After the lousy US March employment data (gain of only 88k) ...

After the lousy US March employment data (gain of only 88k) and slight dip in unemployment rate to 7.6%, we saw a rally in commodities on Friday. The rise in commodities was a result of the weakening US dollar and traders stopping out of their short positions. With the recent declines in gold (second quarter over quarter decline) and silver (20% decline into bear market territory), traders were piled into the short side of the trade. It will be difficult for industrial metals (PT, PD, and AG) to climb out of their recent declines without a major pickup in global economies, especially China. Chinese government continues to cool their housing markets as bubbles are forming in secondary and tertiary cities around China. The Bank of Japan decided last week that they will take their last stand against deflation by entering into unprecedented bond buying frenzy in trying to achieve an inflation target of 2%. The BOJ continues to be follower of the US FED and ECB when it comes to bond buying without regards for the risk and reward of these programs. After years of QE, US economy is growing at an anemic pace with stubbornly high unemployment rate and European economies are in recessions, so what can the Japanese be expecting? It is increasingly a race to devalue global currencies to try to compete for the dwindling global business. European austerity plans are also causing painful economic contractions. We have entered a point of no return in the global QE strategy, now the question comes when can global economies stand on its own without stimulus… can we all live within our means even if it means we can only afford Hyundai and not BMW?