Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

The FED gave us $2.25 repos today, and

added a $653 million coupon pass to test those waters and a huge gold & silver spike took place and I went long on that of course thinking this is the beginning of a long range trend, (small repo's and big passes), however today AG did have a net drain for the day of $7.35 and the stock market tanked. Right now, the FED is at the top of end the top of their apparent long term growth target channel of 8-9% money growth which is about twice the growth rate of the economy. long rates have been rising and instead of manipulating short rates its time to keep long rates down thus coupon passes and IMHO thats good for gold....IMHO AG is now retracting for a short while and ready to pump anew into the holiday season but he has to let it drop for awhile and most likely so will the markets.

If the coupon passes accelerate from here, the only valid long term investment will be GOLD imho.