Bloomberg appears to interpret this as good thing, however, anybody who has studied History and also the warnings of those who really understand Economics, who are against Central Bank ‘stimulus’, fiat money and Government meddling in the Economy would only view this as an ominous thing.
The Stock-market bubble and consequent crash of 1929, which led to the Great Depression, was caused by the inflationary monetary policy during the mid 1920’s.
From Alan Greenspan’s 1966 essay “Gold and Economic Freedom” (The link is in my signature at the bottom)
"The excess credit which the Fed pumped into the economy spilled over into the stock market-triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed."
Is there any thinking adult alive today who believes that this time will be different? Is there anyone who actually thinks that the current Federal Reserve, that positively did NOT see any of the warning signs of the last Global Financial Crisis, will succeed in sopping up excess reserves this time around without any consequences?
(Reuters) - Federal Reserve officials are increasingly concerned about the potential risks of the U.S. central bank's asset purchases on financial markets, even if they look set to continue an open-ended stimulus program for now.
You really couldn’t make this sh!t up. After years of bigger and bolder ‘Q.E’s’ that allegedly were “saving” the U.S Economy from the dreaded deflation bogeyman, the FED is now worried about unintended consequences!
King MORON Paul Krugman was saying the stimulus wasn’t big enough...
Japanese pension funds, the world’s second-largest pool of retirement assets after the U.S., will more than double their gold holdings in the next two years as the new government pushes for a higher inflation target, according to an adviser to the funds.
"Demand for gold must be moderated... We may be left with no choice but to make it more expensive to import gold. The matter is under government consideration."
-Finance minister Palaniappan Chidambaram, January 2013
Naturally this doesn’t include the distinct possibility of Governments:
Demonizing gold bugs and blaming them for the continuing economic problems
Making it illegal for individuals or institutions to hold, buy or sell gold.
Even though doing any or all of these things would be an admission by Governments that their paper money system is a complete and utter abject failure, that still won’t stop them from ignoring private property rights. As someone else once said, “It is dangerous to be right when the Government is wrong”.
My opinion is that if more of the general population owns gold then the less likely Governments will resort to such desperate measures. However it will be easy for Governments to convince the angry mob that their problems are caused by "rich and greedy" gold hoarders. The angry mob will scream “Kill the beasts, cut their throats, spill their blood, and take their gold”
So where have all the DUMBASS Socialist's gone? Surely they don't want to see any of these companies fail? That's nasty Capitalism isn't it? C'mon you hypocrites, demand that socialism bail out capitalism...we need Blockbuster and HMV and Jessops, otherwise it will be a disaster! Consumers getting lower prices...OMG that's deflation!! We need a Central Retailer to bail out these companies....
As if the goldbugs didn't know about the impending Debt Ceiling fiasco near the end of 2012 during the Fiscal Cliff pantomime...
Who Pays attention to these analysts? The only people I can think of who do, are the clueless gold bears in this forum, and they have been dead wrong so far!
Gold’s bull market is over, Allan Hochreiter Chief Executive Officer Rene Hochreiter, the top forecaster in the London Bullion Market Association’s 2012 poll, said this month. The metal’s appeal is set to diminish as so-called fear trades fade, according to Credit Suisse’s Tom Kendall, head of precious-metals research and the most accurate precious-metals forecaster in the past eight quarters tracked by Bloomberg.
The point about the CPI and PPI brings me back again to whether or not you believe Governments are creating inflation (inflating the money supply) and which planet I live on. I contend that I live on planet earth and that Governments are massively inflating. The fact that some producers are absorbing the inflation in reduced margins means that the inflation hasn’t fully filtered through to consumers yet and therefore won’t show up in the CPI. Producers may be absorbing inflation in other ways like shrinking packaging or a reduction in quality. These things don’t show up in CPI but is still evidence of inflation. I assert that inflation will eventually become too high for producers to absorb. However, it doesn’t escape my attention that other countries are experiencing higher inflation than reported in the U.K and the U.S...two of the biggest debtor countries on the planet...surprise surprise...
Anyway, I’m not debating this any further. This is now a case of wait and see.
It comes as forecourts pass on increased wholesale costs to motorists.
"Independent retailers have been soaking up this increase at the expense of already tight margins because they know how hard the motorist is squeezed," said PRA chairman Brian Madderson.
But he warned: "The floodgates will have to open soon."
So, how is everyone enjoying the inflation that Central Planners around the world aren’t creating...apparently? I wrote about this back on Mar 30, 2012, 8:27am but I just couldn't get the DUMBASS modern economist to understand...what planet is he from?
Spread-betters are bitterly complaining because IG Index has increased their minimums on certain instruments...you ain’t seen nothing yet!
There seems to be a concerted effort by Politicians and the mainstream media to talk up the “recovery” and indirectly talk down the price of gold. The aim, no doubt, is to convince the ignorant public that everything is O.K. It appears to be having an effect, but new_trader knows that this effect is only temporary and will take the opportunity to accumulate more gold as the debasement of fiat money continues.
"The nine most terrifying words in the English language are: 'I'm from the government and I'm here to help."
This is what you get with BIG GOVERMENT, more taxes and more interference and control over our freedom to choose how we live. The Government thinks it knows better than all of us and wants to play the role of parent. It won’t be long before the Government uses taxes to influence behaviour in all aspect of our lives. We will be told what to watch, what to read, what to eat, what time to go to bed, what time to wake up...etc...etc...The Socialists must love all these taxes for our own good.
My opinion hasn’t changed since this post back in January. I still remain LONG on Stocks and Precious metals. I added more Physical Gold and Silver to my portfolio in the last few weeks. The ES is currently at 1448.50 and according to my figuring there should be a breakout to the upside in the next few weeks and I think it will hit 1500.00 by the end of 2012. There has been a lot of negative NEWS recently both for Stocks and Gold but IMO it was an effort to shakeout the weak hands. The truth behind the action is a different story and IMO it is indicating an advance. Don’t forget, the US Federal Reserve has created $US40 Billion out of thin air in the last month with another $US40 Billion just around the corner! The debasement of fiat money continues....
This is just my opinion, as always, do your own research!
I remain LONG on stocks and expect the ES (S&P500) to break well above 1600.00 before I would even begin to start thinking that this bull trend is near exhausted. The Central Planners are determined to debase their currencies to oblivion, so the market is being driven almost entirely by inflation and there is plenty of it and more to come I suspect.
There is nothing I am seeing that would induce me into liquidating my stocks¹. To me it looks like the market is ready for a breakout. There may be some minor reactions here and there while Tweedledum and Tweedledee try to workout the debt ceiling thing in the US, but I am staying long until the market tells me to get out.