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Posts Tagged ‘bonds’

Think gold is high? Wait till dollar bonds are dumped, Davies says

August 11, 2011 Comments off

gata.org

The West is close to the point where its paper currency system is insolvent, and as a result gold is heading to $5,000 an ounce, according to the manager of a gold fund.

“A paper currency system ultimately ends in insolvency,” said Ben Davies, the chief executive of Hinde Capital in an interview with CNBC.com on Tuesday. “We have arrived at this point in the West. So why own worthless paper?”

His belief that gold will hit $5,000 an ounce is not shared by many major players in the market. On Sunday, Goldman Sachs raised its 12-month price target for gold to $1,860 an ounce. In early trading Tuesday, spot gold hit a record $1,778 an ounce, before pulling back.

Goldman based its new target on Read more…

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New signs economy’s recovery faltering

June 2, 2011 Comments off

startribune

Evan Solomon worked at the New York Stock Exchange Wednesday as fears that the economy was stalling rattled the markets.

The U.S. economic recovery is faltering, and Washington is running out of ways to get it back on track.

New reports Wednesday showed a steep slowdown in the manufacturing sector and weak private-sector job creation in May. The grim news comes on the heels of other recent indicators — falling home prices and consumer spending — that reflect an economy slowing to a limp this spring.

The data dash the sunnier expectations that many analysts had entering the year; many forecasters had expected economic growth of 3.5 to 4 percent in 2011.

Instead, the U.S. economy appears to be settling back into a pattern of Read more…

Fed Ready to Print More Funny Money on QE3 Rumors

June 1, 2011 Comments off

infowars

Simon Maughn, co-head of European equities at MF Global, has told CNBC that a third round of so-called quantitative easing is in the works. The private Federal Reserve will again become the marginal buyer of bonds.

The latest effort by the Fed to finance the government’s staggering deficit will end in June.

If the private Federal Reserve owned by offshore banksters stops this lending scheme, interest rates will rise significantly which in turn will exert tremendous pressure on the American public. If interest rates surge anytime soon, millions of indebted Americans may default on their debt, thereby bankrupting the American financial institutions, as Puru Saxena, founder of Puru Saxena Wealth Management, notes.

“The bond market is going in one direction which is up-falling yields which is telling you quite clearly the direction of economic travel is downwards. Downgrades. QE3 (a third round of quantitative easing) is coming,” Read more…

PBOC’s Zhou Urges Cutting China’s $3 Trillion of Foreign-Exchange Reserves

April 19, 2011 1 comment

bloomberg

PBoC Governor Zhou Xiaochuan

Zhou Xiaochuan, governor of the People’s Bank of China. Photographer: Qilai Shen/Bloomberg

China needs to reduce its foreign- exchange reserves as they exceed the level the nation requires, central bank Governor Zhou Xiaochuan said.

The management and diversification of the holdings, which topped $3 trillion at the end of March, should be improved, Zhou said after a speech at Tsinghua University in Beijing late yesterday. The rapid accumulation is putting pressure on the sterilization operations of the People’s Bank of China, he said.

The nation’s foreign-exchange reserves climbed $197 billion in the first quarter, reflecting global imbalances that Group of 20 finance ministers agreed last week to address through deeper scrutiny of their economic policies. China’s surging holdings are fueling inflation that accelerated last month to the highest in 32 months, prompting the government to boost banks’ reserve requirements this week for the fourth time this year.

“Foreign-exchange reserves have exceeded the reasonable levels that we actually need,” Zhou said. “The rapid increase in reserves may have led to excessive liquidity and has exerted significant sterilization pressure. If the government doesn’t strike the right balance with its policies, the build-up could cause big risks,” he said, without elaborating.

The world’s second-biggest economy grew 9.7 percent in the first quarter from a year earlier, faster than economists had forecast, and consumer prices climbed Read more…

12 Warning Signs of U.S. Hyperinflation

March 29, 2011 Comments off

inflation

One of the most frequently asked questions we receive at the National Inflation Association (NIA) is what warning signs will there be when hyperinflation is imminent. In our opinion, the majority of the warning signs that hyperinflation is imminent are already here today, but most Americans are failing to properly recognize them. NIA believes that there is a serious risk of hyperinflation breaking out as soon as the second half of this calendar year and that hyperinflation is almost guaranteed to occur by the end of this decade.

In our estimation, the most likely time frame for a full-fledged outbreak of hyperinflation is between the years 2013 and 2015. Americans who wait until 2013 to prepare, will most likely see the majority of their purchasing power wiped out. It is essential that all Americans begin preparing for hyperinflation immediately.

Here are NIA’s top 12 warning signs that hyperinflation is about to occur: Read more…

Pressure on Portugal After New Credit Downgrade

March 16, 2011 Comments off

nytimes.com

LISBON — Portugal’s borrowing costs pushed higher after Moody’s downgraded the country’s credit rating, stoking the pressure on the country’s beleaguered minority government.

The yield on Portugal’s ten-year bond rose 0.04 percentage point to 7.44 percent. The equivalent yields for Greece and Spain, two other euro countries struggling with high borrowing levels, were down modestly.

Moody’s Investors Services cut the country’s rating by two notches to A3 late Tuesday, saying the debt-stressed country is struggling to generate growth and faces a tough battle to restore the fiscal health needed to calm jittery financial markets.

Prime Minister Jose Socrates said late Tuesday he would quit if Parliament doesn’t consent to his government’s latest batch of contested austerity measures.

Portugal aims to raise up to €1 billion in a sale of Read more…

The Rule of Gold after the Financial Collapse

March 15, 2011 Comments off

www.batr.org

 

“You can own silver and gold but never any fiat currency issued by someone else”
Peter Cajander

 

 

goldimf.gif
 

In a secular world, the operative “Golden Rule” is “He Who Has the Gold Makes the Rules”. The condition of the global financial banking system is untenable. The aggregate amount of debt worldwide is anyone’s guess. The introduction of derivatives and counter claims pushes the chain of obligations into the unknown. All that is left is for central banks to create mountains of uninterrupted counterfeit money to roll over and delay the inevitable. The IMF chart of World Currency Reserve is a skyrocket line to oblivion. It does not reflect a healthy stockpile of treasure, but certainly manifests a new debt machine running to infinity. The Bullion Vault explains this reality in the following manner.  

“Sure, the Fed can create money. But it can’t create Read more…