Tuesday, March 3, 2009

Oh! Darling

March 3 (Bloomberg) -- Chancellor of the Exchequer Alistair Darling suggested the Bank of England could start printing money as soon as this week to help revive the economy as interest rates lose their potency.

DoctoRx here.  The "We are Japan" hypothesis is now ratified.  Presumably the Fed and Treasury will come clean about printing money in the U.S. as well.

The only reason to print money is because there is not enough economic vitality for a natural recovery to occur.

Short-term, gold is selling off in the pattern of this bear market, where it shows relative strength but then dives as the selling climaxes.  Yet it retains a strong long-term chart pattern.  So do Treasuries, but now that the money-printing policy has officially begun, I would want to be a seller into strength of longer-dated Treasuries.  

The stock market is, for now, irrelevant in the face of more important matters.  Barack Obama and Ben Bernanke- the current Masters of the (financial) Universe, have more important issues.  They are fighting for the Hamiltonian principle of banking uber alles.

Copyright (C) Long Lake LLC 2009


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