ZeroHedge-Bear Trap Report/Larry McDonald/6-20-2022
“Never forget – NOT allowing price discovery for a long period of time – then forcing the process onto markets with a ‘bayonet in the back’ – at an ever-accelerating rate – is a virgin-central bank experiment. It comes at a high price. Never happened before. Inflation is forcing central bankers to allow price discovery. There was always price discovery before Lehman – but for much of the last 12 years markets have been in a Fed zombie trance. We mean a real – free market – ‘cost of capital.’”
USAGOLD note: Withdrawal symptoms are likely to show up soon…… McDonald says the bear is stalking the Fed and will eventually undermine its determination to raise rates – a prospect, we will add, likely to play well in the gold market. The stalking bear reference reminded us of the telling Ramirez cartoon posted in last Thursday’s Daily Market Report:
Cartoon courtesy of MichaelPRamirez.com
