Flirting With Disaster

I'm out of money, I'm out of hope
It looks like self-destruction
How much more can we take
With all of this corruption
--Molly Hatchet

The Fed continued to coo like a dove today. On the back of the accomodative FOMC statement, the dollar tanked. The Dollar Index (USD) appears destined to test its all time low of 72ish. A break below that, and it's a brave new world.

Gold, on the other hand, exploded higher on the news--and marked another all time high. (Silver, btw, rallied 5%).

Can't help but think that today marked a watershed event: the day the Fed sped past the "Stop--Cliff Dead Ahead" sign.

From where I sit, chances of a currency crisis have now ticked up considerably. While I have been working them lower, cash levels in my personal accounts still exceed 50% of total liquid assets.

I am growing increasingly uncomfortable w/ this position. Over the next week or so, I will be looking to swap out of a signficant fraction of my remaining dollars. 

Perhaps the entire world will need to see the problem before the Fed does...

position in gold