The end of the American Open Currency Standard?

sunset

It's amazing to think that we're merely two weeks away from the one-year anniversary of the M2 bankruptcy, after a year of [mostly losing] the battle for my life, fortune and sacred honor. But today, what remains of our team is back doing what we do best - creating value and profit by pushing forward decentralized commodity monetary systems. Towards the end of 2013, I decided that I'd be more effective a continent or so away from the drama. I needed some time to clear my head, take a step … [Read more...]

What Happens When the Fed Really Does Run Out of Ammunition?

Ben Bernanke

Stocks dropped sharply last week, with the Dow falling some 200 points, after the Federal Reserve released the minutes of its January Open Market Committee meeting. Although the minutes reaffirmed the Fed’s easy-money policy, they also showed that some members of the Committee had voiced concerns. The dissenters cautioned that quantitative easing, the current program of massive bond buying, could not be continued indefinitely without serious risks. Loading the Fed up with bonds creates the … [Read more...]

Will Silver Surge on Sequestration?

silver coins

The precious-metals markets were bolstered on Monday by the first of several critical economic developments taking place this week in the U.S. and abroad. The early-week rise has been largely attributed to early indications from Italy suggesting that the electorate is leaning toward the candidate not likely to support the continued discipline of austerity. This has the potential to reawaken the European debt crisis, and that means the safety of silver and gold upticked significantly. Where all … [Read more...]

Oil and metal prices fall on signs the US may end stimulus

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Oil and metals prices retreated this week on worries about the global economy owing to signs that the US could end its cash stimulus program and amid a worsening outlook for the eurozone, analysts said. OIL: Prices fell on worries of an end to the US stimulus program amid global economic strains and week demand for oil in top consumer nation the US, traders said. Oil contracts had tumbled more than US$2 on Thursday as traders absorbed poor US jobs data, signs of weaker-than-expected US … [Read more...]

Gold Falls 2.3% in Week to Seven-Month Low

gold

Gold prices ended at a seven-month low, resuming their downward march, as some investors opted to leave the market amid dissatisfaction with the yellow metal's performance. Gold for February delivery, the front-month contract, fell $5.80, or 0.4%, to $1,572.40 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest settlement price since July 18. The precious metal is down 6.1% this year. Gold slid 2.3% this past week and is down 12% from its 52-week high of … [Read more...]

For silver, being cheap is a good thing

silver

After a nearly 9% dive in silver prices this month, investors should be able to breathe a sigh of relief as growth in industrial and investment demand gains pace, and calls of “oversold” conditions and “bargain” prices for the precious metal intensify. “Silver is grossly oversold at current levels, more so than any time in the past five years,” said James Carrillo, senior portfolio adviser for precious-metals investment firm Swiss America Trading Corp. Silver futures prices SIH3 -0.28% have … [Read more...]

The Mysterious Minutes of the Federal Reserve

goldqm

For an outfit that is so vocal about clearly communicating with the public, the Federal Reserve sure is good at being mysterious and even obscure. Look at the way the Federal Reserve Open Markets Committee describes its discussions in the minutes released yesterday. The various viewpoints raised at the meeting are attributed to "participants" rather than identifiable individuals. This creates the initial level of obscurity: who are the participants? The FOMC has twelve voting members—seven … [Read more...]

Audit of Fed’s gold finds it’s safe, more pure than expected?

goldandsilver

NEW YORK — Turns out the Federal Reserve's gold is secure and a bit more pure than previously thought — or so the government says. Auditors spent weeks last year in a vault five stories beneath Manhattan counting, weighing and drilling small holes into gold bars owned by the U.S. Treasury. It was the first time the Treasury's inspector general had audited the department's gold held by the Federal Reserve Bank of New York, which has captured the imagination of Hollywood as well as … [Read more...]

Gold Advances as Price Drop Seen Boosting Demand; Silver Gains

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Gold increased for the first time in a week on speculation prices near a six-month low may boost demand amid concerns that the U.S. economic recovery may slow. Silver climbed, while platinum was little changed. Gold for immediate delivery gained as much as 0.3 percent to $1,614.75 an ounce and traded at $1,614.05 at 9:42 a.m. in Singapore. Prices dropped to $1,598.23 on Feb. 15, the lowest since August. Silver added 0.5 percent to $30.085 an ounce. Bullion lost 3.7 percent this year as … [Read more...]

The US Federal Reserve bailout of Europe

federal reserve

WASHINGTON, DC, February 13, 2013 ― Ben Bernanke announced in September that the Federal Reserve would buy $45 billion per month of mortgage backed securities. In December, he announced the Fed would be purchasing $40 billion per month in US treasuries. Since then, bank holdings of mortgage backed securities have barely budged. What little change there has been, has been upward. The banks are buying, not selling the MBS. So where is the money going? Every Friday the federal reserve … [Read more...]