Money Printing

Dow:Gold ratio at Chart of the Day.

All or nothing days on the rise:  Bespoke.  We, of course, know this to be a function of oscillating opinion regarding default or debasement of the credit bubble.

To goldbugs the Big Print is a foregone conclusion; it is not a black swan and maybe not a gray swan.  I think this is early, so don’t let it get you too excited, but here is Mike Krieger on the Big Print coming:  “If I am correct, and the U.S. economy itself is now in the early stages of what will probably turn into a serious economic slowdown, then it will not be easily stopped with incremental Central Bank policies.  The fact that they have waited this long and the fact that the global economy is in the midst of a serious slowdown tells me one thing.  They are way behind the curve and by the time they realize this it will be too late to stem the momentum.  That said, I do expect them to respond and the fact that things will have gotten much worse than they expected will mean a major response.  I’m not talking operation twist part deux.  I mean a serious print.  Potentially the BIG ONE.”

Euro to Surge per Adam Hamilton at Zeal:  “The bottom line is the euro is due to surge.  Greece’s long-known dysfunctionality has driven the euro to major multi-year support again.  But these levels have held strong even through and since 2008’s stock panic, the greatest fear event of our lifetimes.  Whenever the euro falls this low, it is oversold and fear is excessive.  Like anything else suffering such extremes, a sharp rally soon erupts to rebalance the sentiment.”