Hope of QE 3

That is where we are now that the Republicans finished off the Reagan era of voodo economics.  It will be interesting to watch Bernanke’s testimony to Congress today.  I will be content if the pattern, which I agree to, continues in terms of his recognition that he has been doing all the heavy lifting while Congress performs their theatrics.  What that means is that a real QE3 is not in the cards.

Watch gold to see if reality returns between now and August 2.  A close below the 1545 level and the GLD / UUP ratio under 6.70 will be the signals