Another day, another big risk-off move. And yet, the world’s great end-of-world hedge, gold, is getting pummeled even as it seems the world is edging closer to its end. 

Yes, another day another clear demonstration of collateral scarcity – as opposed to bank reserve scarcity which isn’t a thing (sorry, Jay). If you have a moment, check out the intraday trading gold versus the 3-month T-bill. As gold is going down, the price of the T-bill is skyrocketing. 

But, the ECB is going to accelerate its QE pace and the Fed keeps upping and adding to its “repo” operations. You really do get the sense that rather than being confident about the effectiveness of their programs they just don’t know what else to do. And it’s because they really don’t know what they are doing.

That’s the corruption.