Physical Gold And Silver Tightness To Continue [View article]
I have a question regarding something that I read about a month ago. Somebody in Switzerland was collecting signatures regarding a referendum on the Swiss gold. They had 90,000 signatures already but 100,000 are needed for this to go to a referendum. The things that were going to ask: - Swiss gold reserves to be fully accounted for and brought home. - Require the SNB to keep 20% of reserves in gold. Has anyone heard anything new about this? I just don't know, it maybe dead for all you know.
Physical Gold And Silver Tightness To Continue [View article]
I think that silver is the really tight market. All banks hold only 37 million ounces of registered silver and I think that only J.P. Morgan is short five times that amount + others are short as well. We saw in January the biggest demand for silver coins ever and the US Mint had to suspend sales for 10 days. Still, they sold a record amount of ~ 7.5 million ounces. I suspect that we are going to see a Comex default but I don't know the timing. I am sure that these guys are working with the banks and the regulators to find a way to default in a way that they don't call it a default. They will try to make it complicated so the public doesn't understand what is going on,
Will The Price Of Gold And Silver Keep Falling? [View article]
Will see. I think that both are crap but the EUR is a bit better. History is on my side in the sense that when the EUR started trading it was 1.17 to the dollar. With all the problems in Europe, it has still appreciated nicely against the dollar.
Will The Price Of Gold And Silver Keep Falling? [View article]
I think that the author is not correct about EUR/USD. The reasons are: 1. The FED is a very happy money printer while the ECB is reluctant. 2. The ECB is responsible to many governments which is why it has a lot more independence than the FED. On top of that the most important nation in Europe is against money printing (Germany of course). 3. Budget deficits in the Eurozone are much lower, on average, than the deficits in the US. 4. US has a $500 billion or more of a current account deficit, while the Eurozone is roughly balanced. Due to past current account deficits, there is $8 trillion in foreign hands and I can add nervous foreign hands. This makes the dollar very vulnerable. 5. Europe is actually trying to implement some reforms. These are too slow and not far reaching enough but something is being done, mostly due to German pressure. In the US there have been no reforms and things have gotten worse in terms of financials. Check the status of pensions, debt levels, food stamp recepients and funding of the welfare programs. The polticial will to reform is not there and the FED funds it all. Watch for more spending to be pushed out of the budget and out of the deficit, while still being spent and funded with debt. This type of financial engineering will allow the government to claim lower deficits while actually spending more. The main negatives for the EUR are the banking system in Europe and the north / south divide which can create huge problems and even civil unrest. Otherwise, the EUR is the better currency in my view.
Which Will Weaken First: The Yen Or The Dollar? [View article]
Both the USD and the JPY are doomed in the sense that they will lose a substantial portion of their purchasing power over time. However, the debt dynamics in Japan are much worse. Also, their population is aging and they will turn from savers to spenders as they retire by the millions. The BOJ is playing it safe and I assume that they hope that they could just let the bonds mature over time, while allowing the government to get what it wants short term. This is not going to work as they new BOJ boss, whoever that is, is going to do exactly what the government wants and print money like their is no tomorrow. So, the yen is in trouble and Japan will be the first big industrialized country to go through a huge financial crisis. 2008 will look just as a small warm up to what is coming, especially in Japan.
In a war the winner usually gets some spoils. Here the winner will get totally screwed due to high inflation and currency debasement. So, it is not a war but more like a suicide. I think that would be a much better way to call it.
There is a much better technology that produces gold from paper. The FED is the ''scientist'' that knows how to produce that in infinite amounts at no cost. So, your expensive technologies can bite the dust!
Moody's cites the "trajectory" of the government debt situation as determining any changes to the U.S. credit rating. Unless the economy is about to return to high growth, this means tighter fiscal policy, though Moody's warns not to cut spending too quickly either. [View news story]
''Moody's warns not to cut spending too quickly either.'' Not to worry, there is no chance spending would ever be cut. Does that qualify as not too quickly.
More from St. Louis Fed's Jim Bullard: He suggests a tapering of the Fed's QE as soon as possible - perhaps trimming bond purchases by $15B/month for every 0.1% drop in the UE rate. Just when we thought the Fed couldn't think of new methods of micromanagement of this vast economy. (presentation) (speech summary) [View news story]
This is just a part of the good cop bad cop strategy. He doesn't mean anything ... just likes to make some noise.
Japan is going to have a huge crisis. There debt and money printing are totally out of control. The new ideas that they have are actually very old and always lead to the same type of crises and this time will be no different.
''M2 will shrink''. This is a really brave but foolish statement. Have you see the chart of M2 published by the FED. http://bit.ly/rsTWKo I don't see M2 shrink. The chart shows that the growth of M2 from $4.5 trillion in 2000 to $10.5 trillion now is actually accelerating. This is of course due to QE infinity. M2 will grow substantially in the next couple of years as the FED prints more and more.
No One Knows How Much Gold China's Central Bank Is Buying [View article]
.China has not reported its gold purchases for years. This is why Russia has bought more than China, if one looks at official reports. The truth is that China has purchased a lot more but just doesn't report it. China has plans to buy a lot more gold but they are clever. They would like to buy it at cheaper prices of course, if possible,
No One Knows How Much Gold China's Central Bank Is Buying [View article]
I assume that China has 3,000 to 4,000 tons of gold. They don't just import a lot but also happen to be the biggest gold producer in the world. They also buy mines (not just gold mines) and whatever gold is produced there is shipped directly to China. They are basically getting out of the dollar to the extent that they can.
High inflation is 100% guaranteed going forward. The massive money printing and government debts + the private debts that will again be nationalized simply guarantee that the money printing cannot ever stop. It is like a hamster running on a wheel and the wheel moves ever faster. First you get monetary inflation (aka QE) and then you get prices going up. The FED will never exit and they have no exit strategy. This is not because they are stupid but because such strategy doesn't exist. Then they'll reach for pension and so on.
Physical Gold And Silver Tightness To Continue [View article]
- Swiss gold reserves to be fully accounted for and brought home.
- Require the SNB to keep 20% of reserves in gold.
Has anyone heard anything new about this? I just don't know, it maybe dead for all you know.
Physical Gold And Silver Tightness To Continue [View article]
Will The Price Of Gold And Silver Keep Falling? [View article]
Will The Price Of Gold And Silver Keep Falling? [View article]
1. The FED is a very happy money printer while the ECB is reluctant.
2. The ECB is responsible to many governments which is why it has a lot more independence than the FED. On top of that the most important nation in Europe is against money printing (Germany of course).
3. Budget deficits in the Eurozone are much lower, on average, than the deficits in the US.
4. US has a $500 billion or more of a current account deficit, while the Eurozone is roughly balanced. Due to past current account deficits, there is $8 trillion in foreign hands and I can add nervous foreign hands. This makes the dollar very vulnerable.
5. Europe is actually trying to implement some reforms. These are too slow and not far reaching enough but something is being done, mostly due to German pressure. In the US there have been no reforms and things have gotten worse in terms of financials. Check the status of pensions, debt levels, food stamp recepients and funding of the welfare programs. The polticial will to reform is not there and the FED funds it all. Watch for more spending to be pushed out of the budget and out of the deficit, while still being spent and funded with debt. This type of financial engineering will allow the government to claim lower deficits while actually spending more. The main negatives for the EUR are the banking system in Europe and the north / south divide which can create huge problems and even civil unrest. Otherwise, the EUR is the better currency in my view.
Which Will Weaken First: The Yen Or The Dollar? [View article]
The BOJ is playing it safe and I assume that they hope that they could just let the bonds mature over time, while allowing the government to get what it wants short term. This is not going to work as they new BOJ boss, whoever that is, is going to do exactly what the government wants and print money like their is no tomorrow. So, the yen is in trouble and Japan will be the first big industrialized country to go through a huge financial crisis. 2008 will look just as a small warm up to what is coming, especially in Japan.
This Is Not A Currency War [View article]
Reasons Not To Buy Gold? [View article]
Moody's cites the "trajectory" of the government debt situation as determining any changes to the U.S. credit rating. Unless the economy is about to return to high growth, this means tighter fiscal policy, though Moody's warns not to cut spending too quickly either. [View news story]
Not to worry, there is no chance spending would ever be cut. Does that qualify as not too quickly.
More from St. Louis Fed's Jim Bullard: He suggests a tapering of the Fed's QE as soon as possible - perhaps trimming bond purchases by $15B/month for every 0.1% drop in the UE rate. Just when we thought the Fed couldn't think of new methods of micromanagement of this vast economy. (presentation) (speech summary) [View news story]
How Congress Could Fix Its Budget Woes, Permanently [View article]
Japan Does The Full Ponzi [View article]
Reasons Not To Buy Gold? [View article]
http://bit.ly/rsTWKo
I don't see M2 shrink. The chart shows that the growth of M2 from $4.5 trillion in 2000 to $10.5 trillion now is actually accelerating. This is of course due to QE infinity. M2 will grow substantially in the next couple of years as the FED prints more and more.
No One Knows How Much Gold China's Central Bank Is Buying [View article]
No One Knows How Much Gold China's Central Bank Is Buying [View article]
When To Worry About Inflation [View article]