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Posts Tagged ‘Federal Reserve’

$5,000 Gold Later This Decade?

July 18, 2011 Comments off

goldalert

later this decadeGold bullion may reach $5,000 per ounce later this decade, bolstered by rising demand from India and China and slowing production growth, according to Standard Chartered Plc.

Yan Chen, head of metals and mining for the firm, stated that “We are looking for the gold price to reach about $2,000 by 2014,” in a Bloomberg television interview.  ”There’s a chance that the gold price can be as high as $5,000 by 2020,” as income growth in China and India fuel demand for the yellow metal.

Chen’s comments came in the wake of yet another new all-time record high for gold prices, which this morning reached $1,603.80 per ounce.  Gold has been supported of late by the ongoing sovereign debt crisis in Europe, the uncertainty over the debt ceiling in the United States, and the prospects of a third round of quantitative easing (QE3) by the Federal Reserve.

The Standard Chartered strategist went on to say that “The gold market will be in deficit in the next couple of years.  The central banks are now back buying gold massively, turning from net seller of gold into net buyer.”

Quantitative Easing Rounds 1 and 2 Hurt the Economy … Bernanke Proposes Round 3

July 14, 2011 Comments off

georgewashington2.blogspot.com

Federal Reserve chairman Ben Bernanke is hinting at a third round of quantitative easing.

But Dallas Federal Reserve Bank president Richard Fisher said today:

I firmly believe that the Federal Reserve has already pressed the limits of monetary policy. So-called QE2, to my way of thinking, was of doubtful efficacy, which is why I did not support it to begin with. But even if you believe the costs of QE2 were worth its purported benefits, you would be hard pressed to now say that still more liquidity, or more fuel, is called for given the more than $1.5 trillion in excess bank reserves and the Read more…

Vladimir Putin Calls Bernanke A Hooligan, Angry At American Money Printing

July 13, 2011 1 comment

zerohedge

Who would have thought that Ron Paul’s ideological ally in his quest to take down the Chairsatan would be none other than the Russian dictator-in-waiting (or rather, in actuality), Vladimir Putin. In a speech before the of economic experts at the Russian Academy of Sciences, the Russian prime minister had the following to say: “Thank God, or unfortunately, we do not print a reserve currency but what are they doing? They are behaving like hooligans, switching on the printing press and tossing them around the whole world, forgetting their main obligations.” What appears to have angered the former KGB spy is the end of QE2. According to RIAN: “Putin’s comments came in the wake of the completion of the US’ quantitative easing (QE) 2 program on June 30, in which the Federal Reserve bought $600 billion worth of Read more…

Gold hits record high near $1,580 an ounce

July 13, 2011 Comments off

afp

The price of gold reached $1,578.73 an ounce at 1130 GMT on the London Bullion Market (AFP/File, Sebastian Derungs)

LONDON — The price of gold surged to a record close to $1,580 an ounce here on Wednesday, as investors switched into the metal for safety from the eurozone debt crisis, traders said.

The price of gold reached $1,578.72 an ounce by mid-day on the London Bullion Market, beating the previous record of $1,577.57 set on May 1. It later stood at $1,573 an ounce in afternoon London trade.

“Gold hit a new all-time high today as investors continue to fret over the European sovereign debt situation,” said analyst Ian O’Sullivan at trading firm Spread Co, noting that the metal has risen for eight days in a row..

“With Italy, Spain, Ireland and Portugal worries intensifying and now the Fed minutes suggesting some members were thinking about the need for additional easing, investors have just hit the panic buy buttons this week.

“We think that gold ma Read more…

If Central Banks Believe in Paper Money Why Are They Loading Up On Gold?

July 8, 2011 Comments off

zerohedge.com

I’ve been warning for years that an inflationary storm was coming. I’ve recently tailored my forecast to allow for a resurgence in deflation based on QE 2 ending and the economy diving, but my long-term forecast remains the same: inflation WILL be exploding in the years to come.

Indeed, even the biggest proponents of paper money (central banks) have begun to realize that their grand experiment is coming to an end. Central banks officially became net buyers of Gold last year. And we now find that they have acquired the most Gold in over a decade.

The Financial Times reports:

Central banks have pulled 635 tonnes of gold from the Bank for International Settlements in the past year, the largest withdrawal in more than a decade.

 The move, disclosed in the BIS’s annual report, marks a sharp reversal from the previous year, when central banks added to deposits of gold at the Read more…

Bernanke to Invent New Term for Printing Money

June 20, 2011 1 comment

inflation.us

When the U.S. Bureau of Labor and Statistics (BLS) reported their latest consumer price index (CPI) inflation data last week, everybody in the mainstream media worked tirelessly to spin the data in order to proclaim that U.S. price inflation is not a problem. Most articles in the media reported that inflation slowed in May due to falling gas prices. The truth is, gas prices rose last month and U.S. price inflation is spiraling out of control.  Price inflation based on the CPI on a year-over-year basis rose during the month of May to 3.57%, up from 3.16% in April, 2.68% in March, 2.11% in February, 1.63% in January, 1.5% in December, and 1.1% in November. The official rate of price inflation has more than tripled over the past 6 months. Yes, maybe the rate of Read more…

All Eyes on the U.S. Dollar: Danielle Park

June 9, 2011 Comments off

NIA Releases U.S. Economic and Inflation Update

June 6, 2011 Comments off

inflation.us

The official U.S. unemployment rate rose during the month of May to 9.1%, up from 9% in April, with only 54,000 non-farm jobs being created for the month. The real unemployment rate including short and long-term discouraged workers is now 22.3%. The Bureau of Labor Statistics (BLS) used the birth/death model to produce a positive monthly bias during the month of May of 206,000 jobs, up from 175,000 in April, 117,000 in March, and 112,000 in February. Without the birth/death model, 152,000 jobs were lost during the month of May.

 

By utilizing the birth/death model, the BLS is assuming that during the month of May, the number of new jobs created by start-up businesses were 206,000 greater than the number of jobs lost from companies going out of business. NIA finds this assumption to be Read more…

Gold Price Nears $1,550, Time for a Gold Standard?

June 6, 2011 1 comment

goldalert

GOLD PRICE NEWS – The gold price, at $1,542.50 per ounce, traded near unchanged Monday morning despite modest strength in the U.S. dollar.  While gold prices were flat, silver advanced higher by 1.5% to $36.79 per ounce.  Global equity prices have been under pressure over the past month with the S&P 500 falling for five consecutive weeks.  Weak data points in housing, manufacturing, and labor have all combined to heighten worries over the prospect of a double-dip recession.  Precious metals, notably gold, have benefited from their safe haven qualities as investors seek to lower their risk profiles.

The strong performance of the gold price in recent years has led to a growing collection of calls for the United States to return to a gold standard. Steve Forbes, the billionaire CEO of Forbes Inc., wrote a piece in Forbes Magazine urging candidates for the 2012 U.S. presidential election to consider returning to some form of gold standard to support the value of the U.S. dollar.

Forbes began the article by stating that “Monetary policy is one of Read more…

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…