Stocks surged in the U.S. and Europe early Thursday while Treasury prices tumbled on news of a coordinated easing by global central banks.
“The Governing Council of the European Central Bank has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year,” the ECB said in a statement.
Translation: The world’s central bankers will provide as much money as necessary until year-end to stem a brewing funding crisis among European banks. The move follows a report yesterday that two European banks were unable to get short-term dollar funding in private markets and were forced to tap the ECB for $575 million.
“The stress is still there as long as sovereign debt issues aren’t dealt with aggressively but this move eases short-term funding problems,” writes Miller Tabak strategist Peter Boockvar.
Translation: More money printing = more inflation = higher Gold prices. There is no escaping out-of-control inflation with bozo decisions such as this global central bank bailout.
The obvious action-item: open a gold backed savings account for free at KB Gold, the world’s first and only private global gold currency exchange. Folks, please… open your eyes. How much longer will we allow banks to get away with this nonsense?!? It’s YOUR money!