Brilliant explaination of the current economic predicament by Charles Hugh Smith. He explains how the Federal Reserve has now moved to the “duct-tape” era. This seems to have been confirmed implicitly by the central banks themselves in the recent BIS annual report:
link to article
What is an investor to do? Think long and hard about gold’s outperformance in the first half of this year:
link to article
Broken Money, Broken Markets
Today’s new highs are increasingly mechanical, not fundamental — and in a broken market, your 401(k) is the exit liquidity.
