The 2008 crisis saw the Fed use some of its tools, but not all of them.
The Fed’s most powerful tools, gold revaluation and money printing, were never employed in that crisis.
QE4, if used to fund government infrastructure spending, can be inflationary, but if the next crisis is severe, only gold revaluation will work to end it.

panicMany of us are now predicting another round of QE, quite possibly before the leaves are finished falling off the trees this fall around the country.
The one thing the Fed really is frightened of is contracting bank credit.  And this idea of collateral liquidation leading to more selling of collateral by the banks to cover loans is sort of self-feeding into nasty collapse if you like in asset prices.
Now that’s not going to happen because they are going to print money to insure it doesn’t happen.
We are very very close to that sort of tipping point and I think that people who have 
an understanding of this are not going to hang around and wait for the Fed to print money. They are going to go quite quickly against the dollar
Anybody who doesn’t own physical silver or gold could miss out.  I think there’s a big change coming.

fed
  • Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market 
  • Even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run
    (Translation: ZIRP is here to stay)
  • Fed to maintain accommodative financial conditions
  • Somehow no rate hike is now algo bearish for PMs as Gold & silver instantly knocked lower on the release…

Full FOMC statement is below:

Bernanke

In the latest Keiser Report, Max and Stacy Herbert discuss those who plow ZIRP (zero interest-rate policy) and those who sow QE (quantitative easing) reaping it as taxi cab medallion owners ask for bailouts.
In the second half, Max interviews Sandeep Jaitly about negative yielding bonds.

dollar

The Fed is going to be in easing mode a year from now.  They might try to raise interest rates one time, which I think would be like playing with fire.  If they do try to raise rates once at this next meeting or the one that follows, I think they’ll have to reverse it out by the end of the year because the economy really does seem to be slowing down.
You can’t tolerate a slow-down when you reach a certain point of death
.

John Rubino joins Rory Hall & Fund Manager Dave Kranzler below in a discussion about the factors that will ignite the global financial and economic system into flames:

Jim Grant

In this MUST WATCH interview with CNBC, our favorite Fed critic Jim Grant predicts that the Fed will be forced to revert to easing rather than raising interest rates in 2015, and that “The Fed can change the way things look, but not what things are.”
Grant’s full interview is below: 

train

In this MUST LISTEN interview with Future Money Trends, Eric Sprott issues a warning that PHYSICAL gold & silver are FINALLY on the verge of BREAKING the paper markets, stating: “I will be right!!” 
Full interview is below: 

20121003_grant_0

Our favorite critic of the Federal Reserve, Jim Grant was back on CNBC to provide his perspective on Janet Yellen & the Fed preparing to hike interest rates. 
Grant unleashes another epic rant against the Fed, and ‘the virus of radical monetary policy‘. 
Full must see interview is below: 

Supermario Draghi

You may have heard the news, the European Central Bank have started up the printing press. They are soon to print upwards of €60 Billion a month. The crowds of economic pundits have collectively cheered. Ireland stands to enjoy significant near term benefits, but at what cost?
They speak of lower government borrowing costs for new debt, by lowering funding costs and thus the hurdle that projects must meet to become viable.  They believe our exchange rate will fall and our goods will be come cheaper abroad. US products and services will be flying off the shelves, etc. Well, it is absolute nonsense. 
Yes there will be short term benefits.  Any time you give a liquidity jolt you temporarily relieve pressure.  But the longer term risks are far far greater, now that the act of QE has been taken.  Essentially the technocrats have short circuited the capitalist system which continuously prices risk based on perceived repayment risks and cost of funds.  This is a road to ruin as returns become obscured by official and politically motivated credit flows.

cartel raid
Play

In this week’s Metals & Markets, The Doc & Eric Dubin break down the ECB’s massive €60 billion a month QE announcement Thursday, and discuss whats next for the global markets and gold & silver in particular:

  • Gold & silver’s strong January continues with silver $4 off its lows and gold nearly $200 off its December lows
  • Cartel setting metals up for a Classic Gold & Silver raid on next week’s options expiry and January FOMC statement!
  • Why Fed will soon begin backpedaling on rate hikes, may announce QE4 by Q4!
  • Cartel raid likely won’t last- Why gold is likely to rise by 20% at a minimum in 2015- and COULD DOUBLE!

The SD Weekly Metals & Markets With The Doc & Eric Dubin is below: 

Schiff

In this MUST WATCH Bloomberg interview, Peter Schiff warns that China is poised to follow in the footsteps of the Swiss National Bank, and ditch the dollar peg- resulting in the Yuan soaring and a collapse of the dollar. 
Schiff warns the fallout will be a 10 on the economic Richter scale, and will occur prior to the end of 2015, when the Fed announces QE4- “which will be bigger than QE1, 2, & 3 COMBINED
Schiff’s full MUST WATCH interview is below: 

bernanke

The current set of fiscal and monetary policies pursued by central banks and states are all based on lessons drawn from the Great Depression of the 1930s. The successful (if slow and uneven) “recovery” since the 2008-09 global financial meltdown is being touted as evidence that the key determinants of success drawn from the Great Depression are still valid: the Keynesian (or neo-Keynesian) policies of massive deficit spending by central states and extreme monetary easing policies by central banks.
Are the present-day conditions identical to those of the Great Depression?  If not, then how can anyone conclude that the lessons drawn from that era will be valid in an entirely different set of conditions?
We need only consider Japan’s remarkably unsuccessful 25-year pursuit of these policies to wonder if the outcomes of these sacrosanct monetary and fiscal policies are truly predictable, or whether the key determinants of macro-economic success and failure have yet to be identified.

Swiss-Gold-650x360

If you want to get a glimpse as to what gold will do one day soon just notice what happened to the Swiss Franc which rose 30% today, from 1.20 to the dollar to, at one point, .75 francs to the dollar and settled at .86 to the dollar( and the Euro/Swiss Franc at parity at 1.00.).
Even as the world perceives the Swiss Franc as a safe haven you can just imagine what gold would do and rise even greater than 30% in one day as our ancient metal of kings is the ultimate safe haven ( and ultimate money).

Janet Yellen begins her first FOMC Press Conference as Fed Chairwoman
  • *Update: During Press Conf, Yellen advises no rate hikes for “a couple” FOMC meetings, states “Almost all participants see 2015 rate hike
  • Fed to be “Patient” with interest rate hikes
  • After initial pop, gold & silver selling off on que as Yellen takes the podium…

If the past 6 post-FOMC Statement gold & silver smashes are any indication however, don’t be surprised to see the cartel attempt to smash silver towards a $14 handle and gold towards $1150 by Friday…

Full December FOMC Statement is below: