Stocks, Gold, Silver, and the printing press.

[John Galt]

9/7/2012
9:26 Eastern time.

In the last hour and 30 minutes silver is up over $1.00.

$33.32
Silver Price Chart - LIVE REAL TIME (real time chart from Ducascopy Swiss bank).

Unemployment dropped to 8.1 from 8.35
Curious why the unemployment rate dropped from 8.3% to 8.1%, even as just 96,000 jobs were added? The labor participation rate declined from 63.7% to 63.5%, the lowest since 1981. It means that somehow in August the labor force declined by 368,000 people, which is a paradox since according to the household survey 119,000 jobs were lost in August, yet at the same time the unemployment rate dropped. Remember: it is an election year.
The Reason Why The Unemployment Rate Dropped: The Labor Participation Rate Is At Fresh 31 Year Lows | ZeroHedge

The sooner everyone accepts the fact that our government is openly corrupt, I.E. - data/statistic manipulation, counterfeiting money, and non-prosecution of financial fraud, then they can quit driving themselves crazy trying to figure it out. There are no morals left with those charged with running our country, accept it and be at peace!

Who is John Galt ...

 

[teddy12b]

The sooner everyone accepts the fact that our government is openly corrupt, I.E. - data/statistic manipulation, counterfeiting money, and non-prosecution of financial fraud, then they can quit driving themselves crazy trying to figure it out. There are no morals left with those charged with running our country, accept it and be at peace!

Who is John Galt ...

I would have expected that same speach to come from the real John Galt from the book, but you did well too. Yup, we're pretty hosed right now.

 

[smokingman]

QE3,Twist and currency swaps=
CME Group: Gold Trading Halted Twice to Prevent Volatility
Thu Sep 13 14:31:58 2012 EDT




NEW YORK--Exchange operator CME Group Inc. (CME) said it halted trading in gold futures twice Thursday to prevent excessive price volatility, according to an email from a spokesman.
Stop Logic, a type of circuit breaker that pauses trading for between five and 20 seconds, was triggered at 12:14:47 EDT and at 12:31:20 EDT Thursday.
"Stop Logic offers market participants the opportunity to provide additional liquidity and permits the market to regain its equilibrium," the spokesman said in the email.
Comex gold futures for December delivery, the most active contract, settled up 2.2%, or $38.40, at $1,772.10 a troy ounce.
-END-

 

[smokingman]

Pastor Lindsey Williams, former minister to the global oil companies during the building of the Alaskan pipeline, announced the most significant event to affect the U.S. dollar since its inception as a currency. For the first time since the 1970′s, when Henry Kissenger forged a trade agreement with the Royal house of Saud to sell oil using only U.S. dollars, China announced its intention to bypass the dollar for global oil customers and began selling the commodity using their own currency. Comment: Lindsey Williams: "The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine."
"On Thursday, Sept. 6… just a few days ago, China made the official announcement. China said on that day, our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar. – Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11
This announcement by China is one of the most significant sea changes in the global economic and monetary systems, but was barely reported on due to its announcement taking place during the Democratic convention last week. The ramifications of this new action are vast, and could very well be the catalyst that brings down the dollar as the global reserve currency, and change the entire landscape of how the world purchases energy.
Ironically, since Sept. 6, the U.S. dollar has fallen from 81.467 on the index to today’s price of 79.73. While analysts will focus on actions taking place in the Eurozone, and expected easing signals from the Federal Reserve on Thursday regarding the fall of the dollar, it is not coincidence that the dollar began to lose strength on the very day of China’s announcement.

Jim Sinclair's Mineset


US dollar index directly from the Federal Reserve.

 

[ArmedProgrammer]

Pastor Lindsey Williams, former minister to the global oil companies during the building of the Alaskan pipeline, announced the most significant event to affect the U.S. dollar since its inception as a currency. For the first time since the 1970′s, when Henry Kissenger forged a trade agreement with the Royal house of Saud to sell oil using only U.S. dollars, China announced its intention to bypass the dollar for global oil customers and began selling the commodity using their own currency. Comment: Lindsey Williams: "The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine."
"On Thursday, Sept. 6… just a few days ago, China made the official announcement. China said on that day, our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar. – Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11
This announcement by China is one of the most significant sea changes in the global economic and monetary systems, but was barely reported on due to its announcement taking place during the Democratic convention last week. The ramifications of this new action are vast, and could very well be the catalyst that brings down the dollar as the global reserve currency, and change the entire landscape of how the world purchases energy.
Ironically, since Sept. 6, the U.S. dollar has fallen from 81.467 on the index to today’s price of 79.73. While analysts will focus on actions taking place in the Eurozone, and expected easing signals from the Federal Reserve on Thursday regarding the fall of the dollar, it is not coincidence that the dollar began to lose strength on the very day of China’s announcement.

Jim Sinclair's Mineset


US dollar index directly from the Federal Reserve.

Hang on a sec.... I agree that the dollar is falling - but is that not at the same time when QE3 was announced.

I am more than willing to learn - but I don't see the connection between China opening a way to buy oil with Yuan and "King Dollar is screwed".

QE3 on the other hand - dollar value is hosed.

 

[ATOMonkey]

Hang on a sec.... I agree that the dollar is falling - but is that not at the same time when QE3 was announced.

I am more than willing to learn - but I don't see the connection between China opening a way to buy oil with Yuan and "King Dollar is screwed".

QE3 on the other hand - dollar value is hosed.

If people don't need dollars to buy oil, what do you think is going to happen to the foreign bond market?

Also, oil was propping up the dollar, giving us a quasi "oil standard" commodity backing to our fiat.

I don't think the Fed is going to be able to hold down interest rates, without runaway inflation until 2015 like they planned.

 

[ArmedProgrammer]

thanks ATOMonkey - that's the explanation I was looking for!

 

[smokingman]

Federal reserve starts open ended QE3. 40 billion in mortgage backed securities per month,continues operation twist,and currency swaps.

Fed Undertakes QE3 With $40 Billion in MBS Purchases a Month - Bloomberg
Fed Undertakes QE3 With $40 Billion in MBS Purchases a Month


By Joshua Zumbrun - Sep 13, 2012 12:08 PM CT



Play
Fed to Buy $40 Billion in Mortgage Debt Each Month

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.

Or to put it another way.The FED will print and add over 55 million dollars(in addition to treasury auctions)every hour with no end,while keeping interest rates near zero until at least 2015.

....Hang on a sec.... I agree that the dollar is falling - but is that not at the same time when QE3 was announced.

I am more than willing to learn - but I don't see the connection between China opening a way to buy oil with Yuan and "King Dollar is screwed".

QE3 on the other hand - dollar value is hosed.

I think a good portion of QE3 was a direct result of loss of faith in US treasuries.The Chinese announcement was the 6th,QE3 did not start until September 13.

Anyone else notice the markets today?Between QE3,and losing pricing power in the global oil market I think this is the death spiral of Federal Reserve notes.

 

[smokingman]

Protests at US embassy in China.I am posting a link to google search,so people can get information from more than one source because every article I have read has been very biased one way or the other.Any way you view it,it is not a good thing.Also a link to pictures,with things like molotov cocktails being thrown.The protests have been going on for 6 days,and most have probably not heard about them because the MSM is ignoring the topic other than blaming Japan.
https://www.google.com/search?q=pro...s=org.mozilla:en-US:official&client=firefox-a
https://www.google.com/search?q=pro...CG8QSU3YG4DA&ved=0CAoQ_AUoAQ&biw=1280&bih=553

US Embassy in Beijing is under protest by the Chinese marchers demanding (Google Translated) "Pay Back The Money" and "Down with US Imperialism".

 

[ZombieApocolypse]

Protests at US embassy in China.I am posting a link to google search,so people can get information from more than one source because every article I have read has been very biased one way or the other.Any way you view it,it is not a good thing.Also a link to pictures,with things like molotov cocktails being thrown.The protests have been going on for 6 days,and most have probably not heard about them because the MSM is ignoring the topic other than blaming Japan.
https://www.google.com/search?q=pro...s=org.mozilla:en-US:official&client=firefox-a
https://www.google.com/search?q=pro...CG8QSU3YG4DA&ved=0CAoQ_AUoAQ&biw=1280&bih=553

US Embassy in Beijing is under protest by the Chinese marchers demanding (Google Translated) "Pay Back The Money" and "Down with US Imperialism".

Im shocked i havent seen this in the mainstreem media

In other news i hear Soros is going to get rich off his massive investment(s) in gold

 

[lucky4034]

I am more than willing to learn - but I don't see the connection between China opening a way to buy oil with Yuan and "King Dollar is screwed".

Petrodollar Warefare

If the world shifts away from using the dollar to trade oil, our money devalues quickly worldwide and eventually crashes at home. (or so I'm told)

 

[smokingman]

Just so everyone is aware.Before QE3 started,in the last 52 weeks the Federal Reserve has purchased an average 74% of every US Treasury auction.In other words the largest buyer of our debt for the last year by far has been the FED.

Harvey Organ's - The Daily Gold and Silver Report

People wonder why food was up 10% last month.

World food prices up 10% in July (PER IMF report)

Now that they are purchasing an additional 40 billion per month from QE,and 85 billion continuing operation twist it should put the FED purchasing 91% of all US Treasury auctions from now until infinity.
China has been a net seller of US Treasuries for over a year.Having sold more is 3 of the last 9 months than the US government did.
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

That of course will have other effects.Treasury notes play a key role in capitol markets as the top rated collateral. They are/will be much shorter supply of tier one collateral.Then there is the obvious inflation aspect.

Get real assets.

Hyper inflation is not here yet,but 10% in things you need(food)or 88% in energy over the last year should be a wake up call.
Link to energy prices(oil,nat gas,gasoline,and electrical). Energy & Oil Prices: Natural Gas, Electricity and Oil - Bloomberg
Natural gas is the only form of energy that has not had at least a 50% increase in the last year.Pull out an electric bill from a year ago and see what you where paying per KWH,then look at the latest bill.

Buy things you use,store wealth in assets not Federal Reserve notes,and reduce the impact on you and your family.

Prep.

PS.The Race to the bottom is on.
The Bank of Japan expanded its asset-purchase fund to 55 trillion yen ($695 billion) from 45 trillion yen(Today)
http://www.bloomberg.com/news/2012-...-gain-before-boj-decision-grains-rebound.html

http://www.guardian.co.uk/business/2012/sep/06/debt-crisis-mario-draghi (13 days ago)
The European Central Bank (ECB) unveiled its boldest attempt yet to stabilize the battered single currency on Thursday when its president, Mario Draghi, announced a new program of open-ended, unlimited buying of distressed government bonds.

If that is not enough....
NYSE Data Violations Extend U.S. Exchanges’ Reputation Woes

NYSE Euronext’s $5 million penalty over rule violations for giving certain customers trading data before the public delivers a fresh blow to the reputation of securities exchanges.

http://www.businessweek.com/news/20...-extend-u-dot-s-dot-exchanges-reputation-woes

The violations stemmed from technology advantages that benefited NYSE’s Open Book Ultra and PDP Quotes proprietary data feeds. One information stream used a faster path to get data to customers while another operated independently of the system that sent data to the public feed. According to the SEC, about 80 percent of the NYSE’s trading volume is attributable to proprietary products, which customers use to make rapid decisions through computer algorithms.



The NYSE also had a software problem that made its public data feed susceptible to delays during times of high trading volume. While the exchange began to address the problem in February 2010, only about half of the relevant computer servers had been fixed by May 6, 2010

 

[smokingman]

I have created my own new inflation index.
Lets call it the Campbell's soup index.
I did some research and went back quite a bit.I will post a monthly update if I remember from now on.
All prices are for campbells condensed tomato soup.

1950:10 cents
1960:15 cents
1970:17 cents
1980:21 cents
1990:33 cents
2007:39 cents
2008:40 cents
2009:45 cents
2010:51 cents
201111-28-2011)60 cents

Anyone care to update these to 2012? I would have a hard time do to the market I am in.Within an hour drive there is only one grocery store...so if someone could hit Kroger,Marsh,and maybe Wal-mart and average them I would appreciate it.That is how I did the 11-28-2011 figures.

 

[mrjarrell]

Looks like we should plan for more food riots, too. And they'll be global. Especially since we're going to see grain shortages here in the US. That'll mean higher export prices and shortages, (especially if the .gov enforces their food to fuel mandates).

Complexity Theorists Predict Food Crisis, Riots and Civil Unrest In U.S. By April 2013

 

[cqcn88]

Good primer on how the value of the US dollar is tied to oil.


http://www.google.com/url?sa=t&rct=j&q=history%20of%20oil&source=video&cd=2&cad=rja&ved=0CDoQtwIwAQ&url=http%3A%2F%2Fvideo.google.com%2Fvideoplay%3Fdocid%3D-8957268309327954402&ei=SvJZUPbBGY-m8AS6_4DQAg&usg=AFQjCNF3eDiHzMrAzricr39g3mwm6xpdqw

 

[smokingman]

Just a quote of the day,from Mitt Romney.He understands the problem,but has never put any ideas forward as to what he would do about it.

Romney: [The] former head of Goldman Sachs, John Whitehead, was also the former head of the New York Federal Reserve. And I met with him, and he said as soon as the Fed stops buying all the debt that we're issuing—which they've been doing, the Fed's buying like three-quarters of the debt that America issues. He said, once that's over, he said we're going to have a failed Treasury auction, interest rates are going to have to go up. We're living in this borrowed fantasy world, where the government keeps on borrowing money. You know, we borrow this extra trillion a year, we wonder who's loaning us the trillion? The Chinese aren't loaning us anymore. The Russians aren't loaning it to us anymore. So who's giving us the trillion? And the answer is we're just making it up. The Federal Reserve is just taking it and saying, "Here, we're giving it." It's just made up money, and this does not augur well for our economic future. You know, some of these things are complex enough it's not easy for people to understand, but your point of saying, bankruptcy usually concentrates the mind.
​

Prep.

 

[rambone]

I have created my own new inflation index.
Lets call it the Campbell's soup index.
I did some research and went back quite a bit.I will post a monthly update if I remember from now on.
All prices are for campbells condensed tomato soup.

1950:10 cents
1960:15 cents
1970:17 cents
1980:21 cents
1990:33 cents
2007:39 cents
2008:40 cents
2009:45 cents
2010:51 cents
201111-28-2011)60 cents

Anyone care to update these to 2012? I would have a hard time do to the market I am in.Within an hour drive there is only one grocery store...so if someone could hit Kroger,Marsh,and maybe Wal-mart and average them I would appreciate it.That is how I did the 11-28-2011 figures.

I went to 4 stores today.

Town & Country Market: $0.79
Wal-Mart: $0.75
Wiseway: $0.99
Jewel-Osco: $0.96

Average: $0.87 (9-21-2012)

 

[smokingman]

I went to 4 stores today.

Town & Country Market: $0.79
Wal-Mart: $0.75
Wiseway: $0.99
Jewel-Osco: $0.96

Average: $0.87 (9-21-2012)

Thanks for the new average.
So 28% increase in 10 months,but we have inflation under 2% according to the FED(Per year)?Must be the weather.You know it seems to effect everything Retail sales,job claims,hiring,housing,even the price of electricity per KWH.

I really hope this thread has helped wake some people.I hope people have prepared.I hope I made a difference.The FED has held this mess together longer than I thought possible,but QE3(never ending QE) is nearly the last weapon they had to throw at it.It will cause more damage that good.

This thread is now almost 2 years old.We have come a long way since I started it.The markets are up,and the US dollar(federal reserve note)is down by nearly the same percentage.Commodities have soared,and will continue.M2(money supply)has more than doubled in the last two years,and will keep increasing by 40 billion(QE3)and 85 billion(operation twist)per month,that does not even include hidden currency swaps trading dollars to insolvent EU banks for Euros.

We have had our countries credit downgraded,Debt limits increased,16% of the population is on food stamps,still have not had a budget passed by congress,and entered a few new wars.Interest on savings and bonds are close to zero.Those who have lived responsibly have seen savings eaten away as they earn next to nothing,and inflation is destroying the value of saved money.

Come January the Debt limit debate will start over.They will have to raise the limit again,by at least 1.6 trillion to cover just next year at our current spending rate.The FED has purchased 74% of all US treasury's sold in the last year.They are now buying almost 91% of every auction,funding our debt by sheer printing of new money.China as of last week is letting oil trade in yuan.Iran is trading oil for gold.I predict a war in January because of that,has zip to do with nukes or anything but the fact they are hurting the dollar reserve currency status,much like Libya did.Today,the last order of business for the senate before they take the rest of the year off....In other wrap-up business, the Senate also passed by a 90-1 vote a non-binding resolution insisting that the United States prevent Iran from obtaining nuclear weapons and ruling out any strategy aimed at dealing with a nuclear-armed Iran.
The only senator to vote against the resolution was Republican Rand Paul, a Tea Party and libertarian favorite, who argued that it was a de-facto declaration of war."


Our politicians have great talking points,and pander to one side or the other.Neither side seems to actually care about the very real disaster our country is facing.I do not think there will be a political solution to what is unfolding.Politicians want to talk about taxes either raising them(left)or lowering them(right).At this point NEITHER is going to make the slightest difference.You could raise taxes to 50% on every single American and we would STILL be deficit spending(No deductions allowed either). You could lower taxes for everyone to 0,and sure it would create jobs but not do a damn thing to get us out of this mess.No political solution is possible,it is to late.We are(have)lost our credibility as the worlds reserve currency.

Sure the DOW may hit 20,000 in 2013,but if it does gas will be $10.00 a gallon and many will not be able to afford bread.

We are in a real mess.Please do what you can to lessen the impact on yourself and your family.Stock up on the things you use on a normal basis.Put extra food in the pantry.Make large purchases now if you are planning them in the next few years.Invest in physical assets like land,gold,and silver and have PHYSICAL possession of those assets to protect your savings.

How many have read this entire thread ?

 

[WWIIIDefender]

Don't forget last year Christmas day I think they passed the unlimited bailout for Freddie May and Fannie Mac

 

[rambone]

How many have read this entire thread ?

I'm with ya my friend. Although I get nervous every time I see this thread pop up.