We see charts as the “improved mousetrap,” as it were, and superior as a tool for market timing over fundamentals, or any other similar undertaking, for relating to what and when to buy in the markets. Still, there are not that many converts who pay more attention to what the market is saying. The one thing we know for sure is, regardless of whatever one has in the form of expectations, they are always subordinate to the final arbiter over price, and that is the market itself. The best we can say about gold is that it may be transitioning from its protracted down trend. The signs that gold remains under pressure are still there, bearish spacing, lower swing highs, etc, and that means any buying has to be very select, or not at all, again, profit being the only objective.
Tag: monetary policy
In the end, this is really simple. The Bank of Japan wants investors and economic agents to believe that it is “doing something” that has the power to alter the country’s economic and financial course. That has never been the case, and it certainly is not now with a measure of “stimulus” in a manner already fully saturated with prior “stimulus.” And it doesn’t take any monetary expertise or specialized training to see this. Simple common sense will do. There is no Greenspan put, only an irrational fear of the Greenspan put. If the Federal Reserve or the Bank of Japan had any real power, we wouldn’t need to argue about whether there is a real recovery or not.
As we have finally arrived in the magic year 2014, in which almost every economic and business cycle is trending down, it seems that things are perfectly lining up for a melt down. If it would have been true that the debt crisis was contained (like our political leaders try to make us believe), then there is a huge divergence with recent trends. This article looks at six different trends which are lining up for an historic sell off in the markets. As readers observe, we stay as factual as possible.
The Chinese central bank People Bank Of China concludes their latest monetary policy report with several actions, one of which being: “The diversity of participants on the gold market will be promoted,
The Fed can’t give free lunches to banks forever—here’s what will happen when it stops.
With a global competition in currency debasements, with limitless monetary stimulus, with decreasing effects of monetary expansion, with a conscious infringement of the monetary rules, it should be clear that there is hardly a way back for our leaders. Given this outlook, we believe it is a matter of “when,” not “if” the next collapse occurs.
One of the consequences of Japan’s currency debasement is now starting to show its ugly head: the cheaper Yen may be intended to stimulate exports but it simultaneously makes imports more expensive.
The deflationary threats still remain. Ask yourself, can the average consumer handle rising interest rates? Can bank balance sheets handle a further drop in housing values? You get my point– it seems to me that a lot of people are making light of real challenges out there in the real economy. Yes, commodities may continue their trend lower – and so might silver and gold for the next months or year. But always remember what sets the precious metals apart.
This is an interview with Jim Rogers, conducted by Birch Gold Group. The topics that are covered range from monetary policy, the stock market frenzy, currency wars and precious metals.
This is an excellent interview with Jim Rickards. He explains that we are in a depression currently. The answers to that problem from the US government and central bank will likely force them to impose monetary discipline through the return to a gold standard. The longer the dollar based monetary system is suppressed, the more likely that market forces will induce a dollar collapse. This piece provides deep insights in a complex matter, brought in an easy to understand way.
In a speech given earlier this week in Mexico, the General Manager of the BIS talked about the increasing pressure from the market on central banks. Even the mother of central banks is aware that the limitations of monetary policy are increasingly being questioned. The question is being asked if indeed those policies have been a “success” or rather a “failure.”
Apart from the fact that Mr. Faber did expect a formal confirmation of tapering, he said he was not surprised because “we are in QE unlimited.” He points out that the Fed is run by academics who never worked a single day of their life in a business. They don’t understand that if you print money, it benefits basically a handful of people maybe 3% or 5% of the population.
I think the political realities of the situation make the most likely scenario one in which there will be some kind of real financial collapse and disorder that will require a total reconstruction of the system. It’s impossible to say how that will be done, and this may be the chance to go back to a gold standard or to a very sharply circumscribed remit for central banks.
Gold and silver will not only continue to serve in their timeless role as a store of wealth while fiat currencies flail and ultimately fail—right now, market conditions are ripe for a once-in-a-lifetime profit opportunity to take shape. The current gloom in the mining-stock sector has stock prices at astounding lows… but those who know which companies are best positioned to ride out this temporary collapse and have the fortitude to invest in them now can make a fortune. This isn’t exaggeration—this scenario has played out before in the US.
The only limits on this process of money creation are the banker’s instinctive fear of making a bad loan that will lead to a loss, and the fraction of deposits held as liquidity against the possibility that depositors suddenly want their money back – hence the term “fractional reserve banking”. It is at this stage of the credit cycle that the process of money creation goes violently into reverse.