Baltic Dry Index. 762 - +02
LIR Gold Target by 2019: $30,000. Revised due to QE programs.
"You have to choose between trusting to the natural stability of gold and the natural stability and intelligence of the members of the government. And with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold."
George Bernard Shaw
In the Gospel according to “Helicopter Ben,” all’s well in the world of QE3 forever. Trust me “I don’t believe significant inflation is going to be the result of any of this,” Bernoccio said in a speech at the University of Michigan. There was no word if the audience roared with laughter, rolling around in the aisles at the size of the Great Princeton Doctor’s nose. Stay long physical gold and silver. The Great Doctor has signalled that the “worst thing Fed could do would be to hike rates prematurely.”
In other words, assuming a trillion a year of QE money creation from nothing actually works as intended and gets a sustainable recovery underway in America, an assumption that hasn’t worked anywhere on the planet so far, as the economy picks up and banks start lending again, and as inflation picks up as all the new money starts chasing tangible goods and assets, the Fed will be slow to try to rein in inflation. At best, the Great Doctor is implying that the Fed will tolerate a new “normal” higher rate of inflation going forwards, than the old normal for the era 1945-2000, excluding the notorious 1970s. At worst, a great unstoppable inflation breaks out, as everyone tries to cash out of depreciating fiat currency.
"Well, in our country," said Alice, still
panting a little, "you'd generally get to somewhere else — if you run up
debt very fast for a long time, as we've been doing."
"A slow sort of country!" said Bernoccio.
"Now, here, you see, it takes all the debt running you can do, to keep in
the same place. If you want to get somewhere else, you must run up debt at
least twice as fast as that!"
With apologies to Lewis Carroll
Jan. 14, 2013, 5:56 p.m. ESTBernanke downplays inflation risk of QE3
Worst thing Fed could do would be to hike rates prematurely
WASHINGTON
(MarketWatch) — Federal Reserve Chairman Ben Bernanke on Monday played down the
fears of some more hawkish central bankers and investors that the Fed’s
aggressive bond-buying program will lead to higher inflation.
“I don’t
believe significant inflation is going to be the result of any of this,”
Bernanke said in a speech at the University of Michigan.
The Fed
has the tools to exit its easy policy stance before inflation appears, he said.
The Fed
will watch closely to see whether the zero-interest rate policy that has been
in place for four years could eventually lead investors to make unwise
decisions, creating an asset bubble, he added.
Bernanke
also said there is a continuing debate over whether Fed policy is a cause of
asset bubbles. The Fed has an “open mind” on the issue, he remarked, and will
continue to monitor markets and toughen bank supervision to guard against
financial instability.
But the
worst thing for the central bank to do would be “to raise interest rates
prematurely,” according to Bernanke.
More
If this translated report from Germany in Handelsblatt
is accurate, I don’t read German but have no reason to doubt it, the Bundesbank
has lost custodial faith in the Fed, and the Bank of France. They long ago
repatriated most of their gold from the untrustworthy Old Bag Lady of
Threadneedle Street, soon to be put under new Canadian ownership. Watch what
they do, not what they say.
"It is extraordinary how many emotional storms one may weather in safety if one is ballasted with ever so little gold."
William McFee
It Begins: Bundesbank To Commence Repatriating Gold From New York Fed
01/14/2013 20:32 -0500
In what could be a watershed moment for the price, provenance, and future of
physical gold, not to mention the "stability" of the entire monetary
regime based on rock solid, undisputed "faith and credit" in paper
money, German
Handelsblatt reports in an exclusive that the long suffering German gold,
all official 3,396 tons of it, is about to be moved. Specifically, it
is about to be partially moved out of the New York Fed, where the majority, or
45% of it is currently stored, as well as the entirety of the 11% of German
gold held with the Banque de France, and repatriated back home to Buba in
Frankfurt, where just 31% of it is held as of this moment. And while it is one
thing for a "crazy, lunatic" dictator such as Hugo Chavez to
pull his gold out of the Bank of England, it is something entirely different,
and far less dismissible, when the bank with the second most official gold
reserves in the world proceeds to formally pull some of
its gold from the bank with the most. In brief: this is a momentous
development, one which may signify that the regime of mutual assured and very
much telegraphed - because if the central banks don't have
faith in one another, why should anyone else? - trust in
central banks by other central banks is ending. Much more importantly, it is being telegraphed as such, with Buba fully aware of just what the consequences of this (first partial, and then full; and certainly full vis-a-vis the nouveau socialist regime of Francois Hollande which will soon hold zero German gold) repatriation will be in a global monetary arena, which is already scraping by on the last traces of faith in a monetary system that is slowly but surely dying but first diluting itself to oblivion. And in simple game theory terms, the first party to defect from the prisoner's dilemma of all the bulk of global gold being held by the Fed, defects best. Then the second. Then the third.
Until, in this particular case, the last central bank to pull its gold from the NY Fed and the other 2 primary depositories of developed world gold, London and Paris, just happens to discover their gold was never there to begin with, and instead served as collateral to paper gold subsequently rehypothecated several hundred times, and whose ultimate ownership deed is long gone.
More
Now back to the bankster’s paradise of
Euroland. The euro’s not working for any but the banksters, Eurocrats, and
scammy Europols feeding at the public trough.
"By common consent of the nations, gold and silver are the only true measure of value. They are the necessary regulators of trade. I have myself no more doubt that these metals were prepared by the Almighty for this very purpose, than I have that iron and coal were prepared for the purposes in which they are being used."
Hugh McCulloch
Updated
January 14, 2013, 6:11 a.m. ET
Euro-Zone Output Falls Most in Three Years
LONDON—Euro-zone
industrial output declined the most in three years in November, pulled lower by
countries in the region's south facing recession as they attempt to cut debt
and deficits through austerity policies.
The
decline is a further indication that the wider economy could contract for a
third consecutive quarter in the final three months of 2012 as fiscally frail
countries struggle with still-high borrowing costs and demand for goods suffers
amid continuing job cuts.
Output dropped 3.7% from a year earlier, the biggest decrease since November 2009, when output slumped 7%, Eurostat, the official European statistical office said Monday. Industrial output fell 0.3% in November compared with October, the third consecutive slide on a month-to-month basis.
The yearly decline was due to weakness across the board with production of intermediate and capital goods falling at the steepest pace since 2009.
In October, industrial output retreated 3.3% on the year and 1.0% on the month, Eurostat said. The October data were revised after previously being reported as falling 1.4% on the month and 3.6% on the year.
The November figures were weaker than expected.
----"November's euro-zone industrial production data provided further strong signs that the recession in the region as a whole intensified in the final quarter of last year," said Ben May, European economist for Capital Economics.
Ireland,
Greece, Spain, Italy and Portugal all saw production decline in November
compared with October.
Italy
also published its full industrial production release Monday. Output fell 1.0%
on the month and by 7.6% on the year in November last year, a bigger fall than
expected. Output has declined for six straight months in monthly terms, and 15
consecutive months on an annual basis.
More
Greek leftist tells German minister reforms have failed
BERLIN |(Reuters) - Greek leftist firebrand Alexis Tsipras told German Finance Minister Wolfgang Schaeuble in brief talks on Monday that Berlin-backed reforms being pursued by the Greek government had been a total failure, pushing up unemployment and poverty in his country.
Tsipras, the 38-year-old opposition leader whose SYRIZA party leads opinion polls in Greece, has led the fight against spending cuts and tax hikes that Germany, its European partners and the IMF have insisted on in return for billions of euros in aid to stave off bankruptcy.
He requested a meeting with Schaeuble during a visit to Berlin and told reporters afterwards: "I told him that the austerity programmes have failed all over Europe and especially in Greece."
"Now we must deal with their impact: poverty, unemployment," said Tsipras. "Our vision is to see Greece exiting the crisis with its people standing on their feet."
A German finance ministry source said Schaeuble had "told Mr Tsipras unequivocally that there is no alternative to the ... implementation of the economic adjustment programme. Minister Schaeuble urged Mr Tsipras to back the path embarked upon."
More
HeidelbergCement CEO Says EU Project Has Failed -Newspaper
HeidelbergCement CEO Says EU Project Has Failed -Newspaper
01/12/2013
HeidelbergCement
AG (HEI.XE) Chief Executive Bernd Scheifele said the European Union has failed
as it doesn't create wealth, adding the company keeps investments in the
currency bloc at a modest level, newspaper "Frankfurter Allgemeine
Sonntagszeitung" quotes him as saying in a pre-release of its Sunday
edition.
Furthermore,
the company, which is listed on the German benchmark index, wants to cut its
debt load to EUR6.5 billion from currently EUR7 billion, Mr. Scheifele added.
More
"Whenever an overall breakdown of a monetary or financial system occurs, return to gold always restores order, revives confidence and brings back prosperity."
Donald Hoppe
At the Comex silver depositories Friday final figures were: Registered 38.01
Moz, Eligible 112.31 Moz, Total 150.32 Moz.
Crooks and
Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
In Euroland, all “
hope” now rests on Germany. To bailout Club Med, led by old socialist, “The
Dutchman’s” France, Germans are just going to have to work harder for longer,
for less, so that Club Med can continue to enjoy the excruciating benefits of
the wealth destroying euro. From London
it rather looks like this hope is misplaced.
"The modern mind dislikes gold because it blurts out unpleasant truths."
Joseph Schumpeter
German efficiency in doubt after airport debacle
BERLIN |(Reuters) - Germans take pride in their engineering and organisational skills but their country's reputation for efficiency has been exploded by a farcical series of delays in building Berlin's new international airport.
Although the postponements in opening what is ostensibly a completed marvel of architecture have drawn the most attention, Germany's stifling bureaucracy, red tape and planning rules have also blighted dozens more big projects.
The embarrassing and expensive delays in multi-billion euro projects such as Berlin's airport, Hamburg's new opera house, Germany's BND spy agency headquarters, Cologne's underground, Stuttgart's train station, and thousands of kilometers of overhead power grid are no laughing matter for a country whose reputation for engineering excellence is a major selling point.
Because Germany relies on exports for more than half of its national wealth, its inability to complete these major infrastructure projects even close to on time or within budget has badly tarnished that carefully cultivated reputation.
"We haven't exactly covered ourselves in glory with the Berlin airport and these other big construction projects," said Michael Knipper, managing director of the Federation of the German Construction Industry.
"The biggest problem in Germany is the bureaucracy," Knipper said in an interview with Reuters. "I don't know of any other country in Europe that has anywhere near as complicated and expensive an approvals and building process as Germany."
The Willy Brandt International airport in Berlin was already nearly two decades in the planning and hopes for completion in 2007 and then 2008 were already outdated when construction began in 2006. Its opening has been pushed back at least four times since then from 2011 to June 2012 then to March 2013, then October 2013 and now to some indefinite point after 2014.
More
"Start buying gold now, regardless of the price. By acting now, you will not have to react when it's too late. Too late will be when the majority of the public finally figures out what is happening to paper money and frantically tries to get aboard. Remember, if you're one of the ones holding paper in the end, you will have given away your products and services for nothing."
Robert Ringer
The monthly Coppock Indicators finished December:
DJIA: +100 Down. NASDAQ: +123 Unch. SP500: +129 Up.
All three indexes are giving different
signals. A time for caution.
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