On this week’s Metals & Markets, Turd Ferguson returns to the show to discuss:
- Fed lunacy: placing this week’s no-tapering and Friday’s MOPE with manipulative metals smash into perspective
- Political trends: US “peak empire” and dollar trade settlement standard, Debt limit deadline nears; will gold respond with another 2011 like rally?
- Precious metals as the ultimate insurance asset against coming monetary order reset
- Near-term supply and demand conditions in the metals
You won’t want to miss this week’s Metals & Markets with special guest host Turd Ferguson!
“Whoever gets the (Chair) job will inherit the most transparent Fed in the central bank’s 100-year history, with the 12 regional Fed bank presidents enjoying renewed influence.” — Bloomberg News, Sept. 11, 2013
That gem of a quote comes from a Bloomberg article with an equally absurd headline: “New Fed Seen Unable to Return Genie of Secrecy to Bottles.”
Sorry Bloomberg. You have it all wrong. While there’s no intention to return to the monolithic “fall in line behind me” days of Greenspan, anyone that tries to paint what’s going on now at the Federal Reserve as transparency needs a lobotomy. At best, we have a cacophony of monkeys all shouting different opinions about where the economy stands and how policy will proceed. At worst we have hyperactive “jawboning,” with the “monkey of the day” grandstanding in the media pursuant to nothing more than management of perception economics (aka “MOPE”). Needless to say, after this week circumstantial evidence points toward hyperactive MOPE-driven monkey rotation.
The most transparent Fed in history has been leading the market by the nose since last December. You’ll recall, at the time a new round of quantitative easing had just been announced, and all of the sudden the Fed immediately began sending its monkey of the week before the media to suggest quantitative easing would end well before current market expectations. Yes, dear reader — this idiocy has been going on for nearly a fully year now.
This week, we were treated with a “surprise” no taper decision, which fund manager Dave Kranzler has correctly called B.S. on for months. The Doc and I have held pretty much the same view, with the exception of allowing for a mini-taper theatrical performance this week, only to be followed by an increase of debt monetization (oh, sorry, we’re supposed to call it “quantitative easing”). Instead, we were treated to something even worse: more monkey rotation, and with record flip-flop speed! This is what passes for transparency? This is what policy makers see as furthering central bank credibility?
Let’s turn our attention to another alternative universe: paper gold and silver trading. The precious metals markets have been actively managed on nearly a daily basis since last Fall. But some periods act in extreme counter-intuitive, counter-economic fashion. Since September 1st, as an attack on Syria seemed all but inevitable, the advance in gold and silver was checked. It was entirely a paper market affair. Even Indian imports are back on stream as Indian authorities clarified their latest bird’s nest of regulations.
As we wrote in an article earlier today, “Cartel Capping, Then Crapping On Precious Metals…” was visible during today’s early morning session, well before monkey of the week Federal Reserve Bank of St. Louis President James Bullard took to Bloomberg airwaves to insert the taper in October MOPE that kicked the legs out from under risk assets across the board. Certainly, much of gold and silver’s Friday decline was speculative fund liquidation driven. But the stage was set by the cartel, putting a lid on any effort of follow-through Thursday, followed by visible capping early Friday morning.
Enough. It’s time for the weekend, and we wish you all make the most of it. If you happen to visit a zoo, let the manager of the primates park know there’s an opening at the Federal Reserve. Rather than faking transparency, we might as well install a real, bonafide monkey in the Fed Chair. Note to Obama: as we said earlier this week, America wants a monkey. No more fake transparency. We want honest schizophrenic economic policy. Bring on the monkey! — Eric Dubin
Exclusive Video Footage Captured from the FOMC Headquarters on Wednesday
Mr. Dubin is the Managing Editor of TheNewsDoctors.com. He welcomes feedback on his articles and will make an effort to respond to comments. He can also be contacted, followed and encourages “friend” requests on his Facebook page: https://www.facebook.com/EricDubin
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