RCM Comment: Major Gold Bullish Signal

The following story is a major bullish sign for the price of gold. The Fed is in essence monetizing bad debt and the NY Fed needs a lot more money to continue the monetization. This will ultimately devalue the US$ in a major way. Written @ 10:00 today

Update as of 5:19pm: Gold was up $87 today so I guess "major bullish sign" was an understatement : )

Details of Treasury's supplementary financing program
As mentioned at 10:00, the Federal Reserve has announced a series of lending and liquidity initiatives during the past several quarters intended to address heightened liquidity pressures in the financial market, including enhancing its liquidity facilities this week. To manage the balance sheet impact of these efforts, the Federal Reserve has taken a number of actions, including redeeming and selling securities from the System Open Market Account portfolio. The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve. The program will consist of a series of Treasury bills, apart from Treasury's current borrowing program, which will provide cash for use in the Federal Reserve initiatives. Announcements of and participation in auctions conducted under the Supplementary Financing Program will be governed by existing Treasury auction rules. Treasury will provide as much advance notification as possible regarding the timing, size, and maturity of any bills auctioned for Supplementary Financing Program purposes.