Uh, excuse me, but what the heck is this?
Tuesday Morning the cartel was thinking, it’s December 31st. It’s time to paint the tape. The cartel would like nothing better than to shoot for a greater than 30% down year in gold. But a funny thing happened along that road. The cartel got stuffed.
On December 23rd 1913, Woodrow Wilson signed into effect the Federal Reserve Act. On the 100th anniversary of the Federal Reserve, author of “The Creature from Jekyll Island: a Second Look at the Federal Reserve,” G. Edward Griffin exposes the Fed’s hidden objective over the past 100 years and why “if America does not abolish the Federal Reserve, the Federal Reserve will abolish America.“
On the 100th anniversary of the creation of the Federal Reserve, we present a MUST WATCH historical discussion and debate on the Fed between the Interest Rate Observer’s Jim Grant, and NYU Professor Richard Sylla.
Has the Fed, as Ben Bernanke said, “come full circle back to the original goal of preventing financial panics? Or after 100 years, has the Fed nearly entirely destroyed the value of the dollar, to the enrichment of the banksters?
“If the Fed was able to effectively control prices the Soviet Union would still be in business… The Fed has presided over the decay of finance, and the degradation of the dollar. Retrogression in finance can be laid at the feet of the Fed & the regime behind it. The Fed is the creation of a system of paper money, and socialized & subsidized credit.” -Grant
Ironically, before the “debate” concludes, both Grant & Sylla end up harshly criticizing the Fed- particularly over manipulation of asset prices and the stock market in particular.
James Grant (at his finest) & Richard Sylla – The Great Fed Debate is below:
On the latest SD Weekly Metals & Markets Wrap The Doc & Eric Dubin discuss:
- The Taper and MOPE manipulation undertaken to introduce it
- Gold breaks below $1200, silver holds at $19- why The Doc believes the metals will bottom by 12/31
- Physical market trends this week- Silver Maple sales explode at SDBullion with the Royal Canadian Mint’s new micro-engraving security features
- Bloomberg’s admission: London gold vaults drainedThe SD Weekly Metals & Markets Wrap with The Doc & Eric Dubin is below:
The Fed showed through its FOMC statement Wednesday it has little control over events, something that should dawn on markets in the coming days. The fed attempts to offset the deflationary implications of tapering by increasing its commitment to zero interest rate policy (ZIRP) and for longer. We are left wondering how long it will be before this contradiction is generally understood.
It is not just precious metals that are mispriced. Government bond yields, particularly for the weaker eurozone states do not reflect credit risk. Equity markets are priced on the back of ZIRP. Fixed assets, particularly housing and motor vehicles are being financed on the back of this unreality. The important point is not tapering, but that ZIRP continues indefinitely.
The unelected central planners at the Federal Reserve have decided that the time has come to slightly taper the amount of quantitative easing that it has been doing. On Wednesday, the Fed announced that monthly purchases of U.S. Treasury bonds will be reduced from $45 billion to $40 billion, and monthly purchases of mortgage-backed securities will be reduced from $35 billion to $30 billion. When this news came out, it sent shock-waves through financial markets all over the planet. But the truth is that not that much has really changed. The Federal Reserve will still be recklessly creating gigantic mountains of new money out of thin air and massively intervening in the financial marketplace. It will just be slightly less than before. However, this very well could represent a very important psychological turning point for investors. It is a signal that “the party is starting to end” and that the great bull market of the past four years is drawing to a close. So what is all of this going to mean for average Americans? The following are 8 ways that “the taper” is going to affect you and your family…
Since the adoption of a private banking, money creation venture, the dollar has lost virtually its entire store of value. The currency has lost its universal acceptance, as multiple alternatives circulate to replace its reserve status.
This failure to maintain and preserve the integrity of the dollar is no accident. The actual purpose of the architects of the Federal Reserve System has never changed. Consolidate the control of money into a concealed cartel of banking houses that ultimately decide economic and political policy.
For the rest of Americans, the Federal Reserve conspiracy is an ongoing theft syndicate. It only takes the will to admit the undeniable. Without the courage to abolish this usury monster, the next century will witness the total destruction of the country.
- Fed tapers QE to $75 billion/month beginning in Jan!
- Bernanke threatens further tapering: `Fed is likely to further the reduction of asset purchases at each future meeting!’
- As expected, gold & silver smashed on the release, already rebounding to pre-FOMC levels as a $10 billion taper appears to have been fully priced in
- 10 year spiking towards 3%
Full December FOMC statement is below:
Ahead of the Fed’s December FOMC statement, The Interest Rate Observer’s Jim Grant was on CNBC today debating the effectiveness of the Fed & Bernanke’s QE policy with bankster apologist Steve LIESman.
The Fed has embarked on a dangerous course of monetary manipulation. You’ve said there is no inflation. How about on Wall St.? How about in stocks, bonds, art, Ferraris and farmland? The asset holding portion of the community thinks this is great. You think its great. It is NOT GREAT! The Fed can change how things look, it cannot change what things are!
Grant’s MUST WATCH schooling of Steve Liesman & the CNBC crew on the dangers of the Fed is below:
Taper or No Taper? Will the cartel attempt to smash gold & silver below the June 28th lows of $1179 and $18?
SDLive debuts as an Open Interactive Thread for SD readers to discuss the day’s events, Bernanke’s last FOMC Press Conference, and the reaction of the markets.
The Doc, Eric Dubin, and AGXIIK will be covering the news and chatting live from 1:30-3pm EST!
Taper/No Taper Open Thread-your chance to interact directly with The Doc, Eric Dubin, & AGXIIK!
Watch Ben Bernanke’s LAST FOMC Press Conference LIVE below at 2:30pm EST!
There is inevitable speculation that tapering might be announced at the FOMC meeting this Wednesday. It should be noted that this is Ben Bernanke’s swansong, and if tapering is to be announced he would probably go out with falling bond markets, falling equities and a soaring dollar, not to mention disruption of emerging market currencies such as the Indian rupee. For this reason perhaps opinion is odds-against tapering, but it doesn’t stop markets being nervous ahead of the event.
The Federal Reserve’s balance sheet is set to exceed a whopping $4 trillion today, prompting warnings its ultra loose monetary policies are inflating asset price bubbles and will lead to a devaluation of the dollar and significant inflation in the coming years.
The Fed’s assets rose to a record $3.99 trillion on December 11, up from $2.82 trillion in September 2012, when it embarked on a third round of bond buying. It’s balance sheet has ballooned by more than $3 trillion or 300% since September 2008 when it was at just $0.91 trillion.
The deterioration in the balance sheet of the Fed and most central banks in the world bodes well for gold prices in 2014.
A week from now, the Federal Reserve System will celebrate the 100th anniversary of its founding.
We are reaping the noxious effects of a century of loose monetary policy, as our economy remains mired in mediocrity and utterly dependent on a stream of easy money from the central bank. A century ago, politicians failed to understand that the financial panics of the 19th century were caused by collusion between government and the banking sector. The government’s growing monopoly on money creation, high barriers to entry into banking to protect politically favored incumbents, and favored treatment for government debt combined to create a rickety, panic-prone banking system. Had legislators known then what we know now, we could hope that they never would have established the Federal Reserve System.
Today, however, we do know better. We know that the Federal Reserve continues to strengthen the collusion between banks and politicians. We know that the Fed’s inflationary monetary policy continues to reap profits for Wall Street while impoverishing Main Street. And we know that the current monetary regime is teetering on a precipice.
One hundred years is long enough. End the Fed.
“The first panacea for a mismanaged nation is inflation of the currency: the second is war. Both bring temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” – Ernest Hemingway
Continuing QE is aimed mainly at propping up the Mega-Banks, but also is destroying the US$ 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.