Overnight we saw several central banks meeting globally on the heels of yesterday's FMOC report. It featured a mixed bag of results with Brazil raising rates to curb inflationary concerns, Russia cutting her dramatically inflated rates aimed at currency support from 15% down to 13.5%, and Japan standing pat at her current monthly quantitative easing amount of 80 trillion yen.
The surprise liquidity measures announced by China’s Central Bank and reduced manufacturing and the comments by the European Central Bank’s President Mario Draghi spurred the activity in the markets on Friday.
A number of readers and bloggers have recently suggested there must be collusion between America and China over the transfer of physical gold from Western capital markets. They assume that governments know what they are doing, so there is a bigger game afoot of which we are unaware.