Obama vs. Ron Paul: The Big Issues
My kind of infographic, via Reddit.
Projected Growth Of Gov’t Net Outlays, Out To 2016
Estimated gov’t net outlays, out to 2016. Via Google’s public data explorer.
QE3, You Say?!
Another round of Fed gasoline to errr, prime the pump? Nobody could have seen this coming.
From Tyler at ZH, quoting FOMC:
The only section that matters: “Some participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate and if inflation returned to relatively low levels after the effects of recent transitory shocks dissipated, it would be appropriate to provide additional monetary policy accommodation…”
Precious metals react. Kitco News via Forbes:
Gold futures, already fortified by Europe’s continuing debt woes, got an extra shot in the arm Tuesday afternoon when minutes of the most recent meeting of Federal Reserve policy-makers showed at least some members are willing to consider further stimulus.
Silver also got a bump from today’s somehow-surprising news that QE3, or some other form of money printing, is still a very real possibility (inevitable, some say). Remember that the Fed’s Jackson Hole meeting is coming up next month, and Bill Gross says it is likely QE3 will be officially endorsed then.
Live 1d silver chart via Kitco.com:
Guest Post: Silver Most Likely to Go “Super Nova”
Gold Daily and Silver Weekly Charts – La Douleur du Monde – Most Likely to Go Super Nova
By Jesse of Jesse’s Cafe Americain
“It appears that there is an undeliverable force heading towards an unmanageable object.”
At some point the shysters will lose control of the monetary papier-mâché which they have created. And the subsequent reaction could be epic, with the almost inevitable force of nature, like a tsunami rolling in.
Only a few people understand this. So it could be quite the surprise to many.
In the meantime the bankers and politicians are scrambling for the goodies pouring out of the financial piñata which they cracked open in the financial crisis.
The banks have plenty of gold to lease into the bullion banks, and then on into the markets and as collateral for leveraged paper obligations. But they are running out of silver, which causes me to believe that the silver cartel will break first, and will lead the way higher, as it has been doing. A handful of Too Big To Fail Banks seem to be short more silver than can possibly be delivered without incurring terrific losses, even by today’s distorted standards. From the looks of it, it appears that there is an undeliverable force heading towards an unmanageable object. Further complicating matters is the possibility of a magnitude 9.6 sovereign debt earthquake in the markets.
Unless there is some forced settlement, some draconian government intervention, silver appears to be a leading candidate for the manipulated market most likely to go super nova.
If the equity market does not fall apart over Greece et al., I would imagine that the trading desks will try to stand on the metals until a little closer to quarter end, then its elevator going up. But watch out for a Greek related problem. I am not sure how the markets might react to this if it really is another Lehman like event. So as you might expect I am running a paired trade, and net short into the close.
The dollar chart is a big problematic. I can make a scenario for a break either higher or lower from the chart. I think we will know the move when it comes, but predicting it in advance is a dicey thing, except for the broken clocks.
If the sovereign default situation goes badly there *could* be a liquidation selloff that would impact silver, and to some extent gold. This is why I am holding paired trades that are short stocks and long bullion. I further adjusted the risk downward today, and lengthened the shorts.
Re-published with author permission.
