Taper Or No Taper – Either Decision Is Bullish For Gold

BernankeIn what has become one of the most absurd rituals on Wall Street – and is really a sign of just how broken our system is – the entire financial media and all the Wall Street “Einsteins” are debating whether or not the Fed will begin to slow down its money printing when it announces its latest fatuously palaverous policy statement in September.
The golden truth is that gold doesn’t care.
War Bird

 

From Truth in Gold:

A taper now would be the same mistake the Fed made back in 1929.  Please recall that it was this mistake by the 1929 Fed that Bernanke pointed to and claimed he knew exactly what to do to in order to avoid a depression and deflation. It seems unlikely that Bernanke wants to go down as the Fed Chairman who triggered the next big economic recession.  To Taper Or Not To Taper – That Is The Question

In what has become one of the most absurd rituals on Wall Street – and is really a sign of just how broken our system is – the entire financial media and all the Wall Street “Einsteins” are debating whether or not the Fed will begin to slow down its money printing when it announces its latest fatuously palaverous policy statement in September.

The golden truth is that gold doesn’t care.  In fact, not only does gold not care, but either decision will be bullish for the world’s oldest currency.  As it turns out, I’ve written thoughts on this matter, explaining why I’ve reached that conclusion and you can read my analysis here:  LINK

If the Fed were to announce a small “taper,” it is likely that the metals will get hit hard, initially.  It is this smack-down that you need to buy with both hands, as the market will soon realize that the Fed is going to have to reverse itself and increase QE in subsequent months.

My personal feeling is that the Fed will hold off on any decision and, ultimately, be forced to increase QE at some point.  In fact, in line with what I was thinking about Syria situation, others have come to the same conclusion as me:  Syria Is The Fed’s “Out” on the Taper

Also, please note – and although I think it’s a ridiculous report – the National Association of Realtors’ Pending Homes Sales report for July showed a decline in “pending” home sales from June to July.  Given that the index is “seasonally adjusted,” it should be registering a nice gain from June to July, unless contracts on new homes are seriously slowing down.  They are and the housing market is back in its bear tracks.

Posted by Dave in Denver at 9:07 AM 1 comments Links to this post

Monday, August 26, 2013

Iraq Redux

It’s looks increasingly as if the United States is going to exert its military will in Syria.  They’re basing their decision on a dubious report that the Assad Government there used chemical weapons to repel the U.S.-bolstered rebel forces.

“U.S.-bolstered rebel forces?”  Why are we backing the rebels against the Government over there?  I have no idea.  For all you who voted for Obama, ask him?  He promised an honest and transparent Government when he was campaigning for your vote.

As for whether or not chemicals were used – notwithstanding the fact that we have no idea whether or not the Assad forces or the rebels fired them – it’s not this country’s concern.  This country can’t afford to keep the lights on without printing and borrowing money.  We have no business going on expensive, capricious imperial excursions.  Let the Syrian people decide their own fate.

All I can say is that this report posted on Zerohedge, LINK, tells me that Obama is going to exert his will the same way Dick Cheney – I mean George Bush – exerted his in Iraq.  We know that Colin Powell lied through his teeth to the U.N. about hidden weapons of mass destruction in Iraq.  I have complete confidence that Obama’s evidence is just as fraudulent.  How anyone could possibly trust anything coming of out Obama’s mouth at this point is beyond me.  Anyone who does must have their head up their ass.

It looks to me like our economy is collapsing and, like every falling empire before it in history, the U.S. Government is going to use war as a means of diverting attention from its utter and complete failures at home.

buff sale(2)

Comments

  1. Soon as they taper SHTF, it is a no win situation anymore short of a worldwide debt reset to zero.

    • There is a lot of hysteria out there about this tapering business.  A lot of people assume that our economy cannot operate without free Fed money.  Oddly enough, it has worked in the recent past without free Fed money, so likely can do so again.  This is all about psychology.  Someone squealing about tapering is like a kid squealing because he THINKS he is hurt when he is not.  After a bit of hysterics, he will realize that he is not hurt, calm down, and business will return to whatever passes for normal these days. 

  2. Ed, I hear what you’re saying, the world will still keep turning, but I think Mary is right.   The money printing must continue unabated or interest rates will rise to choking levels, not to mention the entire banking system is insolvent and TBTFs will fail (requiring more money creation LOL.)  So they must print either way.   The derivatives, the swaps, the paper gold, the leverage, the deeply underwater balance sheets, the dying consumer, the crappy job market, the total lack of good jobs for average people, wars, and on and on.   These are the reasons the gold/silver bull will not end.   At least not until we see the gold price achieve prices that are truly shocking.    And I’m not even really in the hyperinflation camp myself.  Sure, hyperinflation would be inevitable in the long run based on the current course, but my feeling is that stagflation will continue, much like the last 13 years…   Finally, when it gets really bad and things start to get FUBAR, then they will “reset.”   No, I’m not talking about official gold-backed money for the people, but the official gold price will be revalued upwards in a quantum leap, and the banks and govts (who will have or CLAIM to have the most gold) will be instantly recapitalized.     Just my amateur opinion I’ve been forming after a lot of time and thought.

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