TIPS sell off. Big restaurant chain McDonalds announces concern about future earnings, slowing consumer spending world-wide and the housing scene looks funkier than many of the bull market cheerleaders expected.
Forget a rainy night in Georgia. If this keeps up many investors will soon feel like it's raining all over the world. And it well may soon be if earnings disappoint.
Then there's the EU, China and Japan. It's a mixed-up world. US bureaucrats first want Japanese bureaucrats to inflate then warn not to over do it. And whatever happened to tiny Cyprus?
One Wall Street wag at Business Insider celebrated gold's fall from precious metal grace, claiming it and the equity rally are a sign Bernanke and his band of bureaucrats actually have an idea of what their doing. He's probably a closet Cubs fan.
Just today one member of the FOMC announced he felt good about the prospect of easing up on the bond-buying pedal by the end of the year. Let's hear it for more lumber trucks chugging around the old neighborhood.
A longtime neighbor just last week told me lately he's seeing more chipmunks scurrying around his and a neighbor's backyard. As far as I know he doesn't drink or smoke.
The truth is Helicopter Ben and his motley crew are as clueless as those up on the Hill. Getting it right doesn't ramp up deflation concerns and send the stock market down 266 points, it's worst day in five months. Look for the next set of those recently released job numbers to be revised upwards big time.
Central banks have been selling and hedge funds net long the yellow stuff. There's an old saw in medicine: treat the patient, not a lab number. Bernanke and his crowd want the jobless rate well below 7%, a no-can-do certainty with gold above $1,600.
Too much talk in the media about easy money ramping up inflation. It was beginning to gain traction.
Then there's that tiny island of Cyprus. Caught in a bureaucratic squeeze, central bankers there suddenly threaten to unload what is most likely it's officially bloated gold holdings. More gold than that of either Spain or France. Meanwhile, no one really knows how much gold is held by whom.
Enter Goldman Sachs, the huge investment banking firm with more ties to central banks and central bankers than the annual economic confab at Jackson Hole, Wyoming. Check out the names Dudley, Draghi and Carney. If you need some help click on the link below.
On April 10th Goldman recommended dumping commodities, singling out the recent weakness in gold. The release came just a few days after hedge funds and investors purchased one of the dips.
If you're sniffing manipulation, you're getting warm. Goldman Sachs has another name in many circles, Government Sachs.
http://www.bloomberg.com/news/2011-06-30/goldman-sachs-connections-with-central-banks-reach-ever-deeper-after-hire.html
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