us ppi falls 1% cpi falls 0.2% qeiii coming!, page-34

My quick take on the QE / twist operations. Happy to be corrected.

The QE has been "Sterilized" ie has not been allowed to flow into the Real Economy it has purely to help the Banks to appear solvent on there balance sheets.
Thus no unexpected inflation, no Bank failures, but no recovery in the Economy either.

The twist operation, Fed selling the short end of the bond market and buying the long end has lowered the interest rates on Long Bonds, causing the conservative Investors to sell theirs to look for higher returns elsewhere, in the riskier Stock Market or Real Estate, hence the rise in the US stocks, and some small movements in RE, achieving the Feds aims of rising these markets to obtain the appearance of recovery. Smoke and Mirrors.

Unfortunately they can not crack the Unemployment problem, as they are not even bothered trying IMO.
Most likely a War will be used to solve that one, Heaven forbid.

It is all pure Manipulation of Markets and will end badly eventually IMO.

Gold will continue to react up and down to these Manipulations until they don`t work anymore.

Treat the lows as buying opportunities and highs as selling points if you are game.
I will continue to accumulate.