The Golden Truth: Fed Already Signalling Possible Need to Extend Mortgage QE

Friday, February 5, 2010

Fed Already Signalling Possible Need to Extend Mortgage QE

Laughing my ass off. I said in a post in early December that I would bet a large sum that the Fed, within the first quarter of 2010, would announced that it was extending and expanding its QE, a.k.a. money printing operation, in order to support a failing economic system. Well, here it is from the pages of the Washing Post - William Dudley, Prez of the infamous NY Fed spills the beans: More Fed Printing on Deck

I truly hope that everyone used this latest correction in the gold/silver/mining stock market to pick up some more gold and silver bullion and add to their favorite mining stock positions. When I purchased a slug of 1 oz. Austrian Philharmonics from Tulving, it took me 10 minutes to get through (I've never even experienced a busy signal there). When I asked if they were busy with buyers or sellers, they said they were selling tons of silver today.

14 comments:

AnonymousFriday, 05 February, 2010
meaning what? slv is going to rock?
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AnonymousFriday, 05 February, 2010
There is QE going on, hundred of billions being sunk directly into the stock markets to make the US economy seem like the Holodeck of the USS Enterprise - everything is dandy. This is a chip off of Stockton's trickle down economics. The top 1% get richer and the middle class and our subsequent generations will pay for all of this. The police state, however, will keep us all in check - slaves to the oligarchy.
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Dave in DenverSaturday, 06 February, 2010
re: SLV. I would not play silver using SLV. I like SLW and SVM as "leveraged" silver plays
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Dave in DenverSaturday, 06 February, 2010
re: police state - that's why the Patriot Acts, Homeland Security and Detainee Bill were passed. It's little known and never reported, but the Detainee Bill that Bush sent to Congress only applied to foreign threats. Congress took the bull by the horns and inserted a provision that allows detainment of any "perceived" threat, foreign or domestic (i.e. U.S. citizens as well).
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EconomicDisconnectSaturday, 06 February, 2010
You and me both were calling this for some time.
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Mark HerpelSaturday, 06 February, 2010
Next will they require pension funds to hold a certain % in U.S. Treasuries? That's a lot of liquidity with a quick change in the law.

Mark
editor@dgcmagazine.com
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AnonymousSaturday, 06 February, 2010
Hi Dave!

I have a question: what might happen to gold once the war with Iran starts? Any idea?

Thea say that the Americans sustain this war. Is it true? Actually when speaking about gold we might as well take geostragics into consideration.
Thanks
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AdminSaturday, 06 February, 2010
I had the same experience with my metals guys on Thurs and Friday buying several thousand ounces. Tulving and California Numismatic were swamped.
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Dave in DenverSaturday, 06 February, 2010
@Matt: hey Matt! Welcome. Love your comments on Clusterstock. It looks like poor man's gold was being aggressively bought on the last couple pullbacks. Wait until a bigger percentage of the masses get metals religion.
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Dave in DenverSaturday, 06 February, 2010
Hi Fauvi. Good question. You would think gold would spike a lot higher if we attack Iran.

I guess Pat Buchanan wrote commentary pondering whether or not Obama would exercise the war option. What a great way to get the hoi polloi's mind off of how bad things are here.
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Dave in DenverSunday, 07 February, 2010
Mark, hard to say what the eventual Govt takeover of retirement funds will look like. To be sure, it will be for the purpose of funding Treasuries.
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Dave in DenverSunday, 07 February, 2010
gyc: tomorrow is the best of times and the worst of times. should be a great game, but then no football for 7 months.
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AnonymousSunday, 07 February, 2010
Now watch the bombs fly.

Ahmadinejad orders 20% uranium enrichment
Sun, 07 Feb 2010 08:55:41 GMT

Iranian President Mahmoud Ahmadinejad

Iranian President Mahmoud Ahmadinejad has tasked the country's atomic chief with enriching uranium to 20 percent, in order to meet the demands of the country's cancer patients.

Speaking at the exhibition of Laser Science and Technology Achievements in Tehran, the president called on Ali Akbar Salehi, to start the process.

"Mr. Salehi you start enriching up to 20 percent and we are still open to negotiations on the issue," he told the head of the country's atomic energy organization who was sitting in the audience.

Thousands of Iranian patients, in need of post-surgery drug treatment with nuclear medicine, will suffer if domestic production dries up when a research reactor in Tehran runs out of fuel.

The Tehran research reactor, which produces 20 different kinds of radio-medicine for cancer patients, runs on uranium that is some 20 percent U-235 — an enrichment level higher than what is currently produced at Iran's Natanz enrichment facility.

Iran has requested the International Atomic Energy Agency to arrange for supplying of the fuel to the country. The West has been pressuring Iran to accept a UN-backed draft deal which requires Iran to send most of its domestically-produced low enriched uranium (LEU) abroad for conversion into the more refined fuel that the Tehran reactor requires to produce medical isotopes.

Iran says its concerns over the proposal, which was first floated by the US, should be heeded.

The development comes as Tehran has been trying to find a middle ground with the West over the nuclear swap.

Iranian Foreign Minister Manouchehr Mottaki expressed hope on Saturday that an agreement on the nuclear fuel proposal will soon be reached with the Western side, but with the changes that Tehran seeks.

His remarks were largely ignored by US Defense Secretary Robert Gates who has instead insisted on the imposition of fresh sanctions on the country.
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JoeSunday, 07 February, 2010
Dave,

I said last week I thought some event was about to pop and now I see where a secret banker meeting is being held in Australia now.

I would bet they know exactly what IT is and are trying to figure another work around.

Joe M.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.