You tell ’em, Jim

St. Louis Fed president James Bullard holds the line

Click graphic, get article with James Bullard hawking in monotone. I don’t know why they’ve trotted him out again, as if we did not get the message last week. Maybe it’s due to those moderating voices from the Fed minutes that the market rallied on the last couple of days.

This is the scary box the Fed is in. Even as certain indicators diverge the inflation (just one of which, the gold/silver ratio is shown here), the inflation continues apace. It’s concerning because the uproar is in backward looking data like CPI, PPI, etc. But as long as the bond market is doing this…

…ole’ Jim has to do that. The Fed is exposed as behind the curve. I don’t think it can just sit back and hope the inflation falters on its own.

What happens if the bond market is head faking the Fed into a false step; into wrecking the economy it inflated to begin with at the precise wrong time? Not that there is ever a good time to try to deflate that which has been inflated through leveraged debt manipulation.

I would like to get clear of this Russia/Ukraine crap, because it is in the markets too. In particular, it is in gold. But the box the Fed has found itself in should also prove pro-gold eventually, after the shirtless man on a white (well, I thought it was white) horse rides back to Moscow (or after he charges and the hype eases).

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. Subscribe by PayPal or credit card using a button on the right sidebar (if using a mobile device you may need to scroll down) or see other options. Keep up to date with actionable public content at by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.