Pouring Water on a Drowning Man
NY Fed Governor Dudley has got the attention of the markets this morning with his talk of more QE. His rational is that while the FED cannot lower rates more, they can buy bonds and provide more stimulus. He does go on to say, maybe admit is a better word, that the effect will be minimal because interest rates and availability of cash at the FED is not the real issue. Give me a break, with people like him running the FED we are in trouble, because the risk / reward ratio of seeding the stones for inflation are too great.
With attitudes like this on high my whole rational view may be totally wrong on the dollar and gold. I am not going to capitualte today as the market is at a technical turning point and this guy Dudley may be named appropriately.