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.


  1. meaning what? slv is going to rock?

  2. 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.

  3. re: SLV. I would not play silver using SLV. I like SLW and SVM as "leveraged" silver plays

  4. 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).

  5. You and me both were calling this for some time.

  6. 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.


  7. 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.

  8. I had the same experience with my metals guys on Thurs and Friday buying several thousand ounces. Tulving and California Numismatic were swamped.

  9. @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.

  10. 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.

  11. 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.

  12. gyc: tomorrow is the best of times and the worst of times. should be a great game, but then no football for 7 months.

  13. 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.

  14. 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.