The debate is raging. To QE or not to QE?
Bill Gross say's a form is coming. Jim Grant sees the same thing. The US economy is floundering that's after 2 version of QE. Without it this would be a modern day GREAT depression. For many americans it already is.
We need to be aware of the politics of such a move. A stealth version is my tip. "Extended period" you better believe it.
Here is what Mr Gold is saying: Meditate on these - Thankyou Jim.
Dear Extended Family,
Today’s markets are exactly what you would expect as we enter illustration number three of the Skier.
Economic statistics are taking a hard fall.
Without QE who will buy US treasury issues?
Without QE where is the basis of world equity markets?
Without QE what do you think the chart of unemployment will look like?
Without QE how do you think the camouflage of the insolvent balance sheets of the financial industry will fare?
Without QE where is mortgage money coming from?
Without QE what do you think home prices will do?
Without QE how will the present Administration and the legislative be re-elected?
Without QE how will the States of the United States of America finance themselves?
Be prepared for a reversal of the decision to curtail QE at the end of June.
Be prepared for a snap back at a greater percentage of QE with a different name.
Be prepared for covert QE between July 1st and late August when stimulation goes wild.
Be prepared for gold to take out $1650 on the upside as magnets at $12,544 come into play.
Be prepared for the Inflationary Depression of all time.
Stand firm on your gold positions.
Stand firm on your discipline of NO margin.
Stand strong in your Swiss Franc and Canadian dollar positions.
Survive the MOPE and market manipulation that is so obvious today.
Respectfully,
Jim
http://www.jsmineset.com/2011/06/23/stand-strong/
Thursday, 23 June 2011
Stealing from the people...the silent killer
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201106211841dowjonesdjonline000414&title=change-to-inflation-measurement-on-table-as-part-of-budget-talksaides
According to congressional aides familiar with the discussions, the proposal would shift how the Consumer Price Index is calculated to reflect how people tend to change spending patterns when prices increase. For example, consumers tend to drive less when gas prices increase dramatically.
Such a move is widely seen by economists as resulting in a slower rise in inflation. That would impact an array of federal programs that are linked to CPI including the Social Security program and income tax brackets set by the federal government.
The proposal could lower federal spending by around $220 billion over the next decade, based on calculations by last year's White House deficit commission, which recommended the change as part of its final report.
By Corey Boles and Janet Hook
WASHINGTON -(Dow Jones)- Lawmakers are considering changing how the Consumer Price Index is calculated, a move that could save perhaps $220 billion and represent significant progress in the ongoing federal debt ceiling and deficit reduction talks.According to congressional aides familiar with the discussions, the proposal would shift how the Consumer Price Index is calculated to reflect how people tend to change spending patterns when prices increase. For example, consumers tend to drive less when gas prices increase dramatically.
Such a move is widely seen by economists as resulting in a slower rise in inflation. That would impact an array of federal programs that are linked to CPI including the Social Security program and income tax brackets set by the federal government.
The proposal could lower federal spending by around $220 billion over the next decade, based on calculations by last year's White House deficit commission, which recommended the change as part of its final report.
Monday, 30 May 2011
Mr Sinclair lays it down simply - someone's going to get hurt...it's always that way!
"The risk of not stimulating is stagflation at a spiritual level. The risk of stimulating is stagflation at a spiritual level. The risk of doing nothing is both an economic and currency collapse of biblical proportions.
This is what the three illustrations of the skier teach. Should the Fed lose control of this, which is predictable, then currency induced cost push inflation would take gold to Martin Armstrong’s $12,500.
The odds are 70/30 right now that hyperinflation occurs. That takes gold over $1650. If the odds shift then gold starts a run to balance the International Balance Sheet of the USA and will secure Martin Armstrong’s target of $12,500."
Mr J E B Sinclair
www.jsmineset.com
This is what the three illustrations of the skier teach. Should the Fed lose control of this, which is predictable, then currency induced cost push inflation would take gold to Martin Armstrong’s $12,500.
The odds are 70/30 right now that hyperinflation occurs. That takes gold over $1650. If the odds shift then gold starts a run to balance the International Balance Sheet of the USA and will secure Martin Armstrong’s target of $12,500."
Mr J E B Sinclair
www.jsmineset.com
Derivatives - financial instruments, multiples of the real economy!
Mobius Says Fresh Financial Crisis Around Corner Amid Volatile Derivatives
By - May 30, 2011
Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, said another financial crisis is inevitable because the causes of the previous crisis haven’t been resolved.
“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius said at the Foreign Correspondents’ Club of Japan in Tokyo today in response to a question about price swings. “Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”
The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10, Mobius said. With that volume of bets in different directions, volatility and equity market crises will occur, he said.
The global financial crisis three years ago was caused in part by the proliferation of derivative products tied to U.S. home loans that ceased performing, triggering billions of dollars in writedowns and leading to the collapse of Lehman Brothers Holdings Inc. in September 2008. The MSCI World (MXWO) Index tumbled 38 percent in the six months after Lehman’s collapse. The freezing of global credit markets caused central banks around the world to pump cash into the financial system to encourage lending.
The largest U.S. banks have grown larger since the financial crisis, and the number of “too-big-to-fail” banks will increase by 40 percent over the next 15 years, according to data compiled by Bloomberg.
“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius said at the Foreign Correspondents’ Club of Japan in Tokyo today in response to a question about price swings. “Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”
The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10, Mobius said. With that volume of bets in different directions, volatility and equity market crises will occur, he said.
The global financial crisis three years ago was caused in part by the proliferation of derivative products tied to U.S. home loans that ceased performing, triggering billions of dollars in writedowns and leading to the collapse of Lehman Brothers Holdings Inc. in September 2008. The MSCI World (MXWO) Index tumbled 38 percent in the six months after Lehman’s collapse. The freezing of global credit markets caused central banks around the world to pump cash into the financial system to encourage lending.
The largest U.S. banks have grown larger since the financial crisis, and the number of “too-big-to-fail” banks will increase by 40 percent over the next 15 years, according to data compiled by Bloomberg.
http://www.bloomberg.com/news/2011-05-30/mobius-says-fresh-financial-crisis-around-corner-amid-volatile-derivatives.html
Tuesday, 10 May 2011
An hour - well worth it!
An excellent video explaining the problems of the monetary system...in a very enthusiastic way!
a Great education!
http://www.goldmoney.com/gold-research-videos.html
Jesús Huerta de Soto, author of the thought-provoking book on economics 'Money, Bank Credit and Economic Cycles'
a Great education!
http://www.goldmoney.com/gold-research-videos.html
Jesús Huerta de Soto, author of the thought-provoking book on economics 'Money, Bank Credit and Economic Cycles'
Gold at $1,510 and Silver at $38.25 today after a very bad week and half...
Mr Gold is taking it in his stride!...
Today’s action totally eliminates any and all remaining concerns for the price of gold. Today’s action lights up the $1764 Angel in gold.
Technical damage always requires technical repair. That type of price action is a perfect set up for a major launch of the gold price in June.
Relax and enjoy your protection and insurance positions.
Regards,
Jim
Today’s action totally eliminates any and all remaining concerns for the price of gold. Today’s action lights up the $1764 Angel in gold.
Technical damage always requires technical repair. That type of price action is a perfect set up for a major launch of the gold price in June.
Relax and enjoy your protection and insurance positions.
Regards,
Jim
it's good to be on top!...
Goldman Sachs Traders Lost Money on One Day in First Quarter
By Christine Harper
After losing money on 13 days in the fourth quarter, Goldman Sachs’s traders lost between $25 million and $50 million on one occasion in the first quarter, according to the New York- based firm’s quarterly filing with the Securities and Exchange Commission. They generated more than $100 million on 32 days out of 62 total days, the filing showed.
Goldman Sachs’s performance beats Morgan Stanley, whose traders lost money on three days and made more than $100 million on 10 days, according to a filing yesterday. It falls short of JPMorgan Chase & Co. and Bank of America Corp., which both reported zero days of losses in the quarter.
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