Nice thing about this rally is all remaining shorts are cleared, so when 1800 breaks, we are going to have a flash melt down like 2010.
The poverty effect from ZIRP has been the least discussed subject by all measures-the fact is the zero bound cash rate has promoted deflation, if not hyper deflation.
What is the cost per barrel to produce in Iran and Saudi? $10 per barrel? They can do a Rockefeller and eliminate their competition by adding supply and drive the price down to $15.
It almost a moot point to discuss 'cause it won't work and only create a larger mess-remember USD is world reserve currency-this isn't the Viet #$%$ that we are talking about here.
It was never intended for the United States to have a central bank or quasi private central bank over monetary issues. Yes, there were the Continental Bank, and Bank of United States #1 & #2-All failed in one degree or another and the U.S Congress just dissolved or let their charters run out.
Gold isn't moving on interest rates nor inflation/deflation-it is moving on pure fear at this point. That might change in the future-however.
You and JPM are sweatin' bullets-how much have you lost being long stocks and shorting bonds over the last 8 months?
To automatically assume that a market should bounce after a week of down days is a dangerous proposition-Many found that out the hard way back in 1987.
I sense a short history here in these markets-you'll see.