No More QE?

You'll hear a lot of that over the next 24 hours. The ADP and weekly claims numbers were both "better than expected" (by whom? who expected what?) this week so you know that by 8:25 tomorrow morning, all the Keynesian shills will be out in force predicting "robust" job growth in the upcoming BLS BS report. The Hot Coug from Mesirow and the Douchebag Shill from Moodys will be falling all over themselves trying to one up each other in the moments before the report's release. Gold and silver will be down and all the talk will be about how successful QE has been, how brilliant The Bernank is, and how the economy is recovering. Then, at 8:30, Hampton Pearson will breathlessly announce something like 90,000 payrolls and a new rate of 9.2%. The Coug and The Shill will quickly backtrack while gold and silver rally. We've seen all this before.

And again, this nonsense that QE2 is that last of the money-printing is complete and utter bullshit and spin. By some estimates, your FED now controls up to 73% of the treasury market. SEVENTY THREE FREAKING PERCENT! As Ruprecht would say, "that's a lot". If 73% of the buyers are removed from any market, the price is going to drop. If bond prices fall, rates skyrocket and if rates skyrocket, The Great Ponzi comes to a rapid and spectacular close. So, turn off your TV today. It will be full of lies and garbage (like any other day, really) that will all be refuted by tomorrow. If/when the metals are mercilessly sold off today, look for a dip to buy. Be patient and you will be rewarded.

On to the metals, conveniently we have some very nice prospective support levels to utilize. First take a look at gold. They're whacking it pretty good today on "good economic news", global peace and general profit-taking. All three reasons will soon be reversed so I'm looking to buy anywhere under 1420.

Silver looks about the same, though the selloff hasn't been of the same magnitude as gold. IF I get an opportunity to buy some in the area between 33.80 and 34, I'll be all over it.

Lastly, read this:
http://www.zerohedge.com/article/china-gold-demand-voracious-chinese-yuan-gold-standard
The writer contends that the Chinese have a plan to, eventually, back the renminbi with gold and other hard assets. Really? No shit! I've been saying this for about two years now and every time I bring it up, people look at me like I'm some kind of boob who has no idea how international finance works. Well, I'm telling you, this is The Plan. At some point in the future, the Chicoms will want the luxury of reserve currency status if only to be able to export their inflation in the same manner the U.S. has enjoyed for over 40 years now. It won't happen tomorrow, nothing in China ever does. However, you can bet your ass that by 2025, at the latest, this WILL happen.

More later. Watch those support levels closely. Look to buy a dip if it presents itself. TF


11:50 EST UPDATE:
The PMs are mainly trading sideways today. This means that they aren't moving UP but it also means that they aren't moving any lower, either, which is encouraging. The last 90 minutes will be very interesting as they will set us up for the overnight and into tomorrow.
When you have a moment, please take some time to read this article. It plays right into today's discussion regarding the collapsing dollar and the implications of said collapse. Btw, I've got about 76.60 on the March USDX. The area around 76.15 to 76.20 is critical support. Watch this very closely.
http://online.wsj.com/article/SB10001424052748703313304576132170181013248.html?
mod=WSJ_hp_mostpop_read
Take a look at this, too. I'm not adding yet. Still waiting for 34 or so.

More after the close. TF