Yesterday's FED announcement was immediately followed by the biggest single-day collapse in US Treasury yields ever, the biggest single-day drop in the US Dollar, ever, and the most dramatic single-day swing in Gold since 1980. The Federal Reserve indicated it would expand its balance sheet yet again by purchasing up to $300 billion of long-term government securities and up to $750 billion in additional mortgage-backed securities over the next six months. The press release failed to mention the FED doesn't have an extra Trillion with which to make these purchases, or that the 'money' would be created from THIN AIR, or that this process will eventually result in a terrible Zimbabwe style hyper-inflation. (here)
Surprised? Bill H. from last nights Le Metropole Cafe commentary helps clarify the FED's announcement: "This is panic by the Fed, plain and simple. It is also the admission of failure, failure of all the past plans to unthaw the credit crunch. If you watched Gold today, you saw it down $30 plus Dollars until the Fed announcement, it is now up $30+. If you had any questions as to whether Gold was manipulated or not, today's action should do it for you. Gold had no reason to be down hard except for the fact that it was necessary to "retard" it so a $60 rally would look like a $30 rally, HOW PATHETIC!!! If you had any lingering questions about owning Gold, they should be completely gone as the Fed "rang the bell" today, WE WILL DESTROY THE CURRENCY TO SAVE THE BANKING SYSTEM!" The pressure cooker in the precious metals is about to blow folks. I highly recommend as much REAL Gold and Silver as you can carry.
This is it!
Steve Merrill
yep buy all the gold and silver you can.
ReplyDeleteHi Ho Silver
ReplyDeleteI suggest food, water and protection.
ReplyDeleteThere is more money/credit being vaporized than created. The latest TIC Data clearly shows this, and the FED M1 Money Multiplier fell off a cliff months ago. For 18 months we have flung fiat at our various problems, and to no avail. This will be no different, and it won't just be England and America doing monetization. The dollar will strengthen again as these other countries follow suit. Bottom line is deflation.
ReplyDeleteAfter the crash, they'll confiscate your gold. Just sayin'
ReplyDeleteHi I am living in Toronto, Ontario, Canada and I have bookmarked your site. I check it daily and appreciate the updated reality of the economic situation.
ReplyDeleteHere in Canada I do not really hear much about our Canadian economic state and it is hard to find out about our Canadian economy.
I have lost my job and I feel very concerned that finding even part time employment is an uphill battle.
Our prime minister Harper says our economy is is better shape than the USA but we are losing more jobs than the USA. Just last month(February)Canada lost over 100,000 jobs compared to the USA losing 651,000.
Does our prime minister realize that USA has about 10X our population. I am concerned that Canada will be dragged down into the abyss of no return.
Another thing what concerns me is that our prime minister says that it depends on the USA and the world economy to recover before we do.
The USA if I understand things is in serious trouble. I listen to people like Gerald Celente, Bob Chapman, Peter Schiff and the likes and they all point to some serious economic as well as political and social unrest coming.
Thanks for your site.
Dana from Canada