Having allowed a couple of days for the tidal wave of mainstream, post-“tapering” nonsense to subside; it’s now time to look at the facts, as once again The Boy Who Cried Exit Strategy got in front of microphones to say “just kidding.” At the time that B.S. Bernanke originally began his musings now known as “tapering”; it…
Sep 20th, 2013 | Dan Amoss | Category: Precious Metals The Federal Reserve’s stock market wealth effect is getting stale. As investors contemplate the risks of the Fed losing control of long-term interest rates, stocks may start incorporating reality on the ground — not just Fed actions… This week, we saw the spectacle of the most anticipated Fed meeting in…
http://usawatchdog.com/weekly-news-wr… – All the speculation the Federal Reserve was going to cut back on the money printing went “poof.” The stock market spiked to new highs, but this is really just a “sugar high.” The Republicans in the House are trying, once again, to defund Obama Care. Some say they are risking a government shutdown. I say “no way” they are going to shut down the government because they could also shut down the weak and fragile economy. The Washington Navy Yard shooting claimed the lives of 13 people including the shooter. Could a SWAT team have gone in and saved some people? The BBC is reporting yes it could have but was ordered to stand down. JP Morgan has admitted wrongdoing for its so-called “London Whale” trading losses and is paying a $920 million fine. My question is: why no criminal charges? Join Greg Hunter of USAWatchdog.com as he gives his analysis on these stories and more in the Weekly News Wrap-Up.
Today King World News wanted to share the thoughts of 50-year veteran Art Cashin in the aftermath of the Fed’s historic decision and subsequent market chaos. Cashin, who is Director of Floor Operations at UBS ($650 billion under management), had some fascinating insights — I guess that comes with half a century of experience. Art…
Goldman Sachs precious metals analysts Damien Courvalin and Jeffrey Currie are out with an update on gold prices following the Federal Reserve’s surprise decision to refrain from announcing a tapering of quantitative easing yesterday, which sent gold soaring.
Courvalin and Currie are bearish on the metal, but say the rally could have further to run this year:
Near-term upside on delayed taper but still bearish into 2014
The FOMC unexpectedly decided not to taper the rate of its asset purchases, preferring to wait for further confirmation of improvement in the US economic outlook. This announcement, as well as Bernanke’s press conference, was more dovish than most had expected, pushing gold prices to $US1,365/toz. The decision, combined with the upcoming debt ceiling debate, leaves risks to gold prices as skewed to the upside in the near- term, in our view.
However, with gold prices already back near their pre-June FOMC level, COMEX net speculative positioning already back at its April level as well as growing pressures on EM gold demand, we believe that this upside will ultimately prove limited (see Neutral gold prices near- term but still expecting new lows in 2014, September 17, 2013). We believe this is well illustrated by today’s more muted rally in gold prices when compared to the significant rally in 10-year TIPS yields, helping close the significant valuation gap that had occurred between both assets over the past month.
As a result, we re-iterate our neutral stance on gold prices and continue to expect that gold prices will resume their decline heading into 2014 when we expect economic data to solidly confirm a reacceleration in US growth and warrant a less accommodative monetary policy stance.
Gold is up 4.6% today in the wake of the Fed’s decision, trading at $US1367 an ounce.
So far we have seen a little bit of short covering and muted euphoria in the markets, but I think that once participants realize that the Fed is not tapering, it will cast a terrible pall over what they see as the state of the economy, and I think we could see a fall in…
By Myra P. Saefong and Sara Sjolin, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures rallied Thursday to score their best daily dollar and percentage gains since 2009 after the Federal Reserve’s surprise move to maintain its bond purchases.
December gold GCZ3 +4.64% jumped $61.70, or 4.7%, to settle at $1,369.30 an ounce on the New York Mercantile Exchange, their highest close since Sept. 9.
On a dollar and percentage basis, the gains were the largest for a single session sinceMarch 19, 2009, according to FactSet data, based on the most-active contracts. Interestingly, the gain that day was also Fed-induced. The daily dollar rise Thursday was also the third largest on record, based on FactSet data that go back to November 1984.
Silver SIZ3 +7.66% fared even better percentage wise, with its December contract shooting up 8%, or $1.73, to $23.29 an ounce, for its highest close in over a week. The daily percentage gain was also the largest since March 19, 2009.
Read the full article at MarketWatch.com
CNBC‘s Rick Santelli takes a look at the economic consequences of rising debt on the taxpayer. Transcript: the dow’s in a tight range. down about 17. let’s get to rick santelli exchange, over at the cme. hey, rick. hi, carl. we’re going to go fast, so buckle up. yesterday, of course, we saw ben bernanke kickin’ the can of normalization down the road.the day before,…
“QE to Infinity.” Infinity defined as the low .7000 on the USDX.
Every reason for gold’s decline from $1900 so accepted by the talking heads has gone SPLAT!
1. Sell gold because the dollar is strong. Yeah, on the downside.
2. Sell gold because the Euro is weak. It looks like the euro is going to be wearing its necklace of gold valued in the market in the 1.40s.
3. Sell gold because the US central bank is going to taper, which means tighten. That turned out to be totally foolish.
4. Sell gold because the US economy is going to improve. Yes, it is improving on the downside.
5. Sell gold because the stock market is going to break and take gold with it. Break to the upside is more like it as has all stock markets in similar liquidity situations.
6. Sell gold because the bond market is going to break wide open and take gold with it. Right now 10 year bonds look more like 2% or less than the 4% all the talking heads were predicting.
7. Now gold returns and exceeds it old high.
8. Now good gold shares put on bull markets.
9. Now the shorts in gold who were fat, happy and uncaring will pay the paper for the hubris.
10. Now the gold shorts in good gold company shares that are complacent in their positions will get the spiritual experience they well deserve.
11. Now the bull market in gold is far from over.
12. Now it is clear that those in the community that verballly hammered gold with their sub $1000 predictions in their writings repeatedly tried to help it lower. Now to the dickens with them.
Sincerely.
Jim
Source: Jim Sinclair’s Mine Set
Sept. 18 (Bloomberg) — Gloom, Boom & Doom Report Editor Marc Faber comments on the Federal Reserve deciding not to taper QE today. He speaks on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)
By: Katie Holliday | Writer for CNBC.com The Federal Reserve’s shocking decision not to taper, despite broad expectations for a $10-20 billion reduction of its monthly asset purchases, has reignited talk of a global currency war. Risk-on currencies like the Australian dollar, the euro and the British poundsoared in response, while the greenback dropped across the board. Now some analysts…
Ron Paul: Fed decision is a really bad sign Former Rep. Ron Paul, (R-Texas), on the Federal Reserve’s decision to continue purchasing bonds at a pace of $85 billion a month. Watch the latest video at video.foxbusiness.com
John Dobosz, Forbes Staff After a two-day meeting, the release of the Federal Open Market Committee’s statement at 2:00 on Wednesday unleashed a frenzy of buying in stock markets all over the world. The Fed bullishly surprised the market with its decision to maintain the current pace of buying $40 billion of agency mortgage-backed securities…
Today one of the top economists in the world spoke with King World News in the aftermath and turmoil of the Fed’s historic decision not to taper QE. He also lamented, “Isn’t it amazing that we gave an unelected entity this much power — the power to destroy the currency, and the middle class of…
