The dilemma facing the Fed was either protect the $US (hawkish) or protect markets (dovish)... they couldn't do both.
Strategically the $US is the more important it seems.
For a long while I have opted to take the view the expansion of the money supply was a crime which will not go unpunished.
The latest thing I am trying to understand is the effect Basel3 will have on gold. The short term it looks like gold will take a significant hit (because the new rules will reduce the number of participants) but longer term the damage the US has done to itself will reinforce the flight to safety.... imo
