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Gold Hits Another Record As All Assets Melting Up Equally In Bernanke's Face
Gold hits another all time high of $1,117.82 an ounce. At this point the Fed must decide if the opportunity cost of the equity bubble and a few more S&P points is worth destabilizing the entire monetary system. Knowing the Chairman's M.O., the answer is an unequivocal yes, especially if it involves destroying the dollar's value.
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Here comes a[nother] 200 point, closed bond market, rally. Today is absolutely the last day you can buy stocks...
what about mining ? should I dump my mininers ?
Pretty interesting read found quoted in the NYT, don't know if it has been posted before. "Monetary Policy Alternatives at the Zero Bound". Full of "not very much data to support".
http://www.federalreserve.gov/pubs/feds/2004/200448/200448pap.pdf
Nice catch, thanks.
great read...love the comment on page 2:
"Central banks in the industrial world have exhibited a strong commitment to keeping inflation low, but inflation is unpredictable."
'at a boy Ben
"...inflation is unpredictable."
Yeah, no shit, especially if you are the one creating it.
Goes well with the "we can remove the excess liquidity anytime, no problem" comments
my favorites (so far)
"asset purchases in large volume by a central bank would be able to affect the price...since the Federal Reserve has not engaged in such purchases in the past fifty years, our evidence...is necessarily indirect.
(you evidence is just like your purchases)
"our evidence for the effectiveness of [Japan's] policies is more mixed...[they] do not provide clear conclusions."
(I thought they did )
"policy prescriptions"
(I think a government proscribed drug induced state is the best metaphor for our current situation)
Excellent catch. Also, do not overlook the other authors of this document. Brian P. Sack, Macroeconomic Advisers, who Tyler pointed out yesterday (http://www.zerohedge.com/article/worlds-most-important-trading-desk-not-goldman-9th-floor-33-liberty-street) is the man in charge of the recent failed reverse repo action by the Fed.
This seems to be the promotion chain at the Fed: be wrong your entire life about everything, diddle around long enough, be promoted to a position that affects the lives of millions of people with arbitrary policy decisions, blame "speculators" when the SHTF.
That is how I came upon it - researching Sack a little per Tyler's article.
Love your promotion chain. And if speculators won't take the hit, you can always blame terrorists
The time for revolt draws near. Is anyone listening?
No.
Let's see how long the shorts hold out. The game is as clear as a punch in the face at this point.
No one is listening. Destabilization as an outcome is acceptable collateral damage, and the strength of the dollar relative to all other currencies and more objective measures is of zero concern.
The Federal Reserve is the weathermaker and gold is the barometer.
1200 on the S&P here we come.
1500 is my guess.
Maybe 2000 if they feel like it.
Denninger: I don't want no stinkin' gold...Give me more of dem FRNs...Now drink yer Kool-Aid and shutup or I will ban you from MY Ticker Forum.
He's like that. One part of his brain works very well, but he's got a huge blind spot that shines in almost every post on his site.
Denninger is a cock-eating monkey.
I am Chumbawamba.
Indeed, why have gold when you have ink on paper!
He does seem to be clueless on certain matters.
......what's amazing is the ignorance among the People that all this is evil and destructive to their way of life....
Ingorance is the Status Quo these days.
+1
I find myself thinking that too. they seem to come up with more impressive and ingenious ways to quicken their own destruction.
It's all part of GodS plan.
Triffin's dilema & all that ? Gold $1500 1/2 the dollar (controlled? hmmm) ect...
As long as the Health Care plan is being debated in the Senate, I believe we'll continue to see the dollar drop and stocks rise. Nothing causes the ire of the population like noticablely losing their retirement accounts.
I agree. There will be shakeouts along the way up though. Best picture of what's to come, if you can find it, is the Nov 13th, 1922 New York Times article about the German Stock Market (Zeitung Index) being up 10X since January.
Gold $5000, Dow 30,000 and U-6 unemployment 25%? The only question is when and Martin Armstrong can help you there.
But how long can this go on? Is the only thing that will stop it a currency crisis? Could this continue for YEARS?? Maybe they are actually gunning for this, a worldwide currency crisis that would wipe out debts with a reset. If so, it would make sense to max out the credit cards first, health care, cap and trade, why not? When the crisis hits, he who has the gold and the guns, wins. That would be the US, if it happens soon. But unfortunately, we still need ME oil. Isn't it lucky, we're already sitting on Iraq?
This view is looking more reasonable as things get weirder. The question is how the endgame really works if a collapse of all major currencies is in order. In the US I guess that would explain the government takeover of more and more parts of the economy through various schemes. But it seems like there would be more gold and other commodities sitting in government hands before things go nutty. I can think of a logical extrapolation of that but I don't care to write it down.
Yes, and when this currency crisis happens it can be quick and deadly. To quote Denniger today about Ben, "Attempting to dance close to that ledge is kinda like doing a jig with a gallon jug of nitroglycerine in your arms - it's all ok so long as you don't drop it."
i don't know about you guys, but I've got my eye on the exit today. I smell a mid afternoon reversal. I bet there are more of you out there that feel this way too.
No guy, not in the least.
that filthy rotten LIAR, the Treasury Secretary of the United States LIED again by saying that he deeply believes in a strong dollar. link below.
Geithner is a filthy rotten LIAR. Is this clear?
http://www.cnbc.com/id/33848497
Can he fool the host of 'Lie to Me' though?
I came to that conclusion when his nose grew during the confirmation hearings.
i too, deeply believe in the strong dollar and fiscal restraint....i would like to become the Secretary of Treasury....pass me whatever Geithner is smoking....
Barney Frank's boyfriend can help there.
its just like the kid says that he believes in a straight A policy. Then he skives class, does drugs etc means ZILCH !!! ( p. schiff)
As a neophyte economy and finance watcher I used to be confused by what the Fed meant by "strong dollar policy." From what I could see it meant "The Fed and Treasury are committed to a strong influx of dollars into the world financial system." Then I found out what the phrase is supposed to mean and got all confused.
Then I found out credit is really debt and I got even more confused. I'm bad with spatial relationships and could never operate in an environment where every day is Backwards Day. Now I just do the opposite of whatever the teevee says. Works great! I don't have to know what anything means. I am confused, however, by the 120 pounds of rice and beans that and bullets somehow ended up in my office. I don't even have a gun! Must have bought it while in a trance. Something going on?
Hopefully it's not all .22!
Bingo if it's FMJ .308!
He purportedly believes in paying taxes too. Another policy not backed by his actions.
+1
Tyler, Rest easy on bubbles. They dont give a shit (at best) and are blowing more as a solution (at worst).
http://www.ft.com/cms/s/0/98e7c192-cd5f-11de-8162-00144feabdc0.html
The Fed is now seeking intellectual validation for the policy they are now pursuing – rescuing the US economy through bidding up asset prices. They now view the dot com bubble as benign ??? They used the same as an excuse to keep rates low for years and blow the bigger bubble in 2002-2005. Deflation was the enemy when Ben Bernanke gave his helicopter speech and proposed buying treasuries in June 2003. What is wrong with these people? Will they get it before they blow up the fiat currency system? Will they get it if another bubble bursts with more collateral damage to the real economy? I do not think so. We need reform, most urgently at the Fed.
is it only me or there is a black line across the web page right around the second posting. Should be easy fix for the IT team
I have been listening to communist radio (NPR). The dollar's demise is apparently not newsworthy. Neither is "audit the fed". The DOW will take out 14,000 as the dollar falls to $.50
Wow, this investing stuff IS easy!
The fate (i.e. a specfuckintacular rise) that dollar-deflationists/Prechterites had imagined for the dollar, has instead been reserved for Gold. Sayonara Robert Prechter.
There is still time. BUY GOLD NOW.
Any comments on denomination - is there a benefit to smaller than one ounce coins (i.e. 1/4 maples) and smaller 5-10 gram bars (despite higher premiums), in that they are more utilitarian/tradable because there value won't be quite to the moon like their larger denomination counterparts.
If you believe that gold is still cheap (as I do), then it makes sense to have *some* smaller denominations. The premium at good dealers should be less than $20 (<$200/oz) for 1/10 Philharmonics. Gram buying kicks it up from there quite a bit imo. Actually, I expect silver to see the streets before any gold is moved, but the smaller denominations are good for earmarking for family, etc who may not be in a position to buy but may need assistance. My $.02 (on its way to $.01)
I think you can definitely have some smaller denominations, you know, for the "just in case" scenario if/when you need to make change, but overall just try to get the maximum amount of bullion for your paper dollars.
Or, one could just wait and buy when it gets really exciting, say when it starts to double every 6 months!
"...is worth destabilizing the entire monetary system."
The monetary system is already toast. It was doomed to this fate when the Fed was created in 1913. The only thing remaining is the realization of this FACT.
This is all well and good y'all. However, I'm just interested in ENDING this joke we call "business as usual." I don't care what happens as long as food, energy, and prosperity shortages begin in earnest. Nothing says population control like engineered societal derailment.
Great news! Mr Zucker will now run CNBC/NBC. He joins great Americans like Bloomberg, Sam Zell (tribune, LA times), Morton Zuckerman (owns nearly every magazine), Sulzbergers (NY times), Cass sumstein (Czar of media), Sumner Lipshitz Redstone, Tisch (CBS. Separation of church and state? Those damn right wing christians!
So Geitner, SUmmers, Goldman Sachs agents, Robert Rubin, Bernhake, Orszag, Rattner, Shapiro, Feldman conspire to "loan" GE/NBC 300 billion line of credit. Then they force GE to sell the media control unit to Mr Zucker. Oh I get it now. Fully. Separation of Church and State? Since when?
The Czars of David without covenant or restriction against their pollution of Anglo-Saxon ways of life, governance, industry, and commerce.
In Rome when the moneychangers and descendants of slaves held the high offices, all things high were brought low.
They said to buy gold on the pullbacks. but there aint been any!
Any day when the dollar index falls and gold doesn't rise is a pullback, FYI.
+10
Why would there be any major pullbacks? Les jeux sont faits.
*throws softdrink in your face*
80's reference sorry..
The crooks run the show, what did we really expect, change? pffft!
Just hit 1118.
I love you gordo. The only thing you add to this forum is how your gold finger nails make you 10% in a couple of months on a stale, bubbled commodity.
Had you invested in april, you'd be up 40%+. But stick to your aged gold theories.... comedy for me!
Once again Douchebag Anonymia chimes in with brilliant anal-ysis.
I am Chumbawamba.
Oh yeah, I forgot:
GOLD, BITCH!!!
I am Chumbawamba.
Yeah, but who really outside of GS and Obama really expected a repeat of the last bubble and would've jumped in with both feet in April. Little did I know that God (GS) would work in such mysterious ways.
Oh, I'm waiting for the day the carry trade unwinds and the goldbugs are as screwed as the rest of us serfs.
God works in mysterious ways because he's a liar and his lie's create paradoxes and a shit ton of hypocritical behavior which is his lying core trying to face his projected illusions.
Ah, newbie, if you had been on this site (actually, the predecessor over at blogspot) you would know that GG and I and several others have been getting the hell out of USD since March, when Bernanke went "all-in" on dollar destruction.
GG does appear to be on his pat malone. The Government of India purchased 200 tonnes at $1,045! What say you Anonymous twat?
Couple months? Where have you been? GG made the smart move to get the hell out of USD way before that.
Then again, who the fuck are you, "anonymous"?
Appreciate it ghostface.
Gold is good right now. You just need 30s as a pair trade.
Why are all the idiotic comments from Anonymous a-holes? Gold is money for the new age friend-o; the real BARBAROUS RELIC is the FRN and Central Banking.
Veterans Day. Sad to think of the people who died to protect a way of life, and of the worthless bastards who are destroying it for economic ideology.
Even sadder to realise that they are not doing it for ideology. Very sad indeed.
Why can't the Administration get to wear uniforms. That would be really natty
Uniforms are expensive. Let's start with much cheaper armbands first.
From a post on Seeking Alpha, Erosion of M1:M2..
Check out these updated digits, courtesy of the HS Dent November forecast and DebtDeflation.com:
* Financial Sector Debt: 120% of US GDP
* Non-financial Debt: 180% GDP
* Total Private Debt: 300% GDP
* Total Consumer Debt: 100% GDP
* Total Government Debt: 100% GDP (Federal= 85%, State/Local= 15%)
* Corporate Debt: 80% GDP
...
Apparently, The stock market is still undervalued
The USA like any individual counterpart that has spent a dissipate life has passed the point of return to any semblence of respectibility.
Its embrace of moral hazard to the destruction of everyone except themselves and the banks has completely demoralized our population. Having insinuated corruption into every institution from which they derive their mandate and legitimacy, the governed conclude that their gov't is hellbent to self-immolate...and kill them in the process.
We have passed the point where ramping our productive national ability while simulataneously austerely cutting our expenses can pay on on- and off-balance sheet obligations and attendant interest.
Our options months ago were to renegotiate the loan terms or issue more IOUs. We did both by embarking upon currency devaluation and covert Sovereign bond support (printing). Our borrowing needs as a deficit budgeted country exceed all the excess of the surplus countries. The inflection point has been met and surpassed. Only the printing press can stave off for a little more time the ultimate demise of pauper deadbeats.
Bonds auctions are in functional fail. The currency exhibits the decline consistent with creditors trying to pretend confidence while hurriedly selling the debt at discount to any takers.
What was once loved and revered as the most safe, place of highest integrity and rule of law (USA) is now abjectly feared as the destroyer of global wealth.
The rally, QE, CE are the ruses to offload as much risk and liability upon other bagholders as possible.
But we are very, very, very near the ENDGAME.
+1 oz of freegold
You MUST watch this comedy courtesy of the WSJ.
http://online.wsj.com/video/viewpoints-fink-on-obama-economic-recovery-team/9DD8893B-4141-4388-98DE-E4A0194714DE.html
LArry Fink, Blackrock CEO, GUSHING about the FED, OBAMA's economic team and the GREAT job they are doing managing the economy stablizing things.
They also touch on Blackrocks connection to gov't's around the world managing assets.
Of course gov'ts are doing a great job, they are your best customers!
Many short interviews here.
The man is deluded or lying. Does he really believe what he is saying?
The economy is strong!
The economy has always been strong!
We love big brother!
I am still expecting a USD (and VIX) rally which as we know is bearish for stocks.
http://www.zerohedge.com/forum/market-outlook-0
Both Vix and US$ dx moving up now
REE's will out do Silver/GOLD 20-1
the next 10 years. JMO.. 85% of G/S holdings held
sense y2k sold when target hit last week
What do you mean "melting up in his face"?
You're pretending Bernanke's 'intent' is somehow his failure?
Bernanke intends to inflate asset prices in order to preserve the solvency of the financial infrastructure. He is succeeding wildly.
Gold? Who gives a crap about gold? The gold market is microscopic and irrelevant. Yes, the gold price will distort. Buy some if you like.
But to suggest that rising equity and asset prices are the result of some kind of "backfire" is to dismiss Bernanke's successes as mere accidental side-effects. They are not.
The plan is progressing perfectly. The powers that be will be protected, and the American middle class will lose. That much has been pre-determined and the plan is progressing smoothly.
For the longest time I could not make heads or tails about this rally. Karl Denninger has a good post today about why this rally has occurred and why we are likely to see a lot more 200 or 300 point days on the DOW - all of which comes at the further demise of the dollar. In my opinion, gold and oil prices are not necessarily increasing, they are just holding their value against a dollar that is rapidly deteriorating (and protecting your wealth). Karl makes an interesting note that if the dollar keeps dropping we could be looking at $300 oil (yikes!). This discussion ties well into a movie that is premiering across different states called "collapse". I haven't seen it yet, but it has an uncanny feel about our collective future. http://www.collapsemovie.com/COLLAPSEMOVIE/
Ok, here's my crazy conspiracy theory of the day. So there were these rumors swirling about that the end of August or early September would see a bank holiday in the US. We also heard that US embassies around the world were ordered to buy massive amounts of local currency (except the British pound), enough to last a year. This was reported by Jim Willie, Bob Chapman, and others. But it never happened.
So I'm wondering: who put that meme out there? It obviously did not come to pass. So my theory is that the PTB wanted us to believe it was coming so that we gold bugs would spread the word around to warn people. Then when it doesn't come we look like assholes. The goldbugs who cried currency default. And now we are discredited. So when they go to collapse the economy finally and fully, us having been discredited, the masses will do nothing to protect themselves and the PTB will rule over the land.
They don't call them conspiracy theories for nothing.
I am Chumbawamba.
This is something that cannot be stopped - the train has left the station, we are in the last car, and the doors to the locomotive are locked, the wheel manned by lunatics. Grab one of the overhead straps, go long on those SPYs, and hold on.
Don't forget that, with an impressive gunz-n-ammo collection, you'll have an easy time acquiring an equally impressive gold collection from one of your hapless gold bug neighbors, should the need arise. The converse, not so true.
Careless comments like that tend to stick to one, ya know?
The speculative positions are at record highs in oil and gold. The whole financial system is correlated and betting against the dollar. When have they ever been right??
This will not be pretty. Have a look at a weekly chart of oil or any yen carry trade to mid-2008 - The end will not be pleasant. Bear moves can wipe out weeks/months of work in a matter of days.
If someone could answer a total noob question (as in, unschooled in finance)......I have seen it written here several times that Gold is a short on the dollar. Is Silver seen in the same way? Why not?
Partially yes, partially no.
Silver has a dual role: It is both precious metal and industrial metal.
Even doomsday Marc Faber is calling for a bounce in the dollar. What a douche. Knows this asset ponzi is about to tumble.
Despite the good long -term outlook for gold, the speculators are being gamed and will get burned.
Tyler Durden,
Please consider the idea that maybe it is someone else tanking the dollar in order to "prove" their economic point of view.
In 2001 a group I follow stated in 2008-2009 gold would be at $1000. Avg Joe said impossible because back then it was floating around $300.
Same group has now stated that Over the next 2-3 years it will hit $2000 and, depending on feds plan /w agreement, could hit $5000 to $15,000 Because Fed will begin a buying spree and not sell gold they buy. (Buy and hold 100%, forever)
After they buy up large gold amounts (probably 50% -60%) then they will allow the dollar to devalue to $0.
Then the world leaders will merge all world currencies into only 3. The Euro, Yen, and not sure on the third, but it wont be the dollar.
This will be the best position to create a "debt reset" as mentioned above.
It does sound a bit crazy however the events over the last two years seem to fit nicely into this jigsaw puzzle.
I guess we will see.
Euro, Yenminbi & Amero. SDRs for everyone else (with Soros' picture on them!)