Alasdair Macleod: Tapering – Join the dots & end up with ZIRP

BernankeThe 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.

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8 Ways Tapering Will Affect You And Your Family

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… [Read more...]

Federal Reserve: 100 Years of Failure

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. [Read more...]

Taper! Fed Announces $10 Billion/Month Taper; Bernanke Says to Expect Further Taper at Each FOMC!

  • freefallFed 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: [Read more...]

Jim Grant: The Fed Has Embarked Upon a Dangerous Course of Monetary Manipulation!

Fed monkeyAhead 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:

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Taper or No Taper? Discuss the FOMC Statement With The Doc, Eric Dubin, & AGXIIK at SDLive!

Source: Banzai7

Source: Banzai7

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!
http://www.silverdoctors.com/live/

Watch Bernanke’s LAST FOMC Press Conference LIVE at SD at 2:30pm EST!

Watch Ben Bernanke’s LAST FOMC Press Conference LIVE below at 2:30pm EST! [Read more...]

Alasdair Macleod: FOMC, taper talk and the gold price

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. [Read more...]

Fed’s Ballooning $4 Trillion Balance Sheet Bodes Well For Gold In 2014

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. [Read more...]

Ron Paul: After 100 Years of Failure, It’s Time To End The Fed!

fedA 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. [Read more...]

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...]