Seems whatever financial media you go to, the discussions are about speculation that Bernanke and his cohorts at the Fed’s Federal Open Market Committee (FOMC) are considering cutting back on quantitative easing, which is now running at $85 billion a month. ($45 billion in Treasuries, $40 billion in mortgage debt.) The media’s chic question is
May 23, Richard Russell of Dow Theory Letters posted in his Daily Remarks the below email from a subscriber in Singapore. While it is anecdotal, it illustrates the growing interest for gold in Asia, which is awash in dollars. Dear Russell and Company, Yesterday, after reading your comments about gold being manipulated in the crudest way,
Gold and silver investors will face a real-life nightmare if a bill that recently passed the Senate becomes law. The bill would tax commerce between the states, something that has been exempt (except for certain circumstances) since the Constitution was ratified. Now, the bill is in the House, where it is known as HR 684
On Friday, Treasury Secretary Jacob Lew sent a letter to House Speaker John Boehner, informing him that the Treasury will begin taking “extraordinary measures” in order to keep the Federal debt below the legal limit. Such measures could include redeeming current investments in the retirement accounts of civil service workers and would keep things running
Last week, Fed Chairman Ben Bernanke made a speech in Chicago where he warned that a long period of interest rates could lead to asset price bubbles or speculative lending ending in a new financial crash. Sadly, Bernanke is like a general fighting the last war. He’s worried about another banking crisis, fearful of another
The following is an excellent presentation by Christine Hughes of Otterwood Capital Management on the beginning of the end of the Japanese bond market and how it has negatively impacted gold in the short term. On April 4, 2013 the Bank of Japan announced their “2-2-2-2” policy in which they will attempt to create 2%
The entire purpose of modern economics is to obfuscate the truth; to convince the masses to support policies that are contrary to their own interests. In the early twentieth century, economists in the United States realized the opportunity to transform their lot in life from that of dreary academicians to well paid pseudo-celebrities by becoming
With gold and silver having suffered their biggest declines in their 12-year bull market, Bloomberg TV invited Ron Paul to comment. Watching the video, one can easily see that the interviewers thought that they could hammer Ron, a long-time and vocal advocate of gold, because of the price drops. They were wrong. The video is
Neil Irwin over at the Washington Post recently set about reminding the unwashed masses that, only the dollar is money, in his piece “Bitcoin is ludicrous, but it tells us something important about the nature of money.” He starts us out with his “givens”. “We can all agree that the dollar bills in my wallet
Sunday night, sellers continued to smash the metals, driving gold to a low of $1422 and silver $24 on the Globex, an Internet platform for metals trading. Although numerous major banks and investment houses issued bearish reports on gold over the last few weeks, this decline is not warranted. This smash is not the result