Italy, Spain buy more government debt in May: ECB MarketWatch A rally in riskier euro-zone sovereign debt that started last August after ECB President Mario Draghi pledged to do "whatever it takes" to preserve the euro-zone has partly reversed...
BOJ's Kuroda: Japan's economy has been picking up - Pickup in Japan exports helped by currency developments; Expects Japan economy to return to moderate growth; BOJ to monitor developments in market; Uncertainties.
The bond prices of fatally insolvent European governments have fallen, as if these economies have suddenly been restored to health and fast growth by European Central Bank (ECB) intervention. European stock markets are roaring higher as well.
With gold and silver surging, today the Godfather of newsletter writers, Richard Russell, writes about everything from Bernanke leaving the Fed, to stocks, bonds, diamonds, watches, and the extremely challenging employment picture. Below is what Russell had to say to subscribers:
“Youngsters, 25 years of age and under, are having a devil of a time finding any kind of employment. Sunday's LA Times featured a lead article describing how many companies are working their employees harder to make up for workers that have been fired. These same companies have dispensed with birthday and holiday parties. Many companies monitor the actual amount of work their employees are producing. The article describes one 47-year old woman who comes home so exhausted that she flops into bed and skips dinner. ...
In his latest TV appearance, Jim Rickards (author of the best seller Currency Wars) talks on Bloomberg about how currency wars and gold dynamics are coming together.
Gold is 25% up in the last 3 months, but it’s up in Yen, not dollars. This is where currency wars and gold dynamics come together. When you think about cross rates it’s a zero sum game. Not every currencycan go down against every other currency at once. Gold is always rallying somewhere; right now it is rallying in Yen. It you want to be fancy, you are short Yen and buy gold. When the Yen gets to 110 then, you want to short sterling and buy gold. At the end of the day you will come back to gold in dollars. Gold is not going to do much in [US] dollars this year. I look for a dollar move late this year or in 2014. Meantime you can always make money in gold, as “it is always 5 o’clock somewhere.”
By pulling some charts together, we were able to visualize what Jim ...
In what can only be described as a ‘shock and awe’ campaign, last week Haruhiko Kuroda, the governor of the Bank of Japan (BOJ) unleashed a new monetary salvo in the on-going currency wars. While most economists and market watchers can agree that his actions are unprecedented, the fallout of this new policy is anything but certain.
Governor Kuroda officially announced that the BOJ is pulling out all the stops in an effort to stimulate the world’s third-largest economy following two decades of stagnation. Despite the prime minister and the governor of the central bank using phrases like “unlimited yen printing” and “I'll do whatever it takes to end deflation”, the BOJ managed to surprise global markets on Thursday, April 4th, with the magnitude of its announcement. For some reason, most market participants had expected that the BOJ would disappoint when it held its first meeting under its new leadership. The BOJ did not disappoint, however, and the Japanese yen plunged almost 6% against the US dollar in the days that followed its stimulus announcement.
Foremost among its policy moves, the BOJ intends to double the size of Japan’s monetary base from ¥135 trillion to ¥270 trillion by March 2015. The pace of this quantitative easing is stunning, as the balance sheet of the BOJ will expand by 1% of the nation’s gross domestic product (GDP) each month in 2013 and 1.1% in 2014. This is almost twice the current pace of 0.54% of GDP engaged in by the US Federal Reserve. The BOJ will accomplish this by doubling its purchases of government bonds. The BOJ will also make more purchases of risk assets, including ¥1 trillion yen worth of ETFs and ¥30 billion of REITs, which will positively affect their respective Japanese markets. And with the objective of achieving a 2% inflation target, the pace of expansion in the balance sheet will increase this year to ¥5.2 trillion per month from the previous ¥3.6 trillion rate. For 2014, the balance sheet is projected to expand by ¥5.8 trillion per month versus a previously planned rate of ¥1 trillion per month. In layman terms, this is throwing everything AND the kitchen sink at Japan’s deflation problems. ...
You know as Mr Bernanke is doing, the BoJ, the Bank of England, the ECB. They all say the same thing. They are all doing the same thing. So they are going to continue to print money. Eventually of course what always ...
US Printmaster General Ben Bernanke announced that he might start reducing the monthly debt monetization program, called 'quantitative easing' (QE), as early as the autumn of 2013, and maybe stop it entirely by the middle ...
... US Federal Reserve chairman Ben Bernanke has made it clear that the recovery of the US economy and the reduction of unemployment depend on the recovery of consumer spending, which requires a robust stock exchange and a return of confidence to the housing market. That is where he would want to see the money go. It may also be that he does not want to see it go elsewhere.
Where else might it go? The exponential rise in demand for gold and silver coins and bullion bars tells the story of a loss of confidence in conventional banking and money. How is it, then, that in the face of rising demand; a banking system in disarray; and the "printing" of trillions of dollars, that the prices of gold and silver bullion remain subdued? Is it only in the East that the lessons of the Weimar Republic have been learned? Or have the laws of economics been reversed?
It has been said that there are no free markets any longer, only interventions. The world's most prominent intervener, by far, is the Fed. It intervenes in the interest rate structure; it intervenes in the housing market by buying mortgage-backed securities, undertaking to continue to do so until the anticipated recovery in unemployment statistics occurs; and it intervenes in the supply of money with its regular purchase of US Treasury bonds (which is to say, it creates money "out of thin air"). The US Treasury intervenes regularly to prop up the stock market through "the Working Group on Financial Markets", also known as the "Plunge Protection Team," established under former President Ronald Reagan.
Now it is contended that these serial interveners do not intervene in the bullion markets which, it is asserted, operate entirely according to free-market principles. Gold has been described as the antidollar. It is the ultimate "canary in the coal mine" on matters of banking and financial wellbeing. Is it conceivable that the compulsion to intervene will have departed in the case of gold (and silver) and will leave these commodities in splendid isolation? This proposition seems improbable if the price were to tell a story that the US officials did not like. Would they, for instance, leave the gold price to find a level of $5,000, which would cause every investor to abandon the US stock and housing markets in favour of the far more lucrative gold market? Does this scenario fit the character of ...
Arizona is the main state pushing for residents to be able to use bullion as rightful currency.
by Cecilia Jamasmie:
... “The legislation is about signalling discontent with monetary policy and about what Ben Bernanke is doing,” Gatch told Bloomberg. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.”
Gold-backed money fell out of favour during World War I because the U.S. and many other countries needed to print more cash to pay for the war.
Silver prices ticked higher to $27.40 per ounce, while gold regained $1574.
The price of gold and silver was little changed Tuesday morning near last week's finish, while European stock markets rose but Japan's Nikkei stalled its 5-day surge as the Yen bounced higher from 4-year lows on the currency market.
Silver prices ticked higher to $27.40 per ounce, while gold regained $1574.
Energy and industrial commodity prices also edged higher. Major government bonds eased back, nudging up the interest rate offered to buyers.
The US Treasury will this week auction $66 billion in new debt, according to Bloomberg data.
"The [quantitative easing] actions of the Bank of Japan are having a profound effect on bond yields," notes the commodities team at Standard Bank today, "across especially emerging markets."
Because the BoJ's promise of $1.4 trillion in new money creation by 2015 is ...
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