Gold is hitting a new high on the news and silver is also rallying.
Despite the recent significant correction in silver, the precious metal is still up over 25% this year. Silver has led the commodity bull market over the past couple of years, significantly out-performing gold. This sudden drop may be the beginning of a deflationary episode resulting from the Fed’s indication that QE2 will end in June. However, I do believe that any deflation will soon result in falling asset prices across the board, including housing and equities, as well as an increase in long term interest rates and more struggles in the employment situation. It is safe to say that the Fed will not allow that to go on for long. The only question is not will, but when will QE3 begin. In the mean time we can expect a consolidation in commodities over the coming months.
For the week ending April 23, 429,000 people applied for new unemployment benefits. This is a jump of 25,000 from the previous week. It is the highest total since January. The four-week average rose for the third straight time to 408,500. Economists – you know, the ones like Ben Bernanke – expected claims to drop to 390,000. Continue reading →
The dollar index hit a 15 month low today. Of course, that index is based on a basket of other “funny money” currencies. Measure against gold and silver – real money for most of history – it is hitting historic lows. Against gold it is at an all time low and a 31 year low against silver. Continue reading →
by Jan Lopatka And Michael Winfrey | RealClearMarkets | March 29, 2011
PRAGUE (Reuters) – U.S. policymakers may not be willing or able to wait for all global uncertainties to be resolved before they begin normalizing loose monetary policy, St. Louis Federal Reserve President James Bullard said on Tuesday. Continue reading →
The crisis in Japan continue to be the leading story.
- BBC: Japan earthquake: Meltdown alert at Fukushima reactor
- Wall Street Journal: Tokyo Shares End Day Down 11%
- AP/Yahoo: Stocks plunge as Japan nuclear crisis worsens
- CNBC: If Market Keeps Falling, Fed Will Keep Printing: ‘Dr. Doom’
The Street: Disinformation and Silver Confiscation: Opinion – A guest commentary discusses the manipulation in the silver market and possibility of silver confiscation by the US government.
Michael Pento: Interest Rates Are on the Launch Pad
Daily Caller: NPR board ousts CEO Vivian Schiller in wake of video sting – James O’Keefe of ACORN fame recently caught NPR execs on tape bashing conservatives. Also during that taped conversation, NPR execs suggested they would be better off without federal funding. Did you hear that Congress? NPR doesn’t want taxpayer dollars anymore, so please stop sending it to them.
Zero Hedge: Bill Gross Dumps All Treasuries, Brings Total “Government Related” Holdings To Zero, Flees To Cash – No QE3? – “… if Bill Gross, the most connected person to the upcoming actions by the Fed, believes there is no more quantitative easing, it is really time to get the hell out of dodge in all security classes – bonds, and most certainly, equities.”