Nervousness ahead of yesterday’s FOMC announcement concerning its QE plans led to a mild sell off in both gold and silver in the past session but all that did was give buyers a chance at grabbing the metals at a lower level before they were jammed higher today in the commodity buying frenzy that resulted from the Fed’s assault on the US Dollar.

About the only commodity markets that were lower today were the feeder cattle and natural gas markets. Corn is back at levels last seen in August 2008. Soybeans are working at reaching the $13 level while wheat is above $7 once again. Cotton is once again limit up as it continues to trounce one record after another and is now well above levels last seen when Rhett Butler was running Yankee blockages during the era portrayed by “Gone with the Wind”. (We are organizing a raid on neighborhood clothes lines where a rich stash of cotton underwear and T shirts has been sighted).

Crude oil is gearing for a run towards $87 while sugar is well above $0.30. Copper is nearing $4.00, palladium is closing in on $700 and platinum is at $1750. Get the picture? The dollar is collapsing while commodities are surging stoking the fires of inflation which the nitwits at the Fed believe that they can somehow control once they let the genie out of the bottle. What they cannot control is the Foreign Exchange markets which are breaking the back of the green”back”.

>notes on the bond chart as action in that venue holds great interest for all of us as citizens.

What more can be said about the rally in equities than has already been said – you are witnessing a liquidity rally which is part of the Fed’s gambit to stoke inflation. The money masters are hoping that a strong rally in the stock market will create an upbeat consumer confidence level which will lead to additional spending. People are not spending however because they are worried about jobs – until we see lasting job creation, the rally in stocks has no fundamental underpinning but that will not stop the equity markets from moving higher. The problem is stocks are not keeping up with gold so in real terms, they are going nowhere.”- Dan Norcini, More at http://www.goldseek.com/email/lt/t_go.php?i=2850&e=MzM0MTg=&l=-http--www.jsmineset.com/">JSMineset.com