FOMC takedown

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swissaustrian said:
QE to infinity
40bn of MBS (securitized mortgages) purchases each months - open ended!
ZIRP until 2015.
Moar if needed. PMs love it. EUR/USD not so impressed, seemed to be priced in.
Let's see if pms hold the gains during the 20 minutes or so.
Click to expand...

The FED is doing this on top of the QE Twist stuff, so in total they are buying up $85 billion each month. The "expected" result of these actions is a projected medium term inflation rate of only 2%.

http://finance.yahoo.com/news/read-fed-statement-163600684.html

 
The 40bn are unsterilized (unlike twist). I.e. they don't sell anything else for it. They increase their balance sheet by 480 bn each year. That's actually a relatively small number, QE1 and QE2 were much bigger if you calculate their volumes on an annualized basis. The FED has led the door open for bigger monthly purchases this time, though. Maybe they don't wont to lay out the whole scheme before the election?
 
Pretty much what I was expecting. Ancona may yet see that $35/ozt silver tomorrow.
 
Man, this action into an already overbought pm market. Unbelievable. Let's see how this looks once the euphoria settles down a little bit, let's say in a week.
 
why does Bullionvaults chart show 1770 when kitco shows 1753 ?

http://www.bullionvault.com/gold-price-chart.do

I know the BV chart is based on the live order board and there is a spread thats averaged out for the chart but dont kitco do something similar ?


wait .... kitco now 1762, shoulda 'refreshed' the page sooner (-:
 
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Even the mainstreamers are stratching their heads:
http://finance.yahoo.com/blogs/breakout/bernanke-goes-means-180402117.html

"Employment is weak and is expected to be despite the Fed's best efforts. In response, the Fed is opening the spigots even further and vowing to continue to do so until this failed strategy starts working. There's a certain willful spunkiness to the plan, but in terms of economics it's little short of bizarre.

Bottom Line: The Fed has made up new rules by lifting all restraints on existing policies. Should they desire different stimulus, the Fed will need to invent a whole new policy. It's a bullish move in the sense that pouring more money into the system inflates values. Stocks, gold, oil... basically everything except the dollar "should" go up in value.

Longer term we're now way, way into unknown territory. As Bernanke himself often says, monetary policy isn't a panacea. Then again, the same man just gave the economy the biggest injection it's ever seen. How will it all end? Literally nobody knows, but for now stocks are higher, bears are furious and bulls are giddily confused.

Also, the president just got re-elected. But that's a for a different column."

:rotflmbo:
 
Of course, putting more money into the system doesn't actually inflate values, just prices in FRNs. A loaf of bread has the same value either way.

And I bet the 'pubs go nuts and maybe this DOESN'T help O one bit - looks too much like trying to buy the election. Not that they don't always try to buy us with our own money, but this is getting pretty flagrant even for Joe Sixpack.
 
DCFusor said:
And I bet the 'pubs go nuts and maybe this DOESN'T help O one bit - looks too much like trying to buy the election. Not that they don't always try to buy us with our own money, but this is getting pretty flagrant even for Joe Sixpack.
Click to expand...

The FED tried to help the incumbent in 1976 (?), too. They created to much inflation by lowering interest rates and Carter (?) got elected instead. Ron Paul describes this in his book "End the FED".
 
1:15 hours until the fomc announcement.
Should be a non-event this month.
Effect on pms: some volatility but nothing big.
 
swissaustrian said:
1:15 hours until the fomc announcement.
Should be a non-event this month.
Effect on pms: some volatility but nothing big.
Click to expand...

Seeing some attempts at undercutting levels ahead of the FOMC.. surprise surprise..
 
FOMC minutes are going to be published today at 2 pm ET. Watch out for some volatility.
 
I'm seeing the dxy falling and pms rising. Haven't seen the fomc report yet.

edit - zh reporting that Obama is talking about fiscal cliff right now...
 
Not everything selling off. FB up 12% on the day half their shares leave lockup? And I was short. OW - the opposite of a FOMC takedown? Check volume in the first 30 min.
 
The Euro isn't falling either but the DXY is rising which means that the other DXY component currencies are falling. That's pretty rare. Maybe big European players are repatriating money for a reason we don't know yet.
 
Maybe the rise of FB today is a stealth CA bailout? Remember how they were counting on all those taxes from share sales by employees, and whining about how it was going down? But that volume this AM - huge, enormous. 66m shares in the first 30 minutes. Really stands out when the average is less than a tenth of that.
 
Could be a CA bailout. I couldn't find any news supporting the move. If a large fund wanted to buy a huge position, it wouldn't purchase like this.

Meanwhile the mining shares are getting slaughtered accross the board, even with metals up a bit.
Even SLW is down 6% with silver up .5%. SLW can't rationally be affected by the bad earnings of companies like ABX or today IAG. They're a streaming company.
 
Good morning, everyone.

I expect some pm weakness before the FOMC announcement as a part of damage control by tptb (tbtfb).
 
Morning sa. I'm checking my seatbelts for mechanical integrity.
 
DXY already down to 79.9 or so...
 
So......what do you all think? I bet we see the 8:30 body slam, then the 9:00 kill-the-man pile up.
 
Presented by our friends at the BIS (most likely they were in charge of the "operation")
Pre-FOMC manipulation of gold/silver

The announcement was at 12:30 am ET





The manipulators just lost their defense lines at 1720 and 33.5
 
They've also raised the inflation target to 2.5% from 2%. Doesn't sound like a big deal but if you're taking into account that they're underreporting inflation by at least 50% (e.g. 2.5% instead the actual 5%) than .5% is 1%.
 
They are probably working overtime right now to "manage" the expected rise in PM's.

Commodities, especially the energy sector, are doing quite well. It's a good thing none of us need gas, oil, electricity or food, 'cause we might just feel the pain of a little inflation if we did!
 
Looks like the price fixing is targetted at gold only which makes sense when it's a governmental agency that is manipulating. No central banker cares about silver.
Intrestingly the algos which usually peg silver to gold in terms of direction seem to have a hard time keeping it down. That's a pretty good sign for silver in the weeks to come.
 
... on the other hand: If gold were to suddenly rise during the next few minutes right after the COMEX closing bell, I'd say that some private players were the manipulators.
 
There does seem to be a heavy hand on gold this afternoon. i just went to teh Kitco chart and based upon that alone, it looks too mechanical and concerted to be organic selling. This is more paper in to the fire in my uneducated opinion.
 
Miners are telling the true story again:

FNV
58.02 +1.42 +2.51%

RGLD
83.50 +2.08 +2.55%

NEM
45.61 +0.38 +0.84%

GG
38.54 +1.49 +4.04%

ABX
35.22 +1.21 +3.56%

SLW
38.14 +1.32 +3.59%
 
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