Some are calling for end of QE2 to cause a chain effect down to commodities

akuracy503

Watching the CNBC action and analysts debating how the end of QE2 will cause a nice pop in the dollar index thus can cause a major correction in Gold.

Thoughts? Will the end of current QE send a message to enough investors and shake out the commodities market?

roadrunner

There is no end to QE....just spin to provide cover for the banksters trading and to have the sheeple believe it could end.

roadrunner

JCMhouston

Anything is possible these days. I could see it causing a very short term jump in the dollar, then as soon as the banksters make their money they will point out that the economy now has absolutely no where to go but down the toilet, thus causing the dollar to drop again and providing the lads at the JP Morgue with rather large bonuses next year.

derryb

I look for a break in the FED flooding the markets with money come June. The break will remove massive amounts of money from all markets, slow/halt runaway commodities speculation and result in a major equites, commodities and PM correction. The FED knows this will cause an outcry from the public for more QE. Then they will step back in to "save the day" with more careless money creation. They will create the next crisis so they can be turned to to fix it. It's all part of their strategy. The temporary end to QE will allow the dollar to strengthen.

RedTiger

First mistake is watching CNBC. Second mistake is wasting time thinking about what the talking heads are saying. Third mistake is trying to trade on a widely anticipated fundamental news event. Players big and small are placing their bets based on their anticipation of the news. The news itself often becomes a non-event, only if and when the news is wildly different from what is expect or an event comes out of the blue, does the market move on the news.

The little guy watching CNBC thinking about which way to play, is way, way down the food chain. The big players have multiple MBAs and PhDs looking at the macro economic outlook. The smart guys are often wrong, but they have devoted their lives to thinking about these topics, vs. a few spare minutes watching a news segment that the little guy might do.

With all that, CNBC and other mass media can be useful at times. In my experience, if almost all of the talking heads are saying sell because of the upcoming news, the odds favor going the other way and buying. Over the long run, a person will come out ahead going opposite strident talking heads. If the talking heads are split, there may not be a high percentage play, and it is time to wait and see.

Justacommeman

RT on point as usual. MJ

jmski52

Jawboning doesn't cut it. That's what they always do. They've run out of bullets, and it's all they got now besides naked short selling. Nobody's buying long term debt, nor should they.

cladking

The idea that gold will tank just because QE whatever is coming to an end is nearly baseless.

The dollar could respond to such things except as RedTiger says the process is complete by the
time the news hits. But gold responds more directly to inflation expectations and inflation pre-
dictions. A firming of the dollar wouldn't necessarily translate to lower gold prices. If they're
really targeting 1050 Euros Then the response would be nominal.

Gold will correct right before they are able to start making headway on the deficit. It's possible
that just decreasing the deficit could damage gold prices but until there's a real reign on spend-
ing and taxes don't sell all your gold.

Inflation has barely gotten started. Just slowing the presses isn't going to stop it.