Gold Extending Gains On Realization Fed's Only Option Is CTRL+P
Update: $1700
As for those confused why EURUSD is back at 1.31, here is a reminder from 3 days ago: "Poor Mario apparently fails to grasp that for Germany a plunging Euro, and thus a surging export market to offshore trading parterns, is the only thing that matters now that its endogenous mercantilist import, pardon, trading partners of the past decade, the PIIGS, have no more debt capacity to buy German exports. Although even a technocrat probably understands that one does not get a weak currency by bailing out the weakest links over and over. Expect the European crisis to be with us for a long time. After all, that's precisely what Germany wants (of course, the Chairsatan may have other views on the matter)." It appears he did have "other views."
Presented with little comment, Gold is now at $1693, about to take out $1700 and the best performing asset class of the year: YTD: Gold +8.2%, S&P +4.9%, 30Y TSY price -1.44%. Furthermore, since this FOMC statement implies more easing imminent, it simply delays full blown LSAP so its "effectiveness", read max Russell 2000, peaks with Obama's reelection campaign.
Chart: Bloomberg
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It's over.
It's all over.
It is over. Even Kyle Bass mentioned that once you start ZIRP you can't ever stop without blowing yourself up.
ZIRP is the end game of any financial system. Look at Japan. If rates rise to something like 3%, they immediately implode. Is that scary or what?
And it gets to the point that even with incredibly low rates, you can still blow yourself up because you are increasing your debt so fast! A small percent of a really big number is still a big number!
+ 1
It did not take long for ZH to get on this, what 15 minutes or so since the vertical spike started. Bravo ZH!
Now let's see if gold keeps going up. Maybe this is just another spike-ette that means little longer term.
Yes, Corn1945, there are few ways we can make any income as savers in a ZIRP environment. And if/when we leave ZIRP: kaboom!
Wow who would of guessed! Of course they have no choice except QE to infinity. Look out hyperinflation.
http://silverliberationarmy.blogspot.com/
Silver is 19% + YTD. Wonder how high it would be if our wonderful regulators didn't beat it down at 2am last night, and also where it would be if the COMEX didn't need 5 margin hikes in 9 days to bail itself out last May.
This entire economy is a joke - corrupt and bleeding badly. Metals need to be beat down to hide the extent of this ponzified POS. Good luck Benocide, Timmay, and Osama......
Watching platinum, the price ticker went beanzo a while ago. Check the H.
if you understand WHY ZIRP happens and how the Fed *does not* SET interest rates (they follow), then you understand why ZIRP never ends.
There is NO DEMAND FOR CREDIT. This is because the forces of CONTRACTION are up on us, not expansion. Everyone is facing no choice but to decrease borrowing.
+ 1
NO ONE I know wants to borrow.
"no one wants to borrow" except the bankrupt gambling bums on Wall Street and the insolvent cretins in Washington
America is sinking as fast as Europe and Japan yet all the drunk-stupid elites are demanding the central bankers keep bailing with yet more credit/debt ...just keep piling on the dynamite bankers, the fireworks will be all yours
I just love ZH! Look at all the comments of those who really get it. The fuse is getting short and still burning, in fact the CB's of the world are fanning the flame.
DaddyO
Phyzzz, it's whats for stacking!
Thank the Democrats and their golden Muslim.
what qe are you talking about?!? what printing?!? another trough of fed promises, and only promises, filled with imaginary pig slop that the investment flock is running to.......nothing has changed today. another year of zirp to accommodate demand that doesnt exist (yes thats thanks deleveraging and very deflationary)? there wont be hyperinflation.....the world cbs are doling out just enough to keep things level at this point...........
I wouldn't bet on deflation. Reverse fractional reserve lending does not strengthen the dollar, it only reduces banking revenue. The deficit must be funded. USD will lose reserve status. All inflationary.
Why do you clueless deflationary flat-earthers ALWAYS love to throw out that red herring of hyperinflation as the ONLY possible alternative outcome to your never-before-seen fiat currency deflation? Oh yeah --- because your arguments are laughably weak and historically nonsensical.
We may not see hyperinflation in the USA or Europe, but we most definitely WILL see a significant fiat currency depreciation --- just as we are experiencing currency depreciation today, all disinformation from Bernanke and Trichet to the contrary.
I love these deflationary trolls. You go to the grocery store and see poor older people on fixed incomes with empty baskets and terror in their faces. Meanwhile, the muslim's voters have carts filled with junk food with their golden muslim's food stamp credit cards.
ZIRP is more like a desperate attempt to stop (price) deflation. Hyperinflation is a political. . . blah blah blah. . .
The FED is attempting to keep credit from contracting. This is a big no-confidence vote in the economy. It is also dollar negative - in keeping with the 'talk about strong dollar while do everything to weaken the dollar.' The irony: Europe is more broken, so this is a losing game.
I totally agree that once the FED embarked on the ZIRP Heroin binge, the fate of the economy for the next 20-or-so years was sealed. We are the new Japan. Cash is king, with some PMs for hedging against the possibility of TPTB taking a big misstep and flying this plane into the ground.
Equities? Please.
Bonds? Toxic mortgage sludge securities may be the best short term performers, but only because the FED is telegraphing the desire to buy them all up as part of expanding and deepening the ZIRP Heroin binge.
Real estate? Look what Japan for the last 20 years. Possible exception is farming/gardening so you can save on groceries (the one area where prices ARE inflating).
Fuck it - pay off all your credit cards and buckle down. Tell the wife that the summer vacation is now a staycation. Oh, and remember that this time we have no gold standard to go off of (unlike FDR in 1933). There is no fix for this. There is only delay.
Can we get on with the correction, now?
.. or is the S&P just going straight into hyperinflation?
Carlsberg?
@ DoChen
Up $5 or so more since I wrote at 13:21. $36 is a NICE MOVE.
Spike back on, $1706, up $40.
Au options expiry tomorrow...
I guess this wasn't "priced in"...... love me my bullion!
well i just realized that i now use zero hedge and the tyler boys as my go to news source for financials. was searching property in calif when i bounced into my trading account and saw my agq and uslv taking off and went straight to zero hedge to see whats up. sure enough top post is fed statement. go zero hedge
well thanks God we have Gordon Norquist to keep us safe from economic collapse.
By the way did all the Republican congressman who signed his oath on taxes at the expense of their oath to the America Oath of Office that this gentleman also is the co-founder of the Islamic Free Market Institute?
It is "Grover" Norquist and the majority of conservative Republican voters, not AH's who think Newt is a conservative, hate Allah's stooge Grover Al-Norquist. Norquist is a piece if sh*t.
F him.
So what you're saying is if all the unemployed people buy a house and an iphone everything is going to be alright?
APPLE! APPLE! APPLE!
Too bad you can't eat your phone.
The New American Dream: Not wanting your kids to grow up eating bugs
"Gold is your chance. Gold is every man's opportunity. Why do I make that argument? Because every defect in a man and in others' way of taking him, our agreement that Gold has value gives us power to rise above...And for your effrontery at our meal a moment ago, I'd have seen you shot or hanged without second thought. The value I gave the Gold restrainded me, you see...your utility in connection to it. And because of my Gold, those at the other tables deferred to my restraint.
Gold confers power. Power comes to any man who has the color."
-George Hearst - Deadwood season 3
Right on!... Cocksucker!
http://www.youtube.com/watch?v=nOrxhvAVVRw
Thanks I forgot to throw a cocksucker in there..
Gold $1700 Gold $1700 (PAPER MALFUNCTION PAPER MALFUNCTION) Show me the physical BITCHEZ!!!
Spot on.
I literally have folks coming in the clinic daily wanting freebies. They cannot affor to eat, they cannot afford their meds, et., etc., but boy they sure can sport that new iphone 4S!! Keeps them occupied while waiting to be seen.
No shoes, no shirt, just utter consumerism.
Hopeless state.
President Obama just told me last night that we've turned up for the foreseeable future. Now Bernanke tells me there will be no sustainable upturn for another three years.
So which one is the honest one?
This is an excellent question! I think the bearded one is painted into a corner and is basically saying..."don't fucking look to me for help... all I can do now is print and pray."
I think you are reading it right Chief! The Fed really does not have much power to change things now other than to print. Pretty soon it will be politicians who start coming under scrutiny.
Did Obama say last night that it was George Bush's fault?
Did Obama say last night that it was George Bush's fault?
I only heard him say that about ten times before I finally gagged and began throwing up violently. I think the thought of living in a country that has an electorate dumb enough to elect him made me sick to my stomach.
But please understand - the Republicans are not right, they are simply less wrong.
the Republicans are not right, they are simply more wrong.
fixed it for ya.
Name the Democrat Ron Paul.
Name the Muslim Republican President
Fixed it for ya.
Neither. It is contradiction to the top, boys and bitchezz.
"So which one is the honest one?"
LMFAO
Golden question, yes, which one of them is more honest.
I do think Bernanke is more honest as he speaks much less, and always says "tough times ahead".
Niether - the only sustainable option looking forward is contraction, localization, and reduced consumption.
that doesn't intersect well with any system that requires unabated growth, like the Fed/BOE/BOJ/etc. creditmoney systems.
Japan's credit creation hit the wall 20 years ago. Only through carry trades and ZIRP/prints have they managed to stave off the UTTER COLLAPSE of the thing. But, because it's only paper, they can do so forever. Just print. The system won't collapse.
Shit gets more and more expensive, lifestyles go down in the aggregate, but the monetary system remains.
QOL in Japan has improved, though...
The difference is that Japan until very recently had a trade surplus and still has a modest current account surplus...
And the BOJ has US treasuries whose coupon is adequate to purchase Japan's oil imports....
You and I agree that it when the petro-dollar outlives it's usefulness will you see the full extent of your vision...
+1
Your correct, it is over. I've said this a number of years now, that the system has gotten itself in a situation that they can't exit it without the whole system imploding.
Buying just a little more time… Back in 1912 when the Titanic hit an iceberg, in short order everyone was apprised of the dire situation. There were not enough lifeboats to save everyone, but there were enough to save all the women and children and many of the men. Back in those heroic days Captain and crew went down with the ship of course. Today imagine the U.S. is the Titanic, (not to difficult) and it has struck the iceberg. The Captain and crew are telling everyone things are going to be fine. They tell all the passengers to just have another drink while they fix things up so the voyage can continue. Behind the scenes they quietly gather there rich friends and pile into the lifeboats. There are still many boats left, but instead of saving the woman and children, they loot the cabins of all on board and fill the remaining boats with their ill-gotten gains. As the string of boats rows away from the doomed ship some of the passengers notice and shout "where are you all going?" "Just off to get more Champagne of course" they reply "…carry on!"
Bon Voyage,
Things are only this way because we the people allow it. Don't be mad at them. Be mad at us for not sticking our foot up their asses where it rightfully belongs.
No actually it's okay to be mad at them. We trusted them to do the right thing. Trust is not wrong in that case. It may be misplaced but it is not wrong and they should have done the right thing when they had the chance and taken their lumps if any were involved.
But instead they lined their pockets. They are high criminals and enemies of the people. They should hang.
"Hi Mr. Frog, I'm Mr. Scorpion. Mind if I catch a ride across the pond on your back?"
Never mentioned in that parable is why the scorpion wanted to cross the pond in the first place.
To get to the other side?
:D
I guess that's logical. But he could have been a sociopath, looking to mess with some frog.
Too paranoid?
Trust is the riskiest thing one can invest in.
Believe no one.
Even more important, trust no one.
On pondering rational thought
In an age when morality's bought
Who can we trust
To bridle their lust?
Nobody....ergo the rot!
Fair enough. People forget that America is not a place or a group of people, it is an idea that must be kept alive through dilligence, hardwork and sacrifice. Sticking a flag on your porch between getting a beer and watching Ameican Idol does not make you a patriot.
true.
"America" is a state of mind, applicable to any People on any landmass, capable of rational thought and sustained vigilance.
Only problem is they have the 'law' and the costumed enforcers of such on their side. Your foot would barely be in mid-swing before one of their jackboots would hit paydirt on YOUR backside.
Not disagreeing mind you, just sayin'. Only way to solve this is full-tilt-boogie 1776 Part Deux.
BE VERY ANGRY AT BOTH.
But give a break to those of us who have been energetically warning everyone about this for decades, and have been called "kooks" and worse the whole time.
Unfortunately, a couple of the passengers brought Bad News with them and the lifeboats can't get out of range fast enough.
Those few were than quickly shouted down and even more quickly forgotten
A Bad News cannot be shouted down and the effective range is up to 1500 yards.
"This is your captain speaking... do not rush for the lifeboats ... women, children, Red Indians, spacemen (stock film of long shot of sinking vessel, the voice over fading) and a sort of idealized version of complete Renaissance Men first!"
-Monty Python, or Ben Bernanke; can't remember which at the moment...
Good stuff Fred!
How do you like this Titanic of a fact:
Construction of RMS Titanic, funded by the American J.P. Morgan and his International Mercantile Marine Co., began on 31 March 1909.[22]
Banker J. P. Morgan was scheduled to travel on the maiden voyage, but cancelled at the last minute.[55] Travelling in first class aboard the ship were White Star Line's managing director J. Bruce Ismay and the ship's builder Thomas Andrews, who was on board to observe any problems and assess the general performance of the new ship.[54]
http://en.wikipedia.org/wiki/Titanic
Banker J.P. Morgan cancelled at the last minute...
Banker J.P. Morgan cancels last minute... J.P. Morgan cancels last minute...
All work and no play makes J.P. Morgan a dull boy...
That is exactly what is going on. Because like the Titanic if they told everybody on the ship that we are sinking and there isn't enough lifeboats, there would be a mad rush to get on those boats. And the elite, the bankers etc., wouldn't have space for their ill gotten gains or even for themselves or family. So with the help of some of the ship crew (govt. officials) they get to go ahead of everybody else and with the promise of money and/or a spot on the life boat the picked crew/govt. officials silently stow away into the night. While the rest of us finally see the US as it truly is, another broke country that has been sent into a third world nation.
Intermediate trend just turned bullish. Gold just broke above the 50DMA and a downward slant of reistence that started in September.
i cant say that my great panther silver and sandstorm gold arent doing well today. Or my silver bullion. Thanks Ben. I was expecting a pinky finger but you delivered a kit-kat bar.. you sly bearded handsome man.
Benny Bling - he the man ...
http://www.myspace.com/181154144
Sh*t!!! I wish I'd been in that today!!!!
The Bernanke "is a student of the Great Depression" and he is the professor of the Great-est Depression. Student, meat teacher.......teacher, meet student.
The Bernanke "is a student of the Great Depression" and he is the professor of the Great-est Depression. Student, meat teacher.......teacher, meet student.
Oops, double trouble. You suck so badly Gentle Ben I hit the button twice.
I know I’m gonna be fired upon here but I’ll say it anyway:
I think today marks a temporary top in Gold.
Today’s reaction was way overblown; it will probably be reversed by the end of the week.
Regarding Silver, get out if you bought lower while you can.
Why do you think this?
Simple, no QE.
ZIRP is no QE.
Without a strong QE hot air pumping, the punctured hot air balloon plummets.
And today the remaining suckers have been suckered in (I'm talking about the market in general, not specifically PMs).
Just had a silver bears movement. Time to change my undies.
BTW, Anlagegold24.de currently has 1oz. gold bars selling for less than €4 over spot! The kilo bars are a few hundred € under spot! Time: 20:27 CET. This won't last long. All the 100oz. bars are gone.
Update: 20:47 CET
All the 1oz. gold bars are sold out. 500oz. and 1kilo bars still available and under spot! Still have a bunch of 20 gram bars, but probably not much longer.
Update 21:09 CET
20 gram bars now less than €4 over spot! These bars must be flying off the shelves at this price. See what happens when you only update your prices twice a day!
Update 21:20 CET
All the 1 kilo bars are sold out! I've never seen anything like this since the panic buying in 2009!
Interesting commentary, danke :O)
Well, checked the website a few hours later and all the 20 gram bars are gone as well! Incredible!
BUY SILVER NOW OR BE POOR LATER.
I bought silver yesterday - and gold is up today... figures...
Silver is up a buck, BTW.
still a good buy point, though.
Silver up 3.4%
Gold up 2.0%
Hi-O Silver!
if you think about it why not to buy a bit of platinum at 150$ below gold price? It's been below gold prices only few times in history and for very short time.
Platinum is a GREAT way to diversify anyone's PM holdings.
Because industrial demand has a huge impact on its price now a days. I still believe that it will go up, but it is a different ride. Maybe long platinum and short gold is a better play.