Comment: Deflation is the only endgame, and the Fed can't stop it.

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Michael Nystrom's picture

Deflation is the only endgame, and the Fed can't stop it.

When it is time to deflate, things will deflate, no matter what the Fed does. Look at Japan: Printing like crazy, and still the Yen is going up. Still their rates are going up.

The Fed does not lead the market, they follow. They do not control the market. Rates are already going up.

I don't have CNBC anymore (thank God), but I remember the days. They're clouding the mind. Even if you're strenuously resisting what they're saying, they're still clouding your mind.

These days I just look at the charts, in silence. And frankly, this chart does not look bullish to me:

http://www.barchart.com/chart.php?sym=GCY00&t=BAR&size=M&v=0...

That chart looks like we're going back to $400, eventually.

Bernanke did his job. He "stayed longer than he wanted" according to Obama. Ben did his job. He "prevented" the second great depression. Actually all he did was postpone it. It will be the next guy's job to unwind the mess that Ben made.

Conservatives are calling for the end of this reckless money printing. They have no idea what that will mean for the economy, but the politicians never do. And the new guy (or gal, if it is Yellen), will have to appease the noisy Senators on the Hill that the money printing must end.

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Maybe I'm a dupe, walking right into that bear trap. I'm positioned to profit from a rise in gold, but like a good speculator, I've got one eye on the door. Tomorrow will be key, with Big Ben's big proclamation.

The nice thing about markets, unlike political philosophy, is that there is an ultimate reality, and that reality is called price.

Rather than endlessly arguing, there is a final word: Price.

He's the man.