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It’s so easy for markets to get over a virus panic

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Bloomberg/John Authers

Cartoon by Ed Stein of dollars flowing in an hour glass and investor caught in flow saying 'keep printing'“Why is it so safe? In part, the ongoing risks created by the virus outbreak bind the hands of any central bank that might have been tempted to try tightening financial conditions. Secondly, the Fed has boxed itself in. It is now making clear that its 2% inflation target is ‘symmetrical’, and not a tight upper limit, making it all the harder to justify raising rates.”

USAGOLD note:  The Fed is printing.  The markets are dancing. Warnings of impending doom and a possible fall from grace are ignored.  Meanwhile, physical gold is stockpiled by those who simply don’t trust, in our opinion, what appears to be an ill-conceived euphoria.


Repost from 2-7-2020