Deepcaster: Taper Tantrum Opportunities

Bernanke taper“The first panacea for a mismanaged nation is inflation of the currency: the second is war. Both bring temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.”   – Ernest Hemingway

Continuing QE is aimed mainly at propping up the Mega-Banks, but also is destroying the US$ as the World’s Reserve Currency.

A “No Tapering This Month” Decision some week soon may well be the Catalyst which launches Gold and Silver up, finally, into their Great Rally. Be prepared.

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SD Weekly Metals & Markets: Why The Fed Won’t Taper…Yet

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Greatest Juggling Act On Earth - WilliamBanzai7 In this week’s SD Weekly Metals & Markets The Doc & Eric Dubin discuss:

- No taper next week, but expect jawboning and an attempt to smash gold & silver- will June’s lows hold?
– The Doc, Eric, & AGXIIK to host a live chat event @ The News Doctors Wednesday for the FOMC statement
– Precious metals trading this week- raid fails to break gold & silver below $1200 and $19
– The Doc’s report on retail physical trends as US Mint shuts down for 6 weeks
- The stock market and 2014- Why the Fed’s actions to attempt to taper QE in 2014 will precipitate a stock crash & the brown stuff exploding off the fan between late 2014 and 2016

The SD Weekly Metals & Markets Wrap is below:
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How Far Will Stocks Fall This Time When The Fed Decides To Taper Quantitative Easing?

falling-bearWhen QE1 ended there was a substantial stock market correction, and when QE2 ended there was a substantial stock market correction.  And if you will remember, the financial markets threw a massive hissy fit a few months ago when Federal Reserve Chairman Ben Bernanke suggested that the Fed may soon start tapering QE3.  Clearly Wall Street does not like it when their supply of monetary heroin is interrupted.  The Federal Reserve has tricked the American people into supporting quantitative easing by insisting that it is about “stimulating the economy”, but that has turned out to be a massive hoax.
So what is going to happen when the Fed starts pulling back the monetary crack and the bubble bursts? [Read more...]

Zimbabwe Ben, Janet “von Havenstein” Yellen And The Taper That Will Never Happen

FedRudolph von Havenstein was head of the German Central Bank during the infamous Weimar hyperinflation/currency collapse period (1921 – 1923).  As most of you know, every German who had their wealth denominated in German marks on the night of November 13, 1923 woke up the next day to discover that their paper wealth was worthless.  Gold, for all intents and purposes, went to infinity as measured in the German mark (gold began the Weimar Republic period at 170 marks and peaked at 87 trillion marks). 
I mention this as background because, despite the Fed’s lip service to the contrary about reducing QE (the “taper”), the Fed has no choice to not only continue printing money, but will soon be forced to increase its rate of printing.  Make no mistake, this is going to get crazy and they will probably eventually start buying assets other than Treasuries and mortgages, such as municipal bonds, pension liabilities and equities. [Read more...]

2014 Hot Markets: Stuck on taper

One of the frustrating elements for traders since the 2008 credit crisis slashed value is the way markets have traded and reacted to fundamental news. There were no trends, just a constant risk-on/risk-off world where opportunity gave way to fear and fear to opportunity, not so much based on the analysis of market fundamentals but on how the Federal Reserve and other central banks would manage the so-called “new normal.” [Read more...]

Money For Nothing: Inside the Federal Reserve

BernankeMONEY FOR NOTHING is a feature-length documentary about the Federal Reserve – made by a Team of AFI, Sundance, and Academy Award winners – that seeks to unveil America’s central bank and its impact on our economy and our society.
Current and former top economists, financial historians, and investors and traders provide unprecedented access and take viewers behind the curtain to debate the future of the world’s most powerful financial institution.
Digging beneath the surface of the 2008 crisis, Money For Nothing is the first film to ask why so many facets of our financial system seemed to self-destruct at the same time. For many economists and senior Fed officials, the answer is clear: the same Fed that put out 2008’s raging financial fire actually helped light the match years before.
As the global financial system continues to falter, the Federal Reserve finds itself at a crossroads. The choices it makes will greatly influence the kind of world our children and grandchildren inherit. How can the Federal Reserve steer our nation toward a more sustainable path? How can the American people – who the Fed was created to serve – influence an institution whose inner workings they may not understand?
The key tenet underlying Money For Nothing is the belief that a more fully and accurately informed public will promote greater accountability and more effective policies from our central bank – no matter the conclusions any individual draws from the film. [Read more...]

Ron Paul: Federal Reserve Steals From the Poor and Gives to the Rich

BernankeTwo days before the Janet Yellen confirmation hearings, Andrew Huszar, an ex-Fed official, publicly apologized to the American people for his role in QE. Mr. Huszar called QE “the greatest backdoor Wall Street bailout of all time.”
As recently as five years ago, it would have been unheard of for a Wall Street insider and former Fed official to speak so bluntly about how the Fed acts as a reverse Robin Hood. But a quick glance at the latest unemployment numbers shows that QE is not benefiting the average American. It is increasingly obvious that the Fed’s post-2008 policies of bailouts, money printing, and bond buying benefited the big banks and the politically-connected investment firms. QE is such a blatant example of crony capitalism that it makes Solyndra look like a shining example of a pure free market! [Read more...]

Alasdair Macleod: Fed Bailing Out Eurozone Banks with QE!

Bernanke-Dimon-Fed-TunnelZerohedge recently drew attention to the growing level of foreign bank cash deposits, tucked away at the bottom of the Fed’s H.8 statement.
Foreign banks’ cash balances have increased by $518.7bn since September 2012, accounting for almost all of the increase in these banks’ total assets in the H.8 table. The implication is that these cash balances are held as reserves on the Fed’s balance sheet, the counterpart of quantitative easing.
This naturally raises the reasonable question posed by Zerohedge as to why the Fed appears to be benefiting foreign banks with QE.
The answer is either these deposits have been transferred to them from US banks in the normal course of business or the Fed is prepared to provide liquidity to foreign banks: after all the US dollar is the reserve currency. And this liquidity is most needed by the weakest banks in the international banking system, many of which are in the euro-zone. [Read more...]

Greg Mannarino on the $85 Billion a Month Gorilla in the Room

Bernanke QEFinancial analyst and trader Gregory Mannarino says, There will be no Fed taper . . . the Fed is the $85 billion a month gorilla in the room, and this will be increased sooner than later.”  Mannarino contends, “The Fed will not allow the dollar to be strong . . . They have no recourse.
There is no recovery here in the United States.  There is no economic recovery over in Europe.  The central banks are going to attempt to print more in greater amounts to keep this propped up.”   
Mannarino goes on to say, They’ve already lost control here.  We’re just watching a slow motion train wreck come apart.”  Mannarino steadfastly recommends putting some money in physical gold and silver.  To his critics, Mannarino says, I think people are missing the big picture . . .  keep dollar cost averaging until the cows come home   Obama Care will be “awful” for the economy, and Mannarino points out, This will be a wealth transfer.  It’s that simple.  They want young healthy people to subsidize the older sick ones.”  Mannarino goes on to predict, “This is going to kill jobs beyond a shadow of a doubt.  It is going to steal money that could be put into the economy.”  [Read more...]

PETER SCHIFF: The Only Thing That Will Stop the Fed is a Currency Crisis!

Ron Paul goldPeter Schiff joined our friend Sean from the SGTReport over the weekend to discuss the Federal Reserve, the impending collapse of the United States, and all things Obamacare.
As for the Fed’s recent announcement that QE will continue unabated Peter says, “The Fed will keep blowing air into the bubble until it bursts and the only thing that will stop them is a currency crisis… The Fed has to maintain the illusion and the only way to do that is with the drug of QE.”
On Obamacare and government entitlements Peter says, “We once had a great free market economy that was the envy of the world. People were coming here from all over the world to participate in FREEDOM. We had limited government and maximum prosperity. Even though we had no government benefits at all, the poor people from all over the world wanted to come here. Why did so many poor people want to come to a country with no welfare benefits, no medicare and no food stamps? Because they knew that the best way to get out of poverty was the OPPORTUNITY to work in a FREE MARKET… We had a great country and we screwed it up.[Read more...]

No Taper, QEternity Continues at $85 Billion a Month

  • Fed continues monthly asset purchases of $85 billion/month
  • ZIRP to continue as long as the unemployment rate remains above 6-1/2 percent
  • Fed stands ready to INCREASE or decrease QE
  • Gold and silver waterfall-smash in progress

Full FOMC statement is below: [Read more...]

Punt the Bernank!!

Source: Banzai7

Source: Banzai7

Ahead of this afternoon’s October FOMC statement (and as we await the imminent gold & silver smash), as tradition here on SilverDoctors, in what might be one of the last opportunities before the Fed Chairman is shown the door, we bring back Punt The Bernank!

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Peter Schiff: Fed Will Do The Opposite Of Tapering – More Money Printing!

hPeter Schiff joins BNN’s The Street to discuss the Fed’s monetary policy ahead of this week’s October FOMC meeting, and the fact that the taper discussion is irrelevant- the Fed will be forced to do the opposite, and announce MOAR QE!
Schiff, one of the few economists to correctly state the Fed would continue with $85 billion a month in asset purchases ahead of the September FOMC in which a taper announcement was nearly universally expected, is forced to repeat himself over and over again as the BNN hosts simply are unable to fathom the reality of the US economic condition.
Schiff’s Must watch interview on QE ahead of this week’s FOMC statement is below:
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Chris Martenson: The Fed Can Only Fail

end badlyChris Martenson offers the inescapable math showing why the Fed will have to destroy the value of the dollar in its efforts to keep the credit growth our economic system so desperately needs continuing.
As Chris warns: “The Fed is beholden to a broken system, not anything noble”.
The likely result of all this? Quite possibly one of the biggest wealth transfers in human history: [Read more...]

NO TAPER FOR YOU!!!

“No taper for you, one year!!!”Ben “QE Nazi” Bernanke

This farce will continue for eternity. The propaganda used to rationalize QEternity is nothing but drivel, lies and misinformation. There are a few simple facts which tell the true story: [Read more...]