Dear CIGAs,

Today’s major event was FOMC’s unanimous decision to keep "Interest rates exceptionally low" for an "extended period of time."

This means that US dollar will remain the carry trade currency of choice as we transit to new ground with a major reserve currency as a carry trade currency. There are no rules or experience with this phenomenon.

Professor Roubini says $2000 gold is nonsense. I agree. It is probably going to a minimum of Alf’s lowest estimate of $3000.

Professor Roubini might consider the old saying of "Never say never."

I can’t tell you how many emails have I received telling me that gold would NEVER trade over $1000. One caller told me gold would never trade over $1000 in his lifetime, so I enquired how old he was. He hung up.

Later