Ahead of Tomorrow's Fedlines

134
Tue, Oct 28, 2014 - 12:33pm

As the "markets" anxiously await the statement that will come tomorrow at the conclusion on the current FOMC meeting, here are some charts that show what has transpired in the six weeks since the previous FOMC.

The last bit of Fedlines came out following the previous FOMC meeting, which concluded on Wednesday, September 17. Stocks peaked two days later at S&P 2020 before falling nearly 10% over the next three weeks. They've since rebounded to nearly unchanged vs 9/17 levels.

Gold tanked to an early October bounce from $1180 support and then rallied $70 in the face of 37,000 new naked Cartel shorts. In the end, just like stocks, gold is nearly unchanged vs 9/17.

But the Big Winner, and the one we should likely be following most closely for clues, is the bond market. Following the last set of Fedlines, the 10-year Note was at 2.62% and The Long Bond was at 3.37%. As of right now, they are 2.28% and 3.05% respectively.

That's a pretty big move in just six weeks and doesn't even include the HUGE drops two weeks ago that were soon retraced. What did Old Mother Fellen say in last month's Fedlines that so spooked and rallied the bond market? I guess it all had to do with "considerable time". (https://www.zerohedge.com/news/2014-09-17/fomc-keeps-considerable-wealth...) Will that specific language remain in tomorrow's Fedlines? Who knows? Who cares?? Can you even believe that gold (and silver) have been reduced to having their daily fiat-conversion value dictated by a few words in a meaningless FOMC Fedline??? What a joke/farce this has all become...

TF

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  134 Comments

AC_Doctor · Oct 28, 2014 - 12:51pm

ZMAN makes me buy more silver!!!

kissZMAN makes me buy more silver!!! I love him!!!kiss

luv2stak · Oct 28, 2014 - 1:09pm

can't pass up a Second!

just habit... 

hope the prices remain depressed for awhile so I can stak more!

· Oct 28, 2014 - 1:36pm

more time?

I have a sneaking suspicion that we may have these low prices until something breaks, or they invent a new scheme (QE, ZIRP NIRP, Twist) to hold things together.

Cannot let investment demand return. But the fact that they must implement a radical program just to keep the economy alive is quite revealing about the future. The patient is not recovering, so I will continue prepping.

cashonly · Oct 28, 2014 - 2:03pm

The FED

Rickards sums it up best (posted by Daystar)

"Jim Rickards: We are in a depression. This is a global depression. It started in 2007 and it is going to continue indefinitely. Depressions are structural, monetary solutions are cyclical: you cannot solve a structural problem with a cyclical remedy - monetary policy will not work. What it could do eventually is cause inflation. So far people say: “Where is the inflation?...We printed trillions of dollars, there is no inflation”. That is because we would have had deflation, extreme deflation, but for the money printing. It did produce inflation to the extent that it offset the deflation… The world is in depression, we are not getting out of it."

How true, there has been no recovery. They cannot stop the money printing for long or the deflation from this depression will start the downward spiral. We are well past "KEYNESIAN", this is the end game playing out. Keynesian was Greenspan, Bernanke/Yellen are END GAME. They cannot stop the money printing for long or the deflation from this depression will start the downward spiral. How long can the FED create money until a hyperinflationary depression sets in is the only real question.

TPTB have 2 choices: deflationary depression or hyperinflationary depression. I would assume if you are a member of Turdville you are probably in the latter camp.

Marchas45 · Oct 28, 2014 - 2:12pm

LMAO

If I know Zman he's Stacking also. He's no fool, he just has a different opinion. Zman don't forget the food. laugh Keep Stacking

treefrog · Oct 28, 2014 - 2:17pm

sux

sex

zman · Oct 28, 2014 - 3:27pm

@cashonly

From Jim Rickards, "you cannot solve a structural problem with a cyclical remedy-monetary policy will not work" ...So far people say: "Where is the inflation? We printed trillions of dollars, there is no inflation."

I agree 100%, what the Fed does with QE means very little (more or not), it's not about monetary policy at this point, it's going to be about fiscal policy.

What have policymakers/Congress done in regards to fiscal policy any differently since the 2008 collapse? Nothing, that has to change for the PM market to resume its bull market.

benny_bomb_boom · Oct 28, 2014 - 3:46pm

perfect timing

as my monthly FRN allocation is set to arrive on Thursday. more metal same paper. winner winner. I have to save $$$ for the 15/12/9rrrs if they show. hearing that 16 is COST @ first majestic makes me feel good about continued accumulation here. while my friends and family members, those i trust like glue, continue to mock my foolishness in collecting these shinny discs, to myself i think about how good of shape i'm going to need to be in to get that treasure chest to shore if my vessel is attacked at sea! yippee

edited to add:

8th ~ smoke um if you got up

AlienEyes · Oct 28, 2014 - 3:51pm

@ zman

Music to buy PM's by.....

Olivia Newton-John - Physical
cashonly · Oct 28, 2014 - 4:01pm

@zman

There will NOT be a bull market in PMs, ever again. The system is so far gone that when the PMs finally break free from the chains of the paper market it will be a MOONSHOT!

This is not about congress/presidential acts or policies having an effect on PMs. This is about the end game whereby FIAT is now conjured up at will to stave off the deflationary spiral. The economic canary in the coal mine is the market and they keep it well inflated. The sentinel of fiat currency is GOLD and that barometer has been frozen by the paper market manipulations.

SilverRunNW · Oct 28, 2014 - 4:05pm

What's really happening ..

Chris Martenson has been releasing his videos all year. When watched all together, quickly in succession, it reveals some astounding "truths" that most here already know about our economy, debt, real inflation, GDP, Govt statistics and a scary future. But MSM koolaid drinkers should watch and learn what's really going on.

https://www.peakprosperity.com/crashcourse

zman says: What have policymakers/Congress done in regards to fiscal policy any differently since the 2008 collapse? Nothing, that has to change for the PM market to resume its bull market.

Try going back all the way to 1971-1974, around the time when Nixon took us off the gold standard and the Bretton Woods monetary system ceased to exist. Exponential debt growth and no real change in fiscal policy, just spend and increase debt to feed the ponzi scheme financial monetary system. Where has gold gone in dollar term values in that time? And look at where gold is now.

The gold market is controlled by the bullion banks. It's not bloviating "policy makers" on Capitol Hill and their lack of positive action that determine the dollar nominal price of gold.

Zman, you're full of crap!

zman · Oct 28, 2014 - 4:20pm

@silverun

"Try going back all the way to 1971-74...Exponential debt growth and no real change in fiscal policy"

There's a huge difference between that period and today, back then wages were soaring higher (sometimes 10-12% PER YEAR), that's not happening today.

In the 70's we had a tighter labor market, we had soaring commodity prices, profit margins for the big companies were small compared to today, that's why gold move higher.

Globalization has changed all of that from the 1970's, we have flat wages, structural high employment, all of this is deflationary in nature, therefore fiscal policy has to change, it's not the 1970's anymore.

waxybilldupp · Oct 28, 2014 - 4:59pm

Pre-election prediction ...

About a week ago, I suggested that the String Pullers were going to continue the stock market ramp-a-thon until the DOW was over 17,000 and the S&P was back over 1900. Target #1 met today. Granny Felon should be able to goose things a bit more tomorrow.

My Pre-election prediction: If that happens and the stock market doesn't crap it's pants for some unforseen reason, I predict you will see President Obola soundbites on the evening news the next few days, reminding the Sheep how amazingly marvelous the economy is doing under his guidance, with the aid of his trusted Democrats in Congress. The measures to define economic marvelousness will include at least 2 of the following:

DOW over 17,000;

X bazillion new jobs "created" the past year under his careful guidance and progressive economic management;

Unemployment at ONLY 6.bullshit percent, down from some astronomical number left behind by the previous White House Occupant. 

Granny F. may also provide a soundbite or two along those same lines tomorrow, giving President Obola at least partial credit for the economy being "on track," with "steady growth". She knows where her meals come from.

wax off

ancientmoney · Oct 28, 2014 - 5:21pm

Is Ebola really this simple to neutralize?

"The FDA in the U.S. has cracked down on the Natural Solutions Foundation, as well as two other companies marketing natural products, for making disease claims that they have not authorized, as reported previously by The Inquisitr. NSF is pushing back. According to the FDA’s website, nutritional supplements, essential oils, herbs, and other natural products cannot claim to “diagnose, treat, cure or prevent any disease.” Those products must post a disclaimer declaring such, because according to the American government, “only a drug can legally make such a claim.” No matter how effective a natural substance may be, there is, in effect, a gag order on any and all companies marketing them, preventing them from saying so.

Most of the companies selling such products maintain that their products strengthen the body so that it can repair and heal itself. Apparently, that is what is happening in Sierra Leone. Alpha Kanu sent a letter to Dr. Rima saying that “[t]here is no illness that doesn’t have a cure.”

Just before the shipment reached Sierra Leone, Kanu reportedly made it clear that his government did not need FDA approval to offer it as a therapy option, according to Star Africa. The Honorable Alpha Kanu is a trained chemist, who believes that the people who are suffering in his country have the right to use any and all treatment options that are available to them. It is “a matter of choice,” he believes, resting “on the patients or their families, as to whether to administer it as treatment for Ebola.” The Information Minister worked with President Ernest Bai Koroma to get the nutrient into Sierra Leone.

The American FDA has a long history of suppressing information and companies that offer non-pharmaceutical, natural therapy options, according to Natural News. The gag orders regarding non-drug options for Ebola are simply the latest in a long string of actions aimed at maintaining the monopoly. Nano Silver 10 PPM is not a drug but a nutrient, and as such, is not subject to FDA approval."

https://www.veteranstoday.com/2014/10/23/cure-for-ebola-confirmed-by-sierra-leone/

AC_Doctor · Oct 28, 2014 - 5:39pm

After elections no matter what the outcome->>>>

The FED and TPTB will NOT let the stock markets gyrate lower until the mid-term elections are done and over with PERIOD!

Nor will they let the shiny metals gravitate upwards, but who cares, because somewhere in the US I know I can dig up multiple green plastic boxes containing no less than 15550 grams of a metal with an atomic mass of 107.8682 and a melting point of 1763.474 °F. devil

Kerbouchard · Oct 28, 2014 - 6:48pm

It's a F'ing Joke, alright!

Thirty-five years have gone by since I bought my first phyzz, and people are still lapping up the crap that the Fed puts out.

It's pathetic. Grown men and women licking the boots of their masters. They have no sense of individuality or accountability -- just like little children. 

I'm sorry to say this, but Americans in general have adopted Germanic traits, especially after WWII, and have taken Fascism to a new level. Goebbels would be proud.

This is a primitive planet. Get me outta here!

Dr. P. Metals · Oct 28, 2014 - 6:55pm

hmmm

RE: primitive planet -> fallen world

FIFY

Safety Dan · Oct 28, 2014 - 7:14pm

Richard Russell - Here Is

Richard Russell - Here Is What I’ve Learned After 90…

Today the Godfather of newsletter writers, 90-year old Richard Russell, shares what he has learned after 90 years on this earth. The 60-year market veteran also covered gold, silver, deflation, Europe, Germany, the Fed, QE, the U.S. dollar and much more.

Safety Dan · Oct 28, 2014 - 7:14pm

A Sex Toy Company Is

A Sex Toy Company Is Marketing A Product 'Exclusively…

So this is apparently a thing... Swedish sex toy company LELO is marketing a new product "exclusively for bankers." That's right, it's for bankers only. Here's why, from the company: "Many bankers want more from their profession and their investments;…

Safety Dan · Oct 28, 2014 - 7:15pm

Energy Journal: A

Energy Journal: A Copper-Bottomed Strategy?

Talk about a strong market position: a single buyer has bought up over half of the copper held in London Metal Exchange warehouses.

Safety Dan · Oct 28, 2014 - 7:16pm

This Will Change The World &

This Will Change The World & Make Gold & Silver Prices…

Today an acclaimed money manager spoke with King World News about China’s increased move toward world dominance and why this will send gold and silver prices soaring. Stephen Leeb also spoke about the big picture for energy, Russia, the United States, and…

Safety Dan · Oct 28, 2014 - 7:17pm

Now is Not the Time to Let

Now is Not the Time to Let the Tyrants Break Our Will to Resist Attacking Our Liberties Overwhelming Us With Crisis After Crisis

By: realman2020

​To appease the Federal control freaks hoping the wolf will pass by you the door next time is not a solution. It is time to pressure the state and local governments to uphold the law of the land and interpose themselves between the people and an out of control government. It is time we demand state governments and local governments do their jobs instead of playing the go along to get along with the Feds.

Safety Dan · Oct 28, 2014 - 7:20pm
Safety Dan · Oct 28, 2014 - 7:20pm

Nomi Prins: Why the Financial

Nomi Prins: Why the Financial and Political Systems Failed

Nomi Prins calls out the policy error deluxe that has been the topic of so much commentary at Le Café over the past few years.

What is perhaps most striking is that this failure is so bipartisan in a time of contentiousness. It crosses not only parties but professions, from academics to politicians.

As you know I have featured several articles and videos of hers as she introduces her latest book, All the President's Bankers which is insightful, well-founded and researched, and essential to any understand of what is happening today.

As you know I have ascribed this to the credibility trap. Insiders never speak ill of insiders, if they which to remain a part of the power elite. This is reinforced in the Ivy League and the halls of power. And so leaders and potential leaders are hopelessly compromised and entangled in a self-serving system of abuse of power and corruption.

It is part of a general failure of moral conscience and leadership in the country. It has been or is being repeated in England and other countries in Europe. It is the reason for the long stagnation of the Japanese economy.

This is a very brief excerpt. You may read this insightful commentary in its entirety here.

"The recent spike in global political-financial volatility that was temporarily soothed by ECB covered bond buying reveals another crack in the six-year-old throw-money-at-the-banks strategies of politicians and central bankers.

The premise of using banks as credit portals to transport public funds from the government to citizens is as inefficient as it is not happening. The power elite may exude belabored moans about slow growth and rising inequality in speeches and press releases, but they continue to find ways to provide liquidity, sustenance and comfort to financial institutions, not to populations.

The very fact - that without excessive artificial stimulation or the promise of it - more hell breaks loose - is one that government heads neither admit, nor appear to discuss. But the truth is that the global financial system has already failed. Big banks have been propped up, and their capital bases rejuvenated, by various means of external intervention, not their own business models..."

Nomi Prins, Why the Financial and Political Systems Failed, and Why Stability Matters

Safety Dan · Oct 28, 2014 - 7:22pm

Julian Assange: Google’s

Julian Assange: Google’s Basic Business Model ‘Same as the NSA’s’Julian Assange: Google’s Basic Business Model ‘Same as the NSA’s’

In a conversation with “Imaginary Lines” host Chris Spannos, WikiLeaks founder and Editor-in-Chief Julian Assange discussed his new book, “When Google Met WikiLeaks,” which is based on a conversation Assange had with Google Executive Chairman Eric Schmidt.

Safety Dan · Oct 28, 2014 - 7:23pm
Safety Dan · Oct 28, 2014 - 7:26pm

     Why Do Banks Want Our

Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans

Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans

By Ellen Brown, Web of Debt —

While banks do not need deposits to create loans, they do need to balance their books; and attracting customer deposits is usually the cheapest way to do it.

 READ MORE 

Safety Dan · Oct 28, 2014 - 7:30pm

Okay, I was wrong, The United

Okay, I was wrong, The United States is not the wealthiest nation on Earth. It's 193rd!

America has been lured into living on credit for far too long. Great for the bankers but not for the people.

Safety Dan · Oct 28, 2014 - 7:32pm
LifeIsPain ancientmoney · Oct 28, 2014 - 7:39pm

A victim of colloidal silver: Rosemary's story

two women

© 1998 Chick Schwartz

The Silver Supplement Fraud

Guess who took the colloidal silver (CS)? Rosemary did. That's why she is slate-gray. The condition is called argyria. It is irreversible and cannot be covered by makeup.

Actually, Rosemary's doctor in New York prescribed CSP for her back in the fifties as a treatment for allergies. It was sold as a drug then. Today it is sold as a dietary supplement. You can find it in "health food" stores and on the Internet. You can even buy the equipment to make your own. It was snake oil when it was given to Rosemary. It is snake oil now.

The only thing Rosemary recommends CSP for is a gray skin dye. She knows that it is safe, effective, and permanent when used for that purpose. She also knows that being a gray person in a black and white world can have a serious negative impact on your social and economic life.

Promoters claim that CSP prevents and cures 650 diseases including Aids and cancer. They say that people with even a trace of silver in their bodies don't get sick!

Both Rosemary and the FDA have asked them for their proof. All they get are quotes from old quacks who manufactured the stuff at the turn of the century, misquotes from reputable authors and wonderful anecdotes. "I've taken it everyday for four years and feel great," the saleslady says.

The only problem Rosemary has with the anecdotes is that they are selectively chosen to sell CSP. The promoters refuse to include her negative anecdotes or those of all the other argyric people recorded in the medical literature. Rosemary had breast cancer at the age of 42. The silver in her body made her face so gray that the nurses in pre-op thought that she was in cardiac arrest! The promoters won't tell you this though.

The FDA has told the promoters that if they want to continue making medical claims for CSP they will have to first have it approved as a drug. Of course, that doesn't stop them from selling the stuff as a "dietary supplement." It just prevents them from legally writing their claims on the label or putting them in their ads.

And, oh yes, if you do decide to use CSP, have the product analyzed by an independent lab. According to the dietary supplement industry itself, a lot of the stuff tested that is labeled colloidal silver really isn't. You see "dietary supplements," thanks to intense industry lobbying are unregulated by any government agency. So very often what is on the label isn't in the bottle. In fact, what is in the bottle may even be something more toxic than CSP. Buyer beware!

P.S. Rosemary will gladly provide you with documentation and references. rosemary[at]rosemaryjacobs[dot]com (Just ask!)

Here's Rosemary's story in her words...

Copyright © 1998 Rosemary Jacobs


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Key Economic Events week of 12/17

12/17 8:30 ET Empire State Fed Manu.
12/18 8:30 ET Housing Starts and Building Permits
12/19 8:30 ET Existing Home Sales
12/19 2:00 ET FOMC Fedlines
12/20 8:30 ET Philly Fed
12/21 8:30 ET Q3 GDP final guess
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12/21 10:00 ET Personal Income, Personal Spending and Core Inflation

Key Economic Events week of 12/10

12/11 8:30 ET Producer Price Index
12/12 8:30 ET Consumer Price Index
12/13 8:30 ET Import Price Index
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Key Economic Events week of 11/26

11/27 9:00 ET Case-Schiller home prices
11/27 10:00 ET Consumer Confidence
11/28 8:30 ET Q3 GDP 2nd guess
11/28 10:00 ET New home sales
11/29 8:30 ET Personal Income and Spending
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Does Feb19 Comex gold close above $1250 on Friday?

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