This page has been archived and commenting is disabled.
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
»
- 18720 reads
- Printer-friendly version
- Send to friend
- advertisements -
I doubt we'll make it 5 years, much less 10. What sort of event would meet your 'anything of consequence' criteria?
I've been expecting the end of the world any day now, for about the past twenty years.
I've gradually adjusted to how slowly things unfold. Greece has been in the process of defaulting for what, a year and a half now?
'anything of consequence" would be classified as possibly China telling the U.S. that there credit card no longer works or the world population wakes up and realizes that they are being lied to by their political leaders and banks - neither of these two are about to happen in the next 5 to 10 years.
Agree on your classifications. However, I would posit that they are both well underway as we speak. Naturally not in warp speed fashion (China doesn't want to be left holding massive amounts of US dollars in the even some other player trips the wire), but in discrete and methodical fashion.
This is all about controlling the collapse, or boiling the water with incremental temperature increases. I would imagine TPTB would like nothing more than to get 10 more years of this. However, this whole mess has the feel of compounding, or exponential, factors at play that are becoming more difficult to conceal or control.
Something about filling a stadium with water by starting with one drop and doubling it every minute. It doesn't take years or months as one would expect, but will be full in less than one hour. The kicker is the stadium will still be 93% empty 45 minutes into the process. Ergo, by the time things are perceived to be dangerous, it is already too late.
Yup. Take a normal checkerboard. Put a penny in one corner. Put two cents in the adjacent square. Put four cents in the next square. Continue until the checker board is full of pennies. How much do you have? At the end of the first row, only $1.28. At the end of 8 rows, no big deal, right? 8 x 8 == 64 squares
01: $0.01
02: $0.02
03: $0.04
04: $0.08
05: $0.16
06: $0.32
07: $0.64
08: $1.28 - 1 of 8 rows finished.
09: $2.56
10: $5.12
11: $10.24
12: $20.48
13: $40.96
14: $81.92
15: $163.84
16: $327.68 - 2 of 8 rows finished.
17: $655.36
18: $1310.72
19: $2621.44
20: $5242.88
21: $10485.76
22: $20971.52
23: $41943.04
24: $83886.08 - 3 of 8 rows finished
25: $167772.16
26: $335544.32
27: $671088.64
28: $1342177.28
29: $2684354.56
30: $5368709.12
31: $10737418.24
32: $21474836.48 - 4 of 8 rows finished
33: $42949572.96
34: $85899345.92
35: $171798691.84
36: $343597383.68
37: $687194767.36
38: $1374389534.72
39: $2748779069.44
40: $5497558136.88 - 5 of 8 rows finished
41: $10995116277.76
42: $21990232555.52
43: $43980465111.04
44: $87960930222.08
45: $175921860444.16
46: $351843720888.32
47: $703687441776.64
48: $1407374883553.28 - 6 of 8 rows finished
49: $2814749767106.56
50: $5629499534213.12
51: $11258999068426.24
52: $22517998136852.48
53: $45035996273704.96
54: $90071992547409.92
55: $180143985094819.84
56: $360287970189639.68 - 7 of 8 rows finished
57: $720575940379279.36
58: $1441151880758558.72
59: $2882303761517117.44
60: $5764607523034234.88
61: $11529215046068469.76
62: $23058430092136939.52
63: $46116860184273879.04
64: $92233720368547758.08 - checker board finished
Okay, how much do we have?
$92,233,720,368,547,758.08 on the last square, plus an equal amount (minus a penny) on all the previous squares, for a total of:
$184,467,440,737,095,516.16
or
18,446,744,073,709,551,616 pennies
That's $184 quadrillion dollars... easily hundreds of times more than the value of everything ever produced by mankind in the entire history of mankind.
So listen when scientists say "beware of power and exponential functions". They ain't just kidding around.
PS: For a smaller version, consider doubling the penny only for 1 month. That generates only $164 bucks after 2 weeks... but over $10-million in 30 days.
PS: Here is a bit more trivia. How high is the stack of pennies on the final square of the checker board? Well, assuming a penny is 1mm thick (just a guess), the stack is 18 quadrillion meters == 18 trillion kilometers high. How high is that? Oh, not that far. Only 120,000 times further than the sun... or nearly half way to Alpha Centauri (the next nearest star). Stack up all the pennies and they almost reach Alpha Centauri.
Or form the copper in those pennies into copper wire, and we could wrap the wire around earth and a planet at Alpha Centauri several dozen times, and make something that Tesla could probably destroy the universe with. Alpha Centauri or bust?
It is virtually impossible the dollar ponzi scam can last another 5 years, much less another 10 years. The rest of the world is quickly beginning to realize this game cannot be good for them, so they are rapidly backing off.
Just in the past month the chinese started SELLING more US treasury bonds than they're buying AND russia, india and china are cutting deals with iran to buy their oil with gold. The house of fiat cards is shaking... and the US military can't take on the entire world at once, not including russia and china.
I suspect the predators-that-be and predator-class want the collapse to happen somewhere before or on 2012/12/21 to create a self-fulfilling prophesy of sorts to help them pretend "it wasn't our fault, it was mayan destiny". To absurd? Just watch.
'the rest of the world" isn't realizing anything - the small percentage of us at ZH realize what is going on but the billions of others occupying this rock are oblivious and/or too complacent/stupid to even begin to make an attempt at making the effort necessary to help bring down the "house of fiat cards". I tell people - hey buy some silver/gold or hey take cash out of the bank while you can - they look at you like their ready to call an intervention.
Trust me on 2012/12/21 - we ZH will be saying pretty much the same old things. Give it 5-10 years - patience - these things take time and then when it happens it happens fast.
In this case, what I meant by "the rest of the world" was... their governments. Though I suspect the general public in lots of other countries in the world are a lot more (or less) observant than the slaves in the USSA, their governments are generally far more aware of what's going on --- if only because they are predators just like their counterparts in the federal government of the USSA. I'm not sure what they plan to coincide with 20121221, but I do suspect they'll try do something egregious and have their apologists attempt to cover them by scapegoating the mayan calendar. Too bad the mayans only had 12 fingers.
I generally agree HonestAnn, and also mention the increasing number of (non-dollar) currency agreements forming. A major event before the Mayan date would not surprise me at all. If not, I think we will see major problems in 2013. The increasing pace of Draconian measures may be a clue.
Well, I'll give you this much. I almost always do think insane arrangements will collapse long before they actually do. I have tried to correct for this tendency, but I could be wrong.
I do note that Japan has vastly more debt versus GDP and has managed to keep their interest rates in the cellar for 20 years. So... maybe. But the problem with the USSA is so huge and egregious that I still doubt the world can let this scam continue for another 10 years. Remember, Japan isn't going around bullying and bombing everyone in sight, and purposely (and almost daily now) creating and executing destructive scams and protecting the criminal predators who execute them, while the USSA is. The predators have gone wild in DC, and everyone is figuring out they won't stop.
Hey, I've been 95% to 100% in physical gold for years, so the longer the scam continues, the better off I am. But Murphy's Law is quite reliable for me, so I can almost assure you this game will be over before 10 years passes.
This will go on and on for a long time - 5 to 10 years before anything of consequence happens.
Maybe, maybe not.
I believe Iran is the key at this point. If America backs away from invading Iran, ok, things might muddle on another 5 yrs or so as USD steadily weakens, loses WRC status, then America collapses.
If America invades Iran I believe America will die quickly from all out currency war (China & Japan dumping Treasuries) followed by thermonuclear war (American cities nuked).
Fed admits its actions for the past three years are not working so the logical action is to stay the course.
Leverage, properly applied, can move heavier loads.
Bashing ourselves in the head with a sledge hammer, its all we've got, and we're sticking to it!
But... but.... Newt Gingrich says that the audience should be allowed to applause his punch lines!? Wouldnt that solve everything?
Gold bull on its last legs. Next bull market looks to be in use of "Built to last"which looks to be very bearish for use of "sustainable". Just when I levered up the black swan hits, no pun intended.
holy hell what a jump on both metals
"¡Ándele! ¡Ándele! ¡Arriba! ¡Arriba! ¡Epa! ¡Epa! ¡Epa! Yeehaw!"
new savonarola, We love the international flavor. lol
1700 bitchez
Bernanke is Goldilocks.
Fed Holds Fed Funds Target at 0.25% And Hints At Mortgage QE, Gold Prices Spike, Dollar Falls
http://confoundedinterest.wordpress.com/2012/01/25/fed-likely-to-hold-fed-funds-target-at-0-25-and-where-bond-markets-stand/
Beautiful!
This is what I call "Cosmic Justice"
I am so glad I still listen to the Phd professors. I mean, I sold all my physical and now have waaay more digits! Too bad I just didnt wait a bit longer. But hey, otherwise I would not have all that qualty stuff from China I already have now. I mean, gold $1700,11 now. Oops did I just ctrl P some more digits?
3 trillion deficit, yes we can!
Seriously, I've seen interviews with people from the US senate saying that interest rates on the debt will NEVER go back up, that's why they don't care about the spending.
EXACTLY. I've been saying that for a couple years (here in ZH too). Amazing people can't add 1 + 1 and get 2. It is a simple fact that it costs ZERO for the bankster-predators to create money out of thin air, so they can lend it to the federal government of the USSA predators at near zero rates without losing a penny. So why wouldn't they? Sure, nobody else will, but they can create and lend to the USSA as much as they want, so they need no other lenders.
The entire monetary system has been an absolute, complete, utter fraud since 1913, and it remains such today. It almost makes one think they want to make sure hyperinflation happens before 2012 Dec 21, a sort self-fulfilling prophesy sorta deal.
By the way, for those who say "that won't work, because the loan re-payments they receive will be worth less than the money they lent", that doesn't matter. On the books they will have received more dollars in payments than the number of dollars they lent, so they can PRETEND it makes sense. And they'll book it as a profit (even though the repayments were all made by taking newly borrowed quadrillions and paying back some trillions). Quite the ponzi scam, no?
It all works out until we are no longer the reserve currency. That time is coming quick.
Either that, or it works until federal workers refuse to accept fiat money as payment for their services, and defense contractors refuse to accept fiat money as payment for weapons. That might slow them down a bit.
Either that, or it works until federal workers refuse to accept fiat money as payment for their services ...
Never gonna happen. They accept debasing fiat currency or they don't get paid.
Fiat currency is no problem, federal workers are probably the biggest proponents of the fiat currency pozni scheme. I doubt you could find one single federal employee talking against it.
The point is this. If the fiat currency they're paid doesn't buy anything any more, even they will quit showing up for "work". Well, except the most egregiously psychotic of them who love the badges, uniforms and arrogance they wear so much they just can't live without it.
Drinking 4.5% moves have a tendency to hurt the next day. Time to sell PM's before you get hit with the nasty hangover.
Maybe if you're trading GLD. Don't sell your physical, though.
I'll take gold and you take SPY We will compare where we end the year.
Turd Ferguson's take on this is well worth a read.
http://www.tfmetalsreport.com/blog/3304/well-alrighty-then
when you ctrl + P you print without using the mouse. it seperates the kids that grew up with keyboards from us old geezers brought up with typewriters.
I pressed CTRL+P and my laptop turned in to a vacuum.
Its like the classic film Runaway Train.
And CEF just took-out 22 again.
Thanks, Benron. Luv and Kisses.
So is this a selling opportunity, ahead of the market realising it'll have to actually crash (taking gold down via risk-off) before ctrl+P gets pressed?
i would love to see gold decouple more from the markets....would love to see stocks going down and gold either holding ground or rising....not sure if it will happen though.
Can we replace Ben Bernank with a piece of scotch tape and a rewound tape recording? No change till 2014.
I wonder why Guietner chose this path? Or is this the only way to ensure destruction? Puzzled..
I cant say the shorts didnt deserve what was coming to them.
And the perma bulls are just happy as can be, no matter what ZIRP does to the poor and elderly as long as there is a market rally.
I'm shocked, shocked that this metal thing has gotten out of hand with tomorrow being OP EX day.
As soon as the traders get back from lunch, they'll get a handle on this foolishness...
SELL SELL SELL
<kidding>
Yeah its kinda like bernanke just fleeced the shorts! Im sure jpm isnt happy with him right at thos moment. Well besides the fact that they'll be the recipients of the money printing.
Wouldn't it be funny if BB actually did it on purpose. To fuck Jamie Dimon inthe ass? Maybe Ben wanted JPM to do something and they wouldn't. THOSE are the games I am waiting for. We're getting close.
I don't know. They keep telling me gold pays no interest.
Game over man:
http://youtu.be/dsx2vdn7gpY
GOLD best performing asset class. Me likes the sound of that.
So now we know why the squid was advising clients to short bonds. As if there was any doubt.
Paging Roubini. Again. Lol!
"India trades Gold for oil with Iran"
This "news" came out with little fanfare and even less response from the markets. Is this really BIG "news"?
India may be entering into an area that has been absolutely taboo since the 1947 Bretton Woods conference. It has been "expressly forbidden" to conduct trade amongst nations using Gold as the medium for settlement. Is India skirting the plans and wishes ... demands of the U.S. that the world embargo Iranian oil?
U.S., "ally" Turkey, is facilitating trade with Iran through their banking system. Oh yes, lest we forget, Russia and China have set up trade deals amongst themselves AND with other trading partners where the Dollar will not be used. It is this "settlement of trade" function that has been a source of huge Dollar demand during entire lifetimes that is now being threatened.
This lower demand for Dollars is coming at a time where the Fed has, is and must in the future, create more Dollar supply...creating debt... than any time in the past. The ultimate "pushing on a string" will result and Dollar supply will dwarf demand. This will result in hyperinflation and it will be a currency event. Can we go through a period where the Dollar gets squeezed higher because of temporary demand to repay international Dollar denominated debt? Can we see foreign currencies "drop" faster than the Dollar because foreign currencies are largely backed and reserved with Dollars? Yes we can, but in the end, where does real and sustainable demand come from if the Dollar is not used to settle trade?
It doesn't in any real form. It's the absolutely comical situation where the Fed "prints" Dollars to "buy" Dollars on the open market.
As the current Dollar/Debt system is an outright Ponzi scheme, anything and everything will be done to prolong it. BLS statistics and government statistics are "made up" to the absurd all the time, what would stop the Fed from "fudging" money supply numbers? We know now of $16 Trillion worth of international loans back in 2008-2009 that we knew nothing of then so...we should faithfully believe they would not do it again? The Fed has been strenuously avoiding audit and simply says "trust us".
Well... did that...for too long and look where we are now.
This is bigtime crunch time !
Instead of the NEED and extra demand for Dollars, the opposite is happening. Just as "they" are running out of paper tricks and physical supply to depress Gold prices, demand is ramping up!
This HAD to happen sooner or later! International traders are taking matters into their own hands and Gold is finally being remonetized. We will hear of a few more "Dollarless" deals announced and then we will get the Big One. That being some currency or currency block that backs their paper with Gold on a ratio. Some sort of linking or... God forbid according to Bernanke and Geithner... "peg" to Gold is announced by a major government.
Even 2 years ago this sort of "tin foil hat" thought was laughed at, soon it will be reality.
Anything, any policy and any type of volatility can commence from here. Do not be surprised by anything on a daily or very short term basis as we are in the greater desperation phase and any type of leverage or risks will be undertaken by the official sector to retain power and control. It will not stand.
Mother Nature's real and true money, Gold was the first and it will be the last man standing!
Do not "get out of position" for any reason!
www.lemetropolecafe.com
See Libya for what's coming.
And what is funny or not depending on ones point of view is the fact, that Japan is also working against the US Dollar.
Yes, exactly Japan, the most obedient vasall of all.
But Japan has no choice. They need the oil from Iran. Their nuclear power plants are nearly all shut down right now thus appx. 20% of the electricity has to be generated somehow different. Only oil and coal can help out as a quick fix, since natural gas needs a special infrastructure which can not be build overnight. So Japan is for sure now buying a lot more oil on the market than a year ago before Fukishima. And only Iran has the amounts needed.
But since Iran is completely blocked by the US from the US Dollar based banking system only gold remains as mode of pay for Irans oil . In addition the currency agreement announced on Christmas 2011 between China and Japan which is eliminating the use of the US Dollar among the trade between these two nations is paving a highway for the collapse of the US Dollar.
Seems to be, that every country is on its own now and Japan decided already that there is no alternative for them other than to dump the US Dollar.
GoldMoney account login has essentially been down for 15 minutes and counting now...
BullionVault running like a champ :-) (Sorry to rub it in.)
Ever wonder what would happen at GoldMoney one day if EVERYONE decided to sell their PM's and cash out? Does GoldMoney have enough cash to pay out since they guarantee spot price? Oh wait, that's what the clause is for in their agreement where they say that if need be, they'll suspend all PM transactions... Thus the reason I trade on BullionVault.
I am the boy on the burning deck right now.
I am staying in Silver and see where this goes. It's a buck pop for now. Will it turn into a 10 dollar vertical shot?
I'm not selling for a measly gain after enduring all the downside distress. Hold out for at least 30 percent gain seems reasonable.
Gold has hit its allowed 2% daily gain. No more action upwards allowed from here Gentlemen...
Pension funds ka-boom
savings - ka-boom
folks on fixed income ka-boom
Ultra Rich - loving it
Exactly right. It is we savers who are getting screwed, no income!
Where's Trav? Thanks for opening your pie-hole, Ben. You just made my paycheck smaller.
Furthermore, since this FOMC statement implies more easing imminent
Where did you say that?
Damn, I am practically all cash because I just sold my DGP to lock in gains.
Came back from lunch and gold is on fire.
Holy Shit Batman!
Memo: Commence Operation $1T Naked Gold Shorts
From: Bernanke
To: JPM, GS
CC: Larry Summers, Timothy Geithner
Subject:
Unleash all the dogs. Add $1T in naked gold shorts to quell the markets. Call the media whores and have the usual PM bad mouthers go active tonight.
Semi-blind trust. I listened to ZH & commenters, got out of paper and got physical. Thanks guys!
Oops hate it when I double post
Oil should be climbing as well now that Benanke and the Fed has shown their cards. Ever increasing food prices and commodities to match Bernanke's QE to infinity!!!!
just a little update from blighty.. our news called channell 4 just had lagarde explaining the IMF approved of the uk's auto stabilization... this is a clever and yet misleading term for approving ctrl+p me thinks
Gold and Silver both seemed to like "O" a lot. Get yours before it is too late.
GoldMoney Account Login still down, what a fucking joke...
This is a nice move in gold but it's only ~2.5%. Let's not get overly excited. And I am long physical Au and Ag.
Gold 1707!
All you guys whooping & shrieking (and stupid enough to actually buy pms at these prices) will have your heads handed to you shortly.
As a couple of more astute posters have intimated, gold will have its 'big day out' but not yet, not for a while. Quite a while.
Deflation will do its work and as it does, *desperate people will do desperate things - like unload their gold.
But go ahead, buy now before the train pulls away.
I'll be waiting patiently at the station that says 'Gold $800'
* ummm ...that's going to be 'you'
What exactly do you think is going to cause inflation? Printing money to pay the bills due to massive deflation. You don't print trillions of dollars because you're in the black.
Just what exactly does $800 gold or $1700 or $3000 gold mean anyway? That you would honestly 'sell' your bullion to hold FRNs? Are you friggin crazy? I mean I get trading the paper but at this point why would you even do that? You buy @ $1650 and sell @ $1750 so you can repeat JUST so you can get more FRNs? Then what? You're thinking you'll take the 'profit' and buy some physical? Is that it? That has worked up to a point but at some point the music stops and U WON'T BE ABLE TO BUY physical at any price or a price that at the minimum 'eats' the profit you just made! Go figure! Hello?
So you are never ever ever going to sell your gold? What then is the point in having it?
Yeah I know, you'll trade it for food and everybody else will starve.
Heavy ass volme on DZZ. $1711 and went through the upper BB like a wet napkin.
Remember when Nouriel and the others who yelled that "Gold was a bubble"? Even though it was one of the more positive consistent assets in the last DECADE?
Watch it soar now in reaction to this news. It will, in turn, I believe, force the Fed to do QE3, currency swaps, or whatever they need to do to keep gold under $2K. I'll state the reasons in a bit.
That's why the commentary above by Nouriel and others is SO short sighted. It's one thing to argue that a gold standard would make a currency have more power at the cash register.....that can be debated, with both sides having good points.
But as an ASSET with LONG TERM SAVINGS GROWTH...I mean, PMs are THE WAY TO GO. Fuck 401Ks.......get yourself some Gold/Silver/Platinum, put it in a vault, and watch its value grow. No matter how big or small, you will NOT lose equity. Fiat? Cue the "LOL".
The Reason why the Fed wages war against PMs? If it DOES hit $2K, confidence in the USD wanes. That affects foreign investment (see: companies pouring money into countries that have been buying up gold left and right, like India and China). Also, crime will go up (and that includes more shenanegians like GoldLine).
Just wait when rates go deep into negative- where banks steal money to store it. Yield curve stands on its bow and sinks like Titanic. Bad news Kato
FED is out of tools..
When your only tool is a hammer, everything starts to look like a nail. His only tool is a printer.
"Fed's Only Option Is CTRL+P"
CTRL+1 great headline ;)
I thought it was ALT+F P P