Bernanke front ran Obama's speech today, once again confusing the rational consumer. Yes, there will be more stimulus, and easing to infinity. Take that to the bank.
The first thing that happened after Bernanke took his foot from his mouth was a sharp rise in the DXY. This is because in order to move the market, money needs to unwind. This was the short against the dollar unwinding, so that it can be put to use buying things like gold, silver, and oil.
Bernanke is such an opportunist, isn't he? He crept into the spot light ahead of Obama's Jobs Program speech, a speech I started writing about one and a half years ago, only to say what we already knew: he will keep rates at zero forever, come hell or high water.
The world is mired in paradox. The world has no liquidity, yet it has too much liquidity. Unemployment is outrages, but food stamps keep America fed. Europeans can only vacation for two weeks instead of four; oh the humanity! Soon the system will collapse. Will it be one year? Or two? It matters not. The policie has stayed the same for decades: keep the people fed, and loot the system by the back door. The house is almost empty.
So, to reiterate, all things will now come unhinged. Precious metals and oil will fly, the dollar will die, and the Euro will levitate while European bonds crash in value. Bernanke will print $447 billion and loan it to the Majors, they will use fractional reserve lending and turn it into $4.47 trillion, and M2 will rise sharply. This will crater the value of the dollar, and, well, you know the rest.