Blog posts tagged with 'Federal Reserve'

Gold prices dropped below $1,600 an ounce today, nearly wiping out the gains for 2012. Political uncertainty in Greece and Spanish banks prompted investors to sell their bullion for the third straight day. Fear due to a change in the French Presidency, the state of the Spanish banks, and gridlock in Greece all contributed to the 3 percent drop in precious metals. Optimism in gold unhinged following the turmoil in Europe. Many investors are questioning whether they are going to be seeing a large enough euro bail out that precious metal prices will rise again.

The Federal Reserve is the Key
Since we released our Collapse of Gold Report in November, gold has dropped from over $1,800 an ounce to under $1,600 an ounce. Chairman Ben Bernake has given no indication that the central banks will start a Q3. Recent improvements in the U.S. economy could indicate that the Fed’s next step will be to raise interest rates, which will cause gold prices to drastically decline.

Although gold has been known as a way to protect wealth in times of economic uncertainty, Frank Tang of Reuters said this year gold is “in tandem with riskier assets such as equities and crude oil”.

Other Ways to Invest in Tangible Assets
If you are considering selling your gold, there are other options available that do not play the precious metals market. Within the investment realm of tangible assets, there is one asset that has outperformed gold and stocks for the last 40 years: rare coins. Although many people have preconceived notions of rare coins, the investment potential is unique. Unlike many investments, rare coins are not tied to the precious metals market or the dollar. Consequently, the prices do not fluctuate like the price of gold or silver.

Rare coins allow you to privatize your investment portfolio since no 1099b or social security number is required. Due to the finite supply, the price of these can never go to zero and the market is driven by collectors/investors. A new set of programs were developed that allow people to invest in this tangible asset with the help of industry experts. The two programs, known as the Numismatic Asset Protection Account (NAPA) and Numismatic Trading Account (NTA), utilize one of the industry’s largest inventories of rare coins. With the close guidance of numismatic expert, Steve Contursi, these accounts are achieving 10-15% profits.

24K Nation: Are Americans Crazy to Think Gold Is the Safest Investment?
http://finance.yahoo.com/news/24k-nation-americans-crazy-think-190121319.html
Dollar up, gold down.

April Jobs Report: More of the Same
http://finance.yahoo.com/blogs/daniel-gross/april-jobs-report-more-same-135552516.html
If you break the job loss report between private and public, the private sector added jobs, and the public sector lost jobs.

U.S. Chose Better Path to Recovery
http://finance.yahoo.com/news/u-chose-better-path-recovery-101205775.html?l=1
This article is true short term. We need to end these policies, move back to a strong dollar, and raise the Fed Interest Rates.

“The Fed Could Do More”: Central Bankers Are “The Only Adults in The Room,” Cal Prof Says
http://finance.yahoo.com/blogs/daily-ticker/fed-could-more-central-bankers-only-adults-room-112409305.html?l=1
Spin article. This article is true short term. We need to end these policies, move back to a strong dollar, and raise the Fed Interest Rates.

US: TransCanada reapplies for oil pipeline
http://news.yahoo.com/us-transcanada-reapplies-oil-pipeline-125454214.html
The U.S. can be energy independent in 20 years.

Oil drops below $100
http://news.yahoo.com/oil-drops-below-100-132417154--finance.html
Inevitable tide moving the U.S. to become energy independent.

Founders, CEOs hand Wis. governor campaign cash
http://news.yahoo.com/founders-ceos-hand-wis-governor-campaign-cash-071227903.html
40 states are trying to break to economic disasters of public unions in their states. Wisconsin is leading the way.

Richard Fisher: The Fed Has Done Its Job, Congress Needs To Do Theirs
http://finance.yahoo.com/blogs/daily-ticker/richard-fisher-fed-done-job-congress-theirs-124006906.html?l=1
It is time for the Fed to stop putting out easy money, raise the interest rates and make the U.S. Dollar King … again.

Krugman: Fed Should Tolerate Higher Inflation To Reduce Unemployment
http://finance.yahoo.com/blogs/daily-ticker/krugman-fed-tolerate-higher-inflation-reduce-unemployment-130644416.html?l=1
Spin Article. Trying to fight back the growing wave to strengthen the dollar to increase the velocity of the dollar, spurring loans to businesses and returns on savings and 401k plans.

Europeans protest austerity at May Day rallies
http://news.yahoo.com/greeks-protest-austerity-may-day-rallies-073048509.html
55% of the Euro population is in public unions. 6% of the U.S. population is in public unions. There is no comparison.

US hopes buoy markets in thin holiday trading
http://news.yahoo.com/us-hopes-buoy-markets-thin-holiday-trading-143709944--finance.html
U.S. private sector (70% of the U.S. GDP) is strengthening in spite of government regulation and taxes.

Geithner’s Talk of TARP ‘Profits’ Is All Wrong: Romero
http://finance.yahoo.com/blogs/daily-ticker/geithner-talk-tarp-profits-wrong-widely-held-misconception-144543249.html?l=1
TARP might have been a necessary evil, but do not paint it as rosy wonderful proposition. We bailed out the people who caused the collapse.

Beware of Europe’s Top New Export: Fear
http://finance.yahoo.com/blogs/breakout/beware-europe-top-export-fear-150925596.html?l=1
Another example of the people who caused the collapse, lying to get themselves out of trouble.

Fed Will Act Soon to Boost the Economy, Just Not Today
http://finance.yahoo.com/blogs/breakout/fed-act-soon-boost-economy-just-not-today-121115213.html?l=1
Stock Market types begging for more QE to bail them out. More of the people who caused the problem trying to get the rest of us to bail them out.

French presidential candidate Hollande: Renegotiate European treaty right away
http://news.yahoo.com/french-presidential-candidate-hollande-renegotiate-european-treaty-away-145021197.html
Again, the people who caused the collapse are wanting other people to bail them out.

IT’S OFFICIAL: Keynes Was Right

http://finance.yahoo.com/blogs/daily-ticker/official-keynes-112244405.html?l=1
Liberal/Socialist propaganda. If Europe wants to do this, it is better for the U.S. because Keynes has not worked since it was started over a hundred years ago.

China had about 1.3 trillion in U.S. bonds and treasuries a year ago. Today they have about 1 trillion. The Chinese economy has been slowing. To make up for the short fall, China sold 300 billion U.S. bonds and treasuries. They are increasing the amount of U.S. currency in the world and putting pressure on the dollar to go down. This also puts pressure on the Euro and Yaun to go up. China does more trade with Europe. By selling these U.S. bonds and treasuries they have money to prop up the Chinese economy, keep the dollar down, and pushing the euro and Yaun up. The Federal Reserve reversed its policy on the U.S. dollar and is not weakening it anymore (no QE3). However, China is doing a QE3 by selling off the U.S. bonds and treasuries that they own. These U.S. bonds and treasuries were being kept to help China’s economy when they started having problems. The more U.S. bonds and treasuries that China sells into the market will only hasten the Federal Reserve to raise the interest rates and when that happens the dollar will become king again.

By Jan Harvey | Reuters

Gold prices slid below $1,630 an ounce on Monday as concerns that the euro zone debt crisis could ensnare higher-rated countries hurt the single currency, though moves were muted ahead of this week's Federal Reserve meeting.

The metal is extending the 2 percent losses it has posted so far this month, in line with a drop in the euro. The currency has come under heavy pressure from growing fears over the ability of some euro zone countries, particularly Spain, to manage debt.

Spot gold was down 0.7 percent at $1,629.69 an ounce at 7:53 a.m. EDT (1153 GMT), while gold futures for June delivery were down $11.80 an ounce at $1,630.90.

"We are basically caught between two opposing factors," Credit Suisse analyst Tobias Merath said.
"On the one hand, we have U.S. bond yields coming off, which adds some support, but concerns over Europe are capping the upside, because the situation in Europe has the potential to lead to deteriorating liquidity conditions."

"As we saw at the end of last year, gold is a hedge against all kinds of crises, but not against a liquidity problem, when people are liquidating assets to raise much-needed cash. They also sell gold in this environment."

Prices will struggle to break out of their current range without fresh drivers, he said.
Gold watchers are turning their attention to the Federal Reserve's two-day policy meeting from Tuesday, at which the prospect of more monetary easing is set to be addressed.

The euro fell against the dollar, having drawn little support from news at the weekend that the International Monetary Fund would receive a further $430 billion to safeguard economies from the euro zone debt crisis.

Worries over the euro zone's financial health were apparent in the debt market. Dutch and peripheral euro zone bonds sold off, driving Spanish yields back above 6 percent, as a political crisis in the Netherlands stoked investor fears euro zone commitments to contain the debt crisis were under threat.

German Bund futures hit record highs and French bonds slipped as investors worried that a potential presidential election win by the French Socialists would compromise the euro zone's commitment to fight its debt crisis.

The premium investors demand to hold Dutch 10-year government bonds rather than German Bunds rose to a three-year high on Monday as the country slipped into political crisis after a failure to agree on budget cuts.

Concerns over euro zone debt were a key factor pushing gold to record highs last year, but the dollar has since taken over as investors' safe haven of choice. Bad news from the bloc now tends to pressure gold, which falls in line with the euro.

WORK TO DO
"Gold still has a lot of work to do to convince investors that it has made up its mind on which hat it wants to wear - safe haven or risk," UBS said in a note on Monday.

Physical gold demand remained light in major consumer India even ahead of the Akshaya Tritiya festival on Tuesday, an auspicious day to buy gold.

Buying is being hurt by weakness in the rupee, which makes dollar-priced gold more expensive for local buyers.

In New York last week, money managers raised their net long positions in gold futures and options to 112,275 contracts, from 109,511 contracts a week earlier, its lowest in more than three years.

While the net length in gold had fallen more than 40 percent from this year's peak hit in early March, the total open interest edged lower from a week earlier to 640,791 contracts, down 13 percent from March and near a two-year low hit earlier in the month.

Among other precious metals, silver was down 2.1 percent at $31.00 an ounce, spot platinum was down 0.9 percent at $1,558.75 an ounce and spot palladium was down 1.1 percent at $663.97 an ounce.

Data from Chinese customs authorities on Monday showed its platinum imports rose by nearly a third last month to their highest since December at 7,446 kgs, while palladium imports have fallen to their lowest since December 2009.

China's silver imports, at 255,455 kg, were down by a third year-on-year, but still at their highest in 6 months.

Source: http://news.yahoo.com/gold-slips-below-1-630-per-oz-euro-121926035--finance.html

Private sector 209,000 jobs in March
http://finance.yahoo.com/news/private-sector-209-000-jobs-122900110.html?l=1
Private sector is 70% of U.S. GDP. This is where the recovery is happening.

Bank Earnings Will Be Explosive Next Year: Dempsey
http://finance.yahoo.com/blogs/breakout/bank-earnings-explosive-next-dempsey-115946962.html?l=1
U.S. banks are healthier than other banks around the world.

US stocks fall as Fed backs away from stimulus
http://finance.yahoo.com/news/us-stocks-fall-fed-backs-134230732.html?l=1
Fed has changed policy, they are now strengthening the U.S. dollar, long term.

A.M. Kitco Metals Roundup: Comex Gold Sharply Lower, At 11-Week Low, As Fresh Near-Term Chart Damage Inflicted
http://www.kitco.com/reports/KitcoNews20120404JW_am.html
Fed has changed policy, they are now strengthening the U.S. dollar, long term.

WSJ: Fed Buying 61 Percent of US Debt
Wednesday, 28 Mar 2012 11:08 AM
By Julie Crawshaw and Forrest Jones

The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department, a trend that cannot last, Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability, writes in a Wall Street Journal opinion article published Wednesday.

"Last year the Fed purchased a stunning 61 percent of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis," Goodman writes.

Goodman also warns that U.S. economy and markets are “at risk for a sharp correction” if conditions aren’t “normalized.”

"This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits."

The U.S. government is growing increasingly more dependent on borrowing to finance itself, with net issuance of Treasury securities hitting 8.6 percent of gross domestic product (GDP) on average per annum, more than double levels before the crisis.

Fed intervention in the government debt market makes demand for Treasury bonds appear higher than it really is, as foreign creditors and other investors have fled U.S. government debt instruments and are looking elsewhere until the government makes serious attempts to curb spending and narrow its gaping deficits.

Goodman notes that foreign investors like Japan and China that once scooped up U.S. debt are shunning it. In 2009, such foreign purchases of U.S. debt amounted to 6 percent of GDP and has since falled by over eighty percent to a paltry 0.9 percent.

Without foreign buyers and a shrinking base of U.S. corporate and bank buyers, the Treasury has had to resort to the Federal Reserve itself to make the purchases. The Fed purchasing not only makes up the shortfall, but can keep long term interest rates artificially low.

"The Fed is in effect subsidizing U.S. government spending and borrowing via expansion of its balance sheet and massive purchases of Treasury bonds. This keeps Treasury interest rates abnormally low, camouflaging the true size of the budget deficit," Goodman writes.

"Similarly, the Fed is providing preferential credit to the U.S. government and covering a rapidly widening gap between Treasury's need to borrow and a more limited willingness among market participants to supply Treasury with credit."

Political bickering on both sides of the aisle has prevented politicians from cutting spending and undertaking fiscal reform.

Arguing over the role of tax hikes versus spending cuts hit a fever pitch in 2011, when both sides in Congress waited until the last minute to agree to terms surrounding lifting the government's debt ceiling.

Should fiscal bickering return, expect investors in U.S. debt who are not employed at the Federal Reserve to take note, other experts say.

"If people dig in, the polarization will get worse, and that could be the worst outcome for markets," says Eric Stein, vice president and portfolio manager at Eaton Vance in Boston, according to Reuters.

© 2012 Moneynews. All rights reserved.
Source: http://www.moneynews.com/Headline/fed-debt-Treasury/2012/03/28/id/434106


Investors Are Looking to Buy Homes by the Thousands
http://finance.yahoo.com/news/investors-looking-buy-homes-thousands-134405371.html?l=1
The normal ratio of home owners in about 2/3, forced government easy lending allowed this to go up to ¾, the market is going back to normal.

Stocks in retreat in run-up to Fed minutes
http://news.yahoo.com/stocks-retreat-run-fed-minutes-140514069.html
Fed Meeting is April 24th and 25th. Not expecting anything big until June meeting.

Bernanke says US job market weak despite gains
http://finance.yahoo.com/news/bernanke-says-us-job-market-120142888.html
Total spin article to get the Fed off the hook and get Obama reelected. Banks will not lend until the Fed raises their interest. Private businesses (70% of the U.S. GDP and 25% of World GDP) will not bring hiring levels up until they can get a loan. It is that simple. Raise the interest rates.

Wall Street rallies after Bernanke comments
http://finance.yahoo.com/news/stock-index-futures-signal-slight-082049037.html?l=1
Spin article. Bernanke said the Fed would not raise interest rates till 2014. If they keep rates low that long, the U.S. private sector (70% of the U.S. GDP and 25% of World GDP) will stay stagnant. Raise the interest rates, banks start lending and private businesses start expanding.

How the Fed Hurts Retirees
http://finance.yahoo.com/news/how-the-fed-hurts-retirees.html
True article. Fed keeps interest rates down and saving accounts and other retiree investments make little to nothing, hurting retirees.

The Fed Is Wall Street’s ‘Drug Dealer’: Lance Roberts
http://finance.yahoo.com/blogs/daily-ticker/markets-addicted-qe-yes-fed-wall-street-drug-142857829.html
Why should Wall Street get and advantage the rest of us don’t.

Kitco Gold Brief: Gold Traders Wait For Bernanke

Gold Declines for First Time In Four Sessions on China Slowdown Concern
http://www.bloomberg.com/news/2012-03-12/gold-declines-with-commodities-on-slowing-chinese-economy-dollar-strength.html

World Bank to China: Reform your economy or face collapse
http://finance.yahoo.com/news/world-bank-china-reform-economy-111700677.html?l=1
More cracks in China’s economy.

Debt ceiling fight: Coming sooner than expected?
http://finance.yahoo.com/news/debt-ceiling-fight-coming-sooner-112400128.html?l=1
If Republicans win big in November, maybe they will make some real cuts in December.

Republican House bill would strip Fed's jobs mandate
http://news.yahoo.com/republican-house-bill-strip-feds-jobs-mandate-012420790.html
Carter added the mandate for the Fed to help with jobs, they have had very little success. There job is to protect the integrity of the dollar and every U.S. citizens hard earned wealth.

Why the Federal Reserve can't fix housing
http://finance.yahoo.com/news/why-federal-cant-fix-housing-162000486.html?l=1
Operation twist means when the Fed does raise the interest rates, long term (home loans) will only go up a little, but short term (business loans) will go up a lot. Both are good for U.S. Economy and bad for world economy. This will correlate to the dollar strengthening and gold prices falling. 

What will happen with CD rates in 2012?
http://finance.yahoo.com/news/happen-cd-rates-2012-080124681.html
The Federal Reserve’s promise not to raise rates till 2014 will keep savings and CD’s rates down, banks will refuse to lend money, which will cause stagnation in private sector. Remember this is only a promise. They can change that decision any time they want. Dollar down, gold up.
 
Robert Shiller: A Housing Bottom? What Are They Thinking?
http://finance.yahoo.com/blogs/daily-ticker/robert-shiller-housing-bottom-thinking-134116144.html?l=1
The Federal Reserve’s promise not to raise rates till 2014 will keep savings and CD’s rates down, banks will refuse to lend money, stagnation in private sector.
 
Bernanke Gives the Green Light to Buy Gold! Says Trader
http://finance.yahoo.com/blogs/breakout/bernanke-gives-green-light-buy-gold-says-trader-132746098.html?l=1
 
China fuel prices hit trigger point for a hike
http://smallbusiness.yahoo.com/advisor/china-fuel-prices-hit-trigger-point-hike-033344729.html
China is losing more and more of its manipulated promised advantages. People do not believe China’s promises anymore.
 
Greece: Banks warn bond deal could delay merger
http://news.yahoo.com/greece-banks-warn-bond-deal-could-delay-merger-115201051.html
People do not believe Europe’s promises anymore.
 

Strong start for stocks, but what's changed?
http://smallbusiness.yahoo.com/advisor/strong-start-stocks-whats-changed-191459729.html
A lot of good facts with the wrong conclusions. Read the facts, not the conclusions and make your own decision. U.S. Private Sector (70% U.S. GDP) is surging. The rest of the world slowing.
 
More Lockouts as Companies Battle Unions
http://finance.yahoo.com/news/more-lockouts-companies-battle-unions-114401654.html?l=1
Public unions and cooperative bargaining will cease to exist in  the next 5 years. Americans cannot afford them any longer.
 
Top 100 U.S. zip codes hit hardest by foreclosures
http://finance.yahoo.com/news/top-100-u-zip-codes-102300188.html
 
Lost decade of growth for the West
http://smallbusiness.yahoo.com/advisor/lost-decade-growth-west-201405864.html
U.S. private sector (70% of U.S GDP) has had steady growth for over a year. The U.S. is separating itself from Europe. The Federal Reserve has reversed its long term policy of devaluing the dollar.
 
Boehner: Republicans may link pipeline to tax bill
http://news.yahoo.com/boehner-republicans-may-pipeline-tax-bill-174404911.html
The U.S. needs to trade with allies not enemies.

Obama seeks power to merge agencies
http://news.yahoo.com/obama-seeks-power-merge-agencies-161650498.html
Smoke screen. Reorganize 5 agencies and cut 20,000 jobs, than he can reorganize anything else he wants, after that, republicans will not give him this power.
 
Rate on 30-year mortgage drops to record 3.89 pct.
http://finance.yahoo.com/news/rate-30-mortgage-drops-record-150304575.html
Operation twist by Federal reserve is to sell all of its short term bond and treasuries and buy long term, locking in longer term rates at lower levels. Opening short term rates to go up.
 
A.M. Kitco Metals Roundup: Comex Gold Weaker On Corrective Pullback From Recent Gains
http://www.kitco.com/reports/KitcoNews20120113JW_AM.html
Dollar going up, gold going down.

Five Myths About Emerging Markets
http://finance.yahoo.com/news/five-myths-about-emerging-markets.html?l=1
Half truth, raises some concerns, it should go further and state the huge risk in emerging (commodity based economies) based on a strengthening dollar.

Secrets of the Bailout, Now Told
http://finance.yahoo.com/news/secrets-bailout-now-told-122008831.html?l=1
Recession caused by the financial institutions, Federal Reserve bailing them all out at the Private Sectors (70% U.S. GDP) expense.

Europe’s Big Week: Early Returns Good, Big Challenges Remain
http://finance.yahoo.com/blogs/daily-ticker/europe-big-week-early-returns-good-big-challenges-161059361.html
Europe’s promises always sound good, they just never deliver.

A.M. Kitco Metals Roundup: Comex Gold Sees Corrective Bounce As U.S. Dollar Index Backs Off, Crude Oil Gains
http://www.kitco.com/reports/KitcoNews20111118JW_AM.html
Third paragraph, 5 weeks of strengthening dollar. Started when Federal Reserve reversed its seven year policy of weakening the dollar with operation twist.

Automatic spending cuts a new threat to US economy
http://finance.yahoo.com/news/automatic-spending-cuts-threat-us-080312061.html?l=1
Federal Government is grid lock until Nov 3 2012. Hurt some industries but will strengthen the U.S. dollar.

Analysis: IMF can no longer avoid bigger role in eurozone
http://news.yahoo.com/analysis-imf-no-longer-avoid-bigger-role-eurozone-143527839.html
Spin. When they say IMF, they mean U.S. (25% of the funding for IMF). They are begging for the U.S. to bail them out.