Another day of disgust with fiat currencies has gold rising to another record high. This time ironically is with the ‘safe haven’ currency of the Swiss Franc after the SNB unexpectedly cut rates to zero from .25% and said they will pump the Swiss money markets with a lot more cash as they fight a record high level in its currency and deal with the growing uncertain global economic outlook where “the outlook for the Swiss economy has deteriorated substantially.” Last night Moody’s followed Fitch in reiterating its AAA rating on US debt even as DC voted to take on even more debt, how ironic. This leaves S&P to either stick with their threat or back off. The irony here is that the rating agencies reputation has been rightly massacred after the debacle of the housing market and now they have the US by the b**ls, excuse my language. The debt of Italy and Spain are both bouncing and their stock markets are too as is the euro. In the US, the further drop in yields sent the avg 30 yr mortgage rate down to 4.45%, the lowest since Nov and the MBA said refi’s apps rose 7.8% and purchases were up 5.1% in response.
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