Big News out of the Central Banks

U.S. FOMC

Primary concern - inflation is too low

no policy to "correct" the problem

Preparing markets for additional stimulus

Japanese Central Bank Doublespeak

Japanese sales tax hike postponed

Continued calls for more inflation

Why is sales tax is different than inflation?

Euro Decline

Mandating "stability" by increasing inflation?

Chinese Central Bank

Cut interest rate to 5.6%

Money flows to the dollar as a hedge because the market believes the Fed

Gold has not dropped much against the dollar and has risen against other currencies