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Getting ready for next monetary expansion (along with GSR still climbing… seems we are still way too tight) … is the Fed really waiting for a crash before turning it on?
They are sooo slow and behind the curve…
Fully, it’s their fault things are slow and boring right now!
Edit: adding time to price cycles
Patience Patrick ?
🙂
I think so… until a clear direction is established.. nothin to see here. Need those printing presses in full gear and some fear… I think we ain’t seen nothing yet.. So yeah.. time to go back to sleep.
I think you are right
It’s going to take a Stock market “event” to bring back the Fed for another cut or two.
Meanwhile it looks like Deflation is gaining traction.
They clue for long term deflation would be gold going down.. but it is going up. It smells the need for monetary easing to fight off this “low inflation” or deflation we have been living for a while. So.. I think we are closer to a bottom for inflation expectations than a top. Question is.. can we avoid a 2008 (or worst) type crash before QE goes ballistic?… in any case, gold will still rise until we do crash, because that is what gold does.. sniffs out the eventual need for more liquidity. Gold goes down if it smells no crisis.. no need for liquidity or easing.. But we have already done that scenario in 2011.. and in 2018 when Powell did a 180.. that sealed the deal we are past that bridge… that the Fed was WAAAYYYY to tight.. man.. they were doing QT for god’s sake!!! So crash or no crash gold goes up for a while… a long while.