..or in layman's terms, to my understanding: Market manipulation by the FED via its Primary Dealers. By purchasing Treasuries from the Primary Dealers, the Fed is creating and holding more of it's own debt. The FED Primary Dealers use these funds, still warm from the FED Treasurys purchase, to pump up the jams in the stock market, while (as some seriously suspect) driving DOWN the gold price via shorts.
What are we actually talking about in quantity of bits of linen (USD)? The NY FED having a virtual printing press, the foresight of economic gurus meditating within mahogany halls (FOMC), plus close acquaintances at the Treasury in their war chest, the POMO injections are significant:
So what is the FED POMO impact on Markets, the Dollar index, and Gold?
Are the Primary dealers shorting gold, tantamount to giving oxygen to the Canary in the economic coalmine, while the deadly gases continue to build up? Zero Hedge's most recent guest post on the topic included the following chart that showed the POMO effect on major indexes and asset prices:
According to Zero Hedge:
Is Monetization of debt and currency debasement toward zero inevitable? With the BOJ cutting rates to zero this week (and Chili and Brazil competing for rates suitable to support growing exports) , the IMF fears an all out currency war is brewing which many economists now believe could very well turn into a global currency race to the bottom.
Only one historic currency class has been proven and time tested to survive this type of currency onslaught.
Chirp Chirp ...
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