Zero percent. I cannot believe we are at zero percent. The market is shooting first, asking questions later.
My knee-jerk reaction was “wow, that’s fucking nuts.”
After thinking about it, I am worried. Not worried from a short position point of view, mind you. I am worried for the stability of the nation, for my kids.
How will our currency hold, with zero percent Fed funds rates, zero percent t-bills and 11 trillion in debt?
Without a doubt, gold should appreciate here. However, that does not mean it will, at least not right away.
So, lety me get this straight:
President Obama is going to print another trillion dollars for a stimulus program, amidst a zero rate policy? How?
People point to Japan and say “we are going to be like them.” However, the big difference is that they have a savings rate and account surplus, while we are drowning in debt.
Maybe we just reflate like a motherfucker out of here and drive up the prices of everything. Or, this experiment fails and ends with the default of the U.S. Treasury.
UPDATE: Feeling the bullish tone, I bought C, ABX, TNA, UYM and FAS.
UPDATE: I sold out of most of my ERY and FXP, taking losses in the process. My buy list is broad and ranging from banks to gold.
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