This is the exact point in the market at which the Bush Administration initiated the same actions as Roosevelt, but at a magnitude ten and all at once.
What do you think the Obama Administration will do?
We know the Fed has moved to Quantitative Easing.
guardian.co.uk, Tuesday October 14 2008 12.10 BST
Quantitative easing is what non-economists call ‘turning on the printing press’.
In extreme circumstances, governments flood the financial system with money, easing pressure on banks by giving them extra capital.
Ben Bernanke, the chairman of the Fed, won the nickname ‘helicopter Ben’ when he floated just such an idea earlier this decade. US economist Milton Friedman had originally said it would be theoretically possible for governments to drop large amounts of cash out of helicopters for the public to pick up and spend."
Lie-bor lies. If that were not so you would see the trickle down into general corporate paper which is nonexistent.
The dollar rally is from technical currency flows that will end and therein end the dollar rally.
Obama wishes to reduce military spending and increase fiscal stimulus. The latter will prove much easier than the former. Getting out of conflict is much harder than getting into one. Other problems of a military nature sit on the horizon. It is reasonable to assume FISCAL STIMULATION is the Obama plan regardless of other desired routes.
Gold’s decline is not part of the plan.
A strong US dollar is not part of the plan.
Significantly reducing military spending is more rhetoric than part of the plan in a practical sense.
When the boxes take shape we will add Obama to the schematic.