In news this morning that most of the gold community was completely expecting I might add , Chairman 'Easy Money Ben' Bernanke announced this morning that he was concerned whether economic recovery was strong enough to sustain itself without supportive and accomodative monetary policy. Translation - near zero interest rates will remain as far as the eye can see.
Talk about messing with the heads of the Fed Funds Futures traders - they are getting beat to death by this Fed. Every single time they start anticipating a rise in the short term interest rates based on economic data releases, some one or more of the Fed governors comes down from his or her ivory tower and squashes the idea that the economy is sufficiently on the mend. Out through the front door goes the notion that these insanely low interest rates are finally going to be begin lifting.
I have said it before and will say it again - the FED IS TERRIFIED OF RISING INTEREST RATES. Do not forget these two reasons:
1.) the entire "recovery" has been fueled by an ultra low interest rate environment in which short term money is basically free for those who want to borrow it and then leverage it up for speculative trading purposes. (Think a rising stock market which has all the feel of another speculative bubble).
2.) the US federal debt is at banana republic levels and any, I repeat, any rise in interest rates, will suck more of the incoming federal revenue into servicing the cost of this debt (paying the interest on it), leaving less for the spendthrift class to buy votes with.
Bernanke and company cannot afford to have a stock market that stops moving higher because if and when it did, the entire facade of an economy on the mend would come crashing down with it.
The monetary masters have reversed the entire reason for a rising stock market from one driven higher by solid underlying fundamentals to one being rammed higher by lots of JUICE. I am reminded of that scene for the original version of the hit movie, "The Matrix", where Neo and Trinity go to resuce Morpheus from the clutches of agent Smith where they are asked what they are going to need to pull off the stunt. "Guns, lots of Guns", comes the answer.
"Juice, lots of Juice" -
Just what I was saying the other day. Exactly what the manipulators need to move gold and silver around and take out a few weakhanded shorts.
ReplyDeleteThey can always step on gold's throat again if they want. However, Gold and Silver most certainly *DO* like a 1.33 plus EUR/USD. If it keeps going up, that will help gold and silver keep going up too.
Like I said earlier.. I see a min squeeze right up to 1700/33. We'll have to evaluate after that, but today's action was easy money.
Thanks for once again making it crystal clear, Dan.
Deletehello all.... and thanks again Dan .
ReplyDeletei thought you all would like to see this, its the reason i dont buy bars. DAN,do you think this is wide spread or just the start, they found another gold bar that is not all gold.lol
http://news.goldseek.com/GoldSeek/1332766800.php
Last weekend a coin dealer showed me a Chinese Panda he bought that was a total phony. It weighed and measured true, no magnetic attraction...da nada.
DeleteTo my eye the reeding looked too shallow and irregular, and the devices were weakly struck.
Buyers beware.
Accumulating Miners again. It is beaten so bad, if they fail, and the DOW, S&P, go higher, then the game is up. Something is attempting to short circuit the manufacturing of Gold. I believe it is worth the risk. Way oversold.
ReplyDeleteBernanke wants to KILL the DOLLAR.
ReplyDeleteJefferson warned us about Bankers being more dangerous than armies.
Jesus threw the 'money changers' out.
When will we?
Silver & Gold, lots of silver & gold
ReplyDeleteI would like to hear a parable spoken by Clint Eastwood in that famous line "Do you feel lucky punk"? However, it would be reversed. He fired every bullett known to man, w/o any bullets remaining, and Turd playing the villain, gets his gun and Clint (Ben) start triggering w/o any left in the chamber. Now given Turds creativity, I am sure he could recreate the scene perfectly. I know, I know, I am a bit crazed, but doing a little bottom fishing with the miners, brings on very weird thoughts, but so far, bottom fishing the miners has not hurt me too bad, as long as I am willing to accept 2-3% losses. (God help me) I love the quote. Perfectly said again. "Pass the juice". We certainly live in very interesting times Dan.
ReplyDelete