Even though it's a failed strategy, the pressure is rising on Ben Bernanke to institute another round of quantitative easing to give the appearance something is being, and can be done, to stimulate the economy.
With no hint in the minutes from the latest FOMC meeting the Federal Reserve is close to pulling the trigger on QE3, it does appear pressure is growing for something to be done, as unemployment remains high, as no job growth is really happening, as the few jobs being created doesn't even keep up with those entering the job market for the first time, let alone those in the job market for years continuing to look for jobs without success.
The growing consensus is the Fed won't wait until the job market further deteriorates to institute more easing. It can't afford to look like they waited too long and are now behind the economic curve.
But whether the idea of QE3 is attractive to you or not, it's going to come, and for investors they must prepare accordingly in the areas they're prepared to put their money into.
There is no doubt commodity and commodity-related companies will largely benefit from the next round of stimulus. The U.S. dollar will start to plummet again after the recent outrageous upward climb, based upon nothing else than it being perceived as the only safe place to park one's money during that period of time.
At this time investors will have to wait until it happens, in the meantime building up their strategy as to how the next round of easing will affect the market.
Showing posts with label Ben Bernanke. Show all posts
Showing posts with label Ben Bernanke. Show all posts
Thursday, July 12, 2012
Wednesday, March 21, 2012
Gold Could Jump on Inflation, Dollar, India Jewelry Demand
Gold prices may be poised to rebound as several elements are combining to give the yellow metal a probable boost.
Federal Reserve Chairman Ben Bernanke made a statement that rising oil prices could spark inflation, the U.S. dollar has been under pressure, and jewelers in India are ending a 5-day shutdown protesting proposed tax increases from the Indian government; all of which could push gold prices up quickly over the short term.
Another major factor is the ongoing sovereign debt crisis in Europe, which continues to weigh down the Zone. The media has neglected it recently, so it hasn't been part of the conversation, even though it's a significant factor in the movement of gold prices.
Bernanke was extremely bearish on European banks, which points to the fact there will be more quantitative easing coming, which is also very bullish for gold.
So far in 2012 gas prices in the U.S. have soared 18 percent, reaching a ten-month high of $3.864 a gallon Wednesday. Not only is inflation a trigger for gold prices to rise, but in the case of higher gas prices, it takes away from consumer spending, which weakens the economy, which also can push gold prices higher.
Gold for April delivery on New York Mercantile Exchange the Comex division of the New York Mercantile Exchange settled at $1,650.30 an ounce, up $3.30, or 0.2 percent.
Federal Reserve Chairman Ben Bernanke made a statement that rising oil prices could spark inflation, the U.S. dollar has been under pressure, and jewelers in India are ending a 5-day shutdown protesting proposed tax increases from the Indian government; all of which could push gold prices up quickly over the short term.
Another major factor is the ongoing sovereign debt crisis in Europe, which continues to weigh down the Zone. The media has neglected it recently, so it hasn't been part of the conversation, even though it's a significant factor in the movement of gold prices.
Bernanke was extremely bearish on European banks, which points to the fact there will be more quantitative easing coming, which is also very bullish for gold.
So far in 2012 gas prices in the U.S. have soared 18 percent, reaching a ten-month high of $3.864 a gallon Wednesday. Not only is inflation a trigger for gold prices to rise, but in the case of higher gas prices, it takes away from consumer spending, which weakens the economy, which also can push gold prices higher.
Gold for April delivery on New York Mercantile Exchange the Comex division of the New York Mercantile Exchange settled at $1,650.30 an ounce, up $3.30, or 0.2 percent.
Tuesday, February 21, 2012
Gold, Silver Would Be Legal Tender Under Colorado Bill
If a bill sponsored by Colorado Sen. Kent Lambert, R, passes, it'll make Colorado the second state in the nation to recognize gold and silver as currency. Utah is the first and only state at this time to recognize gold and silver as a medium of exchange.
The growing movement of states to move in this direction is precipitated by the out of control spending of the Obama administration and the ongoing creation of money out of thin air by Ben Bernanke and the Federal Reserve.
That combination always ends up weakening the value of the U.S. dollar, or any currency where that is the standard practice of leaders of a country.
Along with the devaluation of the U.S. dollar, Senator Lambert also noted the growing public debt as a reason behind recognizing gold and silver as currency in the state.
Colorado is one of a dozen states in the U.S. to consider allowing gold and silver coins to be once again used as legal tender.
The growing movement of states to move in this direction is precipitated by the out of control spending of the Obama administration and the ongoing creation of money out of thin air by Ben Bernanke and the Federal Reserve.
That combination always ends up weakening the value of the U.S. dollar, or any currency where that is the standard practice of leaders of a country.
Along with the devaluation of the U.S. dollar, Senator Lambert also noted the growing public debt as a reason behind recognizing gold and silver as currency in the state.
Colorado is one of a dozen states in the U.S. to consider allowing gold and silver coins to be once again used as legal tender.
Friday, February 3, 2012
States Looking to Gold, Silver as New Currencies
With the Ben Bernanke and the Federal Reserve out of control, and Obama spending taxpayers money at unprecedented rates, a number of states are looking to silver and gold as options for a competing currency.
Utah has already implemented such a program in March 2011, now recognizing any gold and silver coin issued by a mint in the United States as legal tender.
The law includes a provision for the coins used in Utah to be viewed the same as the U.S. dollar, which means there is no capital gains tax on the metal coins.
As for the printing of paper money, that is forbidden by the Constitution in regard to states, although they do have the power to create "gold and silver Coin a Tender in Payment of Debts."
Interestingly, local communities are legally empowered to have their own paper currencies, with the caveat that they aren't confused with the look of the U.S. dollar.
Of course creating a paper currency without anything backing in is just as bad at any government level, as the Federal Reserve's assault on the U.S. dollar has proven. The dollar has dropped 95 percent value since the creation of the Fed.
How Utah is doing it via its Utah Gold & Silver Depository, is it's developing a systme which links gold or silver holdings of people to a debit card created for that purpose. So when they use the card, money is moved back and forth between accounts in private depositories created for that purpose. That's similar to how it's done now when countries sell gold, except on a much smaller basis.
At this time, 13 states have proposals to issue alternative currencies.
Ron Paul has sponsored a bill called the "Free Competition in Currency Act," which would give states power to create their own currencies.
Utah has already implemented such a program in March 2011, now recognizing any gold and silver coin issued by a mint in the United States as legal tender.
The law includes a provision for the coins used in Utah to be viewed the same as the U.S. dollar, which means there is no capital gains tax on the metal coins.
As for the printing of paper money, that is forbidden by the Constitution in regard to states, although they do have the power to create "gold and silver Coin a Tender in Payment of Debts."
Interestingly, local communities are legally empowered to have their own paper currencies, with the caveat that they aren't confused with the look of the U.S. dollar.
Of course creating a paper currency without anything backing in is just as bad at any government level, as the Federal Reserve's assault on the U.S. dollar has proven. The dollar has dropped 95 percent value since the creation of the Fed.
How Utah is doing it via its Utah Gold & Silver Depository, is it's developing a systme which links gold or silver holdings of people to a debit card created for that purpose. So when they use the card, money is moved back and forth between accounts in private depositories created for that purpose. That's similar to how it's done now when countries sell gold, except on a much smaller basis.
At this time, 13 states have proposals to issue alternative currencies.
Ron Paul has sponsored a bill called the "Free Competition in Currency Act," which would give states power to create their own currencies.
Friday, August 26, 2011
Tech (CSCO) (INTC) (MSFT) Leading Markets Up
Tech is leading a rebound in the market today, with Cisco Systems(NASDAQ:CSCO), Intel (NASDAQ: INTC) and Microsoft (NASDAQ:MSFT) topping the field.
Much of this is in response to Federal Reserve Chairman's Ben Bernanke saying at the next Fed meeting there will be discussion of more so-called "stimulus" measures in September.
Bernanke said, "In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus. We discussed the relative merits and costs of such tools at our August meeting. We will continue to consider those and other pertinent issues, including of course economic and financial developments, at our meeting in September, which has been scheduled for two days (the 20th and the 21st) instead of one to allow a fuller discussion. The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability."
Intel was trading at $19.79, up $0.37, or 1.91, as of 12:00 PM EDT. Cisco was at $15.47, jumping $0.39, or 2.55 percent. Microsoft was at $25.25, climbing $0.68, or 2.77 percent.
Much of this is in response to Federal Reserve Chairman's Ben Bernanke saying at the next Fed meeting there will be discussion of more so-called "stimulus" measures in September.
Bernanke said, "In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus. We discussed the relative merits and costs of such tools at our August meeting. We will continue to consider those and other pertinent issues, including of course economic and financial developments, at our meeting in September, which has been scheduled for two days (the 20th and the 21st) instead of one to allow a fuller discussion. The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability."
Intel was trading at $19.79, up $0.37, or 1.91, as of 12:00 PM EDT. Cisco was at $15.47, jumping $0.39, or 2.55 percent. Microsoft was at $25.25, climbing $0.68, or 2.77 percent.
Tuesday, April 26, 2011
ProShares UltraShort Silver (ZSL) Jumps As Silver Pulls Back
Shares of ProShares UltraShort Silver (NYSE:ZSL) were soaring as investors played the expected pullback in silver prices by going short.
Other silver investment vehicles like ProShares Ultra Silver (NYSE:AGQ) and iShares Silver Trust (NYSE:SLV) were getting hammered on the day.
U.S. silver futures fell as much as 5.4 percent to $44.61 an ounce before fighting back to gain some lost ground.
The plunge in silver came partly from simply taking a breather, but also from an options expiration coming later in the day, as well as waiting to see what Federal Reserve Chairman Ben Bernanke has to say.
ProShares UltraShort Silver was trading at $15.91, gaining $1.33, or 9.12 percent, as of 12:15 PM EDT. ProShares Ultra Silver was trading at $315.61, falling $29.14, or 8.45 percent. iShares Silver Trust was at $43.74, down $2.09, or 4.56 percent.
Other silver investment vehicles like ProShares Ultra Silver (NYSE:AGQ) and iShares Silver Trust (NYSE:SLV) were getting hammered on the day.
U.S. silver futures fell as much as 5.4 percent to $44.61 an ounce before fighting back to gain some lost ground.
The plunge in silver came partly from simply taking a breather, but also from an options expiration coming later in the day, as well as waiting to see what Federal Reserve Chairman Ben Bernanke has to say.
ProShares UltraShort Silver was trading at $15.91, gaining $1.33, or 9.12 percent, as of 12:15 PM EDT. ProShares Ultra Silver was trading at $315.61, falling $29.14, or 8.45 percent. iShares Silver Trust was at $43.74, down $2.09, or 4.56 percent.
Wednesday, April 6, 2011
Gold Companies (AU) (TRE) (NXG) (EGI) Up on Record Gold Prices
Gold companies Tanzanian Royalty Exploration (AMEX:TRE), AngloGold Ashanti NYSE:AU), Northgate Minerals (AMEX:NXG) and Entree Gold Inc (NYSE:EGI) jumped on Tuesday as gold prices rose to $1,455.50 an ounce to reach a record high.
Gold for June delivery was up $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The inevitability that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a major part of the continuing rise in gold prices.
Entree Gold Inc closed Tuesday at $3.07, gaining $0.06, or 1.99 percent. Northgate Minerals closed at $2.74, rising $0.07, or 2.62 percent. Tanzanian Royalty Exploration closed at $6.43, up $0.08, or 1.26 percent. AngloGold Ashanti ended the session at $50.32, increasing $1.66, or 3.41 percent.
Gold for June delivery was up $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The inevitability that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a major part of the continuing rise in gold prices.
Entree Gold Inc closed Tuesday at $3.07, gaining $0.06, or 1.99 percent. Northgate Minerals closed at $2.74, rising $0.07, or 2.62 percent. Tanzanian Royalty Exploration closed at $6.43, up $0.08, or 1.26 percent. AngloGold Ashanti ended the session at $50.32, increasing $1.66, or 3.41 percent.
Gold Miners (GOLD) (NG) (GBG) (GFI) Up on Record Gold Prices
Gold miners Randgold Resources (NASDAQ:GOLD), NovaGold Resources (AMEX:NG), Great Basin Gold (AMEX:GBG) and Gold Fields Ltd. (NYSE:GFI) jumped on Tuesday as gold prices rose to $1,455.50 an ounce to reach a record high.
Gold for June delivery was up $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The inevitability that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a major part of the continuing rise in gold prices.
Gold Fields Ltd. closed Tuesday at $18.29, gaining $0.69, or 3.92 percent. Great Basin Gold closed at $2.73, rising $0.14, or 5.41 percent. NovaGold Resources closed at $13.79, up $0.91, or 7.07 percent. Randgold Resources ended the session at $87.84, increasing $6.27, or 7.69 percent.
Gold for June delivery was up $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The inevitability that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a major part of the continuing rise in gold prices.
Gold Fields Ltd. closed Tuesday at $18.29, gaining $0.69, or 3.92 percent. Great Basin Gold closed at $2.73, rising $0.14, or 5.41 percent. NovaGold Resources closed at $13.79, up $0.91, or 7.07 percent. Randgold Resources ended the session at $87.84, increasing $6.27, or 7.69 percent.
Gold Miners (GRS) (NSU) (CGC) (BVN) Soar on Record Gold Prices
Gold companies Gammon Gold (NYSE:GRS), Nevsun Resources (AMEX:NSU), Capital Gold Corp. (AMEX:CGC) and Compania de Minas (NYSE:BVN) soared on Tuesday as gold prices rose to $1,455.50 an ounce to reach a record high.
Gold for June delivery climbed $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The certainty that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a major part of the continuing rise in gold prices.
Compania de Minas closed Tuesday at $44.16, gaining $2.11, or 5.02 percent. Capital Gold Corp. closed at $6.30, rising $0.25, or 4.13 percent. Nevsun Resources closed at $6.29, up $0.32, or 5.36 percent. Gammon Gold ended the session at $10.12, increasing $0.28, or 2.85 percent.
Gold for June delivery climbed $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The certainty that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a major part of the continuing rise in gold prices.
Compania de Minas closed Tuesday at $44.16, gaining $2.11, or 5.02 percent. Capital Gold Corp. closed at $6.30, rising $0.25, or 4.13 percent. Nevsun Resources closed at $6.29, up $0.32, or 5.36 percent. Gammon Gold ended the session at $10.12, increasing $0.28, or 2.85 percent.
Gold Miners (RGLD) (ANV) (AGIGF) (AZK) Surge on Record Gold Prices
Gold companies Royal Gold (Nasdaq:RGLD), Allied Nevada Gold (AMEX:ANV), Alamos Gold (OTC:AGIGF.PK) and Aurizon Mines (AMEX:AZK) soared on Tuesday as gold prices rose to $1,455.50 an ounce to attain a record high.
Gold for June delivery jumped $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The thought that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a relevant factor behind the continuing rise in gold prices.
Aurizon Mines closed Tuesday at $7.14, gaining $0.41, or 6.09 percent. Alamos Gold closed at $16.36, rising $0.66, or 4.20 percent. Allied Nevada Gold closed at $40.31, up $2.64, or 7.01 percent. Royal Gold ended the session at $53.27, increasing $1.17, or 2.25 percent.
Gold for June delivery jumped $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The thought that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a relevant factor behind the continuing rise in gold prices.
Aurizon Mines closed Tuesday at $7.14, gaining $0.41, or 6.09 percent. Alamos Gold closed at $16.36, rising $0.66, or 4.20 percent. Allied Nevada Gold closed at $40.31, up $2.64, or 7.01 percent. Royal Gold ended the session at $53.27, increasing $1.17, or 2.25 percent.
Gold Miners (IVN) (IAG) (GSS) (AEM) Surge on Record Gold Prices
Gold miners Ivanhoe (NYSE:IVN), IAMGOLD (NYSE:IAG) Golden Star Resources (Amex:GSS) and Agnico-Eagle (NYSE:AEM) soared on Tuesday as gold prices rose to $1,455.50 an ounce to reach a record high.
Gold for June delivery jumped $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The idea that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a key factor behind the continuing rise in gold prices.
Agnico-Eagle closed Tuesday at $66.81, gaining $2.67, or 4.16 percent. Golden Star Resources closed at $3.08, rising $0.21, or 7.32 percent. IAMGOLD closed at $22.90, up $1.16, or 5.34 percent. Ivanhoe ended the session at $28.44, increasing $0.84, or 3.04 percent.
Gold for June delivery jumped $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange.
Continuing unrest in the Middle East, the EU sovereign debt crisis, Japan's struggle and political uncertainty in the United States is the major impetus behind the action.
The idea that Federal Reserve Chairman Ben Bernanke won't stop printing money is also a key factor behind the continuing rise in gold prices.
Agnico-Eagle closed Tuesday at $66.81, gaining $2.67, or 4.16 percent. Golden Star Resources closed at $3.08, rising $0.21, or 7.32 percent. IAMGOLD closed at $22.90, up $1.16, or 5.34 percent. Ivanhoe ended the session at $28.44, increasing $0.84, or 3.04 percent.
Thursday, March 31, 2011
Visa (V), Mastercard (MA) Jump on Debit Card Fee Delay Expectations
Shares of Visa (NYSE:V) and Mastercard (NYSE:MA) have received a boost on expectations the proposed rules which would limit the amount banks can charge for debit-card swipe fees will be delayed.
Federal Reserve Chairman Ben Bernanke recently stated in a letter to Congress that it's very improbable that in the next Federal Reserve meeting they'll be able to meet the deadline of April 21 for the final rules concerning the fees to be put in place.
Growing opposition over limiting the fees is slowing down the process and looking increasingly questionable as to whether they'll become part of the way banks will have to do business.
Visa closed Wednesday at $74.23, gaining $2.03, or 2.81 percent. Mastercard closed at $253.66, up $1.95, or 0.77 percent.
Federal Reserve Chairman Ben Bernanke recently stated in a letter to Congress that it's very improbable that in the next Federal Reserve meeting they'll be able to meet the deadline of April 21 for the final rules concerning the fees to be put in place.
Growing opposition over limiting the fees is slowing down the process and looking increasingly questionable as to whether they'll become part of the way banks will have to do business.
Visa closed Wednesday at $74.23, gaining $2.03, or 2.81 percent. Mastercard closed at $253.66, up $1.95, or 0.77 percent.
Monday, March 21, 2011
Jim Rogers Says "End the Fed"
Jim Rogers said in an interview on "Breakout," the new financial show offered by Yahoo! Finance (NASDAQ:YHOO), that the Ben Bernanke and the Federal Reserve continue to be a disaster, and if he was instated as Chairman of the Federal Reserve, he would shut it down quickly in order to start working on the problems it has created.
He says Bernanke continues to make things worse by throwing "fuel on the fire," rather than dealing with the underlying issues.
Rogers ultimately sees higher interest rates and inflation going forward, and a major pullback in equities, especially in the tech sector.
He says Bernanke continues to make things worse by throwing "fuel on the fire," rather than dealing with the underlying issues.
Rogers ultimately sees higher interest rates and inflation going forward, and a major pullback in equities, especially in the tech sector.
Monday, March 14, 2011
Tax Holiday Push from Oracle (ORCL), (CSCO), (AAPL), (DUK), (PFE) Continues
With the outrageous 35 percent tax imposed upon American companies just from transferring money from foreign accounts to U.S. accounts, Oracle (NADSAQ:ORCL), Cisco (NADSAQ:CSCO), Apple (NADSAQ:AAPL), Duke Energy (NYSE:DUK) and Pfizer (NYSE:PFE) continue their drive to have a $1 trillion tax holiday.
Oracle President Safra Catz has been a strong proponent of the idea, and was out again to push the deal through.
Alluding to the disastrous policies of Ben Bernanke and the Federal Reserve, Cats said contrary to the so-called stimulus, "my money has already been printed."
The companies are calling for a one-year "holiday" that would tax the income at just 5 percent. Better yet, this should be a permanent part of doing business, as the money wouldn't go to wasteful and out-of-control spending by Washington, but would be used to actually do some real good by investment, returning money to shareholders and job creation.
Oracle was trading at $31.35, down $0.56, or 1.74 percent, as of 1:16 PM EDT.
Oracle President Safra Catz has been a strong proponent of the idea, and was out again to push the deal through.
Alluding to the disastrous policies of Ben Bernanke and the Federal Reserve, Cats said contrary to the so-called stimulus, "my money has already been printed."
The companies are calling for a one-year "holiday" that would tax the income at just 5 percent. Better yet, this should be a permanent part of doing business, as the money wouldn't go to wasteful and out-of-control spending by Washington, but would be used to actually do some real good by investment, returning money to shareholders and job creation.
Oracle was trading at $31.35, down $0.56, or 1.74 percent, as of 1:16 PM EDT.
Tuesday, March 8, 2011
Bill Gross Irresponsibly Calls for More Stimulus
PIMCO's Bill Gross, who has been dubbed the "Bond King," isn't convinced Federal Reserve Chairman Ben Bernanke has it right when he said last week when testifying before Capitol Hill that ther is "increasing evidence that a self sustaining recovery in consumer and business spending may be taking hold."
Rather he sees the American economy as being unsustainable, and incredibly, rather than calling for the government to get its financial house in order by starting to shrink itself, he's calling for even more stimulus going forward.
Gross says in an interview, "I suspect that it's not as self-sustaining as they think. I suspect at we're not standing firmly on our own two legs and that ultimately we're going to continue to need some stimulation from the government."
"Basically the U.S. is not saving enough money to replace its own capital from the standpoint of depreciation and potential investment," added Gross, who said the greatest long-term threat to the American economy is the negative net savings rate of 1-2 percent.
Source
Rather he sees the American economy as being unsustainable, and incredibly, rather than calling for the government to get its financial house in order by starting to shrink itself, he's calling for even more stimulus going forward.
Gross says in an interview, "I suspect that it's not as self-sustaining as they think. I suspect at we're not standing firmly on our own two legs and that ultimately we're going to continue to need some stimulation from the government."
"Basically the U.S. is not saving enough money to replace its own capital from the standpoint of depreciation and potential investment," added Gross, who said the greatest long-term threat to the American economy is the negative net savings rate of 1-2 percent.
Source
Tuesday, March 1, 2011
Alcoa (AA), Verizon (VZ), General Electric (GE) Pull Dow Down
Verizon Communications (NYSE:VZ), Alcoa (NYSE:AA) and General Electric (NYSE:GE) are weighing on the Dow, as all three in earlier trading were down by over 2 percent or close to it, although they rebounded slightly since them.
Stocks in the U.S. dropped in response to the continuing upward surge in oil futures, along with Federal Reserve Chairman Ben Bernanke comments.
The Dow Jones Industrial Average wasn't the only index falling, as the Nasdaq and Standard & Poor's 500 were down as well.
Bernanke hinted this phase of quantitative easing may be the last, as he sees economic growth as probably being self-sustaining.
Some see this as a negative, but most should be glad that Bernanke is even thinking about turning off the digital printing presses, as over the long term that is more harmful than the rest.
Stocks in the U.S. dropped in response to the continuing upward surge in oil futures, along with Federal Reserve Chairman Ben Bernanke comments.
The Dow Jones Industrial Average wasn't the only index falling, as the Nasdaq and Standard & Poor's 500 were down as well.
Bernanke hinted this phase of quantitative easing may be the last, as he sees economic growth as probably being self-sustaining.
Some see this as a negative, but most should be glad that Bernanke is even thinking about turning off the digital printing presses, as over the long term that is more harmful than the rest.
Thursday, February 17, 2011
Bank of America (BAC), JPMorgan (JPM), Wells Fargo (WFC), Citigroup (C) Ordered to Take Stress Tests
Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C), along with 15 other banks, have been ordered by the Federal Reserve to conduct stress tests to see how their capital levels would respond if a double-dip recession were to occur, accompanied by an 11 percent unemployment rate.
The banks submitted their plans in January and the Federal Reserve will finish reviewing them in March, according to those familiar with the matter.
It appears these tests aren't only to find out the health of the banks in general, but in response to increased pressure to return capital to investors via dividends, which a number of the larger and healthier banks are proposing to do.
Fed Governor Daniel Tarullo, who together with Ben Bernanke, has put together a unit called the Large Institution Supervision Coordinating Committee, or LISCC, said, “The current review of firms’ capital plans is another step forward in our approach to supervision of the largest banking organizations. It has also served as an occasion for discussion in the LISCC of the overall state of the industry and key issues faced by banking organizations.”
The banks submitted their plans in January and the Federal Reserve will finish reviewing them in March, according to those familiar with the matter.
It appears these tests aren't only to find out the health of the banks in general, but in response to increased pressure to return capital to investors via dividends, which a number of the larger and healthier banks are proposing to do.
Fed Governor Daniel Tarullo, who together with Ben Bernanke, has put together a unit called the Large Institution Supervision Coordinating Committee, or LISCC, said, “The current review of firms’ capital plans is another step forward in our approach to supervision of the largest banking organizations. It has also served as an occasion for discussion in the LISCC of the overall state of the industry and key issues faced by banking organizations.”
Monday, February 7, 2011
Marc Faber Says Bernanke, Bureau of Labor Statistics Lying about Inflation Levels
In an interview with CNBC, investor Marc Faber said inflation in the U.S. is much worse than the official government line, and Federal Reserve Chairman Ben Bernanke and the Bureau of Labor Statistics are both lying about the actual level of inflation.
Faber said, “The annual cost of living increases are more than 5% today and the Bureau of Labor Statistics is continuously lying about the inflation rate, including Mr. Bernanke. He’s a liar. Inflation is much higher than what they publish.”
Faber said he sees the actual rate of inflation in the U.S. at about 5 to 8 percent, although allowing for people at different stages of their lives, e.g., those with or without children. Western European inflation he sees at levels a little under the U.S. rate.
Concerning the so-called recovery, Faber stated, “We have to realize that it’s an artificial recovery driven by ultra-expansionary monetary policies and also ultra-expansionary fiscal policies.”
Even so, for approximately the next six months Faber thinks the global economy will probably do okay, but longer out enormous problems will emerge, citing growing deficits.
Actual Marc Faber interview below.
Faber said, “The annual cost of living increases are more than 5% today and the Bureau of Labor Statistics is continuously lying about the inflation rate, including Mr. Bernanke. He’s a liar. Inflation is much higher than what they publish.”
Faber said he sees the actual rate of inflation in the U.S. at about 5 to 8 percent, although allowing for people at different stages of their lives, e.g., those with or without children. Western European inflation he sees at levels a little under the U.S. rate.
Concerning the so-called recovery, Faber stated, “We have to realize that it’s an artificial recovery driven by ultra-expansionary monetary policies and also ultra-expansionary fiscal policies.”
Even so, for approximately the next six months Faber thinks the global economy will probably do okay, but longer out enormous problems will emerge, citing growing deficits.
Actual Marc Faber interview below.
Monday, December 27, 2010
Goldman (NYSE:GS) Uncertain on Sustainability of Commodity Narrative
Goldman Sachs' (NYSE:GS) analyst Jim O'Neill recently stated he's not sure of the sustainability of the commodity narrative, saying "a lot of strength in oil and gold is related to the dollar's weakness...and the whole energy efficiency thing in China is a big, big deal."
Where O'Neill's analysis breaks down is the reasons for the weakness of the U.S. dollar remain in place, with nothing seen that will change that any time soon.
For example, Federal Reserve Chairman Ben Bernanke continues to commit to printing or inflating the money supply, which guarantees a weaker U.S. dollar.
He is also not going to raise interest rates any time soon, which is another big factor in commodity prices.
One are where commodities appears to be changing is in relationship to the overall sector. Individual commodities will have to be watched more closely in the near term, as the broader sector does seemed to have slowed down, and investing in specific commodities the way to prosper going forward.
Where O'Neill's analysis breaks down is the reasons for the weakness of the U.S. dollar remain in place, with nothing seen that will change that any time soon.
For example, Federal Reserve Chairman Ben Bernanke continues to commit to printing or inflating the money supply, which guarantees a weaker U.S. dollar.
He is also not going to raise interest rates any time soon, which is another big factor in commodity prices.
One are where commodities appears to be changing is in relationship to the overall sector. Individual commodities will have to be watched more closely in the near term, as the broader sector does seemed to have slowed down, and investing in specific commodities the way to prosper going forward.
Thursday, December 9, 2010
Ron Paul, Bernanke's Worst Nightmare, Heading Fed Oversight Panel
In what has probably kept Ben Bernanke up in cold sweats since Republicans took control of the house, were fears nemesis Ron Paul would be named as head of the House subcommittee that oversees the Federal Reserve, and by extension, Bernanke.
Paul isn't going to waste any time in his new role, saying he's going to hit the ground running and have a plethora of hearings on U.S. monetary policy.
He added he's going to renew his effort to have the Federal Reserve undergo a full audit.
Jim Bunning, Senator from Kentucky, whose seat will be taken by Ron Paul's son Rand, said this, “Congress must act to rein in Chairman Bernanke and the Fed before they destroy our currency and permanently damage our economy and financial system. Public awareness of what the Fed is doing is increasing while public opinion of the Fed is falling.”
The Federal Reserve, which has largely received a free pass for decades as to its secretive actions and deals, can't be happy about the renewed interest and focus on them, which is a worst case scenario from their point of view.
Add Ron Paul, who has written a book called "End the Fed" to the mix, and things aren't going to be boring over the next several years concerning the Fed and the increasingly nervous and defensive Ben Bernanke.
Paul isn't going to waste any time in his new role, saying he's going to hit the ground running and have a plethora of hearings on U.S. monetary policy.
He added he's going to renew his effort to have the Federal Reserve undergo a full audit.
Jim Bunning, Senator from Kentucky, whose seat will be taken by Ron Paul's son Rand, said this, “Congress must act to rein in Chairman Bernanke and the Fed before they destroy our currency and permanently damage our economy and financial system. Public awareness of what the Fed is doing is increasing while public opinion of the Fed is falling.”
The Federal Reserve, which has largely received a free pass for decades as to its secretive actions and deals, can't be happy about the renewed interest and focus on them, which is a worst case scenario from their point of view.
Add Ron Paul, who has written a book called "End the Fed" to the mix, and things aren't going to be boring over the next several years concerning the Fed and the increasingly nervous and defensive Ben Bernanke.
Subscribe to:
Posts (Atom)