Dear Friends,

The Fed has reduced the discount rate by 1/2 a percentage point, showing the Fed as equity market focused in order to try and offset the carnivorous, voracious, malignant meltdown in OTC Derivatives.

Conclusion:

1. There is no limit above zero to which the Fed will go in attempting to prevent notional value of the $516 trillion dollars worth of OTC derivatives from becoming real value. This will occur when the losing party fails to perform.
2. There is no limit that the present Administration will go to provide fiscal stimulation in its attempt to prevent notional value of the $516 trillion dollars worth of OTC derivatives from becoming real value. This will occur when the losing party fails to perform.
3. They will FAIL. Notional value will continue to transition into full value.
4. As always, the future of gold is commanded by the US dollar, not mine supply.

Gold:

There is a mini magnet at $950 to $960.

The next major magnet is $1025 to $1050.

Gold will put up a fight at each point then overcome those levels on its way to $1650.

The short of gold share hedge funds and the TA amateur junkies are going to get creamed.