Calling Goose Island

A strange game. The only winning move is not to play. How about a nice game of chess?
--Joshua (WarGames)

In my view, Tuesday's FOMC statement was a watershed event. The Fed essentially said it will print money into oblivion in order to pull the economy out of the ravine.

Of course, we knew this all along. But the pointedness of the Tuesday language signals that the Fed is ready and willing to engage in global thermonuclear war against deflation.

Mr P captures the gist better than I:

"Yesterday was a sad day indeed. The Federal Reserve said it will 'print as much money as necessary to revitalize growth.' As I've pointed out, this won't revitalize growth, as it creates nothing but more dollars. What they're really saying is 'We will borrow as much as necessary from your children's standard of living to keep things going today.'"

One more time, the Fed is saying that we will borrow as much as necessary from your children's standard of living to keep things going today.

Visualize looking your kids in the eye and saying, "Someday you'll thank us for this."

Sadly, chances seem better that our kids will someday be looking us in the eye and asking, "How could you have done this to us?"

Gold sure seems an appropriate insurance policy against the WOPR.

position in gold