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S&P In Gold Down After FOMC Announcement, As More Capital Rushes To Precious Metals Than To Stocks (Update: New Regime)
Sorry, Ben, can't feed Wall Street cake and then dilute it too. Gold's dramatic surge to fresh all time highs, more than makes up for the spike in the S&P. As a result, intraday, the S&P500 expressed in the only real currency left (one can hear the giant sucking sound as people leave fiat in droves) is down. In other words, on a relative basis there was more capital going into precious metals, and more specifically, away from linen and other infinitely dilutable paper, than going into stocks.
Update: welcome to the new regime where every Fed intervention or expectation will now mean more push to gold than stocks.
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http://www.youtube.com/watch?v=-pQVZBtQ9cI
Kris Kristofferson, bitches!!!!!!!!!!
Jane Fonda, bitch.
The definition of insanity and worthless US dollars:
"Given the very high level of reserve balances currently in the banking system, the Federal Reserve has ample time to consider the best long-run framework for policy implementation. The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system" -- Federal Reserve February 10, 2010
www.federalreserve.gov/newsevents/testimony/bernanke20100210a.htm#fn9
Money for nothing and your chicks for free...
We've got to POMO
As much as possible,
Got buy US debt, yesireee
We've got to POMO
As much as possible,
Got buy US debt, yesireeeeeee-eeee
ben's silver lining?
I am getting sick of silver bugs. Gold is for kings, sliver is for gentlmen.
I don't care what the spread is, gold is still king.
you calling me a gentleman, spitzer? you better be able to back that up.
Finish your quotes:
Gold is for Kings,
Silver is for gentlemen,
barter is for peasants and
Debt (US$) is for Slaves.
Copper is for merchants.
Painite is for the cabal.
IF there was PM manipulation - I think silver would be the metal that would break the cartel first. Therefore, I like to end an occasional comment with a:
Go Silver!
I just hedged my physical gold with......
physical silver.
I think I finally believe that silver may do better percentage-wise than gold. And I also believe that silver is getting scarcererer.
And its used in real world applications. Gold is used for the tips of a few bose wires and some PCB's, which are mostly copper anyways.
Of course. The Fed announcement was anything but a positive statement. The only difference between this announcement and the last one was the promise to print more if necessary. That's inflationary, not an economic positive.
Truly brainless action
yeah but CNBC reports everything as positive. "dow up 70 since the announcement". ...and now back to the Bed Bug Conference in Chicago for an update. Hey CNBC, ya THINK THE BED BUG PLAGUE MAY HURT HOTEL OCCUPANCY RATES??? or will they increase because people love the critters?
Well, bed bugs are a solvable (and apparently national) problem.
Unlike every thing else in Washington.
All hail the Great Wizard in DC, Slayer of the Bed Bugs.
I read they had to close NYC Niketown to clear out the bed bugs. Eww. I wouldn't buy those clothes...
Singer Accusess NYC Hotel Bed Bugs Of Vicious Attack
http://gothamist.com/2010/09/01/bed_bug_law_requires_schools_to_fes.php
haven't been tuning into news or CNBC much lately. but heard erin this morning say, they were going to cover this after the break. i turned tv e e off. it truly is being taken seriously by the media. fear, be very afraid N e W Y o R k c I t y †
So true. I found their comment on inflation to be more Fedthink, i.e. inflation isn't high enough? Really? So we should just print more money, because that is good inflation? And please don't get me started on the construction of the inflation indexes. See shadowstats.com for some unvarnished indexes - running in the 5-7% range.
And the global race to debase your currency the fastest continues. Germany/EU can't be happy to have the Euro back above $1.30. And that's even after the ECB is loading up on PIIG bonds.
Happy to see gold and silver up. Hope that breaks the cartel and gets the dominoes falling...
I think the Fed's comments on inflation are an attempt to dictate an official narrative of reality and recent history. By doing this, it gives them an avenue to act against the situation they have presented. But this has nothing to do with reality.
May 13th gap on SPY closed, time to roll this pig over and head sub 100
The Fed now realizes that they are just going to have to learn to live with a higher gold price.
Fed officials are probably loaded on gold.
More likely hopped up on prescription meds.
Scary nonsensical moves today. We might flash-crash today.
And we might end green. Nonsense indeed.
Couldn't help but notice the USD went wacky before finally taking a huge dump.
Smart money (humans) = PMs
Dumb money (machines) = equities
LOL!
Can a robot take delivery of physical PMs?
Here's a scene from a documentary on that very subject:
http://www.youtube.com/watch?v=csqrZ0ZfBvY
SkyNet already moves it around the central banks to give the illusion it's paper scrip has value.
look at eur/usd. wow.
Just all part of the competitive devaluation cycle that we're in. On a relative (to each other) basis, each currency will have its days of extreme weakness or strength. They teeter and totter against each other.
It is when you see the currencies relative to gold that you see the real damage. Check gold/$, gold/euro, gold/swissy and gold/yen. The dire truth of our situation is hiding in plain sight.
Everyone gets their spin at the wheel. And so long as it's sinking on more or less an even keel the majority will have no idea that the currencies are depreciating. Good work if you can get it, the level of collusion is sickening.
Capitulation Bitchez!
Equities as an asset class are over-rated, but the psychotic Fed is fixated on Equities. As usual, they are focusing on the wrong targets. Shooting real hard at the wrong targets.
The other Fed fixation is keeping interest rates low, which screws over (transfer wealth) from savers to looters. The markets will eventually punish them for that.
And who is the biggest looter of all?
That will have to be the black market, as it's the only one left.
I will be putting my gold fillings up for auction on Ebay shortly.
Flava Flav is a rich man.
My I suggest an order of Puts with a side of inverse ETF's with a bit of VXX dipping sauce?
Ladies and gents, I think we just ran out of bigger fools
dollar, oil, copper not attending the magic show
Looks like everything is up. Stocks, Gold, Euro.. Its an all you can eat Loaves and Fishes fest. Dig in boys.
S+P going red..quick, another POMO hit
Amazing, they have a plug in it, don't they?
S&P is giving up. Gold isn't.
Anyone listening to Broaddus on Bloomberg at the moment...print, print, print....gold your investments are safe...
"We have only done one round of QE and don't have much experience with it"...."its a powerful tool"....are all the Fed's people programmed like that? Have they heard of Japan?
I'm calling a top in AUD within the next few days, if not today. The Aussie exporters can not absorb any more of this without collapsing.
I agree John, and I've staked my own money on it, not someone elses which has been the tradition since politicians heard of JM Keynes... Damn, shit, I just managed to press the sell key again!
interesting, i also thought AUD and CAD would rally to this point (and still think they might go a bit higher) and i am just this minute thinking of at least starting my short pos
hope you are right...
i wonder how much the fed is worried about gold's strength, particularly when they make another easy money statement like today?
i'm sure hoenig is emphasizing it...
I wonder if BB is worried or doesn't think it's a big deal?
Looks to me like it will become a serious issue for him in the very near future.
Keep an eye on Anthony Weiner - the Feds gold attack weasel.
I don't think Weiner is against gold as he is having the people get hosed on the 30% spreads ala goldline.
Lets wait and see, but if Weiner is so concerned about 30% spreads has got a lot more fish to fry.
Blame Gold Line. All they had to do was stop the boiler room operation.
The crooks screw it up for all honest sellers. If Weiner had not taken on the job somebody else would have, sooner or later.
It's a Weiner job!
They're gonna try to debase the USD 'til they collapse. Problem is, and this is something a lot of people seem to have forgotten, when has the Fed or any other central bank ever succeeded in anything? Give a retard a gun and tell him its a lollipop... Can someone please give Krugman or Mishkin a "lollipop" to suck on?
"I wonder if BB is worried or doesn't think it's a big deal?"
I think the Tell was when he said he didn't understand Golds price movements. It was the equivilent of "No comment", but he cannot say that because the "No comment" is associated with guilt and defeat and so people would have grown suspicious.
In a modern welfare state, an addmission of incompetance doesn't arouse much suspicision. It even makes the speaker seem more relatable really.
"What in the World" happens now? The US has basically been hocked and all the world knows it. We've been bamboozled and lambasted for Sunday dinner. Go world currency, GOLD GOLD GOLD , DJIA36000 and The Zimbabwe Special!
Employers remain reluctant to add to payrolls. Housing starts remain at a depressed level. Bank lending has continued to contract.
Free money anyone?
There is no capital rush into gold right now. It's simply the dollar falling off a cliff.
Hey, I'm a goldbug but not a blind one.
Gold Price Change due to Weakening of US Dollar +13.60 Gold Price Change due to Predominant Selling -4.70 Gold Price: Total Change +8.90Could be the beginning of the next phase if stock rally fails here and the gold rally heats up. Whatcha do banksters?
Yields and stocks now diving.
DXY punches down through 80 and it isn't going to stop tanking for awhile.
I am reminded of a song from my childhood,
"Head and shoulders,
Knees and toes! Knees and toes!"
Little did I know when I first heard it how applicable it would be to TA...
Regards
PS
Is ANYONE trading oil right now, or do they all have bigger fish to fry?
The Fed and US Gov needs to get a grip. I have a small BIZ and talk to a lot of folks and people instinctively know this dollar printing and reckless spending will not end well.
Ops hit save twice
Larry Summers leaving Whitehouse November,Bloomberg.
Mission Accomplished, Larry Summers job was really to rescue The Harvard Trust Fund!
Comex gold has not been trading right for about a month and a half now. Just a feeling, but it feels like every dip from this period was bought aggressively. I am used to much more tentative and careful bids. It was as if the bidders did not care that gold could retreat.
5c
Yet the gold stocks are still trading as though gold is $800/ounce. ie: Barrick.
What the hell is going on here?
Not the best choice for a measuring stick there pitz. Barrick shareholders are currently paying the price for the company's production dehedging not too long ago. I imagine that the company made some powerful enemies on that move, not to mention the screwing of their shareholders by carrying such a position in the first place.
Regards
Goldcorp (GG)? Kinross (KGC)? Its not just Barrick that's taking it where the sun don't shine.
Nope, they aren't the only ones. But you are still looking at the wrong companies. For example: perhaps Kinross is feeling a bit tight right now because they just bought Red Back Mining (RBI.to). Check out their chart.
Regards
Those 3 firms are some of the largest gold producers in the world.
What should I be looking for? The Easter Bunny?
Gold stocks just aren't responding to these price increases in the way that they should. Meanwhile, far too much speculative money is going into the mid-caps.
"Meanwhile, far too much speculative money is going into the mid-caps."
Yes indeed: Faaaaaar too much.
The independent, reserve-laden, debt-free producing ones, anyway.
As for,
"What should I be looking for? The Easter Bunny?"
Who do you think I am, your friendly neighbourhood Papal Investment Guidance Counsellor? Do some work. Or get down on your knees and pray; while you're down there kiss your ass goodbye.
Regards
I don't like Barrick, they had an awful hedge book which I'm not sure ever got covered. The simple truth is most miners are action packed with risks, or are poorly managed, or have an insane about of shares out, or like Barrick hedged themselves and are paying for it now. Or some combination of the above. I have some playing around money in miners and I fully acknowledge it's gambling. Physical possession is way more secure.
Silver just hit 21.00! Gold to 1300 soon, The cd comes due on Wed. Cash that dog in and buy some more PM. 0.7% interest my aching ass.
OK Gang, crunch time. Now that I have almost finished moving IRA short term treasuries into Treasury money markets (limit of $10,000 per transfer ) - I feel like like a fish in a puddle that is drying up, how will money market perform (chase) sudden rise in interest rates if hyperinflation?
Will Vanguard let me redeem the whole enchilda or will it unilaterally restrict redemptions..new law passed says mutual funds don't have to have permission from SEC to freeze redemptions, rather freeze as funds see fit.
More ballsy yet...cash out IRA, pay the 10% penalty and the highest marginal tax rate wipes out 50% but hell then the govt no longer has dibbs on it. Go out and buy some farm land. High chance taxes will be raised next year anyway.
buy land+ hide your gold/silver/ammo on said land and grow food.