The euro is falling apart, but gold can't even keep from breaking down in that toilet paper. The chart wants you to believe there is no value left in the world. It wants you to believe that Europe is going into deflation and that people are going to seek liquidity in a doomed currency.
That is the height of pathos if you ask me. It is also high comedy, as is near everything I look at today. Over here in the US, this graph from the St. Louis Fed shows something that literally made me laugh as I was writing NFTRH187 last weekend.
The graph shows the Treasury securities of various maturities held by the Fed. They bought bonds to monetize their way out of Armageddon '08, then eased off for a while during Hope '09, and then bought like crazy after the 'Flash Crash' for QE2. This by the way, was when they broke down my beautiful Inverted H&S pattern in the gold-silver ratio, which was shaping up to bring on a deflationary event that would have been a whopper.
It just struck my funny bone when I looked at the smooth horizontal line that in 2010 was the slack period post crash and recovery and pre-QE2, then comparing it to the current horizontal line that is really jagged as I assume the Fed buys long term bonds and sells short term bonds in a frantic effort to paint something that the investing world will believe, like 'we are being accommodative while maintaining fiscal prudence (with a side benefit of containing gold, which follows the 30yr/2yr spread)'. In other words, painting Goldilocks.
There is just something about the graph, a visual image of data that itself is a reflection of desperate people doing desperate things, that cracks me up.
Just about a year ago, when the TYX (and associated inflation fears) began its decline in earnest, the latest phase of the ongoing tragic comedy kicked off.
http://www.biiwii.blogspot.com
http://www.biiwii.com
That is the height of pathos if you ask me. It is also high comedy, as is near everything I look at today. Over here in the US, this graph from the St. Louis Fed shows something that literally made me laugh as I was writing NFTRH187 last weekend.
The graph shows the Treasury securities of various maturities held by the Fed. They bought bonds to monetize their way out of Armageddon '08, then eased off for a while during Hope '09, and then bought like crazy after the 'Flash Crash' for QE2. This by the way, was when they broke down my beautiful Inverted H&S pattern in the gold-silver ratio, which was shaping up to bring on a deflationary event that would have been a whopper.
It just struck my funny bone when I looked at the smooth horizontal line that in 2010 was the slack period post crash and recovery and pre-QE2, then comparing it to the current horizontal line that is really jagged as I assume the Fed buys long term bonds and sells short term bonds in a frantic effort to paint something that the investing world will believe, like 'we are being accommodative while maintaining fiscal prudence (with a side benefit of containing gold, which follows the 30yr/2yr spread)'. In other words, painting Goldilocks.
There is just something about the graph, a visual image of data that itself is a reflection of desperate people doing desperate things, that cracks me up.
Just about a year ago, when the TYX (and associated inflation fears) began its decline in earnest, the latest phase of the ongoing tragic comedy kicked off.
http://www.biiwii.blogspot.com
http://www.biiwii.com
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