming down, and the US government is hammering out a deal on the fiscal cliff.
All of the above is what everyone hears day after day on all the financial television channels.
So it must be true.
Then there are those crazy gold bugs out there - like the WWII Japanese fighters up the in the palm trees after the armistice - clutching pathetically to their gold bars and their guns and insisting that things are still deteriorating.
And what are those crazy gold bugs saying - in case anybody still cares?
Well, the same things that lunatics like George Soros, John Paulsen, David Stockman, George Shulz, Nassim Taleb, Robert Shiller, Marc Faber, Richard Duncan, Axel Merk, Kyle Bass, Hugh Hendry, Nouriel Roubini, David Walker etc etc etc are saying.
All these crazies claim that the markets are managed by the Fed to give the appearance that their zero interest rate policy is stabilizing the world economy.
All the crazies claim that the debt crisis is worsening here and in Europe, and the China's growth is not nearly sufficient to prevent a global debt implosion.
All the crazies are warning everyone who will listen that Crisis is being very temporarily deferred by a lunatic Fed that is flooding the world with dollars.
So somebody's crazy here. That's for sure.