Richard Russell: Stocks and gold have been climbing on the rumor that the Fed is about to embark on its newest adventure, known as quantitative easing number two or QE2 (it always sounds less harmful when it’s reduced to letters and numbers).
And cynic that I am, I’m thinking that everything (stocks, gold, bonds) will correct on the actual news. Fed Chairman Bennie Bernanke must be thinking, I’ve got a mandate to keep the dollar steady and to implement full employment. If I open the monetary spigots and keep short rates at zero, this blankety-blank economy has got to lift off. If it doesn’t, then what the hell, I did my best, and it’s not the end of the world or the end of the US. And if the dollar swoons, so what. The next administration can deal with that, and I’ll be back at Princeton teaching those smart-ass kids about the economy. And this time I’ll have “former Fed Chairman” on my teaching credentials. So get off my back, I’m doing the best I can, and I’m doing what boss Obama wants me to do.
Richard Russell has made his subscribers fortunes. One of the best values anywhere in the financial world at only a $300 subscription to get his DAILY report for a year. HERE to subscribe. Amongst his achievements Richard was in cash before the 2008/2009 Crash and he has been Bullish Gold since below $300