Direxion Daily Gold Miners Bull 2X (NUGT)

[weazelboy]

The Fed currently continually "reinvests" the dividends from the enormous balance sheet back into the market on a monthly basis. So, in essence, you are correct...it is the Fed and central banker money that has kept markets running so long and so hard. This is where the term BTFD (Buy The Fed Dip) has come from. As everyone knows that any reduction in markets (whether bond or stock markets) are limited by central bank monies that will stay to support prices.

Needless to say, this is very unhealthy which is why I personally believe an enormous bubble will eventually burst once this Fed money stops. The trajectory of the markets since 2009 (when QE and Fed money started) is not sustainable. IMO, this can only end badly.

I can't answer your specifics as it relates to gold behind the scenes, beating China to gold backed currency, etc. These are all speculations in the market, so who knows. That is why I think if the Fed states in 50 minutes that they are slowing interest rate hikes and beginning to unwind the balance sheet...you will see markets fall swiftly and gold rocket higher given the uncertainty that creates. Of course, all speculation on my part as well. Hope this one guys opinion helps. GL!