My Dear Friends,
I will expand on this over the summer, but as an introduction:
1. Economics are not weekly and monthly statistics. It is comprised of motion and change that determines the trend.
2. The effect of economic actions is not a static amount, for example0 QE in some determined period of time, but rather an inescapable cumulative impact due to the rate of change. Each event of stimulation requires greater effort than the previous.
3. Economic activity is either increasing at an increasing rate or it is decelerating and an increasing rate. There are no Plateaus of Prosperity or Goldilocks Economics other than in the minds of spin doctors.
4. Debt has come home to be confronted here and now. There is no normal business means of accomplishing this.
The conclusion to be outlined in many ways over the summer is clearly the Western world finance is in deep trouble. QE to infinity is the only political tool that can kick the can. Gold will trade at and above $3500 regardless of all the previous attempts to manipulate it.
Cash market buyers will prevent all attempts to color gold otherwise.
Respectfully,
Jim