AI
Tuesday, August 16, 2011 12:00:13 AM
Was the Fed move really QE3?
Aug 14th, 2011
In all the discussion and debate about the Fed’s targeting
interest rates into 2013 at these very low levels, it was
overlooked that Bernanke & Company might have given Wall
Street what it wanted — QE3.
By targeting rates, or better put by pegging rates, the Fed
was sending a message:
If the world’s markets intend to drive U.S. interest rates
higher, the Fed stands ready to drive them back down.
It then buttressed that position by stating it was ready
to use whatever “tools” it has at its disposal to stave
off a deeper recession.
The two components need to be viewed as part of the same policy;
a double barreled approach the main feature of which, as time
goes by, will likely be renewed, or continued, purchases of U.S.
Treasuries across the maturity range.
How else would the Fed presume to hold down interest rates
over the next two years?
And, if so, how is this approach different from the previous
versions of quantitative easing?
Many hoped that the markets would get an announcement of QE3
at the most recent Fed meeting.
I think they got it and it explains why gold prices jumped over
the $1800 level and the stock market bounced back after the
fiat$ looking like it was ready to go over the cliff.
CALVF GOLD chart TA Alert bull breakout strong
CALVF chart TA alert bull breakout overdue
September is one of the best seasonal month for gold -
a short snippet below:
The Nixon Shock Heard ‘Round the World -
Aug 15th, 2011 12:36 by News
By severing the dollar’s convertibility to gold in 1971,
the president ushered in a decade of inflation and
economic stagnation.
By LEWIS E. LEHRMAN
August 15 (The Wall Street Journal) — On the afternoon of
Friday, Aug. 13, 1971, high-ranking White House and Treasury
Department officials gathered secretly in President Richard
Nixon’s lodge at Camp David.
Treasury Secretary John Connally, on the job for just seven
months, was seated to Nixon’s right. During that momentous
afternoon, however, newcomer Connally was front and center,
put there by a solicitous president.
Nixon, gossiped his staff, was smitten by the big,
self-confident Texan whom the president had charged
with bringing order into his administration’s
bumbling economic policies.
…The most dramatic Connally initiative was to
“close the gold window,” whereby foreign nations
had been able to exchange U.S. dollars for U.S. gold—an
exchange guaranteed under the monetary system set up
under American leadership at Bretton Woods, N.H., in July 1944.
Recently the markets had panicked.
Great Britain had tried to redeem $3 billion for American gold.
So large were the official dollar debts in the hands of foreign
authorities that America’s gold stock would be insufficient
to meet the swelling official demand for American gold at
the convertibility price of $35 per ounce.
GOLD August a good month for the harvest and wedding festivals
begin in September in India ---
the world's largest consumer of gold.
Then come year-end holidays in the United States and
finally Chinese New Year.
By late December, Gold demand can be up to the moon
as a Safe Heaven in future foresight for the People
with fiat$currencies in the Gold basket -
http://www.makestockmarketprofits.com/goldchart.html
CALVF will be a low cost Au production leader
CAL's BLANKET GOLD MINE Production Au 40,000 oz/year -
http://www.caledoniamining.com/pdfs/CALPres05262011.pdf
http://www.caledoniamining.com/pdfs/CALPres05192011.pdf
http://www.caledoniamining.com/blanket2test2.php
http://www.caledoniamining.com/blanket3test2.php
CAL's A target production rate of 100,000 oz per annum -
www.caledoniamining.com/blanket4test2.php
CALEDONIA MINING CORP. A Profitable Gold Miner!
(CAL:TSE) (CALVF:US) (AIM,LONDON:CMCL)
http://www.caledoniamining.com/blanket.php
CAL Production Cost Au US$585.0 per ounce -
CAL has 800+ mine workers and located 268 old Gold Mines
workings on the 100% owned large Blanket Gold Mines Property -
Gold Mines Producers often 1st of GOLD Au Bulls to Fly HIGH -
CAL drilling on NAMA, commenced in March 2011 to identify
typical copper-belt type mineralization -
http://www.caledoniamining.com/nam1.php
dd....
http://tmx.quotemedia.com/quote.php?qm_symbol=CALVF:US
http://tmx.quotemedia.com/article.php?newsid=8996650&qm_symbol=CAL:CA
Aug 14th, 2011
In all the discussion and debate about the Fed’s targeting
interest rates into 2013 at these very low levels, it was
overlooked that Bernanke & Company might have given Wall
Street what it wanted — QE3.
By targeting rates, or better put by pegging rates, the Fed
was sending a message:
If the world’s markets intend to drive U.S. interest rates
higher, the Fed stands ready to drive them back down.
It then buttressed that position by stating it was ready
to use whatever “tools” it has at its disposal to stave
off a deeper recession.
The two components need to be viewed as part of the same policy;
a double barreled approach the main feature of which, as time
goes by, will likely be renewed, or continued, purchases of U.S.
Treasuries across the maturity range.
How else would the Fed presume to hold down interest rates
over the next two years?
And, if so, how is this approach different from the previous
versions of quantitative easing?
Many hoped that the markets would get an announcement of QE3
at the most recent Fed meeting.
I think they got it and it explains why gold prices jumped over
the $1800 level and the stock market bounced back after the
fiat$ looking like it was ready to go over the cliff.
CALVF GOLD chart TA Alert bull breakout strong
CALVF chart TA alert bull breakout overdue
September is one of the best seasonal month for gold -
a short snippet below:
The Nixon Shock Heard ‘Round the World -
Aug 15th, 2011 12:36 by News
By severing the dollar’s convertibility to gold in 1971,
the president ushered in a decade of inflation and
economic stagnation.
By LEWIS E. LEHRMAN
August 15 (The Wall Street Journal) — On the afternoon of
Friday, Aug. 13, 1971, high-ranking White House and Treasury
Department officials gathered secretly in President Richard
Nixon’s lodge at Camp David.
Treasury Secretary John Connally, on the job for just seven
months, was seated to Nixon’s right. During that momentous
afternoon, however, newcomer Connally was front and center,
put there by a solicitous president.
Nixon, gossiped his staff, was smitten by the big,
self-confident Texan whom the president had charged
with bringing order into his administration’s
bumbling economic policies.
…The most dramatic Connally initiative was to
“close the gold window,” whereby foreign nations
had been able to exchange U.S. dollars for U.S. gold—an
exchange guaranteed under the monetary system set up
under American leadership at Bretton Woods, N.H., in July 1944.
Recently the markets had panicked.
Great Britain had tried to redeem $3 billion for American gold.
So large were the official dollar debts in the hands of foreign
authorities that America’s gold stock would be insufficient
to meet the swelling official demand for American gold at
the convertibility price of $35 per ounce.
GOLD August a good month for the harvest and wedding festivals
begin in September in India ---
the world's largest consumer of gold.
Then come year-end holidays in the United States and
finally Chinese New Year.
By late December, Gold demand can be up to the moon
as a Safe Heaven in future foresight for the People
with fiat$currencies in the Gold basket -
http://www.makestockmarketprofits.com/goldchart.html
CALVF will be a low cost Au production leader
CAL's BLANKET GOLD MINE Production Au 40,000 oz/year -
http://www.caledoniamining.com/pdfs/CALPres05262011.pdf
http://www.caledoniamining.com/pdfs/CALPres05192011.pdf
http://www.caledoniamining.com/blanket2test2.php
http://www.caledoniamining.com/blanket3test2.php
CAL's A target production rate of 100,000 oz per annum -
www.caledoniamining.com/blanket4test2.php
CALEDONIA MINING CORP. A Profitable Gold Miner!
(CAL:TSE) (CALVF:US) (AIM,LONDON:CMCL)
http://www.caledoniamining.com/blanket.php
CAL Production Cost Au US$585.0 per ounce -
CAL has 800+ mine workers and located 268 old Gold Mines
workings on the 100% owned large Blanket Gold Mines Property -
Gold Mines Producers often 1st of GOLD Au Bulls to Fly HIGH -
CAL drilling on NAMA, commenced in March 2011 to identify
typical copper-belt type mineralization -
http://www.caledoniamining.com/nam1.php
dd....
http://tmx.quotemedia.com/quote.php?qm_symbol=CALVF:US
http://tmx.quotemedia.com/article.php?newsid=8996650&qm_symbol=CAL:CA
My opinions are my own and and DD I post should be confirmed as unbiased
