PAVLOV IS RINGING THE BELL

Submitted by Scott on January 25, 2012 - 1:34pm

The FED has turned on the green light and set it to high for us, Pavlov’s Dogs. We know that there will be no end to the closed loop of liquidity provided by our very own Uncle Ben. It means that printing will not end.

No scenario, no eventual outcome will change the unending need to bring about another bubble. Only another big, fat bubble will give Central Banks their exit. The other option is that time will heal all wounds. But time brings a multitude of variables that cannot be controlled by the printing of money.

You will hear the gold bugs giggle with glee and the long-only stock market speculators breath a sigh of relief as the indices move ever higher. Also, every long-term Government Bond will soon be at 1%, so there are more gains coming in the bond market.

Mark my word, yields will be at zero percent until at least 2020. Maybe through our lifetimes. And a pullback won’t come until we break above last years highs at SPX 1370 or so, Joe Granville be damned.