The Fed, through ZIRP and QE, has created $Trillions of benefits for the financial industry and much of that benefit has been created at the expense of government pension plans and individuals who depend upon interest earnings. This has a direct and negative consequence to many retirement plans, especially city and state public pensions.
It is especially destructive to those individuals who depend upon interest earnings to fund their cost of living. Thanks to QE Your savings (fiat ones anyways) are unlikely to last as long as you hoped.
I took one look at this morning’s silver trade and just shook my head. Here for the entire world to see are the footsteps of algorithm trading capping the upside.
The capping job shows the cartel is active, and the algo pattern signals to traders with eyes to see that the cartel is expressing its influence. This silver signal has a high correlation to subsequent cartel actions.
The gold cartel is setting up to smash both silver and gold over the rest of this week, when holiday trading brings very thin volume. THAT is what whomever setting this silver algo program this morning is telegraphing.
In this episode of the Keiser Report, Max Keiser and Stacy Herbert burning matches at stall speed as the US is now producing as much new debt as goods and services and the rate of currency dilution exceeds the rate of production growth. And what happens when an Empire hits 'stall speed?' They plunder and steal from workers and savers through inflation; or through the NSA 'surveillance.' In the second half, Max interviews Wolf Richter about the ongoing and escalating economic fallout from the NSA spying scandal.
Before 1974, U.S. dollars were backed by gold. This meant that the federal government could not print more money than it could redeem for gold. While this constrained the federal government, it also provided citizens with a relatively stable purchasing power for goods and services. Today's paper currency has no intrinsic value.
It is not based on the value of gold or anything else. Under a gold standard, inflation was really limited. With floating value, or fiat, currency, however, some countries have seen inflation reach extremely high levels—sometimes enough to lead to economic collapse. Gold standards have historically provided more stable currencies with lower inflation than fiat currency. Should the United States return to a gold standard?
As the Banks & Brokerage Houses continue to forecast the tapering of the QE by the end of 2013 or beginning of 2014, the only choice the Fed will have will be to increase not decrease monetary stimulation. QE 5 is coming because U.S. economic indicators continue to disintegrate.
The Fed can’t stop its QE purchases or the whole house of cards comes crashing down. Marc Faber stated that the Fed purchases could rise to a $trillion a month. Who knows if we ever get to that amount, but before we do…. QE 5 is on its way.
There is only a fraction of physical gold and silver to back up the massive amount of paper claims. As QE heads to infinity, it will most certainly push the precious metals up to new highs never seen before.
The 1 oz silver bullet silver shield "Come and Take it" silver round represents an issue that is very serious and always a risk in today's world. Listen to what Chris Duane had to say about this issue.
The return of rational exuberance to equities is an artificially induced phenomenon. Every day, intervention via primary open market operations occurs to paint perception.
Housing has "returned" by means of the invasion of private equity and hedge fund managed, all-cash, purchases. The result has been not only a pricing out of the middle class, but the creation of a rent bubble and landlord disaster, creating even more of the disenfranchised.
Equally bizarre is the obvious rise in real inflation. Estimates of 6-7% annually are likely conservative.
CPI is a total disaster outside of ivory towers. The unevenness of asset price inflation is not lost on those who eat, use energy, or borrow for education. Health care is about to be another eye opener for those who have not had the need to know the real cost behind the broken system.
Long have those in the precious metals community believed that Western central banks have been secretly releasing their gold reserves into the marketplace to satisfy the growing demand for precious metals and therefore keeping prices artificially low. This acknowledgement by the central bank of Finland proves that at least one Western central bank is engaging in this nefarious activity. The gold holdings of Fort Knox have also been called into question by many notable sources. These holdings are likely to have been leased out in a similar way. Hopefully, Rand Paul’s attempt to audit the FED will succeed and the truth will finally be known.
How much longer can Western central banks continue to supply gold in this way? Eventually the music will stop, the chairs will be taken, and the gold of the West will be sitting in the vaults of Russia, India and China. At that point, the fiat ponzi game will be over. At that point, the price of gold and silver will truly be set free.
- Source, The Sprott Money Blog, read the full article here:
Jeff Christian accused famed precious metals trader and expert Andrew Maguire of being a fraud at the recent Silver Summit in Spokane, Washington. This accusation has prompted a FLOOD of backlash towards Jeff Christian within the precious metals community (although he was recently thanked for once again inadvertently confirming that the gold and silver markets are indeed manipulated). These accusations have also caused much angst for Andrew Maguire as the mainstream media ran with the accusations, adding further fuel to the fire.
As you would expect, this story is far from over. Jeff Christian and Andrew Maguire continue their passive aggressive battle against each other. Both have come out with further comments about these accusations. Andrew Maguire has released an official letter that was posted by Turd Ferguson on his website TFMetalsReport...
- Source, The Sprott Money Blog, read the full article here: