[…] The US dollar took a trip downtown today, and silver and gold were on the move higher still.
Tomorrow we will get the Non-Farm Payrolls report, classified 813 in the Dewey Decimal system, ‘Modern American Fiction.’
The Fed is looking for cover to raise rates, because they need some room beneath their wings so that they can maneuver deftly when the next financial crisis follows their latest financial asset bubble, as night follows day.
Negative interest is the policy choice of brain dead bureaucrats, in much the same way that fiscal austerity in a balance sheet recession sounds appealing if you are at least several steps removed from any serious approximation of reality. That does not mean that the Fed would not follow the ECB and go there under the duress of tarnishing their reputations, such as they are. The problem is that the American people are far too heavily armed to tolerate that sort of blatant confiscation, without quite a bit more preparation.