Chucky
Thanks for the link to the Zerohedge stuff. (Zerohedge's interpretation is nonsense, but the underlying data is fascinating.)
It would seem that the principal beneficiaries of QE after 2011 were foreign banks. I think that it is reasonable to assume that these banks were European.
I think this chart tells us two things:
- The US based banks did not need much support after 2009, which indicates they where in a much stronger financial position than previously thought. (I had suspected as much reading the financials statements of Citi and JPM since 2010.)
- The Fed appears to have given crucial assistance to the Europe during the Greek-Cypriot bond crisis securing the funding of their US dollar balance sheets. (The might partly explain why some European governments aren't pressing the US to get their gold repatriated. It might seem a little ungrateful.)
What does this mean for the price of gold?
I can't think of much, beyond there being good reasons why the US dollar is strong.
Cheers
