EXK is not on the Fed's list for free money either. Just imagine if the Fed decided to line it's pockets with silver instead of buying all those unpayable treasury bills.
The Fed just announced they will taper free money printing down to $75 billion per month.
So.....The Fed believes a modest $900 billion per year of free money will now
support our robust economy. $1.02 trillion per year is no longer necessary.
HOORAY for this wonderful news!
I'm still in a quandary as to why anyone would toil/work for money. We should
ask the Fed to just print out free pay checks. They certainly have the free
money to back up any pay checks they print. LOL
Reid's immorality towards the young is heartless, wanton, and unforgivable!
It is so simple. If you don't have the money to pay for something...then you
don't buy it.
Congresswoman Pelosi announced that failure to extend long term unemployment
benefits by Republicans was immoral. Senator Reid announced that he would
introduce legislation in January to renew unemployment benefits retroactive to
December 28th (when benefits are due to expire), apparently without regard as to
where the funds would come from to finance this $25 billion dollar "gift" to
those out of work for more than 6 months. So, the bi-partisan budget process
resulting in a new budget to save the government $20 billion over the next
decade ($2 billion per year) is over? But not according to Senator Reid. He's
ready to spend another $25 billion per year to fund the long term unemployed.
But, who will pay?
Senator Reid should be visiting pre-school children's classrooms and
kindergartens throughout the country to inform those young children he has made
a decision for them. He wants those kids to pay for his gifts to distressed
adults across the land that have been unemployed for more than 6 months. Since
those kids don't have enough money in their piggy banks to pay for Reid's
handouts, Reid will have to make those kids sign IOU's (treasury debt) for those
free handouts. The kids will have to pay for Reid's gifts when they reach
adulthood. Since our government has never paid back a penny on any handout to
social programs, the military industrial complex, or to the special interest
groups over the past 30 years, all deficit spending promised for "free" benefits
today will, by necessity, be paid by....our children and grandchildren sometime
in the future. How convenient for Reid! Nobody has to pay...at least for now.
And those young kids...they can't even vote to reject Reid's vision to further
indebt themselves. They aren't old enough to vote. Senator Reid just assumes
his grandchildren will relish supporting his vision of overspending on today's
maladies and thereby jettisoning their financial futures into a infinite abyss.
The Fed's greatest fear is that they lose control over interest rates. Unfortunately for the Fed, they have reset the dynamic for markets during their recent history of QE which started in 2008 and which there is no way out. They will definitely lose their grip on interest rates and that event will soon happen. The taper talk is just a sideshow according to Daniel Ammerman in a "must read" but lengthy article ("Taper & Quantitative Easing Reality Check") found in the 321Gold website which discusses in relatively easy language the course the Fed has set for this country and perhaps the world.
When the financial collapse arrives, most investors in bonds and stocks will lose nearly everything. Precious metals and mining companies should retain value. I can't emphasize enough how this article will open everyone's eyes as to just how the Fed is supporting the banking industry at the cost of the country. And Ammerman repeatedly points out how those "banksters" have pocketed huge bonuses even during the down years. However, the aim of this article is at the Fed and not the bankers.
Does this article have any relevance to EXK? Neither EXK nor other PM investments are mentioned in the article but when the system goes down, EXK is sure to rocket higher. Everyone expects writers such as Ammerman to put their feet to the fire and predict a time frame for the coming collapse. That, of course, is the nature of today's minute by minute investor. Suggest a "collapse" date so they can ponder whether they should hedge the event or ridicule the author when the "collapse" does not arrive right on schedule. Ammerman doesn't make any predictions but when you read the article and review his evidence, you are left believing the system is extremely close to a "fat tail" event in bringing the house of cards down.
Yes! I'll hold onto every ounce of silver and gold that I have.....as well as my miner stocks. GLTA
"...wow! they are cutting $2 billion a year!!!!"
Yeah, yeah, yeah. And the Congressional budget office informs us that Obamacare will cost in excess of $1.7 trillion during the coming decade. I wonder how this additional spending will be layered into that $2 billion budget savings per year. And for added budgetary pain, just look at past history. The government has NEVER accurately predicted the future costs of new social programs. They always grossly underestimate those costs.
Looks like our benevolent handlers in Congress just reached a budget accord and by the looks of it, they've kicked the can down the road once again. How will the stock market, currencies, and metals react tomorrow? Looks like the US dollar right now is hovering below 80 on the currency index. If it sags below 78 in the coming days, the metals should enjoy an upward ride. Meanwhile, silver and gold are showing signs of weakness...but that could just be a momentary fluke.
I'm hoping for another day in the green for EXK. We might be seeing signs of a "trend".....upwards. Lord only knows EXK is grossly undervalued below $4/share. GLTA
But News???? Just how many people buy that snake oil sold by GS? I like today's rise in metal prices but we have painfully learned over the last couple of years that one day does not make a trend. But who knows? Maybe today was the start of something good!
Fed Reserve governor Bullard comes up with a wonderful idea, start out with a "small" taper to acknowledge the recent improvement in unemployment rate (even though total number of workers in workforce has gone down 55,000 jobs since unemployment rate was recognized to be 7.8%).
"Fed could do 'small' QE3 taper to recognize job gains: Bullard" Yahoo Finance
Some Fed watchers have suggested the Fed injects as much as $110 billion per month of QE. Mainstream press always refers to the $85 billion "official" figure. So just what will be considered a "small" tapering? Perhaps they could reduce the free fiat creation by $1 million per month which would reduce the total monthly QE to $84.99 billion. Then they could wait a few months and see how the "small" reduction impacts the economy.
What a joke! If the Fed reduces purchases of U.S. treasuries, who will come into to replace the Fed as purchasers of a declining asset with virtually no return on investment? The Fed could care less about returns on U.S. bonds. Yeah....we'll see a meaningful taper in the near future......NOT!
I still have to ask. How much longer can an unbacked fiat system last where the central bank injects an annual $trillion of additional fiat into the system and the country continues to plow itself under in unpayable debt creation? It is just amazing to me that gold and silver have languished during the last 30 months while the Fed Reserve engages in the grandest monetary expansion experiment in the history of the earth. Silver and gold will have their day.....but not today!
Hey, News! Aren't government workers (federal and state) one of the largest classes of workers? And, of course, the rest of us pay their salaries and retirement benefits.....which are much less generous than all those WalMart employees.
Mainman! I rely on the historical fact which is that there has never been an unbacked fiat currency in history that has remained viable and not been flushed down the toilet. But we face the dilemma that irrational valuations can go on a lot longer than prudent investors can last (at least the saying goes something like that).
When the latest QE started up with a Fed announcement in late 2012 of a massive launch of more stimulus, I suspected PM's would gather steam and launch higher. Surprisingly to me, this never happened. $85 billion per month injections of free fiat currency into the marketplace garnered no upward momentum in PM's. I still wonder why!
But, perhaps I am in your camp. I prefer to go down swinging. When things do not make sense, why follow the herd going over the cliff. This fiat debacle just doesn't make sense to me and fundamentals will eventually catch up. And then you have fiscal policy, or lack thereof. And you have demographics of 10,000 baby boomers a year hopping on the Medicare bandwagon that is $88 trillion underfunded plus they draw on the underfunded social security system. How long can this merry-go-round continue to play out? My concern is that it may last another couple of years before the inevitable end game occurs. Because the verbal abuse from family is nearly intolerable. The family fails to perceive any problems with the current situation.
In the meantime, I bite my lip when talking to family about the wisdom of selling out PM investments and buying real estate, etc. I've lost my credibility and they refuse to listen.....for now! GLTU
General market is going up on both good and bad news on the economy. PM stocks go down on just about any news. And today was no different as the stock market shrugged off NFP numbers which suggest a taper may come sooner than later.
The Federal Reserve's balance sheet now includes over 1/3 of all outstanding treasury debt and, of course, the total rises each month with $45 billion of treasury purchases. But the Fed doesn't charge any interest on these treasury bonds.
" The Fed’s primary source of income is interest earned on the U.S. Treasury securities it holds; after covering expenses, the Fed distributes any profit back to the U.S. Treasury. For more information on the Fed’s structure, see the September 2003 Dr. Econ"
Since the U.S. never pays back any of it's debt but merely rolls it over every time it comes due, why in the world would the government encourage the Fed to start tapering. The government needs this free source of credit (which actually means "free cash") The interest expense on the country's massive debt load is rapidly declining month after month with the Fed continuously monetizing U.S. debt. Consequently, rising inflation which usually stimulates rising interest rates should not worry the government as it gets a free pass on paying any interest to the Fed.
I think the chemistry between the government and the Fed has reached nirvana. If they were smart, they would step on the gas pedal and increase the amount of QE rather than slow it down (taper). Just imagine! When the Fed owns all the U.S. treasury debt, the country could eliminate the "unnecessary" interest expense on this debt which currently stands at an artificially low level of approximately $340 billion. And just like that....poof!....the government can spend that $340 billion elsewhere.
QE to infinity! What's wrong with this picture? Borrowing for free with no need to pay back is as close to free money as it gets. Or should I say free fiat? Money for nothin'...kicks for free!
The Weimar Republic enjoyed the same benefits of free fiat to pay their debts as well....at least for awhile.
Got gold? Got silver? Got EXK?
I'm also waiting for the price of silver to rise. I wonder which will arrive first!
2 years of depressed metal prices and no relief in sight. King World News, James Sinclair, and various other blogging sites keeping telling us that relief, as in a significant rise in metal prices, is close at hand. And that is exactly what EXK needs to enjoy. But many of us long term die hard PM investors are suffering not only declines in portfolio values, but also we endure the ridicule of family and friends who fail to understand the consequences of blatant money printing by central banks. It's like Chinese water torture listening to family members who correctly point out that abandoning of metal investments and plunging into SPX over the last 2 years would have created significant increase in wealth...rather than a massive decline. And.....they are correct!
So I continue to wait for the eventual collapse of the dollar and possibly the entire economy. Maybe it will happen this decade. And my portfolio is down about 50% from it's high while the SPX has returned 200% gains from it's 666 low which, of course, I have missed out on. Ouch. Somebody make the pain go away! LOL
I just got back from a trip to SE Asia. Bangkok has an incredible number of gold retail shops. Amazing. Certainly there is more interest in silver and gold in those countries than the U.S.
Most perplexing is the suggestion that Bitcoins will supplant gold as an alternative currency (to fiat paper). Impossible! The digital world of bitcoins is not only opaque (as in non-transparent) but obviously open to blatant manipulation.
So my question is....do I buy more physical at the current low prices? Very tempting. Or....just pay off bills with free cash such as the mortgage? GLTA
The phony statistics are screwing the precious metals......again. So EXK and other miners are pushed down deeper into the shadows. Ugh! This is getting ridiculous!
"Whopping 932,000 Americans Drop Out Of Labor Force In October. Participation Rate Drops To Fresh 35 Year Low. But more importantly, the number of people not in the labor force exploded by nearly 1 million, or 932,000 to be exact, in just the month of October, to a record 91.5 million Americans! This was the third highest monthly increase in people falling out of the labor force in US history. At this pace the people out of the labor force will surpass the working Americans in about 4 years." (From ZeroHedge)
So......everything looks just fine and the Fed can now start tapering like there is no tomorrow!
P.S. With so many people dropping out of the workforce and new jobs increasing (manipulated) beyond anyone's expectations, why did the unemployment rate rise? Some government minion dropped the ball on this one as the math would tell you a rise in unemployment would be impossible!
I suggest the new Mexican tax has pretty much been digested into EXK's stock price by now. Since I am convinced the silver price is close to an inflection point and will head higher and that EXK is a very successful miner in it's environment, I bought back half the shares I sold a few days back.
.....like anybody cares about my idiotic trading.... Ha ha. GLTA
Jumping hyenas! The dollar is soaring higher!!!
With U.S. unemployment rate expected to reverse trend tomorrow and jump an unusual .2% or more...today the dollar ignores what is coming down the road and celebrates Mario Draghi's surprise rate cut of the Euro. Nothing like the "race to the bottom" in fiat currencies to get FX traders into a trading tizzy.
Oh well. Tomorrow is a new day!
From Matt Taibbi of Rolling Stone:
"Here at home, virtually simultaneous to the Rabobank settlement, Fannie Mae filed a suit against nine banks – including Barclays Plc (BARC), UBS AG (UBSN), Royal Bank of Scotland Plc, Deutsche Bank AG, Credit Suisse Group AG, Bank of America, Citigroup and JPMorgan – for manipulating Libor, claiming that the mortgage-financing behemoth lost over $800 million due to manipulation of the benchmark rate by the banks.
And virtually simultaneous to that, JP Morgan Chase disclosed that it is currently the target of no fewer than eight federal investigations, for activities ranging from possible bribery of foreign officials in Asia to allegations of improper mortgage-bond sales to . . . the Libor mess. "The scope and breadth of risky practices at JPMorgan are mind-boggling," Mark Williams, a former Federal Reserve bank examiner, told Bloomberg.
The point of all of this is that any thought that the potential Chase settlement might begin a period of regulatory healing for it and other Wall Street banks appears to be wildly mistaken. If anything, the scope of potential liability for all the major banks, particularly in these market-rigging furors, appears to be growing in all directions.
One gets the feeling that governments in all the major Western democracies would like to sweep these manipulation scandals under the rug. The only problem is that the scale of the misdeeds in these various markets is so enormous that even the most half-assed attempt at regulation will cause a million-car pileup.
There's simply no way to do a damage calculation that won't wipe out the entire finance sector when you're talking about pervasive, ongoing manipulation of $5-trillion-a-day markets. That's the problem – there's no way to do a slap on the wrist in these cases. If they're guilty, they're done."