Monthly Archives: September 2013

Today’s Key Gold Headlines – 9/24/13

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The Fed’s Non-Taper Damage Control (Video)

In his video blog response to the Fed’s announcement of unabated quantitative easing, Peter Schiff exposed the doublespeak behind the Fed’s reasons for tapering.

“Ben Bernanke went over a whole list of things to describe why the US economy was not strong enough for a taper. How is that going to change in four weeks? It’s not. If the Fed was going to taper, they would have done it in September, not wait until October. Everybody was ready for a taper, the markets were prepared for a taper. All they had to do was deliver on those expectations. The fact that they didn’t do it meant they had no intention of doing it.”

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Today’s Key Gold Headlines – 8/23/13

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The Fed’s Super Nova Asset Bubble

In a commentary released today on Of Two Minds, Charles Hugh Smith explains how the Fed has painted itself into a corner with its endless quantitative easing. Smith argues that it can’t be long before the markets become completely desensitized to the money printing and the whole bubble economy goes kablooey. How do you protect yourself from the fallout of a super nova asset bubble of this size? Avoid dollar denominated investments and look to hard assets like physical gold and silver.

“The trouble with inflating asset bubbles is that you have to keep inflating them or they pop. Unfortunately for the bubble-blowing central banks, asset bubbles are a double-bind: you cannot inflate assets forever. At some unpredictable point, the risk and moral hazard that are part and parcel of all asset bubbles trigger an avalanche of selling that pops the bubble.

This is another facet of The Fed’s Double-Bind: if you stop pumping asset bubbles, they pop as participants realize the music has stopped, and if you keep pumping them, they expand to super-nova criticality and implode.

There are several dynamics at play in this double-bind.”

Read the Full Commentary Here

supernoa asset bubble

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Today’s Key Gold Headlines – 9/20/13

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Fed Non-Taper Converts Gold Bears to Bulls

After yesterday’s announcement of the Fed’s decision to not taper QE, CNBC published a commentary about how the news is affecting the views of stock traders and market analysts. Many are waking up to the fact that the economy is a long way off from true recovery and believe that gold may have kicked its bearish streak.

“But traders believe that the fundamental picture has changed. In fact, Wednesday’s Fed decision changed Anthony Grisanti from a gold bear to a gold bull, but not for the reasons Boockvar outlined.

‘It’s not so much the fact the the Fed is continuing QE,’ said Grisanti, who is the founder of GRZ Energy and a CNBC contributor. ‘It’s the message that’s being sent, which is that the underlying economy is so bad that we can’t taper $10 billion. That means that you want to own gold to protect yourself—and that’s why I’m changing my opinion on gold.'”

Read Full Article Here

bernanke&gold

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Today’s Key Gold Headlines – 9/19/13

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Peter Schiff Is Right Again: The Taper That Wasn’t

In his latest commentary, Peter Schiff shares his thoughts on today’s news that the Federal Reserve will not taper its quantitative easing program and continue to purchase $85 billion worth of Treasuries and mortgage-backed securities every month. Peter has been predicting this outcome all summer. In this piece, he explains the limited options left to the Fed as this disastrous monetary policy continues to drag on the economy. It’s worth noting that the price of physical gold and silver surged on today’s news, as investors were reminded that precious metals remain a superior safe haven asset.

The Fed’s failure today to announce some sort of tapering of its QE program, despite the consensus of an overwhelming percentage of economists who expected action, once again reveals the degree to which mainstream analysts have overestimated the strength of our current economy. The Fed understands, as the market seems not to, that the current “recovery” could not survive without continuation of massive monetary stimulus. Mainstream economists have mistaken the symptoms of the Fed’s monetary expansion, most notably rising stock and real estate prices, as signs of real and sustainable growth. But the current asset price bubbles have nothing to do with the real economy. To the contrary, they are setting up for a painful correction that will likely be worse than the one we experienced five years ago.

bernanke smiling

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Fed Never Intended to Taper (Video)

This is one situation where it stings to be the one saying, “I told you so!” Yesterday, in anticipation of today’s Fed’s announcement, Peter Schiff discussed the Fed’s various options when it comes to tapering QE. However, Peter made it clear all along that he believed the Fed had no intention of actually tapering QE in a timely manner. Peter’s position has been borne out with the news that was released just an hour ago: there will be no tapering. It should come as no surprise that gold and silver surged on the news.

“From the beginning, when the Federal Reserve first announced this tapering plan, I was of the opinion that it wouldn’t take place according to schedule. That the fed would not be tapering in September… because I don’t believe it ever intended to taper… If you look at the rhetoric, tapering was always data dependent.”

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Today’s Key Gold Headlines – 9/18/13

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