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
Interesting that yesterday's trading in equities, bonds and USD telegraphed today's price action.
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