Last week we certainly had some game-changing events, with the German court ruling in favor of the European Stability Mechanism ... Europe going ahead with yet more bailouts ... and, perhaps more staggering, Fed Chairman Ben Bernanke committing the Federal Reserve to buying $40 billion worth of mortgage-backed securities each month on an open-ended, unending basis until employment improves.
These are possibly game-changing fundamentals for the markets.
They’re entirely consistent with my longer-term views of monetization of debt, commoditization of not just commodities but stocks as well, and monetization of paper money (or fiat currencies) by levitating and re-flating financial assets and tangible assets much higher over the longer term.
So with that in mind, we’re going to take a look at some weekly charts.
Although there have been some game-changing events in the last week or so, they have confirmed my longer-term views on longer-term bull markets in commodities and stocks.
However, I am not convinced that the recent rallies are the beginning of those long-term breakouts. So let’s take a look at this weekly chart of gold.