Well the FED rasied the official discount rate up .25% to .75% which was the excuss to drop the gold price aprox $20 in around 30 minutes of trade. This effectively wiped out the whole days hard earned gains. They announced it in after hours of course for added impact during an illiquid time of the day.

The discount rate is not that important now that the banks have been recapitalized somewhat and fat fannie and freddy have been given unlimited means to buy up there toxic morgages.

This rate move is already having a negative impact on the treasury bond price and lets see what it does to the stock market tommorrow. This should be interesting because last weeks auction did not go off so well and next week the treasury is issuing another huge supply but then they seem to be doing that every week hahahahahahahahahahahahahaha.

Well this news does explain why the gold stocks hardly moved today even though gold was showing good strength through the regular market and the majors were coming out with very good earnings. Geez I wonder if the establishment new of this beforehand.

Yep the establishment is pulling out all the stops and judging by the huge amount of shorts the commercials are covering looking desperate as I forcast a number of times already in the past.

all in my honest opinion of course.

F.F.