Gold is down some $25+ dollars today because of the Fed minutes where they supposedly are talking about curtailing or even ending “QE 3.5 and 4.” Really? First off, this is not possible as there are nowhere even close to enough buyers for the Treasury debt that must be sold to keep the U.S. doors open. This is fact. If QE anything were to slow down, even for a moment, the financial system would literally cease to exist as Treasury bond prices would sag without Fed purchases. Everything financial on the planet is based off of (priced off of) Treasury securities, if Treasury securities drop in price… everything else “”financial” will sink with them. This is also fact.
Without going into a major explanation, please understand that the Fed cannot now, nor ever take their foot off of the gas without dislocations that culminate in all financial systems shutting down. If the economy is “not so rosy” even with massaged, altered and just plain bogus reporting… then what is the economy really like? (C’mon, you know… you’ve used your own eyes and ears, are “things” so good that the Fed needs to slow the economy?) As for today’s “reaction” in gold, how curious? How curious that stocks would be bid up in ridiculous fashion IF the truth (it cannot be) is “The Fed will pull the punchbowl?” The early “leak” of Fed minutes is laughable, both to timing and substance. It is what it is but having “100 e-mail recipients” receiving them early is hilarious. Did anyone trade on this (mis) information yesterday and overnight? It really doesn’t matter. The “sender” mistook the “day” Tuesday as being Wednesday and in all probability the “year” also. It may be 2013 but in his and his master’s minds it is the futuristic 1984!
You are being “told” to sell all of your gold today by the release of bogus Fed minutes that are laughably illogical. You can worry and fret about no more Fed easing or you can pin on the refrigerator the many and obvious reasons to buy gold that I just sent you earlier today. That list is not all inclusive and will only grow in number and severity. The ship is about to sail (it has been sailing for 12 years already), you can either be on it (with all of your belongings) or listen to the illogic of “carnival barkers” herding you to your demise. We are VERY close to a most historic inflection point to humanity’s history! THINK for yourself!
Amen. You are awesome and so are your articles.
Thank you
Ben Bernanke is blowing smoke up your hiney and playing “head games” and he knows it.
His track record is ZERO and he never gets it right.
Bill, you are 100% correct.
Any one that really believes that QE3, QE4, or QE 1,000,000 is going to end is going to lose their wealth just like Uncle Ben wants them to.
Gerald Celente says “…to think for yourself…”. I believe this is excellent advice and stop letting Uncle Ben, Uncle Sam, or any one else do your thinking.
We will NOT have inflation, we are entering Deflation.
Thanks.
John N
99.9% chance in your dreams! To have outright deflation in a fiat world is nearly impossible since it cost’s “zero” to create more money supply.
I will explain. We are now entering deflation. 1. the money the fed is printing, is NOT going directly into the economy. This is very important that you understand this. If it did, we would have had hyperinflation years ago. 2. the economy, thus the base money circulating into the economy has for the first time CONTRACTED. It has never happened before. Its happening now. All assets will go down massively, gold and silver aswell. To escape the deflation, the fed will PRINT like crazy to inflate us out of the deflation, once that happens, and first when that happens, we will get hyper inflation. PS. i know they are allready printing, but the money goes into all the bad debts, mortgage security bonds etc.
Farrel, i know that inflation will eventually happen, no doubt about that. Just not in the near future, ill bet you my gold for that 🙂
John, you need to read Sinclair’s explanation that hyperinflation is a monetary event that moves out of a crack in confidence. The end result will be hyperinflation, end of story in my book. We cannot have true deflation…can “prices” of “stuff” go down? Of course…but…in a true deflation the value of Gold goes up because the value of “money” goes up…and Gold IS money. You are by the way forgetting that another $2 trillion wave of “money” is being unleashed by the Japanese. Enough to fill the black holes of default? Who knows but the end game is that all this paper that is being created for free will eventually seek its true value………..
Sorry John N, you don’t understand the current ponzi scheme.