Bernanke's Victory

356
Tue, Mar 5, 2013 - 11:40am

He's done it! I would imagine he feels pretty good about himself today, too. He's likely receiving congratulatory calls from his banker friends around the globe. Gift baskets from Dimon and Blankfein arrived earlier this morning, too. The stock market is back to alltime highs! I can hear the popping of champagne corks all the way out here in flyover country.

So what does all this mean? I mean really, what does it mean? U.S. stocks are back to 2007 levels yet millions are unemployed, food stamp usage is double what it was then and the cumulative U.S. debt has been doubled, too. What are we to make of this?

Well, let's try to keep things in perspective. First of all, even if you use the crappy, government-issued CPI, stocks are still 20% below their alltime highs when adjusted for inflation. Sure, your 401(k) balance may be back to where it was six years ago but the value of your dollars and your purchasing power certainly aren't. And again, what about all of those folks who own very few, if any, stocks? (https://www.gallup.com/poll/147206/stock-market-investments-lowest-1999.aspx) How's the "wealth effect" working out for them?

Regardless, let's focus on this wonderful market of stocks and relate it back to the precious metals, which is what primarily concerns us today. First of all, though CNBS is all aflutter with the new stock market highs, maybe someone should show them this chart. Hmmmm. Looks like gold is still a better investment over the past five years, even with the ongoing manipulation.

And what about that manipulation/suppression? Well, here are two fun charts for you. (Perhaps you should print them off and hold them up the light?) Note how both gold and stocks were trending steadily higher for the first two years of QE. From March of 2009 until summer of 2011, the S&P rallied from 700 to 1300 and gold rose from $900 to $1600...almost the same percentage. But then what happened? Well, the proverbial sht hit the fan. The U.S. hit the "debt ceiling". Washington politicians showed themselves to be completely worthless in slowing the expanding debt. The Standard&Poor's credit rating of the U.S was lowered. At the same time, the only remaining fiat currency that showed any life at all was the Swiss Franc. Because this currency strength was deemed to be detrimental to the Swiss economy, the SNB decided to peg the Swissie to the euro. This sudden move left gold as the only remaining safe haven currency.

Look what has happened since. U.S. stocks are UP almost 40% while gold is DOWN nearly 20%.

This, folks, is central planning and market manipulation at its finest worst. Global central banks print a nearly-unlimited amount of fiat money and this money flows into stocks and other paper assets while at the same time, the Bullion Banks (of which several are Primary Dealers for The Fed) actively depress the prices of gold and silver in order to spur confidence in the current system. The HOPE is that this MOPE will generate a belief that all is well and that recovery is nigh...that all is well and everything is back to normal. The problem is...as we all know...all is not well and there is no returning to "normal".

But The Fed and their minions can certainly try. Take a look at this chart of the S&P:

OOPS! That's a chart from last year...last February to be precise. Upon further review, you can sure see why I was so confused. Take a look at the current chart:

Nah!! I'm sure that having these two charts be nearly identical is just happenstance and coincidence. Of course it is! The odds of nearly identical performance at nearly the exact same time of the year, two years in a row, are only...astronomical. And then consider this further coincidence...Shirley, there's nothing to see here: QE∞ gets announced in September and confirmed in December. All the while, stocks rally and gold dives.

So, anyway, what's the point of all this? I guess it's just to remind you that it's all an illusion. Back in October, I wrote this post and perhaps it's time to read it again. (https://www.tfmetalsreport.com/blog/4246/corner-copperfield-and-blaine) To save time, here's a c&p of the final paragraph:

"So remain patient and buy the dip. Keep stacking and continue preparing. Though any quality magician can temporarily suspend your belief in reality, in the end it's all just an illusion. The laws of physics eventually trump the magicians skills just as the laws of economics will, one day soon, blunt the accumulated efforts of The Fed, the banks and their willing accomplices in government and the media."

The magicians have now suspended reality with this current trick for nearly six months. I suppose that they can continue this illusion even longer...but not indefinitely. This will end eventually and reality will, finally, return. Of that you can be certain. In the meantime, try not to be discouraged. You have done well to prepare yourself for the inevitable. Believe in what you know and act accordingly.

TF

About the Author

Founder
tfmetalsreport [at] gmail [dot] com ()

  356 Comments

  Refresh
Sheetrocker
Apr 1, 2013 - 10:32am

C:\Users\Owner\Pictures\clip_

C:\Users\Owner\Pictures\clip_image0025_thumb.jpg

Bill of Rights
Mar 7, 2013 - 9:27am

I maybe a bit bias here, but

I may be a bit bias here, but from where I sit it looks like Gold want to rocket forward here big time...We shall see.

Monedas
Mar 7, 2013 - 8:59am

Correction !

Monedas' famous "Houseguest" did NOT get a gold crown !!! When he got back .... I shoved a flashlight in his mouth .... paste .... not pearls ! The Dentista said the gold was on the inside ? Then boyfriend showed up .... and the tits on the arm .... ceased ! Monedas 1929 Comedy Jihad The Party's Over World Tour

ivars
Mar 7, 2013 - 6:41am

GSR seems to have escaped the

GSR seems to have escaped the uptrending fork, trying to reverse down - PMs up- going back into previous downtrending fork.

ivars
Mar 7, 2013 - 6:33am

Oil did bounce of second time

Oil did bounce of second time of this nice Andrews fork. So it seems to be headed higher..but why? Good NFP? Good international trade? Low reserves? Who knows..

Mar 7, 2013 - 4:26am

Rand Paul

I don't usually much care about the goings on in the House or Senate because it is all a show. I watched Rand Paul for a few hours last night and I have to admit he was hitting home runs if anyone was actually listening to him.

Maybe the Daily Bell is right, maybe he is "the Next GOP Nominee for President."

ClinkinKYTen_of_Swords
Mar 7, 2013 - 2:03am

As I've said before...

...I have one good Senator in my state. How many do you ( the "collective" you ) have.

I have to admit that he pissed me off by voting for Hagel (done deal anyway) but he more than made up for it with his filibuster against Brennan. The first, but not the last ( I hope), politician to stand up to the B.O./B.S. going on in this country.

Isn't it time the Ron Paul fans climbed aboard the Rand Paul train?

How about a Paul/Cruz ticket for 2016?

---------------------------------------------------------------

Plus, Chris Matthews and the SPLC hates the both of them so you know they must be OK

MATTHEWS: Who do they root for?! Who do they root for?!


Read more: https://newsbusters.org/blogs/geoffrey-dickens/2013/03/06/matthews-screams-who-do-hate-groups-root-they-must-love-rand-paul-#ixzz2Mpn2j0OM https://www.splcenter.org/get-informed/intelligence-report/browse-all-issues/2011/spring/electoral-extremism-23-candidates-on-radical-right (By "radical right" they mean not having the right to kill American citizens without due process)

----------------------------------------------------------------------------------------

Rand Paul on a tear

Submitted by Ten_of_Swords on March 6, 2013 - 12:57pm. Hat Tip! 5

He is currently on the Senate floor trying to block the CIA nomination:

https://www.c-span.org/Live-Video/C-SPAN2/

Get some popcorn and watch the show!

Edit: Like him or not, this is available to the masses to see, and lots of taboo subjects being talked about.

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

القراع عصفور
Mar 6, 2013 - 4:12pm

OK Monedas

I will play nice if you do.

No sense in...

Bee hive kicking spree

Because I agree with you this once.

DP 1984 sore back from shoveling snow and a case of Pabst world tour.

Monedas
Mar 6, 2013 - 3:40pm

When the metals stagnate !

The pettiness roars ! Let's all just take it easy .... my humble bottom call of a week or so ago .... is essentially intact .... not to worry .... keep on hoardin' .... and smell the roses .... I'm on my third Margarita .... my "Houseguest" leaves tomorrow .... hey, he got a complete cleaning, whitening and a "Gold" crown for $570 ! It was $400 but he upgraded to gold for an extra $170 ! Monedas 1929 Comedy Jihad Mexican Riviera World Tour

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 9/28

9/29 8:30 ET Advance trade in goods
9/29 9:00 ET Case-Shiller home prices
9/29 10:00 ET Consumer Confidence
9/30 8:15 ET ADP employment report
9/30 9:45 ET Chicago PMI
10/1 8:30 ET Personal Income and Spending
10/1 8:30 ET Core Inflation
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/2 8:30 ET BLSBS
10/2 10:00 ET Factory Orders

Key Economic Events Week of 9/21

9/21 8:00 ET Goon Kaplan
9/21 10:00 ET Goon Evans
9/21 Noon ET Goon Brainard
9/21 6:00 pm ET Goon Williams & Goon Bostic
9/22 10:30 ET Chief Goon Powell on Capitol Hill
9/22 Noon ET Goon Barkin
9/22 3:00 pm ET Goon Bostic again
9/23 9:00 ET Goon Mester
9/23 9:45 ET Markit flash PMIs for September
9/23 10:00 ET Chief Goon Powell on Capitol Hill
9/23 11:00 ET Goon Evans again
9/23 Noon ET Goon Rosengren
9/24 1:00 pm ET Goon Bostic #3
9/24 2:00 pm ET Goon Quarles
9/24 10:00 ET Chief Goon Powell on Capitol Hill
9/24 Noon ET Goon Bullard
9/24 1:00 pm ET Goon Barkin again & Goon Evans #3
9/24 2:00 pm ET Goon Bostic #4
9/25 8:30 ET Durable Goods
9/25 11:00 ET Goon Evans #4
9/25 3:00 pm ET Goon Williams again

Key Economic Events Week of 9/14

9/15 8:30 ET Empire State and Import Price Idx
9/15 9:15 ET Cap Ute and Ind Prod
9/16 8:30 ET Retail Sales
9/16 10:00 ET Business Inventories
9/16 2:00 ET FOMC Fedlines
9/16 2:30 ET Powell Presser
9/17 8:30 ET Philly Fed
9/18 8:30 ET Current Acct Deficit

Key Economic Events Week of 9/7

9/9 10:00 ET JOLTS job openings
9/10 8:30 ET Initial jobless claims
9/10 8:30 ET PPI
9/10 10:00 ET Wholesale Inventories
9/11 8:30 ET CPI
9/11 9:45 ET Core CPI

Key Economic Events Week of 8/31

9/1 9:45 ET Markit Manu Index
9/1 10:00 ET ISM Manu Index
9/1 10:00 ET Construction Spending
9/2 8:15 ET ADP employment
9/2 10:00 ET Goon Williams
9/2 10:00 ET Factory Orders
9/3 8:30 ET Initial jobless claims
9/3 8:30 ET Trade Deficit
9/3 12:30 ET Goon Evans
9/4 8:30 ET BLSBS

Key Economic Events Week of 8/24

8/24 8:30 ET Chicago Fed Idx
8/25 10:00 ET Consumer Confidence
8/26 8:30 ET Durable Goods
8/27 8:30 ET Q2 GDP 2nd guess
8/27 9:10 ET Chief Goon Powell Jackson Hole
8/28 8:30 ET Pers Inc and Consumer Spend
8/28 8:30 ET Core Inflation
8/28 9:45 ET Chicago PMI

Key Economic Events Week of 8/17

8/17 8:30 ET Empire State Manu Idx
8/17 Noon ET Goon Bostic
8/18 8:30 ET Housing Starts
8/19 2:00 pm ET July FOMC minutes
8/20 8:30 ET Jobless claims
8/20 8:30 ET Philly Fed
8/20 10:00 ET LEIII
8/21 9:45 ET Markit flash PMIs July

Key Economic Events Week of 8/10

8/10 10:00 ET Job openings
8/11 8:30 ET Producer Price Idx
8/12 8:30 ET Consumer Price Idx
8/13 8:30 ET Initial jobless claims
8/13 8:30 ET Import Price Idx
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Unit Labor Costs
8/14 8:30 ET Cap Ute and Ind Prod
8/14 10:00 ET Business Inventories

Key Economic Events Week of 8/3

8/3 9:45 ET Markit Manu PMI July
8/3 10:00 ET ISM Manu PMI July
8/3 10:00 ET Construction Spending
8/4 10:00 ET Factory Orders
8/5 8:15 ET ADP employment July
8/5 9:45 ET Markit Service PMI
8/5 10:00 ET ISM Service PMI
8/6 8:30 ET Initial jobless claims
8/7 8:30 ET BLSBS for July
8/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 7/27

7/27 8:30 ET Durable Goods
7/28 9:00 ET Case-Shiller home prices
7/29 8:30 ET Advance trade in goods
7/29 2:00 ET FOMC Fedlines
7/29 2:30 ET CGP presser
7/30 8:30 ET Q2 GDP first guess
7/31 8:30 ET Personal Income and Spending
7/31 8:30 ET Core inflation
7/31 9:45 ET Chicago PMI

Recent Comments

by Wizdum, 20 min 5 sec ago
by Wizdum, 21 min 55 sec ago
by fl33, 23 min 48 sec ago
by Turd Ferguson, 25 min 35 sec ago

Forum Discussion

by SilveryBlue, 5 hours 14 min ago
by 11IMIX, Sep 28, 2020 - 9:58pm
by Green Lantern, Sep 28, 2020 - 5:44am
by KevinBenavides, Sep 27, 2020 - 6:01pm
randomness