Mar 11

The Treasury Auction Shell Game

By Peter Schiff, Euro Pacific Capital, March 18, 2011

Very few people have either the time or patience to sift through the data released by the Treasury Department in the wake of its bond auctions. But the numbers do provide direct evidence of the country’s current financial condition that in many ways mirror a financial shell game that typifies our entire economy.  Continue reading →

Mar 11

Guest Post: Tic Data that Makes you Nervous

By: Michael Pento, Euro Pacific Capital
Tuesday, March 15, 2011

One has to wonder how many more blows the U.S. Treasury market can withstand. We all are aware of the inflation created by Bernanke’s Fed. And we are also painfully cognizant about the exploding burden of U.S. debt. Those two factors alone will help usher in dramatically higher interest rates in the months and years to come. But in recent days there has been even more fuel dumped upon the pyre of burning Treasuries.  Continue reading →

Mar 11

Morning Roundup – March 10, 2011

Mar 11

Ben Bernanke Admits US Monetary System is a Fraud

In the very short clip below, you will hear Ben Bernanke admit that there is no need to have a multi-trillion dollar national debt in order for us to have a currency.

For the uninitiated, our currency – the US Dollar – is nothing more than a note issued by the Federal Reserve in exchange for interest bearing debt – Bonds, Notes and Bills – issued by the US Treasury. The US Treasury is part of the federal government and thus owned and controlled – in theory anyway – by the citizens of the United States.  The Federal Reserve is NOT part of the government.  The Federal Reserve is a private banking system owned by it’s member banks.  As the quip goes, “The Federal Reserve is no more federal than Federal Express.”  Continue reading →

Mar 11

Morning Roundup – March 9, 2011

CNBC:  Welfare State: Handouts Make Up One-Third of U.S. Wages

CNSNews:  U.S. Treasury Drew Down Its Cash Balance by $81.6 Billion in Just First 4 Days of March

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.”

MarketWatch:  US Stocks Edge Lower; Bull Market Reaches Two-Year Anniversary

Mar 11

Silver and Gold up, Stocks and Dollar down

Silver rallied hard today, jumping over 3%.  At the time of this writing silver is trading at $35.60, another post-Hunt high.  Gold also moved up about $11 today.

Stocks on the other hand were down.  The major indices were down about to a point and half for most of the afternoon until regaining some ground in the last half hour of trading.  The Dow closed down 0.72%, the S&P500 down 0.74% and the Nasdaq down half a percent.  Continue reading →

Mar 11

Treasury Issues Updated Debt Limit Projections

From treasury.gov:

– Today, Mary Miller, Assistant Secretary for Financial Markets at the U.S. Department of the Treasury, issued the following update regarding the projected dates by which the United States will reach the statutory debt limit:  “The Treasury Department now estimates that the United States will reach the debt limit between April 15, 2011 and May 31, 2011. As announced at the February Quarterly Refunding, Treasury will update this projection at the beginning of each month.”

The prior month’s report suggested that the breach would occur ten days earlier.  Ahh, a little breathing room.

Feb 11

February Market Summary

Despite volatility in the face of unrest in the Middle East, stocks showed notable gains for February.  The Dow Jones saw a 2.8% gain holding above 12,000 for most of the month.   The S&P 500 showed a gain of 3.2% and only dipped below the key level of 1,300 twice.   The NASDAQ Composite ended the month 3% higher.  According to the Wall Street Journal, this is the best February for the indexes since 1998.  It is also the the third month in row that gains were posted.  In my view this is a continuing correction in a long term bear market.  I don’t suspect it will last much longer before equity prices resume their broader decline.  Continue reading →