Wednesday, May 1, 2013

Commodities and Precious Metals - QE is not working…BURNanke doctrine has failed...

Today as yesterday, the Dollar is down .5+%, howver, most commodities are down too. 
What this really means is that Gold and Silver’s in ability to post green numbers, and big ones at that, demonstrates EXTREME weakness…to me this clearly has implications of how participants are thinking about QE and Central Bank policy, the economy and demand. To puts this in perspective the previously when the dollar dropped this much GOLD rallied tripple digits. And what precious metals are saying is that the deflation magnet shown in the relative performance (real-estate and credit recovery led S&P recovery remember) is pulling. Paper assets are exactly that paper…and worth less than real ones when one realizes that there is much too much malinvested credit around and not enough demand and real money.

Additionally, the public has officially been trained that gold and silver will only go up by the likes of Eric Sprott and others…if the public all over the world running out to buy any physical gold and silver they can find seems bullish to you…I have a bridge in manhattan that is available for let...

Meanwhile, Laszlo Birinyi and his fellow extrapolaters and linear projectionists have their rulers out and they are all pointed in one direction…and AAPL is still a short!
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