The second tapering reduction, a further $10bn per month, was announced this week. It was we are told by the news channels fully expected. This is probably the initial reason why US Treasury prices rose on the news, because bears would have bought back their positions. However, weakness in emerging market currencies indicates that there is a safe-haven element developing in US Treasury bond prices.
Of course the gold and silver markets are manipulated. You have to be either blind or a Harvard Graduate with doctorate in Economics to ignore the fact.
Central Bankers like Allan Greenspan and Ben Bernanke know all about gold, they just don’t express it while they are central bank presidents in office.
When I asked former Dutch Central banker Nout Wellink what he would do if QE proved to be irreversible, in fear of a deflationary collapse, and QE III, IV, etc. would become apparent, he said that he would put his wealth in to physical gold because that would be the most prudent thing to do.
I thought that was a remarkable revelation from the man who in early 2011 forced a Dutch pension fund via a court order to sell most of its gold because it was “not in the interest of the people that were depending on the fund”.
With Ben Shalom Bernanke set to depart on the last day of January 2014, the critique and speculation of his tenure as Chairman of the Federal Reserve begins. The mainstream financial press is giving mostly favorable accounts. Heretofore, such praiseworthy acclamations strike a shape contrast with the actual record of the state of the economy. However, the admirers of the Fed and his specific enactments live in a time warp that only masters of the universe encounter. For the remaining population, an intense struggle for survival is the actual experience, remembered from the Bernanke years.
During the Bernanke era, the debt bubble entered the point of no return to solvency. His place in the history of shame sets the stage for further economic turmoil. The Fed is boxed into a pattern that is likely to escalate out of control.
Harken, if you will, to the glorious days of times gone past when the stimulus flowed like honey and the unicorns of government-created prosperity roamed the land dropping their spoor of jobs and skittles hither and yon.
Those were the halcyon days, where every newscaster breathlessly intoned that the Green Shoots of economic recovery were popping up all across the country like some kind of genetically engineered super-weed of wealth.
Little Timmy Geithner, flitting from news show to news show like a diminutive pixie of prosperity, was endlessly repeating the magical words in that child-like voice of his: recovery… recovery… recovery...
Yes, it was 2010. The fabled and legendary “Summer of Recovery”. I recall its radiant splendor as if it were just four years ago.
The official unemployment rate, which everyone claims as the cornerstone piece of evidence for an improving economy, is only falling because the BLS fails to count discouraged workers who drop out of the labor force every month, pretending instead to the fiction that these people have found work. Without this pathetic sleight-of-hand, unemployment is actually solidly in the double digits and has not appreciably improved for years now, despite trillions in deficit spending, ZIRP, the various QE’s, MBS purchases, POMO cash, etc. Recovery my ass.
We should never forget: The media was wrong, the economists were wrong, the administration was wrong, the Keynesians and their central banks were wrong. Gold and silver were right. And they will be again. Stack while you can.
Janet Yellen’s role as the nation’s slumlord is masked by her apparent distance from the Fed’s money spigot and the resulting institutional ownership of the nation’s rental housing stock.
Please welcome the nation’s new chief slumlord, Janet Yellen. The previous top slumlord, Ben Bernanke, has retired from the position of Chief Slumlord (i.e. chair of the Federal Reserve) to the accolades of those who benefited from his extraordinary transfer of wealth from the many to the few.
Why is the chairperson of the Fed the nation’s top slumlord? Allow me to explain.
There were strange things done by fluorescent sun
By the Federal Reserve of old
From Treasury pops to secret swaps
That would make your blood run cold
The Wall Street nights have seen strange sights
But the strangest ever, I’m told
Was that year, oh so mean, known as twenty thirteen
When they crushed the price of gold.
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.