balois

Thursday Outlook: Commodities, Emerging Markets

Thanks for straight and clear words.

David Fry writes

“…and, presto, money is created from rubbish! Do you then wonder why gold prices would fall and the dollar rally? I do and it gives me a headache...”

Stop wondering! In order to “keep the Dollar strong” (until further notice, just a hilarious oxymoron), it is possible that the Central Banks not only sell but short the heck out of gold.
By wasting their gold, they sacrifice also their own “strong” currencies, on the altar of the not-so-mighty dollar. Because they have still too many of them on their balance sheets. And they are mightily embarrassed. And the timing is just fine to do that in the general financial mess we are in. And some more inflation – who cares. If it gets out of hand, we ll just fix the “core” calculation formula and on we go, cheating ourselves.

Socialists playing capitalists on the back of us, the poor schleps, sometimes still with the illusion that we are living in a “free market”.

Have a good day