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 Replies: 23 / Views: 2,872 |
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Pillar of the Community
Canada
1723 Posts |
WASHINGTON (Reuters) - The Federal Reserve ramped up its stimulus to the economy on Wednesday, expressing disappointment with the pace of recovery in employment as contentious U.S. budget talks heighten uncertainty about the outlook. The central bank replaced a more modest stimulus program due to expire at year-end with a fresh round of Treasury purchases that will increase its balance sheet. It committed to monthly purchases of $45 billion in Treasuries on top of the $40 billion per month in mortgage-backed bonds it started buying in September. http://finance.yahoo.com/news/fed-r...3200191.htmlEdited by samsnate
12/12/2012 3:58 pm
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Valued Member
United States
148 Posts |
I don't get this. The economy is sputtering along slowly and I don't see what's wrong with that. We have a lot of debt and bad decisions from the past that need to be cleaned up and that will take time. The economy moved sideways for a long time from the time Vietnam began winding down until the early 1980s. Constantly pumping money into the system is going to risk an overcorrection IMO.
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Pillar of the Community
 Canada
1723 Posts |
I agree...the problem that they see is that If all the bad debt doesn't get bought then people default and SHTF. IMO they are only doing it to keep things from completely falling apart all at the same time. The economy is going to be screwed one way or another.....just don't know when. In the mean time....all the money printing is just hurting the US more than it will be doing them good. BUT Trillions of dollar printing is the only way to at least control it. Catch 22? Kick the can down the road until they actually get their act together and come up with a solid plan....which unfortunately, most likely will cause more pain and recession. JMHO.
Edited by samsnate
12/12/2012 2:37 pm
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Valued Member
United States
362 Posts |
 Why is it that every time the overall spot values increase, so do my bills? I'm loving those silver culls more and more. |
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Valued Member
United States
264 Posts |
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Pillar of the Community
United States
3670 Posts |
I was wondering what caused that spike....
Also platinum is closing in on gold again perhaps....
" The economy is sputtering along slowly and I don't see what's wrong with that. We have a lot of debt and bad decisions from the past that need to be cleaned up and that will take time. "
Agreed, but you have to assume some PM spike to take place while this long fix is taking place. And seeing as how nothing the current office did last four years makes me think the economy is their number one priority at all, no reason to think pms will not continue up....
I can tell you silver is up about 6 bucks and some change from where it was this time last year and that alone is a new bottom level and inflation taking place right before your eyes....
Edited by Silverhawk74
12/12/2012 3:42 pm
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Pillar of the Community
Canada
1723 Posts |
Youre going to see a spike during an announcment like today. It is a perfect cover for the big players to reshape their holdings without drawing too much attention to their manipulating ways. JMO
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Pillar of the Community
United States
965 Posts |
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Valued Member
United States
386 Posts |
So I don't heat with electricity, but my monthly bill is $25.00 higher than it was last month. The kids are on their own and we use electicity very conservatively. The dollar is like cotton in a dryer now. And our politicians are eating off the fat of the land.
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Bedrock of the Community
United States
10038 Posts |
Fool me once, shame on you.
Fool me twice, shame on me.
"Fool" me three times - you have an agenda you are hiding.
"Fool" me 4 times proves you know you cannot be stopped by legal means.
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Pillar of the Community
United States
3789 Posts |
The reaction today from the Fed news by gold and silver was pretty lame and pathetic. These two continue to be in a consolidation period and wouldn't be surprised to push lower in price for now and or range bound.
Platinum is on the move ,,, why? the market will reveal that later but this is a simple supply and demand picture. The same for palladium.
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Valued Member
Canada
110 Posts |
So anyone know what caused the sudden drop?
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Pillar of the Community
United States
3789 Posts |
well its pretty clear and simple, there are no buyers at these levels in gold and silver. Markets are always forward looking.
Looking at the metals futures now, they are following through with dumping silver and gold.
I would say that if you are looking at QE from the Fed as a reason to buy PM's you will need a diffrent reason going forward, very negative reaction today.
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Pillar of the Community
United States
808 Posts |
"QE4! Let's go print some more! QE4! Let's go print some more!"
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Pillar of the Community
United States
648 Posts |
From reuters...
Gold dropped about 1 percent on Thursday after the Federal Reserve linked its monetary policy to unemployment, raising
concerns that future economic stimulus could be limited. Gold benefits from easy monetary policy as it drives investors who fear diminishing value in fiat currencies to seek safety in hard assets such as bullion. Gold has risen nearly 9 percent so far this year.
"This announcement is a bit confusing to gold investors as it linked policy to unemployment, etc.," said a Tokyo-based trader. "Perhaps the market wanted unlimited QE."
--end
Stack accordingly.
Edited by tripncoins
12/13/2012 12:20 am
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Pillar of the Community
United States
808 Posts |
Quote:
"This announcement is a bit confusing to gold investors as it linked policy to unemployment, etc.," said a Tokyo-based trader. "Perhaps the market wanted unlimited QE." Regardless of how bullish conditions should be for precious metals, uncertainty surrounding everything from how the "fiscal cliff" is resolved to increasing concern regarding the ongoing viability of several western currencies can easily explain today's market behavior. I suspect had someone stepped forward to say, "yes, we're going over the fiscal cliff" the markets would have behaved dramatically yet far more rationally. The markets are amazingly resilient even with bad news when the outcomes are known. It's the uncertainty, however, that causes the mess we're seeing now. Stay the course. Ignore the noise. Tend to your stack! |
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Replies: 23 / Views: 2,872 |
Posted 12/12/2012 2:37 pm
