This is how insane things have become as the world monetary system edges closer to disaster.

But first, King World News had a large delay in publishing today due to technical issues that have now been resolved.  We apologize for the delay and we hope you read this important piece carefully because it was well worth the wait.

Expect More Inflation
By Peter Boockvar, author of the Boock Report
(King World News) – Here is what Peter Boockvar wrote as the world awaits the next round of monetary madness:  At the annual ECB conference today Mario Draghi only reinforced the policy path they are on:

“We currently see inflation converging toward our aim over the medium term, and we are more confident than in the past this convergence will come to pass. But we still need to see further evidence that inflation dynamics are moving in the right direction.”

He reiterated that there will be no surprises:

“Adjustments to our policy will remain predictable, and they will proceed at a measured pace that is most appropriate for inflation convergence to consolidate.”

The ECB seems to want to continue with the current pace of QE thru September and then taper it down to nothing by year end. The euro is down a touch because Draghi also talked about the strengthened euro and its influence on inflation but European bond yields are up slightly while European stocks are bouncing somewhat from yesterday’s selloff. 

Will All Of This Have Been Worth It?
Bottom line, the ECB has actually had price stability now for years at the core CPI level but we know that is not the definition of the arbitrary desire for 2% inflation. If there is one safe bet out there, it is that when all this is said and done, when QE is over, when negative interest rates no longer exist, the German 10 yr yield won’t be at .62%. The French 10 yr yield won’t be at .87%. The Italian 10 yr yield won’t be at 2%. European junk bonds won’t be yielding 2.89%. All will certainly be much higher and then what to their 2% inflation goal? What then for European economic growth with rates much higher? Will all of this monetary largess have been worth it? 

The Running Of The Bulls
Coincident with the stock market gains over the past week, particularly on Friday, the Bulls are back according to Investors Intelligence. Bulls rose 6.3 pts to 54.9% but in an interesting development, just about all of them came from the Correction side which fell to a 6 week low. Bears remain in hiding but they actually rose by .2 pts to 15.7%, still a lonely level. The extreme in this data set came at the end of January when Bulls got to 66% and Bears hit 12.6%, both at levels last seen 32 years ago and that of course came with the top in the market this year. That was the peak in euphoria. 

While the NASDAQ hit a new record high and the S&P 500 retraced about 75% of its selloff, most stocks have only retraced about half their losses. Here is a chart of the percentage of NYSE stocks trading above its 200 day moving average as of Monday’s close and not including yesterday’s action…..more here