The scenario discussed near the end of NFTRH 885 would, of course, not be a nightmare for everybody. For those who like the appearance of a sound economy, stable bond market and bullish stock market, it would be ideal.
However, this as yet highly speculative (even a bit paranoid, based on experience) scenario would be quite galling to those of us who believe in honesty in general, and honesty in a financial system (naive, I know).
The word I did not use was “Goldilocks”. But that is what the balance of info presented boils down to. When the Bernanke Fed inflicted Operation Twist upon the previous cyclical bull market in gold, its stated goal was to “sanitize” inflation. Literally paint it out of the macro.
The Fed did this by instituting a regimen of buying long-term Treasury bonds and selling short-term Treasuries. Voila, the appearance of sound monetary policy with the implication of no inflation problem as long-term yields declined relative to short-term yields and the 10-2yr yield curve embarked on a flattener, signaling an economic boom.
You wonder why I call him Ben “big brain” Bernanke?
Well, in the current era we have a smart guy at Treasury named Bessent. Mr. Bessent has his hands all over the process of selecting the next Fed chief. While Trump blusters in the media * about dropping interest rates, these people could have some real tricks up their sleeves.
If by chance you think I am playing politics, Operation Twist came under the Obama admin. I hated it then and I would hate it again if it comes under Trump.
Now I will shelf this subject until/unless gold takes more than a one day or one week or routine correction. I just wanted to assign the name of it. It’s name would be “Goldilocks” and as in 2012-2013, its coming would be anti-gold and anti-free market. It is not here at this time, but we have now established a bit of a blueprint in the event we need to make sense of the macro in the coming months/year(s).
* I believe that Trump is a big loud battering ram. A sensation, a spectacle, with a few smart people operating behind him (among a bunch of reality TV characters).
‘Goldilocks’ Amazing insight, and a genuine concern, simply because it’s a tool that can be used against the inevitable.
Concern for Gary: My brother has recently come out of a similar cancer treatment – where both radiotherapy & chemotherapy were applied over 7 weeks. This treatment is cumulative in how it affects the body. Expect to feel very tired toward the end. Immune system boosters are essential to get going with, right now maybe. The immune system can run down badly as a result of the chemo, possibly allowing the return of even a deeply buried virus, as well as a reduction in capability to withold new strains to the body. So at least keep exposure minimal to such possibilities while recovering.
Thank you for your concern, Martin. I appreciate it. My treatment does not involve Chemo. I am half way through radiation and realize it is cumulative. So far, tiredness near end of day is the only side effect. I do realize that RAD treatment tends to have cumulative effects, but am really happy that 4 weeks in I’m in great shape. Also, my PSA test came back reading virtually undetectable. So with the remainder of treatment on top of that I expect to kick this thing’s ass.