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Here is a good silver TA:
http://www.kitco.com/ind/maund/jan312011_silver.html
I'm off to Texas for a Wounded Warrior charity skeet shoot. You guys have fun!!
Ditto everything you said IxCimi. Hard assets and goods in your hands will be the things to own in this decade. Whether it's silver or 1oz. bottles of liquor, everyday goods will become harder to come by in my opinion and for anyone who is just getting started I suggest silver. I bought more today and will buy all I can get if it gets even lower. At the very least our country is due for a depression just based on historic time lines alone, however, this time around I believe it will be an inflationary depression and stocks and paper assets will be trash!! We live in the best country this planet has ever seen, but we are going into a time that will change that for next few decades no matter what our government does in the short term...
If anyone is looking to pick up some cheap "junk" silver then check out eBay. I have been buying there for the last 12 hours at only pennies above spot!!
The Most Predictable Financial Calamity in History
In November 2010, the Federal Reserve announced a second round of economic stimulus commonly referred to as Quantitative Easing (QE2). The reason, according to the Fed, was “progress toward its objectives has been disappointingly slow.” So, to try and turn the economy around, the Fed said, “. . . the Committee intends to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter (June) of 2011, a pace of about $75 billion per month.” (Click here to read the complete announcement from the Fed.) QE means the Fed basically creates money out of thin air to buy debt. The current money printing orgy is financing more than half of U.S. government right now. The first round of QE bought toxic mortgage debt and bailed out the bankers.
What was not said in the press release was much more important and may go down as one of the biggest turning points in the history of America. Bringing on QE2 meant QE1 ($1.75 trillion) failed to provide a sustained recovery. It also exposed the $12.3 trillion total spent or loaned by the Fed since the meltdown of 2008 failed to give the economy a lasting boost. The Fed did save some businesses and all the big Wall Street Banks from bankruptcy, but we now know nothing has really been fixed.
This brings me to one really important question. I put this question to a group of well-known market experts, economists, investment bankers and big thinkers. The five guys you are about to hear from have at least one major thing in common. They all predicted tough times for America when most didn’t see it coming. So, I asked them all last week to peer into the not-so-distant future for their take on “What happens when QE2 ends?”
World renowned gold expert Jim Sinclair said, “States and Municipalities can and will go broke. The economic impact will act to foil QE. That will result in QE to Infinity regardless of MOPE. (Management of Perception Economics) Therefore, Washington and the Fed will backdoor rescues by buying State & Municipal debt, a form of QE.”
Next is prolific writer and author James Howard Kunstler. He specializes in novels about fictional depictions of the post-oil American future. Here’s what Kunstler says about the end of QE2, “My guess is the Fed will find some other way to buy distressed securities or “investment-like” things. The models for that are the Maiden Lane portfolios (there’s more than one) which are stuffed with crap like bankrupt hotels. Yes, the Fed owns bankrupt hotels! If they don’t buy up what are essentially loans gone bad, the system sucks itself into a black hole of compressive deflation. That outcome is likely anyway, because the Fed won’t be able to keep up with loans gone bad.”
Rick Ackerman, professional trader and founder of the website and newsletter called “Ricks Picks,” says, “I don’t think there’s a snowball’s chance in hell that promiscuous easing will end, regardless of what the fraudulent successor to QE2 is called. The commentary running right now at Rick’s Picks says that easing in the form of a U.S. bailout of cities and states could become politically necessary as early as this year, although a decision to do so would trigger the worst run on the dollar in history. Look for the bailout to happen anyway, but in a way that tries to obscure the fact that it is being done with funny money. The subterfuge won’t work for long, since public workers will figure out quickly that unless their retirement benefits are indexed to inflation, they’re going to get paid in confetti.”
James Rickards is a heavyweight in the world of finance. He is an expert in Threat Finance & Market Intelligence. “What happens when QE2 ends?” Rickards says, “The Fed never said that QE2 would end; that’s a popular misconception but they never said it. What they said was that they would buy $600 billion of intermediate term Treasury securities by June 2011. They never said that was all they would buy. They never said they would stop. The comments were carefully worded so that $600 billion by June was a targeted minimum but they never said anything about a maximum; technically there is no maximum. The first QE program ended in 2010 and the economy immediately began to fall into a double dip. QE2 was hastily put together to truncate the double dip. If they end QE2 the double dip scenario is back on the table. Therefore they will not end it. They will keep monetizing debt, whatever it takes, as long as it takes until there is a self-sustaining recovery. However, none of the predicates of a self-sustaining recovery are in place, therefore they will just keep printing money as far as the eye can see until the process becomes dynamically unstable and the dollar begins to collapse. So, bottom line, it is a mistake to talk about the “end” of QE2 because there is no end in sight.
Finally, economist John Williams of Shadowstats.com predicts a financial meltdown even if QE2 is extended. Williams told me, “I think you will see much greater economic and systemic-solvency troubles ahead than commonly are expected. Accordingly, I would expect a QE3, or an expansion of QE2 before it is scheduled to have been run through.”
I can’t imagine how the U.S. could stop printing money in June and then turn around and ask the world to start buying our debt again at a rate of $75 billion a month. Of course, we would want to pay discount rates in order to keep mortgages affordable and real estate prices from crashing. There would be no legitimate buyers unless we were paying much higher interest rates. Higher rates are the last thing the Fed wants to see because it would kill what little is left of this so-called “recovery.”
In summary, all the experts I polled think QE Will Not End. That will surely mean an imploding U.S. dollar and exploding inflation. This is scheduled to happen by the end of June, making this the most predictable financial calamity in history.
Once, the parasite kills the host, then the Fed's game will be over. The higher the dow goes the harder it will fall when the crash comes!!
EOM
It is artificial but it will continue until the gig is completely up!! All manipulation comes to an end but when will all this corruption from the Fed finally end? Until then, they will not let this market fall...
I almost went short today and I'm glad I didn't after reading that!!
The market will never go down if they keep doing this:
http://www.zerohedge.com/article/here-comes-another-25-billion-excess-weekly-liquidity-ramp-stocks
As a matter of fact I just declared my EQBM worthless in Dec.!! I am officially screwed by Larry. I still have my SOMA shares. That will be a write off a few years from now. Karma is a bitch Larry!!!
I would say it would be 150 points but 2 weeks is not a long time, so I will play it safe!!!
I am going to go stick my neck out and make a very bold short term prediction! I know we should not do such a thing because it kills future credibility, however, I think the market as a whole is going to sell off BIG TIME within the neek 2 weeks!! Every indicator is telling me so and the last time things looked this way we saw the "flash crash" happen!! 100 point S&P haircut before Valentines day!!
I am going to go stick my neck out and make a very bold short term prediction! I know we should not do such a thing because it kills future credibility, however, I think the market as a whole is going to sell off BIG TIME within the neek 2 weeks!! Every indicator is telling me so and the last time things looked this way we saw the "flash crash" happen!! 100 point S&P haircut before Valentines day!!
I believe so!! LOL
Sounds like a better place to live than Illinois!! "Iceland, where the people rule." Sounds better than "the land of Lincoln." Also, if I remember right they are writing a new Constitution for themselves as well.
Cattle Network Warns Farmers: Big Time Inflation Is Coming and You Better Have an Explanation
Robert Wenzel
The insiders know, they see it coming. A spike in food prices is just around the corner. Here's what Drovers Cattle Network is telling farmers:
Americans have spent less than 10 percent of their disposable income on food for many years now. That's about to change. Food prices are on the rise and there will be new records set for some, actually many goods, this year. Meat, dairy and poultry prices are among the products on pace to set records.
While the general inflation rate was nearly zero in 2010, food and fuel presents another story. Predictions for 2011 food inflation range from 3 percent to 6 percent, with some estimates in recent days pushing into the double digits.
This will come at a time when gasoline and energy prices also are on the rise - oil is projected to reach beyond $100 per barrel....Consumers will see higher prices in the supermarket and hear about record commodity prices and will perceive you as riding waves of money.
Part of this is the current supply and demand dynamics for food products, but it is also the Ben Bernanke printing press. It's going to be a perfect storm of events pushing food prices much higher. DCN is talking about 3 percent to 6 per cent inflation, but I think it will be over 10 percent. It's going to be pretty ugly out there. And some will blame the farmers. DCN is telling farmers:
News stories are already outlining this year's higher food prices. In recent days, I've seen coverage on ABC, NBC, cable news and a National Public Radio business show. Still, nothing drives the point home like actually feeling it in your wallet, and that is yet to come in a significant way. I believe consumers are in for some sticker shock, and they'll wonder what the heck has happened.
They will point to "big, greedy, modern farmers." Never mind that globally, there are 1 billion more people to feed than in the 1990s, as well as more who've upgraded their previous diets.
My point is with rising food costs on the horizon, consumers will again look at farmers with jaundiced view. So, polish up your talking points about the reality of farming, finances and food production today and be prepared to explain the truth to consumers in a calm, thoughtful way.
If you have a big freezer, fill it with meat right now.
I have a much sexier voice than that!! LOL... I just like his technical analysis on silver.
James Turk has alerted King World News that silver is in backwardation. Turk spoke with KWN saying, “Silver is in backwardation which is an extremely important development. Most are aware that when backwardation occurs, the spot price is higher than the futures price. Backwardation happens regularly in most commodities, but it is rare in the precious metals.”
“Silver is in backwardation not just in the short-term, this time it is extending twelve months forward!
The last time this happened Eric was in January of 2009. Over the next few weeks silver rose from about $10.50 to $14.50, a roughly a 40% move higher. The key to understanding backwardation is that the price must rise to entice holders of physical metal to sell and accept a national currency in return. I think we can expect a similar event to repeat over the next few weeks.
A similar type of move would clearly put silver well above its previous high. What this backwardation shows is that there is a disconnect between the physical and the paper markets in silver. As I said previously, the silver shorts simply cannot hold the paper price down here any longer without seriously discrediting the paper silver market as a price discovery mechanism.
Gold is not in backwardation, nevertheless the demand for physical gold is extremely intense. With the sentiment indicators at very low levels, it suggests we are about to see a stunning short covering rally in gold.”
Weakness in the metals can end as quickly as it began. When the metals turn, this next move should be breathtaking.
James Turk has alerted King World News that silver is in backwardation. Turk spoke with KWN saying, “Silver is in backwardation which is an extremely important development. Most are aware that when backwardation occurs, the spot price is higher than the futures price. Backwardation happens regularly in most commodities, but it is rare in the precious metals.”
“Silver is in backwardation not just in the short-term, this time it is extending twelve months forward!
The last time this happened Eric was in January of 2009. Over the next few weeks silver rose from about $10.50 to $14.50, a roughly a 40% move higher. The key to understanding backwardation is that the price must rise to entice holders of physical metal to sell and accept a national currency in return. I think we can expect a similar event to repeat over the next few weeks.
A similar type of move would clearly put silver well above its previous high. What this backwardation shows is that there is a disconnect between the physical and the paper markets in silver. As I said previously, the silver shorts simply cannot hold the paper price down here any longer without seriously discrediting the paper silver market as a price discovery mechanism.
Gold is not in backwardation, nevertheless the demand for physical gold is extremely intense. With the sentiment indicators at very low levels, it suggests we are about to see a stunning short covering rally in gold.”
Weakness in the metals can end as quickly as it began. When the metals turn, this next move should be breathtaking.
I love hearing your "old timer" stories!! LOL
...and people wonder why everything is falling apart!!
As soon as the Chinese President's feet hit he ground, the dollar began to move lower!!!
So how would America be different if we could go back to 1913 and keep the Federal Reserve Act from ever being passed? Well, the following are 10 things that would be different if the Federal Reserve had never been created....
#1 If the U.S. government had been issuing debt-free money all this time, the U.S. government could conceivably have a national debt of zero dollars. Instead, we currently have a national debt that is over 14 trillion dollars.
#2 If the U.S. government had been issuing debt-free money all this time, the U.S. government would likely not be spending one penny on interest payments. Instead, the U.S. government spent over 413 billion dollars on interest on the national debt during fiscal 2010. This is money that belonged to U.S. taxpayers that was transferred to the U.S. government which in turn was transferred to wealthy international bankers and other foreign governments. It is being projected that the U.S. government will be paying 900 billion dollars just in interest on the national debt by the year 2019.
#3 If the U.S. government could issue debt-free money, there would not even have to be a debate about raising "the debt ceiling", because such a debate would not even be necessary.
#4 If the U.S. government could issue debt-free money, it is conceivable that we would not even need the IRS. You doubt this? Well, the truth is that the United States did just fine for well over a hundred years without a national income tax. But about the same time the Federal Reserve was created a national income tax was instituted as well. The whole idea was that the wealth of the American people would be transferred to the U.S. government by force and then transferred into the hands of the ultra-wealthy in the form of interest payments.
#5 If the Federal Reserve did not exist, we would not be on the verge of national insolvency. The Congressional Budget Office is projecting that U.S. government debt held by the public will reach a staggering 716 percent of GDP by the year 2080. Remember when I used the term "debt spiral" earlier? Well, this is what a debt spiral looks like....
#6 If the Federal Reserve did not exist, the big Wall Street banks would not have such an overwhelming advantage. Most Americans simply have no idea that over the last several years the Federal Reserve has been giving gigantic piles of nearly interest-free money to the big Wall Street banks which they turned right around and started lending to the federal government at a much higher rate of return. I don't know about you, but if I was allowed to do that I could make a whole bunch of money very quickly. In fact, it has come out that the Federal Reserve made over $9 trillion in overnight loans to major banks, large financial institutions and other "friends" during the financial crisis of 2008 and 2009.
#7 If the Federal Reserve did not exist, it is theoretically conceivable that we would have an economy with little to no inflation. Of course that would greatly depend on the discipline of our government officials (which is not very great at this point), but the sad truth is that our current system is always going to produce inflation. In fact, the Federal Reserve system was originally designed to be inflationary. Just check out the inflation chart posted below. The U.S. never had ongoing problems with inflation before the Fed was created, but now it is just wildly out of control....
#8 If the Federal Reserve had never been created, the U.S. dollar would not be a dying currency. Since the Federal Reserve was created, the U.S. dollar has lost well over 95 percent of its purchasing power. By constantly inflating the currency, it transfers financial power away from those already holding the wealth (the American people) to those that are able to create more currency and more government debt. Back in 1913, the total U.S. national debt was just under 3 billion dollars. Today, the U.S. government is spending approximately 6.85 million dollars per minute, and the U.S. national debt is increasing by over 4 billion dollars per day.
#9 If the Federal Reserve did not exist, we would not have an unelected, unaccountable "fourth branch of government" running around that has gotten completely and totally out of control. Even some members of Congress are now openly complaining about how much power the Fed has. For example, Ron Paul told MSNBC last year that he believes that the Federal Reserve is now more powerful than Congress.....
"The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don't even have any transparency of this. They're more powerful than the Congress."
#10 If the Federal Reserve had never been created, the American people would be much more free. We would not be enslaved to this horrific national debt. Our politicians would not have to run around the globe begging people to lend us money. Representatives that we directly elect would be the ones setting national monetary policy. Our politicians would be much less under the influence of the international banking elite. We would not be at the mercy of the financial bubbles that the Fed has constantly been creating.
There is a reason why so many of the most prominent politicians from the early years of the United States were so passionately against a central bank. The following is a February 1834 quote by President Andrew Jackson about the evils of central banking....
I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. You tell me that if I take the deposits from the Bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out and, by the Eternal, (bringing his fist down on the table) I will rout you out.
But we didn't listen to men like Andrew Jackson.
We allowed the Federal Reserve to be created in 1913 and we have allowed it to develop into an absolute monstrosity over the past century.
Now we are drowning in debt and we are on the verge of national bankruptcy.
Will the American people wake up before it is too late?
Very well said P.C.!!! If you pay people not to work, then they won't work. Not hard to figure out for someone with a little sense...
Your're right, I am just getting frustrated because it's getting to the point where there is no place to hide!! The none producers have begun to out vote the producers and we are all targeted because we are the only worker bees keeping the hive afloat...
Here is th shooter's Youtube page. Check it out before they remove it. He seems like a nutbag!!!
http://www.youtube.com/user/Classitup10#p/a/u/1/nHoaZaLbqB4
EXACTLY!! We will see what they do after today's shooting as well..
All in the name of security!!