Thursday 7 May 2009

Green shoots of recovery. So let's print up £50M more cash anyway? Hmm. :-\

Yeah, we are supposed to believe that there is a sustainable economic recovery in progress right now. And yet... there is a need to print up £50,000,000 new pounds and put them in circulation.

Anyone else smell a rat here? If things were so dandy, they should be removing new cash they printed up with gay abandon the last few months, not create even more. If there really is a recovery under way, this cash is going to light a fire under inflation figures in due course.

No wonder gold just went back above $920/oz, and silver vaulted through $14/oz. I wonder what'll happen when NYMEX open in half an hour or so, and Chicago opens the pit doors an hour later. We'll see... Silver is definitely leading, which is reassuring (if you are a gold bug).


DP said...

Apologies, it wasn't £50 million they are printing up. Silly me. Like they would bother with a few million! I mean, what does a million buy these days, c'mon.

Make that 50 billion. £50,000,000,000. OK, so what I said times 1000 then.

Spare some change governor?

DP said...

Oh look. Who would have thought that just before the COMEX open, gold takes a big thrashing to start a cascade of trialing stop selling, at this critical price juncture? I mean, what were the chances of that happening? (Hint: very, very high. :-\ )

I wonder if They will be successful for long, or if the market can this time push back up through $920 resistance in short order.

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