Two Separate Takes At Zero Hedge

You've got to love Zero Hedge -- just know what you're loving.

I love it as a news vault, nothing more. Others love it as a source for a perma-bullish take on gold.

I love gold. I own gold. But it is an asset just like any other. And when things go really wrong, it gets sold just like any asset. Remember that.

So I find it interesting that the folks at Zero Hedge would publish two items that directly contradict each other.

First it was noted that Don Coxe, Strategy Advisor for BMO Financial Group, proclaimed that "we have entered the most favourable era for gold prices in our lifetime."

Then only an hour later it was noted that "real economic activity has 'improved' less and less with each extreme easing action by the Fed - with 'Operation Twist' barely budging the needle on ECRI's growth index relative to QE1 or 2."

This is what "pushing on a string" means. It means the Fed will either go broke attempting to stimulate its way out of trouble, or more likely, will cease its efforts. It means deflation is happening. It means that the law of gravity has not been repealed. It means that the music will eventually stop. It means that whether or not gold is $1700 or $2500 per ounce, it will be sold along with stocks and commodities and cars and homes and anything else that is of value when the dash for cash takes hold. It means the same thing it has always meant. It means the market conforms to natural laws and not to the fantasies of central planners.