Today's Dog And Pony Show

What does the Fed eventually have to do? Raise interst rates. That’s right……they do…..someday. Will it be today? Unlikely. Would that change any of my outlook for the Market or the PMs if they did raise today? Nope. Wait…one caveate, if they raised rates 1.00 basis points and announced absolutely no further monetary stimulus whatsoever then I would change my mind. But guess what that is NOT going to happen today. In fact not today and not in the twelve months.

Today may yield a “possible change in direction coming with interest rates”. They may even go so far a to announce a rate increase will begin before the end of the year. This is unlikely to have much effect on the market long term but it may be vague enough to roil commods today. Personally I think a surprise 25 basis point raise today would be very effective for knocking the legs (short term) out of the commods and PMs but its not likely. Of course his press conference after the FOMC announcement could signal something just like that is going to happen. If there were a rate increase it would change NOTHING with the prospects of further QE whether its announced or surrepticious. They will have to continue to fund the debt……PERIOD!! This is one grand scheme called a PONZI. Then last thirty years in particular were a liquidity Ponzi that with the out of control derivatives growth in the last decade (and now) became a Nightmare on Wall Street Event. Now we are in the phase of unwinding it and its not going to be pleasant.

I watched a show on Bravo last night about Concierges for expectant mothers in New York City. Just an absolute pathetic disaster. None of the expectant mothers cooked……worse they didn’t even know how or where the pots and pans were in their own kitchens. Both husbands worked on Wall Street and were just as clueless. The show was about a woman that is hired to INSTRUCT THESE CLUELESS PARASITES on how to take care of their own damn babies. We are so foched.

If the Fed announcement tanks PMs then I’ll be buying some. No effect on the biotechs from this announcement today so they remain their own game for now. Also if HNR WPRT SGY get their teeth kicked in I’m nibbling. I doubt a lot happens but the HUI is getting warmer for the miner’s buy. If you have your core HOLD ON.

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