The Fed is playing a risky game here, commodity inflation is about to soar. They are so afraid to hurt the stock market and all their investment bank pals they are willing to just sit on their hand and do nothing. Here are some weekly and monthly metal charts, just about every one has been in consolidation and have formed very nice pennants, this a continuation pattern.
Over the past decades commodity prices trade in ranges and fluctuate with supply and demand. NEVER have prices risen and held and these all time highs. The simply will not fall, and are breaking out and making all time highs. The market is telling us something, pay attention. The Fed and the Treasury are caught in a trap.
No doubt a trap of their own devices. Caught between the Scylla and Charybdis, so to speak. I hear ya, brother!
the question that needs to answered is when will the fed pay a price for being in bed with wallstreet. as a poster said the fed is much more concerned about making fat cats and wall street happy than doing there job. inflation from medical to gas to food has clearly turned up and heading higher yet the fed sits on there hands when they should be raising rates. what the fed has underestimated is the us can slow to a crawl and countrys like china,india and south america can continue to soar and cause our inflation to soar. a few hurricaines in gulf this summer and oils $100.. the fed should be raising now to stop the mania in all financial assets from oil to wheat to soy beans to the free money out there to buy any company. WHEN WILL THE FED BE PUNSIHED FOR THERE EASY WAYS? WHEN WILL THE BOND MARKET HEAD TO 7% TO PUNISH THE FEDS NON FIGHT AGAINST INFLATION?
I don't know but I am long every commodity mentioned in this thread. The world is simply not ready for 2bio people doing something else than eating rice...
Maybe they top out when we get our deficits reigned in? Even with the silly supersized debt, if we didn't have a trade or budget deficit, I'd have a lot more confidence holding dollars over weekends. I'll be honest. I don't think our politicians will ever have the guts and honesty it would take to solve either.