tag:blogger.com,1999:blog-7982981413278241287.post1859863578167800721..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: How Far Can The Current Move In Gold Run?Dave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7982981413278241287.post-53077043986509015822010-11-07T14:50:21.534-07:002010-11-07T14:50:21.534-07:00You should also catch Cazenove's Robin Griffit...You should also catch Cazenove's Robin Griffiths who says that if the USDX breaks 74 the Chinese will throw the towel in and the next point on the chart is 59 which is the the first first waterfall on the $.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-31327722407935960342010-11-06T09:02:14.009-06:002010-11-06T09:02:14.009-06:00thanks for reminding me - i need to read that Rick...thanks for reminding me - i need to read that Rickards post on KWNDave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-85413770660495785762010-11-06T00:40:15.212-06:002010-11-06T00:40:15.212-06:00Jim Rikards on KWN
"Right now the Fed’s bala...Jim Rikards on KWN<br /><br />"Right now the Fed’s balance sheet shows about $57 billion in total capital. Current assets are about $2.3 trillion. The current money-printing plan will take total assets above $3 trillion. At that level, it only takes a 2% decline in asset values to wipe out the Fed’s capital. And this is in an environment where various markets frequently go up and down 3% in a single day."<br /><br />So if the Fed stops ZIRP the value of it's portfolio is going to collapse even on a mark to maturity basis for the MBS's. The Fed as a bank will face an immediate liquidity crisis if they fail to continue with ZIRP. They have as we used to say in the sixties "set the controls for the heart of the sun".<br /><br />Which set of technical analysis allows for this? None do. These collapses are associted with a waterfall event and/or a severe dislocation leading to force majeure or suspension of the markets.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-801409537833063752010-11-05T16:24:46.160-06:002010-11-05T16:24:46.160-06:00This echoes a concern I've had, reading articl...This echoes a concern I've had, reading articles by technical analysts about "over bought", "correction due", etc. etc.. Seems to me that one of the problems that the "quants" have here, and in the banking and financial industry generally (contributing to the major upsets we're seeing) is that technical analysis works great - until we get a black swan event. Is that what we're seeing now? I suspect it is, so the usual bets are off.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-50442346451910953722010-11-05T16:19:31.557-06:002010-11-05T16:19:31.557-06:00QE3? Try QE to infinity. Not that I'm a Sinc...QE3? Try QE to infinity. Not that I'm a Sinclair worshipper but he's right and his term for it is perfect.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-1056115441693301952010-11-05T15:48:38.016-06:002010-11-05T15:48:38.016-06:00I read serious discussion about QE 3.0 already TOD...I read serious discussion about QE 3.0 already TODAY!!!<br /><br />If this gets serious I ereally cannot put a price target on Au/Ag. Higher is all I now, much higher.EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.com