Out of yesterday’s entire Jerome Powell press conference, there was a single sentence which not only undid all the damage but also has been grating at me ever since. It is this: ” And we’re going to be assessing the question of when it will appropriate to resume the organic growth of our balance sheet.”
Just look at those words. Organic. Growth. Balance. It all sounds so natural and innocent, doesn’t it? Almost like something you’d be picking up at Whole Foods this evening, just between the coconut oil and white sesame seeds. The entire proposition feels wholesome and healthy.
How about that…since I wrote my post of January 23, GOLD Futures (GC) finally hit just above its target price of 1550 on August 26…and it carried on to make a 2019 high of 1566.20 on September 4, for a gain of 21.58% from that date.
The moving average Golden Cross, that had just formed a couple of days prior to that, held, price retested the 200 MA (which is normal after these form), and the formation is still in play, as shown on the following daily chart of GC.
Heavenly Father: you have placed me on this earth to spread the word of the coming days of destruction and days of revolt. You have tested my spirit and my soul countless times, assuring I am worthy of the task. And, now, you have thrust the most dreadful challenge ever conjured, and yet I stand, and I survive. I pray that I may go forth now, tested no more, to declare the dark times at hand. Amen.
So here we are again. The entire financial world is awaiting the ramblings of an old man who is going to declare which policies are best guaranteed to preserve his nine-figure family fortune. While at the same time hearing him utter his lies about how what he’s doing is for the common folk of the country. It’s sickening.
In any case, that’s where we are, all at the mercy of Jerome Powell and his minions. To my eyes, when I look at the path of interest rates, this chart doesn’t exactly scream to me “bull run“; instead, it screams to me “heading for negative values since that’s all our enfeebled economy is going to be able to support for years to come.“