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Faber: "1 Trillion Dollars A Month" Money Printing Coming
Today’s AM fix was USD 1,311.75, EUR 959.51 and GBP 813.24 per ounce.
Yesterday’s AM fix was USD 1,316.00, EUR 962.27 and GBP 814.05 per ounce.
Gold rose $1.10 or 0.08% yesterday, closing at $1,315.20/oz. Silver climbed $0.31 or 1.42% closing at $21.19. Platinum rose $2.64 or 0.2% to $1,433.74/oz, while palladium increased $8.50 or 1.2% to $747/oz.
Gold hovered in a tight range today between $1,310/oz and $1,330/oz. Traders await the release of U.S. jobs data to gauge the health of the struggling U.S. economy. A poor U.S. nonfarm payrolls number should lead to safe haven buying that could lead to a breach of resistance at $1,330/oz and gold soon testing $1,380/oz.
Gold in US Dollars - 40 Days
A good jobs number could see gold weakening below short term support at $1,310/oz and a possible retrenchment to $1,280/oz.
The U.S. September jobs data has been postponed for 16 days due to the partial U.S. government shutdown that began on October 1st. U.S. Fed Bank President of Chicago, Charles Evans, commented in an interview yesterday that the fiscal discord in D.C. will probably delay the decrease in the Fed's monthly bond buying which is gold positive.
The market continues to digest the continuing fall in the holdings of the biggest gold exchange-traded-holdings fund dropped the most in 15 weeks as gold flows from London to Switzerland and on to Asia. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 10.51 tonnes to 871.72 tonnes on Monday -- its biggest fall since early July. It is believed that this gold is flowing East to willing and eager buyers in China particularly.
Gold bullion dealers in India are struggling to get gold bullion and are paying record premiums just ahead of the peak festival season next month.
Marc Faber the author of "The Gloom & Doom Report" was interviewed on CNBC's Squawk Box today.
Faber commented, "The question is not 'tapering', the question is at what point will they increase the asset purchases to say $150 billion, $200 billion, or a trillion dollars a month."
Faber was one of the few investment advisers to clearly warn of the coming global financial and economic crisis in the months and years pre-Lehman. His company Marc Faber Limited provides investment advisory services to financial institutions, corporate clients, family offices and high net worth individuals around the world.
Mark Faber
‘QE-4-EVA’ is here to stay, as Faber laid out "every government program that is introduced under urgency and as a temporary measure is always permanent."
Simply put, "The Fed has boxed itself into a position where there is no exit strategy," and while inflation may not be present in the 'chosen' indicators, Faber trumpets, there's been incredible asset inflation - "we are the bubble. We have a colossal asset bubble in the world [and] a leverage or a debt bubble."
There will be massive wealth destruction, he concludes, "one day this asset inflation will lead to a deflationary collapse one way or the other. We don't know yet what will cause it."
Last April, Faber said the world will face "massive wealth destruction" in which "well to-do people will lose up to 50% of their total wealth."
In this morning's Squawk Box appearance, he said that could still happen but possibly from higher levels because of the "asset bubble" caused by the Fed.
Faber, whose advice has protected millions of investors in recent years, warned of a global systemic crisis possibly due to the massive size of the global derivatives market which is now worth over an incredible $700 trillion.
He warned “when the system goes down,” and only plastic credit cards are left, “maybe then people will realize and go back to some gold-based system.” He wisely said that, “I advise everyone to have some gold.”
Gold in US Dollars - 5 Years
Faber has warned in recent months that there could be a flight out of cash and overvalued bonds and into equities and gold.
In January, in response to a question from Yale University’s Robert Shiller querying the recommendation to hold gold, Faber said: “I’m prepared to make a bet, you keep yourU.S. dollars and I’ll keep my gold, we’ll see which one goes to zero first.”
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"If one take a look at the data, can see that the share of the US government debt held by the "Federal" Reserve reached record levels in 2011, reaching 11.2% of GDP, the highest since 1940 onwards, and possibly the historically higher. In 2012, this rate was also high at 10.6% of GDP. Only once this figure reached such levels, in 1946, i.e. shortly after the end of WWII, when it reached 10.7% of GDP."
http://failedevolution.blogspot.gr/2013/10/new-deal-vs-obamacare-one-rea...
This is just like when the Walmart niggers tried to make off with cartloads of watermelons and chikken when the EBT system went down, but on a larger scale.
racist slur, unhelpful.
And how is your comment helpful?
He's right, and it will be nasty.
I think the whole "taper or no taper" debate is just an entire level for the bigger question of truth:
"keep printing or actually stopping"
Now, I am inclinded to agree with Faber that the Fed will keep printing, and even buy more, in the future.
But that isn't really the long term question we need answered, it should be: can the Fed *ever* completely stop printing?
They can taper.....they can QE-4-EVA......but can they ever NEVER print?
Considering the challenges we face, and how structurally broken our economy is from a currency, labor, and opportunity level: That answer is no.
And no "Keynesian" will ever be able to admit that (including the closet NeoKeynesian RINOs in DC).
AS our government is hell bent on QE and seems to believe gold is a relic, why not just give it all to us?
QE will go on until the dollar is destroyed, then Soros and all his buddies around the globe will offer a solution of a world currency, his socialist life long dream will be realized.
A older PBS video everyone should have seen by now:
http://video.pbs.org/video/1302794657/
"..$150 billion, $200 billion, or a trillion dollars a month."
Rhetorical question: why the hell do I have to pay taxes?
That's not a rhetorical question. YOU pay taxes because Fascism owns your ass.
THEY don't.
"... ah yes sir, another one of them has just this moment worked out that MMT means taxation and bond auctions are surplus to requirements ... oh I see, ... so then we'll just tell them that it's done to manage inflation moves via limiting their disposable incomes, rather than raising interest rates, which must now remain pegged at zero? Well that's very clever Sir, ... indeed, we'll pass that on right away ... ".
They want you to make you feel like you are upholding your end of the Social Contract. (even though you never agreed to the terms)
Never understood why he claims "well to-do people will lose up to 50% of their total wealth." If these people's wealth is all in fiat then wouldn't they lose 100%?
It isn't: some is real estate, some is diamonds, some is gold, some is fiat, some is other tangibles.
The valuation in any currency will be less due to demand dropping (crisis of ability to pay to trade) and routing (you are stuck, buyers are stuck, confiscation happens in your region of cash, land, gold, weapons, etc.)
Good to see St George slaying the dragon on the coin....he's a swell saint!
"Last April, Faber said the world will face "massive wealth destruction" in which "well to-do people will lose up to 50% of their total wealth."
I heard this morning that Carl Icahn sold half his stake in Netflix for 800 million. H e would still be very well off even if he lost half after taxes.
"every government program that is introduced under urgency and as a temporary measure is always permanent."
Various New Deal programs were phased out.
Just been reading about the Africa Oil thing...and its possible the Saudi Oil reserves are diminishing. Peak Oil is rough !! With fiat collapse there may be land grabs for many 'in the ground' commodities....OIL, GOLD, resources...
Agreed, only this crap game is designed to close down all casinos worldwide. Then reopen under NWO casino model, same BS new sting operation. Derivtives are the gasoline, they will throw the match on it WHEN THEY ARE READY.This is a reply to SHOVELHEAD at the bottom of the page but somehow ended up at the top. WTF
Yes folks, Dimon and company are raping the GLD to fill orders so get out of it.
Didn't the Dimon just sell his JPM headquarters and Gold Vault (Manhattan's largest) the other day ?
China superior position (on top)...writing is on the wall...street.
So will they attempt to pit China against the Russians? Stay tuned...
Nah,
China loves that doorstep delivery oil too much. Trade lovebirds.
That's the fun of bird-watching.
You never know when that black swan will turn up or where it will land.
The Saudi's cutting diplomatic relations with the US could be pressure optics or could turn out to be a fundamental shift away from the US which could snowball into a very big deal for petrodollars.
I think they're a bit unhappy that Murder Inc. reneged on their Syrian (& Iranian) contract.
The multiplicative effect of derivatives alone means that ANY organization that has them should not be guaranteed by the FDIC.
The underlying reasons for Glass-Steagall are only more imperative now.
True on Glass-Steagle.
Why does no one talk about a Land Value Tax on this forum?
After the Crash: Designing a Depression-free Economy
http://www.amazon.com/After-Crash-Designing-Depression-free-Economy/dp/1...
https://docs.google.com/viewer?url=http://masongaffney.org/publications/...
http://masongaffney.org/
Do you think there be a great deal of private land ownership "After the Crash" ?
(After Katrina in New Orleans in 2005, all the records were stored under the city hall...under 30 feet of mud...so was difficult to ferret out who owns what, squatters, owners out of state, etc)
Also another question to ponder, will the banks and corporations who own some or portions of the properties pay any land taxes, who will pay if they are bankrupt ?
I guess George Soros might have some money and Bill Gates, but who else will be able to pay post-crash ?
so marc is not sure what will set off the downward spiral to the dollar death???
hmmmm, some call it math. i will call it percent of tax reciepts used to pay interest on the debt
that
crowds out the free shit army payments.
interest rate move by treasury dumps, due to lost faith, due to simple math.
dumps mean many things, as in flush the system clean...
He recognizes that the Fed can keep it going until something breaks. He just doesn't know what breaks first. My bet is oil prices. Other possibilities are political - pressure could build until a leftist House is elected and the minimum wage is massively increased. This would spark wage-price inflation that would be very hard to stop once it starts.
left vs right is a false story.
When wages are held down but EBT is running, jobs go down & riots are delayed.
When wages go up & EBT is reduced or not increased, purchasing power goes up WITH inflation, which is a refreshing change, but as we can imagine equilibrium is hit again not long after.
So long as the top-dogs are also top-mafia & immune to all prosecution the real problem won't end.
Inflation, dollars, fiat, are merely a transmission mechanism for a criminal machine's parts. The purpose of that machine is the same as the purpose of the Matrix: to use you as a copper-top.
"My bet is oil prices."
I read last week how US oil production is surpassing Saudi Arabia as a result of fracking, and the US is now the Top oil producer in the world.
http://www.reuters.com/article/2013/10/15/us-oil-pira-idUSL1N0I51IX20131015
Ironically the low oil prices are helping Obama.
Not in crude, also the operational costs for shale oil will outstrip the oil price benefits. Peak Oil people had it right, but timed poorly. Oil will be expensive for ever now. The only way that commie Obama can roll with this is if he shuts downs the oil price market and fixes prices at the same time invading Saudi Arabia.
I was thinking about moving some of an IRA into gold and silver until I read the paperwork. This was one of my "favorite" clauses:
On getting delivery of your metals when you decide to cash in: Should your dealer fail, within the industry’s customary time period, to deliver the purchased gold or silver, XXXXX will have no obligation to take any action other than to send you a notification of the failure. However, should XXXXX take action to secure refund or delivery, I agree to promptly reimburse XXXX for any expenses arising from such action, including but not limited to attorney's costs and fees and XXXX's reasonable costs and fees.
SO I am agreeing they have the right to not send me my gold and silver, and then they will send me a bill for the lawyer to try and get it back for me???? Boy, some lawyer had fun writing that clause up. And this wasn’t the only item that sent off alarm bells.
Buyer beware!
I promised myself a beer for holding my own gold.
If you dont hold it, you dont own it.
Man up and pay the taxes and fines for cashing out that dog. Buy phyzz and quit yer whining.
You'll sleep better at night. I do.
or CEF, PSLV are probably OK too. or....go the GoldMoney route. Or setup your own physical IRA...but that is tricky so be very careful.
Ummmmm, I wasn't whining. Just pointing out the BS. You must be a lawyer.
My Mama said gold was special
goldbugs are doomed.
fuckin shills anyway.
Hey, Who junked me??
You forgot to warn is "It's all for the shilldren!"
NOT
"goldbugs are doomed" - perhaps many goldbugs are doomers
yet remember: in the Old World, there are no common words for "goldbugs". we all believe in the barbarous relic, be us Chinese, Russians, Indians, Africans or Europeans (the jury is still out for the Brits. just look at the 5 pound gold coin celebrating the birth of Prince George)
Kinda of hard to buy a gallon of milk with a 1 oz gold piece. So, best thing is have the gold as hedge only; it's not going to be the currency even if the system crashes. It's not practical.
That's why I have 0.1 oz gold coins and silver coins.
I'm not partial to gold grams, I find the annoyance of size is not worth the hassle vs having silver.
Not practical at all..... what you would do is buy 5 cows ... keep one for milk ... eat 3 of the others ... and trade one for fruit, vegetables, clothing, tools, etc...
The ability to reason is what differentiates humans from dogs...
What one ounce would buy is the cow.
moooooooooo....
If I were in Europe I'd catch a train to Germany and visit an old people's home and ask the oldies what they craved or missed most in 1947, when central Europe was still in ruins, and still on strict rations for everything. I'd stockpile those key items in large amounts and wait. There are so many ways to preserve and transfer wealth to the other side of a currency crisis, if that's what you want to do.