Fed To Prompt Currency Crash and Return to Gold Standard

February 27, 2013 By 17 Comments

Jim Grant, astute monetary economist and respected author of the Interest Rate Observer said in a Bloomberg interview overnight that the dollar would crash and  a new Gold Standard would be the end result of the U.S. Federal Reserve’s irresponsibilities.  Although the interviewer said that Grant’s remarks were inflammatory Grant said that it is important to examine our monetary affairs over the sweep of time.

A guest host said that no one in academia is calling for a Gold Standard and suggested it would result in a deflationary period for the U.S.  Grant disagreed and said that the Gold Standard is the only answer as it was monetary system good practice for the 100 years ending in 1914, whereas everything else since has been a “try out”.
Grant says that he expects more quantitative easing from the U. S. Fed, and likens their single mindedness to a doctor prescribing to a patient that is clearly overmedicated. [Read more...]

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Jim Grant: Fed Action Will Prompt Return to Gold Standard!

February 26, 2013 By 11 Comments

grantThe Interest Rate Observer’s Jim Grant was on Bloomberg yesterday discussing the recent Fed minutes.  When asked by Bloomberg what will be the end result of this Fed’s responsibilities, Grant responded:  A gold standard.

When asked when he envisions a gold standard occurring, Grant responded:  2 years ago.   It’s important to see our monetary affairs over the sweep of time.  The Fed was founded 100 years ago this year. There have been many monetary moments since then.  1944 comes Bretton Woods, but we will have they said a dollar that is backed by gold.  Fast forward to the present day and we have gone from the half gold standard, the road show gold standard of Bretton Woods to the full blown PhD standard, in which the Ivy League central bankers the world over are waging an all-out war against the price mechanism, against Adam Smith’s invisible hand.  
The gold standard is the answer because the gold standard is the only monetary system that has been shown to work in practice over the course of generations.  Everything else has been a tryout, and the tryouts have failed. 

Grant’s full MUST WATCH interview on the coming return of the gold standard is below: [Read more...]

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Watch Bernanke’s Testimony on Monetary Policy LIVE As Gold & Silver Plunge on Cue!

February 26, 2013 By 28 Comments

Expect Bernanke to continue the Fed’s coming end to quantitative easing (Fexit) propaganda as he gives his annual testimony on monetary policy to Congress.
We urge readers to be prepared to stack the smack as well, as the cartel is known to raid the metals when Bernanke begins speaking at major events (recall last year’s Leap Day Massacre during Bernanke’s testimony to Congress on Monetary Policy).

*And on cue, gold and silver plunge precisely at 10:00 am as Bernanke’s testimony begins.  Forget charts and fundamentals, all you need to be an expert trader in today’s markets is a decent calendar.

Watch Bernanke’s report to Congress on the Fed’s Monetary Policy LIVE [Read more...]

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Deepcaster: Fed Minutes Propaganda Achieve Goal, Drive Gold & Silver Down Through Major Resistance

February 24, 2013 By 23 Comments

gold bear market cnbcSubmitted by Deepcaster:

All Investment Cognoscenti know that The Fed’s “Communication Policy” is aimed at Financial and Market Ends, not at Truth. (Here, should we rely on The Fed’s earlier expressed “Guidance,” or this week’s “Scaling Back” Hint? They can not both be True.)  Indeed that Policy could well be paraphrased “Tell whatever Lie you need to, to achieve your Goals.”

Those recently released Minutes, for example, achieved a Primary Fed Goal of blowing the Gold and Silver Prices down through Major Resistance, and a Secondary one of cooling somewhat inflated Equities and Commodities Prices.   As leader of The Cartel (Note 1) a Cornerstone of The Fed’s Policy is, and has long been, to suppress Gold and Silver Prices, lest they further devalue their Fiat Currencies and Treasury Securities, and so they will not alarm the Hoi Polloi about the intensifying Price Inflation (e.g., 9.24% in the U.S. – Note 2) which their Ongoing Monetary Inflation is increasingly producing. [Read more...]

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Eric Sprott: Real 2012 US Deficit $6.9 Trillion- Not Reported Anywhere By The Public Press!

February 24, 2013 By 25 Comments

sprottIn the midst of the latest epic cartel paper gold and silver raid this week, legendary precious metals expert Eric Sprott sat down with The Doc for an exclusive, MUST LISTEN interview. 
In one of his best and most shocking interviews ever, Eric discusses the latest gold and silver raid, his take on the platinum & palladium markets, the Bundesbank’s recent gold repatriation request and the correlation with massive physical gold buying in Asia, and his view on how the endgame of the Western financial/ debt crisis will play out.

Sprott stated that the Treasury Department’s 2012 GAAP budget deficit report was an astonishing $6.9 Trillion, and this has not been reported in 1 single major news outlet!  He also stated that the US government may be exporting German gold from the NY Fed to China, and that despite their recent apparent success, he expects that one day soon the cartel will be brought to their knees simply by traders standing for delivery of physical metal.

Eric Sprott’s full MUST LISTEN audio interview with The Doc is below: [Read more...]

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QE & Gold Revaluation- The Central Bank Nuclear Weapon

February 23, 2013 By 17 Comments

nuclearSubmitted by Stewart Thomson:

Gold revaluation and money printing are the nuclear weapons arsenal held by government treasury departments.

Gold is going higher, much higher.  It’s going higher because government treasury departments are moving away from quantitative easing involving bonds, and towards QE involving gold.  The gold bears will be destroyed, and everything they made you afraid of will seem ridiculous, in hindsight.  There will be no currency war, but there will be co-ordinated devaluation of all G20 currencies against gold, just like there was in the 1930s.

I consider the idea that the gold bull market is over to be “beyond ridiculous”.  I would argue that for all practical government intents and purposes, it’s barely started.  Ben Bernanke will soon have a hard decision to make.  He can either accelerate QE, or he can pout in a corner, while President Obama dons a gold revaluation mask.

[Read more...]

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What Germany’s Gold Repatriation Means for Global Gold Market

February 21, 2013 By 8 Comments

goldrepatriationGuest Post

Venezuela, Switzerland, Libya, Netherlands, Iran…

The announcement by the Bundesbank, the central bank of Germany, saying that it would repatriate 300 metric tons of gold held by the New York Federal Reserve raised many concerns. First, Fed attorney Scott Alvarez told Congressman Ron Paul, R-TX, during a House Subcommittee meeting in June 2011, that the Federal Reserve does not and has not held any gold bullion since 1934.  Second, it appears overall trust in the United States and the global monetary system in general is waning faster than the value of the U.S. dollar.  Germany also plans to repatriate all of its 374 metric tons of gold stored at the Banque de France in Paris. It is unclear what effect the Bundesbank’s move will have on the price of gold, but history tells us to prepare for a spike. [Read more...]

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Ben Davies: Stagflation Dead Ahead!

February 21, 2013 By 9 Comments

Ben Davies Hinde CapitalGoldMoney’s Alasdair Macleod has released an interview with Ben Davies of Hinde Capital. They discuss the idea of nominal GDP targeting as a monetary policy strategy for central banks.

Nominal GDP growth is the sum of real GDP growth plus the inflation rate. Davies says that proponents of a nominal GDP targeting — so-called market monetarists — are gaining momentum in central banks and the media. They discuss how depressions are not caused by tight monetary conditions but rather by the preceding excessive expansion of credit. Davies points out that credit and debt are two sides of the same coin, which makes it impossible to clear one without the other.

Davies says that by driving down long term interest rates, central banks are trying to draw investors into equities in order to create a so-called wealth effect. However, he explains that debt levels are simply too high for this method to translate into sustained long-term growth. He foresees stagflation with low growth and excess liquidity.
Davies’ full interview is below:
[Read more...]

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Silver Update: Fed vs. Silver

February 21, 2013 By 7 Comments

Ron Paul BernankeBrotherJohnF discusses today’s silver smackdown on the Fed minutes release in his latest Silver Update:
Fed vs. Silver [Read more...]

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Jim Grant: The Monetary Revolution is Devouring It’s Children!

February 19, 2013 By 17 Comments

imagesThe biggest critic of the Fed this side of Ron Paul was on CNBC today discussing global Central Bank currency devaluation.

Grant states that Western Central bankers are attempting to out print the Bernank himself:
Central Banks the world over are going from ease to hyper-ease, and people we thought were extremely radical in their monetary predilections like Bernanke are about to be out-flanked by others still more radical!  So the monetary revolution is devouring it’s children!

Grant states that the Fed is at war on the price mechanism:  The Fed will not acknowledge that it is suppressing prices, that what it is doing is a species of price controls.  Interest rates are prices, and the Fed is manipulating them at the level, & they’re manipulating them on the yield curve!

Regarding the future of QE, Grant states that: The Fed’s hand will be forced by circumstances.  The Fed seems to think that it is in control of events, when in fact events will be in control of the Fed.

 Jim Grant’s full MUST WATCH interview is below: [Read more...]

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Metal Surfers & Fed Tidal Wave – Stewart Thomson

February 13, 2013 By 13 Comments

silver waveSubmitted by Stewart Thomson:

Too much money printing can cause a currency panic.  That would be followed by institutions pulling out of the country altogether.
The reason I want own to gold is because governments are attempting to print their stock markets higher.  Gold and resource stocks will drastically outperform the global stock market indexes like the Dow and the Nikkei.

The period of drastic out-performance should have come earlier, but it didn’t, due to the implosion of Lehman.  Gold and gold stocks were beginning to go parabolic in 2008.  While the Lehman event delayed the parabolic move, it also made the crisis bigger, and probably greatly increased the size of the ultimate move.

On the daily chart, bonds are the most oversold, and gold is close behind.  Don’t worry, silver is in very good hands, and soon the “wild one” will be oversold too, and ready to surf the rising Fed balance sheet, to higher prices!
[Read more...]

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Fed Has Bought More US Debt in 2013 Than Treasury Has Issued!

February 12, 2013 By 9 Comments
Source: Banzai7

Source: Banzai7

The next time you hear propaganda from Fed officials or the financial MSM that the Fed will end QE by the end of 2013, please recall this startling statistic:  thus far in 2013, the Fed has increased its Treasury bond holdings by $51.1 billion, while the official US debt has increased by only $47.2 billion over the same period. 
This confirms with startling clarity that the Federal Reserve is the ONLY remaining purchaser of US debt in size, and that the Fed must not only take up all of the newly issued US debt, but it must also absorb the maturing treasury bonds coming due.

QE is going to INFINITY…AND BEYOND… and will continue until one of three events occur:
1. Gold revaluation (the final deflation-fighting tool in Bernanke’s toolbox)
2. Dollar devaluation (essentially #1 just announced in dollar terms) such as Venezuela announced Friday
3. Hyperinflation of the dollar & complete systemic collapse.

Got PHYZZ?? [Read more...]

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Tim Geithner Rewarded for Financial Crimes: Will Join CFR As a Distinguished Fellow

February 10, 2013 By 15 Comments

Thank YouOnly in America can one submit false tax returns, hold meetings at the NY Fed with the agenda of manipulating LIBOR rates, and leak FOMC interest rate policy announcements prior to their release to your bankster buddies, be caught in all 3 above crimes, and be made a distinguished fellow of the Council on Foreign Relations rather than a resident of a NY penitentiary. 

Perhaps the CFR should consider looking up the dictionary definition of distinguished:
1. Successful, authoritative, and commanding great respect.
2. Dignified in conduct or appearance.

Exactly what comes to mind when one thinks of Mr. Turbo-Tax Geithner. [Read more...]

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Jim Grant with Lauren Lyster: Fed’s Price Controls of Interest Rates Will Fail with Fireworks!

February 4, 2013 By 8 Comments

fireworksThe lovely Lauren Lyster, formerly of Capital Account and now the new host of Yahoo’s Daily Ticker, interviewed SD’s favorite Fed-basher Jim Grant regarding the Fed’s latest FOMC statement.

Grant stated that if creating credit was able to successfully reactivate business activity the world would have been richer many generations ago, that the Fed’s actions are counter-productive, that QE funds injected into the economy is money in search of mischief, and that Bernanke’s manipulation of interest rates will fail spectacular with major fireworks as the price of interest rates find their own free market valuation.

As always, Jim Grant’s interview is a MUST WATCH!! [Read more...]

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Deepcaster: Investment-Critical Baseline Realities in a World of Currency Devaluation

February 3, 2013 By 8 Comments

Submitted by Deepcaster:

“Money printing creates illusory wealth and buys time, but if it was truly the answer to a deleveraging cycle, Zimbabwe would be a member of the G10.“

The recent Equities Rally and Glimmers of Economic Recovery are Artificial because they have been bolstered up on a Tide of Central Bank created liquidity (via QE etc.).
They have not been generated in the healthy sustainable way by savings and Investment.   Therefore, it is highly likely they are Transitory.

Given the Daunting Challenges facing the U.S., Eurozone, China, Japan, and other economies, and the understandable Investor uncertainty about how these challenges will be met, it is essential to review Key Baseline realities Critical to Profitable Investing.
As repeated Doses of QE become less effective, the Central Banks, specifically The Fed and BOJ, resort to a related Baseline Reality: Money-Printing-to-a-greater Degree than other Central Banks, i.e., to Currency Devaluation.

[Read more...]

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