On the heels of the dollar falling and gold surging for a second day, here is a quick note about the madness in Europe and the danger it poses to the rest of the world.
Here is a portion of today’s note from legend Art Cashin – Still Flying With The Doves – Mario Draghi continues to lean toward further stimulus, but aggressively enough to spook some folks, like my friend Peter Boockvar over at the Lindsey Group.
Here’s a little of what Peter wrote:
Mario Draghi spoke in the town of his toughest crowd, Frankfurt, Germany and I believe his comments and behavior continues to cross the line of responsibility and prudent judgment as he is repeating his scorched earth policy in order to generate higher inflation. I’ll refer to this as monetary carpet bombing when he said “There can be no doubt that if we needed to adopt a more expansionary policy, the risk of side effects would not stand in our way. We always aim to limit the distortions caused by our policy, but what comes first is the price stability objective.” The underline is mine and what he essentially is saying that he doesn’t care about all the financial instability he is causing, the deep hole he is digging, the impossibility of a smooth eventual exit as long as he gets to 2% inflation as soon as possible. Dangerous.
Consensus – Watch the dollar and crude once again. The fall in the dollar has reshaped all the commodity charts. Is the commodity bear over? The next eight days could be critical.
Stick with the drill – stay wary, alert and very, very nimble.
***KWN has now released the powerful audio interview with Peter Boockvar, where he warns we haven’t seen real chaos yet, but it’s coming and gold is going to skyrocket, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Two Legends Just Issued Major Alerts CLICK HERE.
***KWN has also now released the extraordinary audio interview with legend Rob Arnott, who oversees $155 billion. He discusses the carnage in global markets, what to expect next as well as some remarkable investing strategies for investors to weather the global storm, and you can listen to it BY CLICKING HERE OR ON THE IMAGE BELOW.
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