by Bill Holter, Miles Franklin:
Thursday and Friday were very bad days for gold, silver and the shares. The explanation on Wednesday afternoon and Thursday was because the Fed discontinued QE 3. Along came Friday and guess what, the QE baton was passed to Japan as they announced an increase in their QE operation to roughly the round number of $1 trillion per year. With this amount of QE, the Bank of Japan will now be purchasing every single bond issued and then some. Outright monetization has arrived in Japan!
This was seen all around the world as “good” for stock markets as they rallied to new highs (Japan rallied to 7 year highs)! …but bad for precious metals? Yes I understand, this is “good” for the dollar on a relative basis to other fiat currencies (especially the yen) but how is the news of outright and full on monetization in the 3rd largest (and Western) economy bad for “stuff”? The answer to this question is “it’s not …but it has to be seen this way.”
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