Tag: central banks

Today’s Long Term Refinancing Operation is fatter than the world’s biggest lottery El Gordo

The fattest prize in the world’s biggest lottery, El Gordo – the “Fat One” – just keeps getting fatter, according to its promoters. But even the fattest total of prizes to date – some €2.5 billion at Christmas 2011 – looks a tin-ribs next to El Tro, the storm of money now raining down on Europe’s banks. Wednesday’s Long Term Refinancing Operation took the grand total of giveaway money to more than €1 trillion, pumped out by the European Central Bank and known by the acronym LTRO. It is christened El Tro by us here at BullionVault today via the Catalan for “thunder”. Because that’s just what people keep calling it […]

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Gold and silver prices benefiting from liquidity flood

| February 24, 2012 | Articles: Gold Silver Prices

For the first time in three years the slowdown in the eurozone is negatively affecting trade with important Asian exporters such as Japan, China, South Korea and Thailand. Owing to last year’s floods, …

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Gold Price Will Easily Hit $2000 on Central-Bank Liquidity

The Gold Price slipped $10 per ounce to $1730 in London trade Thursday morning, before regaining most of that dip as the European Central Bank kept its key lending rate on hold and the Bank of England extended its purchases of UK government bonds to £325 billion ($515bn). On completion, this Quantitative Easing will see the Bank owning nearly one-third of the UK’s outstanding national debt. “The growing consensus among central bankers is that their experiment with QE is still working,” wrote Gavyn Davies, now of Fulcrum Asset Management and previously a policy advisor to the UK government, as well as head of global economics at Goldman Sachs until 2001 and chairman […]

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Bernanke Lends Support to Gold Prices but strong US jobs data sees Gold slip from 11 Wk High

Dollar Gold Prices fell back below $1750 per ounce while stock markets jumped higher immediately following the release of better-than-expected US jobs data on Friday. The Bureau of Labor Statistics nonfarm payrolls report, published on Friday, shows that the US added a net 243,000 nonagricultural private sector jobs last month. In addition, both November and December’s nonfarm figures were revised upwards. The unemployment rate fell to 8.3%, down from 8.5% the previous month. Silver Prices also fell following the nonfarm announcement, while the US Dollar saw an immediate gain against major currencies such as the Pound, Euro and Yen. Earlier on Friday Dollar Gold Prices hit their highest level in 11 weeks at $1762 per […]

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Bernanke lights a fire under gold and silver prices

“Party on!” was Federal Reserve Chairman Ben Bernanke’s message to Wall Street yesterday, as he announced that the Fed will be keeping interest rates at “exceptionally low” levels until late 2014, owing to concerns about stubbornly-high unemployment and the sustainability of the current statistical recovery. Bernanke also confirmed that for the first time in the Fed’s 99-year history, the institution will explicitly target a 2% inflation rate, as measured on the Personal Consumption Index (PCI). Other central banks have long had explicit inflation targets, but not the Fed. Unsurprisingly given their enthusiasm for easy money, the market response to this move was euphoric. The Dow gained 0.64% to settle at […]

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Gold vs paper money

Gold vs paper money

The gold price just broke through its downtrend – the line joining its tops – from summer 2011’s record high. Or so technical analysts studying the price charts will tell you, says Adrian Ash of BullionVault. Just as in late 2007, however – from where gold began a 55% run inside 6 months – the price jumped Wednesday on a very fundamental fact: the price of money, specifically Dollars, the world’s #1 currency for trade and central-bank reserves. Back in 2007, the catalyst came as a baby-step cut of 0.25%, signaling the Fed’s switch from raising to destroying the returns paid on cash savings. Now the Fed’s new zero-rate promise “took gold […]

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Our exponential debt system

| January 18, 2012 | Articles: Insights

The word “debt crisis” has made it into everyone’s vocabulary by now. People are talking about how we were “living beyond our means” and are debating how spending cuts, …

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Austrian vs. Keynesian economics

| January 17, 2012 | Articles: Experts Talk

In this video Juan Ramón Rallo, economist and university professor in Madrid, and Alasdair Macleod of the GoldMoney Foundation talk about Austrian and Keynesian economics. Rallo sees growing …

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