In this week's Off the Cuff podcast, Chris and Alasdair discuss:
- Bernanke's Blather
- He's confirmed he's committed; but to what, exactly?
- Happy-Talk Headlines
- The media is reporting with an unfounded optimism
- Housing Headwinds
- Rising rates can only pop prices
- The Ongoing Gold Smackdown
- "Illogical & nonsensical"
Ben Bernanke testified before Congress today and basically repeated what everyone already knew: that the Fed will remain accommodative until the economy gets healthier. All asset prices rejoiced, except the most fundamentally appropriate one: Precious metals we're once again hammered, just minutes before Bernanke began speaking.
As Alasdair succinctly puts it, it's "illogical and nonsensical" given the tremendous risks at the macro level and the implications of the Fed's stated monetary policy. We are indeed living in a manipulated world – which extends to whole range of markets beyond just gold and silver (though those may be the most visible example).
Speaking of risks, there are so many gathering at this stage that those leading up to 2008 are beginning to look tame by comparison. But you wouldn't know this by listening to the major media outlets. From stock-price cheerleading, to shale oil & gas, to tame government statistics (like inflation), a loud chorus of "all is well and getting better" is projecting a stability that is not at all in line with the underlying fundamental data.
by ivo