QE3 is on! Open ended stimulus to infinity! Gold pops higher!!!

James Grant Calls for a Gold Standard

Thursday, September 13, 2012 – by Staff Report
http://gold-silver.us/images/library/goldcoins.jpg


Must Read: Jim Grant Crucifies The Fed; Explains Why A Gold Standard Is The Best Option ... The Federal Reserve Bank of New York has invited some of its public critics to visit the bank to unburden themselves of their criticisms. On March 12, it was Jim Grant's turn. The text of his remarks follows: Piece Of My Min ... My friends and neighbors, I thank you for this opportunity. You know, we are friends and neighbors. Grant's makes its offices on Wall Street, overlooking Broadway, a 10-minute stroll from your imposing headquarters. For a spectacular vantage point on the next ticker-tape parade up Broadway, please drop by. We'll have the windows washed. – Zero Hedge from Grant's Interest Rate Observer
Dominant Social Theme: Return to a gold standard is an absolute necessity.
Free-Market Analysis: We've always admired James Grant's writing style and self-deprecating wit. But perhaps in this Internet era he has aged out a bit.
We don't know why he continues to insist on a formal gold standard. This is a standard in which governments set the price of gold.
In the US, as we understand it, the government's refusal to recognize additional silver discoveries in the 1800s via its mints helped destabilize silver.
When we look at the process of silver de-monetization it appears as a pattern throughout the world. The power elite that controlled government had apparently decided on a two-step process of de-monetization – first silver and then gold.
Grant doesn't recognize any of this. He wants to give the power of the mint back to the government for precious metals. Here's some more:
In the not quite 100 years since the founding of your institution, America has exchanged central banking for a kind of central planning and the gold standard for what I will call the Ph.D. standard. I regret the changes and will propose reforms, or, I suppose, re-reforms, as my program is very much in accord with that of the founders of this institution. Have you ever read the Federal Reserve Act?
The authorizing legislation projected a body "to provide for the establishment of the Federal Reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper and to establish a more effective supervision of banking in the United States, and for other purposes." By now can we identify the operative phrase? Of course: "for other purposes."
.... The nation was on the gold standard. It would remain on the gold standard, Glass had no reason to doubt. The projected notes of the Federal Reserve would—of course—be convertible into gold on demand at the fixed statutory rate of $20.67 per ounce. But more stood behind the notes than gold. They would be collateralized, as well, by sound commercial assets, by the issuing member bank and—a point to which I will return— by the so-called double liability of the issuing bank's stockholders.
... One can think of the original Federal Reserve note as a kind of derivative. It derived its value chiefly from gold, into which it was lawfully exchangeable. Now that the Federal Reserve note is exchangeable into nothing except small change, it is a derivative without an underlier.
Or, at a stretch, one might say it is a derivative that secures its value from the wisdom of Congress and the foresight and judgment of the monetary scholars at the Federal Reserve. Either way, we would seem to be in dangerous, uncharted waters ...
We can see from this that Grant is partial not only to government gold ratios but also to the initial Fed act. He does admit the Fed "fell into sin almost immediately," but in doing so implies this was some sort of unusual occurrence.
It was not. Very obviously, this was what the cabal behind the Fed intended. Are we meant to believe that the Fed's immediate printing of notes beyond legal ratios was some sort of accident?
No, it was premeditated. At this point, seeing what is going on in the modern age, we'd even advance the idea that such overprinting was done in the full knowledge that it would cause a crash. And it did.
It is simply a fact, in our humble view, that once you give government the monopoly power over money, those in charge will abuse it.
In this case, a great, globalist conspiracy took advantage of Money Power. The result has been an implosion of wealth.
It is very necessary to divorce Leviathan from money because government is inevitably manipulated by mercantilism.
Conclusion: The best idea is to keep government out of the monopoly money game. Let currencies – even pure fiat – compete. Within such a context, gold and silver could freely float and find their rightful place in the monetary universe as they have in the past.

Don't feel bad Mamboni. I am getting so old I cannot remember where or how I lost mine. Wait. Did I ever have any? Oh my. I hate when that happens. Maybe I was just dreaming I had some. I guess it is better to have had and lost than to lose your mind and not even know if you had.

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Originally Posted by Golden

Can we post rockets now? lol

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I've seen too many people, even myself, thinking things were going to rocket [at any time] even back when I thought GIM1 would never end. It may be the time, it might not....

The Fed and the Crisis
www.youtube.com/watch?v=vIr-IG6Ln5Y
www.youtube.com/watch?v=vIr-IG6Ln5Y
Published on Sep 13, 2012 by TheRealNews
A commentary by Jane D'Arista assessing the actions of the Federal Reserve in managing the economic crisis

Has anyone else heard yuan for oil as of 9-6-12?

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Originally Posted by steyr_m

I've seen too many people, even myself, thinking things were going to rocket [at any time] even back when I thought GIM1 would never end. It may be the time, it might not....

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Common Steyr m

They're off and running!


http://i50.tinypic.com/28l88xg.jpg

At times she may look like a cutter


http://i50.tinypic.com/2dl8y6c.jpg


But you know where things are going


http://i45.tinypic.com/2hh1zsl.jpg

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Originally Posted by Dogman

The timing is sort of strange, or maybe not, with the shit brewing over there in camel land.

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5773? = @23 x

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Originally Posted by Spectrism

It is not just gold & silver they want to confiscate. Like a drowning swimmer gasping for air and clawing the water to remain on top, the government will gasp for any wealth and claw at any visible target.

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until those banksters arent sent to jail/death row, I seriously doubt a return to sound currencies, though black market willl LOVE metals.

ps:I am more in favor of life sentences but for "them" I support the death penalty.

One thing just struck me... What if this is part of the preparation to attack Iran?

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Originally Posted by Neuro

One thing just struck me... What if this is part of the preparation to attack Iran?

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I smell that. There are a multitude of outcomes in what the rock is cookin. From the Bernank droppin QE from a helicopter to the MIC droppin ordnance. Its still rock n roll to me.

http://kingworldnews.com/kingworldne...ring_Gold.html

Global Economic Plunge, Money Creation & Soaring Gold

Today Mish warned King World News that investors should prepare, “... for a big plunge in economic growth worldwide.” Mish also said that despite the plunge in the global economy, “I expect to see gold breakout to the upside and I think we are starting to see that right now. The same thing is true for silver.”



But first, here is what Mish, who runs the Global Economic Analysis site, had to say regarding the plunge in economic activity: “We are seeing a decline in the global economy. China has slowed down dramatically, so any commodity exporters which export to China are slowing down as well. We’re already seeing this happen in countries like Australia. We are also starting to see the Australian housing market begin to crash."


Mish continues:



“We have seen a plunge in the price of steel, down over 50% from the peak, and one analyst is expecting a further 50% drop in the price of steel. We are seeing problems surface in Italy. Yesterday, reports of the slowdown hit Canada. There was a huge drop in Canadian exports across the entire board.



The decline in exports hit all of the major categories, autos, energy, agriculture, forest products, machinery and equipment products. The overall drop was 3.4%, but there was an even bigger drop of 5% in exports to the US...




“This is consistent with what we have been seeing in the labor markets. Eric, the US recently reported a plus 96,000 jobs, but if you dig deeper into the numbers, in the household survey there was a loss of 119,000 jobs. This was the second consecutive loss of over 119,000 jobs.



Over 500,000 people dropped out of the labor force. These people gave up looking for jobs. We are also seeing tax receipts in California plunge. The US is already in recession. The US Fed surveys even suggest the US is back in recession.



The amazing thing to me is the denial in the mainstream media about what is happening. I would also add that the stock market is not a leading indicator of anything other than sentiment. The same thing happened in 2007, the stock market peaked right as the recession started.



The data in Europe is even worse. There are weak numbers coming out of Spain, Italy, and France. So who is Germany going to export to? They are exporting to the rest of Europe. The idea that Germany was going to escape what is happening to the rest of Europe was always ridiculous.



We are now seeing the perfect trifecta of construction down, services down, and manufacturing down. We have negative reports across the board. It’s going to make unemployment even worse in Germany and the rest of Europe. This will just increase anti-euro sentiment.



Europe’s problems are structural in nature, and this is why none of Mario Draghi’s fixes are not going to work. In Europe and the US they are acting like more monetary stimulus is going to fix these problems. How can it, Eric?”



Mish had this to say regarding gold: “I think that gold is about ready to blast higher. Now, the Fed has managed to stoke the stock market as well as inflate the corporate bond market. These companies, which were primed to go bankrupt, keep borrowing more and more money just to stay afloat.



But they are not doing any more hiring, and Bernanke is puzzled over this. Well, he’s puzzled over pushing on a string because people are still saddled with debt. Students are graduating with debt, but they are still unable to get jobs, so they are simply moving back home.



But Bernanke has ignited a rally in gold from around $800, to over $1,700 now. And we’ve seen the same thing in silver. We’ve also seen this in energy and food. But other commodities such as steel have plunged. This will impact the economies of exporting nations such as Australia and Canada very badly.



The bottom line is the monetary printing is out there and gold is going to be the big beneficiary, and possibly silver as well. The chart of gold is beautiful. We have seen a perfect consolidation wedge forming for about a little over a year now.



I expect to see gold breakout to the upside and I think we are starting to see that right now. The same thing is true for silver. Where do people turn when global central banks across the board print. This big lift in gold recently has been because of what they are doing in the ECB.



Gold had gotten a bit ahead of itself a year ago at $1,900, and tried to hold its own, dropping into the $1,500s, as Europe was engaged in austerity. But now that Mario Draghi has come out and essentially said we are going to offer unlimited printing, the gold market has responded by advancing.



God only knows what we are going to see from China. I expect all of the central banks to push on the string once more, but I don’t expect to see any job creation as a result of that. Investors don’t realize that we are in a global recession, but they will shortly.



When central bankers step their foot on the accelerator this time, what’s going to happen? They are going to force up the price of gold and food, and it’s going to be counterproductive. The stock market will go down, and, regardless of what they do, all of these factors line-up for a big plunge in economic growth worldwide.”

http://i50.tinypic.com/ayud5k.jpg

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Originally Posted by Dogman

The timing is sort of strange, or maybe not, with the shit brewing over there in camel land.

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maybe they can sell camel turds (as hash) to balance the budget ?

i saw this once at a rock concert in Central Park. guys standing around near the line to get in, selling what looked like oversized rabbit turds.

heck, if the Fed can pretend their counterfeit is money, they can attempt to pass off camel turds as hash.


interesting how they raided down to $1720 right before the announcement & pop to $1770.

in 2009, when they announced QE1, gold rose about $80, from $880 to $960.

but, in the next month, it lost about 2/3 of that 'pop.'

then, in the next few years, it doubled.


no sympathy here for the shorts that got crushed by this move.

Hyperinflation is Virtually Assured – John Williams


September 13, 2012, at 1:07 pm
by Greg Hunter in the category USAWatchdog.com | http://www.jsmineset.com/wp-content/..._famfamfam.gif Print This Post | http://www.jsmineset.com/wp-content/..._famfamfam.png Email This Post

Jim Sinclair’s Commentary
There could not a more important presentation to review again today as QE is initiated. I assure you, to infinity now in USA and Euroland.
I have taken a lot of heat on QE to infinity, but it was birthed today in the USA and a week ago in Euroland.


By Greg Hunter’s USAWatchdog.com

Dear CIGAs,

The Federal Reserve is talking about “unlimited QE,” or money printing, to boost employment. Economist John Williams says, “That’s absolutely nonsense. The Fed is just propping up the banks.” Williams says, “You’re likely going to see a dollar sell-off . . . That should evolve into hyperinflation.” Williams, “Doesn’t see the current system holding together without hyperinflation beyond 2014.” He contends the real annual deficit is “$5 trillion per year” and says, “That’s beyond containment.”

Williams predicts, “Hyperinflation is virtually assured because the Fed doesn’t have any options left.” Williams says people should get prepared because we are facing a “man-made disaster.” Join Greg Hunter as he goes One-on-One with John Williams of Shadowstats.com.

Jim’s Mailbox

September 13, 2012, at 1:03 pm

by Jim Sinclair

Jim,

LET’S THE GAMES BEGIN!

The Fed announced the beginning of QE3 with $40B in purchases of Mortgage Backed Securities PER MONTH without stating any end date or dollar amount. Here is the statement:

http://www.federalreserve.gov/newsevents/press/monetary/20120913a.htm

"the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month."

"If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability. "
No limits. No end date. This is QE to INFINITY!

Make no mistake… this is all on purpose. This is the END GAME and the blame for the global meltdown will be placed, rightfully, on the shoulders of the Federal Reserve.

Basically, the Fed has chosen to FALL ON IT’S OWN SWORD!

The Gold and Silver move upward has caught all the shorts off guard. The Bad Guys are in deep, deep trouble as they took their cues from the likes of Jeffrey Christian and Jon Nadler who were advising EVERYONE to short gold and silver.
Now it gets exciting!

PS – Ron Paul just happens to be speaking tomorrow night at the Liberty Political Action Conference. If you think that is a coincidence then I have some lovely swamp land to sell you in Florida!

The world is about to change.

May the Road you choose be the Right Road.

Bix Weir
www.RoadtoRoota.com

PT2 The Fed and the Crisis
www.youtube.com/watch?v=PtIYNECg2Sg
www.youtube.com/watch?v=PtIYNECg2Sg

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Originally Posted by mamboni

Jim’s Mailbox


September 13, 2012, at 1:03 pm

by Jim Sinclair

Jim,

LET’S THE GAMES BEGIN!

The Fed announced the beginning of QE3 with $40B in purchases of Mortgage Backed Securities PER MONTH without stating any end date or dollar amount. Here is the statement:

http://www.federalreserve.gov/newsevents/press/monetary/20120913a.htm

"the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month."

"If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability. "
No limits. No end date. This is QE to INFINITY!

Make no mistake… this is all on purpose. This is the END GAME and the blame for the global meltdown will be placed, rightfully, on the shoulders of the Federal Reserve.

Basically, the Fed has chosen to FALL ON IT’S OWN SWORD!

The Gold and Silver move upward has caught all the shorts off guard. The Bad Guys are in deep, deep trouble as they took their cues from the likes of Jeffrey Christian and Jon Nadler who were advising EVERYONE to short gold and silver.
Now it gets exciting!

PS – Ron Paul just happens to be speaking tomorrow night at the Liberty Political Action Conference. If you think that is a coincidence then I have some lovely swamp land to sell you in Florida!

The world is about to change.

May the Road you choose be the Right Road.

Bix Weir
www.RoadtoRoota.com

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What's he inferring?

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Originally Posted by Libertytree

What's he inferring?

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He's inferring that Ron Paul is positioning himself for a possible presidential run as an Independent.

ron paul's whole campaign as of late seems to be based, play by play & word for word, on this:

http://en.wikipedia.org/wiki/Waiting_for_Godot

“Gold is money. Everything else is credit.” - - J.P. Morgan’s words to Congress in 1912


http://articles.marketwatch.com/2012...gs-gold-buyers


Long-time followers of ours on Seeking Alpha will know that we have been bearish on gold (GLD) ever since it hit $1900/ounce in August 2011. After today's shocking FOMC announcement, we are now long gold for the first time in a year.

http://seekingalpha.com/article/8662...time-in-a-year


The Federal Reserve essentially "crossed the Rubicon" today. No longer will quantitative easing be considered an "emergency measure". Rather, it will now be considered just another "tool" that the Fed uses in the normal course of business.

Considering how vulnerable the U.S. dollar already is, announcing an "open-ended" round of quantitative easing is utter foolishness. According to the Fed, when you add the 40 billion dollars of new mortgage-backed security purchases per month to all of the other "easing" measures the Fed is continuing to do, the grand total is going to come to about 85 billion dollars a month.

http://world.hawaiinewsdaily.com/201...-rain-money-2/

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Originally Posted by mamboni

He's inferring that Ron Paul is positioning himself for a possible presidential run as an Independent.

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While his son Rand is supporting Mitt? And his campaign manager and grandson in law became campaign manager for a neo-con?... Yeah, maybe this pig can fly! Truly r3VOLting!

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Hey anyone out there with business management, supply chain management, computer programming (point-of-sale), human identification, accounting, standardized business practices, etc. skills, the Legacy Capitalists have a job for you.
Capitalism knows no borders and nation states don't exist anymore. The LC need a system that allows the free flow and tracking of human capital. So things like standardized ID and human recognition software for ease of identification and tracking.

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hmmm

By the end of this program, come 2015, the fed balance sheet will be directly responsible for 24% of the US total GDP. This is absolutely insane and (sarc) I am shocked the media is not running a scare mongering campaign - 'the end is near!!'

This is not end game. End game is still several years away. This is all still theater. I think we are now at the start of Act 2 of 3. Act 1 was the initial crash, start of the gold bull. Act 1 is now over with qe1, qe2 behind us. QE3 (to infinity and beyond) is the name of the game now and it needs to run for a bit before the end game can segue from stage left.

Endgame is when it is obvious TO ALL that the FED has destroyed the US economy.

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Originally Posted by DMac

By the end of this program, come 2015, the fed balance sheet will be directly responsible for 24% of the US total GDP. This is absolutely insane and (sarc) I am shocked the media is not running a scare mongering campaign - 'the end is near!!'

This is not end game. End game is still several years away. This is all still theater. I think we are now at the start of Act 2 of 3. Act 1 was the initial crash, start of the gold bull. Act 1 is now over with qe1, qe2 behind us. QE3 (to infinity and beyond) is the name of the game now and it needs to run for a bit before the end game can segue from stage left.

Endgame is when it is obvious TO ALL that the FED has destroyed the US economy.

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I tend to agree with you. Inflation is certainly coming, but I believe they can maneuver through high inflation for a few years. Once inflation is unbearably high, one of two things will happen: One, the fed stops printing money and raises interest rates to save the dollar and protect the "too big to fail" banks from hyperinflationary collapse; or Two, the fed adopts a policy of hyperinflation and ensures the death of the dollar. A third option I suppose would be the gov't nationalizing the fed if they stop printing money because the threat of inflation is too high for the big banks. It's a question of fed loyalty; are they more loyal to the banks or the government?

I and many others think that the collapse of the USD/reserve currency is what they want, so, why grind it out? It would be much more to their benefit if one day they just pulled the orchestrated plug. Fear and doom and of course they'll have a plan to solve what they created.

They've calculated 40 billion per month is what's needed to keep the ponzi alive, but for how many months I wonder? At some point it needs to be 50b/month 60b/month etc...

Do they have to announce each increase, or are they hoping nobody will notice?

(It would seem the fuse is officially lit).

http://www.youtube.com/watch?v=BcvCwIOZIjg

http://i45.tinypic.com/mkown.jpg

Countdown - Rush

I have posted the rockets and the lyrics, which I find esoterically interesting in our current situation. Of course, I just like the song, also. Bold/red is just me highlighting interesting themes.

http://www.youtube.com/watch?v=R5IA-xPGDB0&feature=fvst

Lit up with anticipation
We arrive at the launching site
The sky is still dark, nearing dawn
On the Florida coastline

Circling choppers slash the night
With roving searchlight beams
This magic day when super-science
Mingles with the bright stuff of dreams

Floodlit in the hazy distance
The star of this unearthly show
Venting vapours, like the breath
Of a sleeping white dragon

Crackling speakers, voices tense
Resume the final count
All systems check, T minus nine
As the sun and the drama start to mount

The air is charged
A humid, motionless mass
The crowds and the cameras
The cars full of spectators pass
Excitement so thick you could cut it with a knife
Technology...high, on the leading edge of life

The earth beneath us starts to tremble
With the spreading of a low black cloud
A thunderous roar shakes the air
Like the whole world exploding

Scorching blast of golden fire
As it slowly leaves the ground
Tears away with a mighty force
The air is shattered by the awesome sound

Like a pillar of cloud
The smoke lingers high in the air
In fascination
With the eyes of the world
We stare...

http://i47.tinypic.com/166bzig.jpg