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Thursday, March 5, 2020


The Fed in a coordinated effort with the Idiot in Chief has cut another 50 basis points while proclaiming the US economy to be very strong.  So why cut?


Against what, is unexplained.  As one hedge fund manager observed: "I doubt a rate cut will inspire people to leave their death beds,to crawl to the mall to buy useless crap."

Meanwhile Trump is urging those infected to "go in to work and lead a normal life, you'll probably get better faster that way."  Great advise if he wants to see a full blown depression.  And contradictory to all that his own CDC is saying.

3 Points:

A) the Administration's penchant for sewing confusion in a time of crisis is good for only one thing: gold, since gold thrives on a loss of confidence.

B) The latest rate cut (after three unnecessary previous rates cuts to appease the idiot in chief)  has left the Fed with exactly 1 percent of room if and when we do have a recession.  Not much bang for your buck there.  The Fed has said it won't go negative.  We'll see.  But QE forever - forever meaning until the economic dislocations and imbalances fostered by this insanity tips the economy back into 2008 like crisis - is assured.

C) It doesn't matter how many people die of Carona virus.  It only matters that is is assuredly going to keep people from congregating and thus crush consumer spending at a time when 2 years of idiotic and useless trade war has already crushed corporate spending and decimated global manufacturing.

These are the conditions the foster massive gold bull markets.  This one is just at the beginning.