"Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists' forecast for a reaccelerating in U.S. growth later this year," they said.
This is designed to shake more retail investors out of gold ETFs and help the Fed further pump up the equity bubble. Bottom line message: "See. We told you everything is fine."
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Beware of chains. President Obama's new budget plan wants to swap the current CPI used to gauge inflation to a chained CPI. What's the difference? The new CPI, owing to some nebulous economic mumbo-gumbo, factors in possible substitutions. Like if gasoline prices get too high we'll all start riding tricycles.
The key word here is possible as in substitutions one might make. Pork prices jump up while beef prices stay the same. Everyone is assumed to switch or substitute pork for beef, including those allergic to both. It's called egalitarianism. How would you like yours-- with or without mayo?
If hardly a new concept and it's designed to screw the COLA folks, all those yield-starved seniors Obama and his cronies claim they care so much about.
Tax brackets are indexed to the current CPI. With the new one they aren't. That means higher taxes for everyone, middle class included. Even the left of center Tax Policy Center calls it "a back door tax hike of $100 billion."
About the only thing going to get chained if this economic political voodoo flies is you and me.
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Here a quote from Mohamed El-Erian, Pimco. talking about airport delays.
“Any avoidable headwind to growth – and this one is self-manufactured by Congress – is a travesty for an economy that is already struggling to grow by 2% a year, has an unemployment rate of 7.6% (with some 40% composed of long-term joblessness), has seen its labor participation rate fall to a level last seen in 1979, and still needs to de-leverage safely over time.”
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