great commentary below from Charlie Aitken today....
"Interestingly, it seems most American commentators believe the US economy can move forward with less help from the FED. I am not as certain as that, feeling no economy has had more help from a central bank and no markets are more addicted to free money than US equities. Just remember, the FED has had cash rates @0% for 5 years and expanded its balance sheet by $3trillion via bond purchases. US 10yr bond yields @2.20% remain around 200bp below the 10year average yield of the period. The US has had free money, artificially low bond yields and an artificially low currency. They also found shale gas in the same period which lowered energy costs and reduced inflation.
While the shale gas revolution is a structural change, ZIRP and QE are unsustainable and I do wonder how the US will go will less largess from helicopter ben. There is no economy more addicted to high dose monetary policy morphine than the USA. They have been on the highest doses for the longest time."
When the US market corrects itself .....Gold will benefit immensely!
SAR Price at posting:
15.3¢ Sentiment: LT Buy Disclosure: Held
