Feds meet, USD up, PM,Euro down...quickly

Interesting as the change was dramatic and proportionaly deep.

 

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Indeed. Currency is supposed to represent the wealth of society's economic output. The meeting of a few banksters shouldn't have any affect on it at all. Yet, what ever comes out of the central bankster's talk holes these days, is apparently much more important than anything else.

It's amazing that people don't recognize this folly and joke that our financial system now represents.

 

It seemed to me that you were greatly concerned about the QE3 in the other thread, and this meeting indicated to me that it is not a close expectation. Thus I would expect that the anti-fiat money people would be so very happy, but of course they are bullion-is-the-answer and anti-USD people in general.

Actually I think many recognize that despite many narrow minded opponents, the US economy is doing much better than almost every other country, and although slower than most would like, it also allows a chance for those who gathered survival bullion , food, and weapons as "investments" to realize they were mostly likely wrong and to balance their investment vehicles. IMO.

 

Also, I would say many times a lot of technical announcements come out at these meetings, and many times it is this information markets react to more than the "meet and greet" that gets on tv.

As for the other part, I agree. Investors need to position themselves for potential positive news just as much as for negative news. There have been thousands of Americans for decades with stocked shelters and putting all of their money in guns, seeds, ammo, and PM waiting for "judgement day". Even if I believed what they believe, look at all of the money they haven't made, and its just not a pleasant way to live.

 

You don't really understand my concerns then. What Bernanke, The ECB, BOE, the current political establishment says is of little concern to me. It's their actions that matter and in that, they are exactly consistent in staying on the course that is repeated over and over when fiat hits its death throes. I've taken the time to really understand what is happening and thus, I don't move on their very words or even care about them. Bernanke denied there would be a QE2, but it's come and gone.

I'm not blindly pro or anti anything. i.e. anti-USD, pro-Bullion. That suggests an emotional and irrational decision making process where one becomes blinded, unable to see anything except for rhetoric they are listening to.

You have to define your concept of "better" before I'd be willing to engage in that discussion about the economy. When someone says this to me however I ask the following two questions. First, what has been fixed in the economy that was broken in 2008 when GW Bush told the American people we were facing collapse? Second, "recovery" means to return to a previous state. Exactly what state might that be? There is never an answer to either. Maybe you wish to try.

 

The fed bought 61% of US Treasuries in 2011, I bet they purchase even more this year how long can they keep this up though.
Add to that it's an election year and things have to be painted rosy until after the election is over and done with.

 

I was talking to a local real-estate agent, and she has said house prices are slowly increasing in my area. a good sign for now.

I think this country needs a little boost in the housing market. once the housing market shows significant signs of recovery I think it should help boost the economy.

for me personally, I'm looking for 2 things.

1) house prices to increase. so the housing market needs to recover.
2) gas prices to fall. but thats a tuff one. cant say much with out including politics.

I'm just an average Joe. but there is millions of us out there.

 

Ummm. No.

 

A few obvious ones come to mind. The commercial paper market is functioning without government support. Major banking institutions have healthier capital ratios. Mortgage lending standards have moved back to sanity. I'll be the first to admit that this economy is not as good as everyone would like, but we are no longer facing systemic collapse.

 

trrte

 

<br><br>What are you talking about though? There was only a 1.50 change in 2 days for silver. Thats kinda normal silver movment, not dramatic and deep.

I read the title of this thread and the original post and got all excited thinking I was about to back the truck up. Instead I didnt even put the keys in the ignition

 

I'm not entirely convinced it is functioning without support. Operation Twist is still in effect, and we have yet to have any real longevity for functioning without market intervention since 2008 when interest rates hit zero and money printing became the crutch. High frequency trading algorithms account for a large part of market moves, and have been increasing exponentially in activity over the last 10 years. I would argue this is necessary in order to maintain price stability when market equilibrium desires deflation to counterbalance the bubbles we've experienced. Also, the banking institutions received $16T in under the table financing when TARP went through, only to be found out in a recent GAO audit. This significantly dwarves TARP, does not have to be paid back, and who knows how often this type of thing happens (link below). So their capital isn't really based on being profitable.

http://socialistworker.org/2011/09/07/the-16-trillion-bailout

 

Operation Twist doesn't really do anything for the banking sector, and it doesn't increase the money supply. The high frequency trading is just a continuation of a long term trend by institutions, and in my opinion makes it easier for individual investors. I believe the $16T represented loan guarantees and repos -- not injections of capital, so there is nothing to be repaid. It was just a mechanism to make sure the markets continued to clear. Now, none of this is particularly desirable, but it doesn't represent some sort of fatal flaw in the system either. I think higher interest rates would be more tolerable to the system than the Fed thinks, but my opinion doesn't count.

 

The thing is, and I was trying to find the numbers and came up blank, that never the less, the total amount of trading for Gold and Silver, and the amount of capitalization is so small, as compared to say stocks and tbills, that very small amounts of movements make huge changes in pricing. Just look at Gold and Silver, alone, for example. Silver should be far more expensive than gold, but it isn't because of the gold fever nuts.

 

oh god... and he still refuses to read that exolanation of money and banking that I posted..

 

It is not Banksters, but Bankers and economists. I know you don't get emotional about these things, but i just wanted to point this out. BTW - they don't have "talk holes", whatever that is, but the proper term is mouths or voices, or speech, depending on the context. Since your unemotional and rational about all this, I thought you might take the time to fix this poor word selection on your part.

Ruben

 

Opinion.

Christian

 

<--Opinion

 

Could you link that up in this thread. It'd be greatly appreciated.