One Blogger's Word Association For Crony Capitalism [View article]
This is the biggest B.S. ever. Let me give you an example: - 2008 Merrill Lynch is near bankrupt. - Government ''convinces'' BAC to save ML by buying it. - Dec 2008 Merrill is saved. - Dec 2008 Merrill pays huge bonuses with the bailout money. People got millions.
Why Today's Labor Report Is Good For Precious Metals [View article]
The NFP report is bullish for the markets. The FED will say ''Look it is working but we are just not doing enough to help the economy as much as we should.''. So, the FED is actually likely to increase QE, not cut it, over the next 12-18 months. I guess QE will go to ~ $125 billion per month.
Why Current Fed Money Printing Will Lead To Higher Gold And Silver Prices [View article]
Keep in mind that the FED is very likely going to increase QE by something like $25 to $50 billion per month in the next 12 to 18 months. You can forget about ending QE - this ain't going to happen (but will be much talked about). The EM Central Banks are loading on gold, especially China, while JP Morgan and the FED try to keep prices down by selling the German gold at the NY FED. Great job guys!
''Japan was the inventor of quantative easing back in 2001''. This is totally wrong. Money printing, now called QE, has been the tool used by declining empires and banana republics for thousands of years. For example, the Roman Empire used to do loads of QE to fund its budget and current account deficits. The so called deleveraging isn't going to happen as the debts keep growing. I actually think that the FED is likely to increase QE by $25-$50 billion per month in the next 12 to 18 months. The author doesn't discuss the fundamentals behind silver demand. Investing in silver is only a small part of that as silver is an industrial metal used in electronics, medicine, solar energy and many others. It is the best conductor of electricity known to man and has excellent antibacterial properties. If you want to understand silver, listen to Eric Sprott.
One Blogger's Word Association For Crony Capitalism [View article]
It is all very simple. These guys up there are there to enrich themselves. They need to win elections so they promise freebies and don't care who would pay for them. They work with special interest groups that pay them by later hiring them or their relatives. Of course, somebody has to fund for all that. This somebody is the middle class.
What It Really Costs To Mine Gold: The Agnico Eagle Edition [View article]
Mining is a risky business. These one off events happen all the time and are a part of the cost of doing business. Additionally, you have political risks, labor risks and so on.
The analysis makes sense but there is one missing piece. The article correctly points out that QE is needed to lower the level of debt and keep rates on treasuries artificially low. The problem is that the deficit is as big or bigger than the amount of QE and the debt keeps growing. This simply means that QE can never stop. The government is very good at accounting and the actual deficit and debt are much higher if you include the off balance sheet liabilities like Social Security. I think that in this kind of situation we are likely to see very high inflation over time. If this is what happens, and I don't believe that deflation nonsense at all, commodities are likely to do much better than equities. Bond investors are likely to lose their shirt over the next 5 years.
Bernanke Solidifies Gold Path To $2,000/Oz. [View article]
The other thing to mention is that the current QE infinity has no end and to stop it the FED has to agree on ending it. So, one weak dissenting voter needs to convince the rest of the committee to stop what they are convinced is correct - tough luck. This is why B.B. made this QE open ended so that it can never stop. Even B.B. exiting the FED will not change that as the next chairman is likely to be even better at money printing than him.
The money printing will continue, not that there was ever any doubt. B.B says that they have the ''tools'' to exit whatever they are doing but the fact is that the FED has no exit plans. Such an exit plan simply doesn't exist. Selling treasuries will destroy the bond market with all the funds and banks trying to frontrun the FED. Hiking rates will also be a problem with a similar outcome - not an option. So, forget the exit strategy. The FED will just be printing money forever and I think that they will have to increase QE, not cut the size. They will continue to play the good cop / bad cop strategy with irrelevant people like Bullard saying something hawkish which B.B. will quickly put to rest a day later. These kind of games have always been played when money printing is involved but they can only work for that long. This is very bullish for gold medium/long term and we are still in the early/middle stages of the bull market. This is because the US and European population still don't buy gold - maybe 1% of them have any. They are waking up though as can be seen by the US Mint reports. Gold and silver coin sales in January hit record levels with ~50% increases over last year. The Chinese, Turkish, Indians and their central banks will continue to buy, while mining output has stagnated. I think that the bullion banks will need to let gold rise and defend new levels around 20% higher. They are very good at manipulating the market but they are defending the wrong levels. They will be forced to move to higher prices due to strong physical demand. There is only that much they can do on the Comex to crash the gold market.
Stocks And Gold: A Tale Of 2 Markets [View article]
Gold is no bubble, that is for sure. Of course, there are bubbles around but the biggest one is the global bond market. Yields are well below inflation and there is no chance in hell of paying the bond holders without printing the money - this is basically a default. I actually think that many governments are actually going to outright default on their debt (not pay). Of course, they can just print money to pay their local currency debt but the fact is that governments often choose to default instead. The reason is that sometimes defaulting is the better political option than inflation/hyperinflation. For example, Russia defaulted on its local currency debt in 1998. They didn't even have that much debt as a percentage of GDP. The West has a much bigger debt burden. Of course, people can say that the West is not Russia but I think that with the ever larger role of governments in every aspect of life and the economy, casual droning around and more civil liberties being curtailed, the West is moving closer to a Soviet inspired model. Bond holders will be royally screwed.
All that spells big trouble for the West. China seems very interested in beating us at our own game and so far they are doing well. Will China upstage the US and Europe as the top economy in the world and establish the Yuan as a major reserve currency? It looks very likely to happen over time.
Gold ETF Holdings Plummet, Raising Fears Of A Vicious Cycle [View article]
Jan + Feb 2012 sales by the US mint = 148,000 ounces of gold. Jan + Feb 2013 sales (with Feb not over yet) = 213,000 ounces. This is a 44% increase and still counting!
Of course, the TBTF will be shorting gold futures and the FED will sell some German gold but the physical demand is huge. Asia has all the money and their favorite toy has just gone on sale! It is not too hard to guess what they will do.
Gold gains 1.1% to $1,590 after touching a 7-month low last week amid growing indications of at least short-term capitulation. Another one: Net long positions for the week ended Feb. 19 were slashed by 36% to the lowest level since November 2008, according to Commerzbank, which notes the metal has slid more since the 19th, meaning speculative longs have likely declined even further. GLD +0.6%, SLV +0.9%. [View news story]
People don't need more warning but sheeple may need more.
One Blogger's Word Association For Crony Capitalism [View article]
- 2008 Merrill Lynch is near bankrupt.
- Government ''convinces'' BAC to save ML by buying it.
- Dec 2008 Merrill is saved.
- Dec 2008 Merrill pays huge bonuses with the bailout money. People got millions.
Why Today's Labor Report Is Good For Precious Metals [View article]
Greece Is Hardly An Emerging Market [View article]
Why Current Fed Money Printing Will Lead To Higher Gold And Silver Prices [View article]
Sell Silver Now? [View article]
The so called deleveraging isn't going to happen as the debts keep growing. I actually think that the FED is likely to increase QE by $25-$50 billion per month in the next 12 to 18 months. The author doesn't discuss the fundamentals behind silver demand. Investing in silver is only a small part of that as silver is an industrial metal used in electronics, medicine, solar energy and many others. It is the best conductor of electricity known to man and has excellent antibacterial properties. If you want to understand silver, listen to Eric Sprott.
One Blogger's Word Association For Crony Capitalism [View article]
What It Really Costs To Mine Gold: The Agnico Eagle Edition [View article]
What It Really Costs To Mine Gold: The Agnico Eagle Edition [View article]
Investing In 2013: Remember 1977 [View article]
Bernanke Solidifies Gold Path To $2,000/Oz. [View article]
Bernanke Sets Gold Free For Now [View article]
This is very bullish for gold medium/long term and we are still in the early/middle stages of the bull market. This is because the US and European population still don't buy gold - maybe 1% of them have any. They are waking up though as can be seen by the US Mint reports. Gold and silver coin sales in January hit record levels with ~50% increases over last year. The Chinese, Turkish, Indians and their central banks will continue to buy, while mining output has stagnated. I think that the bullion banks will need to let gold rise and defend new levels around 20% higher. They are very good at manipulating the market but they are defending the wrong levels. They will be forced to move to higher prices due to strong physical demand. There is only that much they can do on the Comex to crash the gold market.
Stocks And Gold: A Tale Of 2 Markets [View article]
Apocalypse Delayed, Once Again [View article]
Gold ETF Holdings Plummet, Raising Fears Of A Vicious Cycle [View article]
Jan + Feb 2013 sales (with Feb not over yet) = 213,000 ounces. This is a 44% increase and still counting!
Of course, the TBTF will be shorting gold futures and the FED will sell some German gold but the physical demand is huge. Asia has all the money and their favorite toy has just gone on sale! It is not too hard to guess what they will do.
Gold gains 1.1% to $1,590 after touching a 7-month low last week amid growing indications of at least short-term capitulation. Another one: Net long positions for the week ended Feb. 19 were slashed by 36% to the lowest level since November 2008, according to Commerzbank, which notes the metal has slid more since the 19th, meaning speculative longs have likely declined even further. GLD +0.6%, SLV +0.9%. [View news story]