ML-Implode News - Mike Krieger: The Big Print Is Coming

Here in the U.S., I think that The Bernank's plan was to pretend they didn't need to print more money, get commodity prices down and then hope that the economy would respond favorably to that development.Â This wouldn't have negated the need for more printing; however, it would have bought time and allowed for a potentially lesser degree of action.Â Instead, what has happened is that the global ponzi is completely and totally incapable of holding itself together without consistent and increasingly large infusions of Central Bank money.Â
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In this sort of scenario, the inflation hedges will sniff it out first. So I would expect the precious metals to bottom well before everything else does. In fact, we could be looking at a situation where the metals and their shares rebound sharply while the U.S. equity markets continue to decline. This could last many months. I want to point out that the GDX bottomed in October 2008 and was up 100% before the S&P 500 bottomed in March 2009. So over a five month period the GDX doubled while the SPX declined 25%. Don't think that can happen again?

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Mike Krieger: The Big Print Is Coming