'Real' returns....................from Rico

For our purposes it is assumed the difference between 'real' and 'nominal' is understood.

With equities and commodities being monkey-hammered by some bilious gas emanating from the FED (the same words having been used for the last 4.5 years, actually), with the usual suspects chattering that bullion's bull run is dead fully anticipated, let's look at the 'real' rolling returns of the S&P and of Gold.

What no one is saying, but what is supremely evident is that the 'system' is failing.

- There is a huge disconnect between Wall Street and Main Street.

- There is NO solution, NO exit plan, and NO avoiding the consequences of the epic failure we will see.

Note that 'equities' are a third-party contingent liability [read: they are promises to pay, but with exceptions...like they may NOT ever pay] and bullion (if you hold it) has no third-party liabilities, promises, or anything else [read: if YOU have it, the system can crash and burn without you.]

In the madness of FED-induced market distortions, what price can you assign to immunity from hollow promises?

- Commodities will see offers with NO acceptance eventually since no price will induce owners to sell (and the shnooks who 'think' they own equities that are actually titled to CEDE and their brokers via 'Street registration' will suddenly be bailed-in and left not even holding the bag, but holding their.....er, holding nothing).