Stocks, Gold, Silver, and the printing press.

[smokingman]

What company is up over 40% since 2010,has a market cap of 751 million,and had revenue of over 1.9 BILLION last year ?

Why Maiden Holdings Ltd.The Federal Reserves step child(along with Maiden 2,and 3).

To bad you can not print money,or you to could have this kind of "success" earnings growth last year 60%,this year 78.24%.

MHLD - Maiden Holdings Ltd Stock quote - CNNMoney.com

 

[smokingman]

Thanks to the Frank Dodd financial reform act the Federal Reserve has been paying banks interest to park money at the FED(likely in an effort to curb inflation)for several years now.In 2008 banks made around 16 billion from this interest.

How times have changed.The banks are looking at 77 billion in profit per year by the feds high estimate from interest as they have parked nearly 100% of all reserves at the FED.

So in addition to the 85 billion per month,4 billion per day,or 13 dollars a day per man woman and child in the USA.You can add another 77 billion the fed just printed out of thin air to enrich the TBTF banks and bankers.

Fed Seen Paying Banks $77 Billion on Reserves: Chart of the Day - Bloomberg

But hey the DOW is near record levels right?

 

[teddy12b]

But hey the DOW is near record levels right?

On a brighter note, I think when we look back at today's spot prices for gold & silver we will wonder why we didn't buy more than what we did. Today the spot price for silver is less than $24 per ounce. The fed's printing of money is only growing and the bubbles continue to rise. I'm buying silver today (and probably tomorrow too), you all can do what you want.

 

[smokingman]

On a brighter note, I think when we look back at today's spot prices for gold & silver we will wonder why we didn't buy more than what we did. Today the spot price for silver is less than $24 per ounce. The fed's printing of money is only growing and the bubbles continue to rise. I'm buying silver today (and probably tomorrow too), you all can do what you want.

Silver has lost more as a percentage than it did in the Hunt crash,and that took a week.This was in two days.It is the greatest paper smack down in history.But try and buy physical at these prices lol.AMEX website will not even load for me.It is on sale for sure.Over 400 tons of paper gold where sold on Friday,I can not imagine what the volume will be today.

It is funny though.COMEX has circuit breakers for every commodity set at 4%,yet silver is down over 11% today and trading has not been halted for even a second.Rigged paper market to be sure.

Long term I see this as a great sale price for physical,if you can find any.

 

[teddy12b]

Silver has lost more as a percentage than it did in the Hunt crash,and that took a week.This was in two days.It is the greatest paper smack down in history.But try and buy physical at these prices lol.AMEX website will not even load for me.It is on sale for sure.Over 400 tons of paper gold where sold on Friday,I can not imagine what the volume will be today.

It is funny though.COMEX has circuit breakers for every commodity set at 4%,yet silver is down over 11% today and trading has not been halted for even a second.Rigged paper market to be sure.

Long term I see this as a great sale price for physical,if you can find any.

If it makes you feel any better the APMEX.com website is moving really slow right now. I think precious metal junkies across the nation are jumping on this.

 

[smokingman]

The Japanese 10 year note is earning .58% right now.Can you imagine what this is doing to retirement funds,hedge funds,and anyone holding them?They have had to stop trading in YEN 9 times in the last 6 days due to the announcement of the bank of Japan DOUBLING the money supply in 2013.

I think this is a big part of the gold,silver,and commodities crashing(oil is down to 87 a barrel as I write this).If you force margin calls by lowering the value of a tier one asset,in this case Bonds of any kind based on the YEN money has to be raised somewhere to meet those calls.So you see massive selling of commodities driving what the money printing was trying to prevent...deflation.

Then of course doubling the money supply by a central banks might lead to unintended consequences.To hold this house of cards up much long the FED will have to spend more than the current 85 billion per month,or we could possibly see deflation.I expect the fed to come in shortly and either make Maiden Lane 4 to try and soak up some stock,or to openly print more money and buy anything not nailed down.

 

[smokingman]

Thursday morning humor/horror from the G20 summit.

Group of 20 nations will affirm a commitment to avoid weakening their currencies to gain a trade advantage, ...February pledge to “move more rapidly toward more market- determined exchange rate systems and exchange-rate flexibility” and to refrain from competitive devaluations.

Lew yesterday urged G-20 officials to maintain a pledge to refrain from influencing exchange rates at the expense of other countries, saying Japan’s recent policies align with the pact. Carney also said that Japan’s measures are consistent with the G-20’s goals and are positive for Canada’s economy.

ROFL.Yes doubling your money supply(Japan announced they where doing this a few weeks ago) in less than 12 months to create artificial inflation and give you are trade advantage are aligned with refraining from competitive devaluations....rofl.

I guess in that case the 85 billion per month in devaluation from the FED is aligned with the G-20 police also.But why stop at 85 billion a month,that is not even going to keep pace with deflation during this stage of the collapse...but they have a plan for MOAR rofl..."The U.S. and Japan will be asked to set out “credible” plans for medium-term fiscal consolidation, while acknowledging that scope exists in the U.S. to “provide more support for economic recovery.”

Unlimited QE is not enough....we must run the press(computers)faster.So QE1.5(still active currency swaps with billions daily),QE 2.5(Using existing maturing debt to buy more debt ...still active)and QE3(85 billion a month...forever)is just not enough stimulus.

Perhaps the FED should start giving taxpayers money?If they split up what they have given the banks since 2008 and give it to taxpayers it would be right at 3 million per person if you include only those who pay taxes.If you include everyone well you would get a check for around $800,000(even the kids).

What do you think should we write to the FED and tell them to double down,only this time send us the money instead of the banks?I do not think they will listen since the FED is owned by the bankers....oh well.Guess they should give the banks another 15 trillion and interest up front and maybe 150 billion per month then everything will be fixed.


G-20 Draft Affirms Pledge to Avoid Competitive Devaluations - Bloomberg

 

[smokingman]

Swiss National bank changes the banking act of 1934,and puts all depositors as liable for bank rescue funds.

Straight from the Swiss National bank website.
Schellenberg Wittmer - 2013-02: Loss Absorption and Bail-in for Swiss Banks

In the event that a bank is failing or where its capitalization is no longer adequate, the Swiss Financial Market Supervisory Authority ("FINMA”) may take measures to improve such bank’s financial viability rather than liquidating it. “Loss absorption” and “bail-in” are important instruments to support anysuch measures. This is now possible as a result of a revision of the Banking Act of 8 November 1934 (the “Banking Act”) in 2011 and the taking effect of a revised Bank Insolvency Ordinance on 1 November 2012 (the “Bank Insolvency Ordinance”) and of a revised Capital Adequacy Ordinance on 1 January 2013 (the “Capital Adequacy Ordinance”).

So much for a safe currency to store wealth in.

 

[Trigger Time]

Swiss National bank changes the banking act of 1934,and puts all depositors as liable for bank rescue funds.

Straight from the Swiss National bank website.
Schellenberg Wittmer - 2013-02: Loss Absorption and Bail-in for Swiss Banks

In the event that a bank is failing or where its capitalization is no longer adequate, the Swiss Financial Market Supervisory Authority ("FINMA”) may take measures to improve such bank’s financial viability rather than liquidating it. “Loss absorption” and “bail-in” are important instruments to support anysuch measures. This is now possible as a result of a revision of the Banking Act of 8 November 1934 (the “Banking Act”) in 2011 and the taking effect of a revised Bank Insolvency Ordinance on 1 November 2012 (the “Bank Insolvency Ordinance”) and of a revised Capital Adequacy Ordinance on 1 January 2013 (the “Capital Adequacy Ordinance”).

So much for a safe currency to store wealth in.

So for my dummy brain is that the equivalent to the FDIC saying our money in u.s. banks is no longer protected?

 

[smokingman]

So for my dummy brain is that the equivalent to the FDIC saying our money in u.s. banks is no longer protected?

Much worse actually.
It would be like the FDIC saying if a bank fails or is in trouble and may fail the depositors money can be used to "bail in" the bank.
It is exactly what happened in Cyprus.The deposits where used to pay creditors(mostly derivatives)and loans(the largest amount of money was given to the IMF,the second largest sum was given to the EU central bank).

In short the Swiss are now saying if you bank makes a bad investment,you are liable and your deposits will be used to pay to keep the bank solvent or to pay creditors.

Our government here has already publicly supported such measures,and I am sure it is only a matter of time before any legal issues are swept aside and we get a bail in plan as well.

 

[Trigger Time]

Wow this is Definitely a sign of bad things to come. I'm seriously just wondering when the day is gonna come that I go to the bank and its locked with a sign on the door saying out of business.

 

[deal me in]

Depositors paying for failed banks is better than taxpayers. People need to realize that a bank doesn't lock your money up in the vault, they loan it out and invest it. They can and will take losses from bad loans and bad investments. This belief that you should be able to get paid savings interest with no risk is ridiculous. With current interest rates and monetary policy there is no reason to have a large personal savings account. Just keep enough in the bank to cover immediate expenses. If you're a small businees owner and you have to keep a large balance for payroll or other expenses then do your due dillegence and open an account at a conservative, responsible bank.

 

[smokingman]

4/23/2013
Something odd is going on this morning.I have watched currencies,commodities,and stocks for years.Through the last few years most all major moves have been caused by the FED.

This morning I have no clue what is going on.It is like every commodity is being sold short.Premarket Stock Trading - CNNMoney Look at the electronic trading.There is not a single one up EVERY single one is down.While this would not be odd if the Dollar was up,this is the first time I have ever seen it with the dollar DOWN.It is down against every currency but one the British Pound.It is even down vs the Yen.I have no idea how we can be down against the Yen given Japans central bank doubling the currency in circulation by the end of the year.

Seems like someone out there really wants to cause deflation.Why else would everything be sold short when the Federal Reserve is adding 4 billion a day,85 billion per month to the money supply?

It takes quite a bit of money to short one commodity,much less all of them.It does not make sense,unless you want the illusion of deflation so you can increase "stimulus" to "create inflation".

Lets wait and see if the Fed steps in to add additional stimulus to QE 1.5,currency swaps,and QE3...my guess is we will not have to wait long.
*Edit. 10:48 am 4/23/2013.
Just a list of new 52 weeks lows.Cooper(3.09),Gas(2.69),Platinum(1436),sugar(17.44).Most everything is down though.Natural gas is up(.14%),as are livestock(.7-1.4%).
On a side note.The BLS is changing the way it calculates GDP.The new method will add roughly 3% to total GDP figures.US GDP Will Be Revised Higher By $500 Billion Following Addition Of "Intangibles" To Economy | Zero Hedge

 

[smokingman]

One of the best articles I have read in a long time.It makes some great points,and clearly explains how normal rational humans would view the world as it is today.It also has something lacking in most articles I have read recently....facts,not biased or steered to an agenda just information for a rational mind to digest.


Guest Post: Abnormalcy Bias | Zero Hedge

 

[smokingman]

Most who see what is going on in the stock market assume the FED has a direct role in purchasing equities,which would technically be against the Federal Reserve charter and illegal.

We know they can create a company out of thin air and purchase equities through it(Laiden Maine 1,2,3,and 4 so far PUBLICLY).I just read an article that may shed a little more light on another way they can purchase equities,and it is apparent they are using this method as well.
Here is the article.
Central Banks Load Up on Equities - Bloomberg

So of the top 60 central banks in the world(by net worth)a full 23% have directly purchased equities.Most central banks have laws to prevent a central bank from doing this by creating money.In other words they can not create money to just dump on the market.There is a loop hole,rather a giant black hole in the laws though.Currency swaps.They legally can and do swap currencies with each other on a regular basis.The Federal Reserve has increased swap lines by over 800% since 2008 by their own figures.

So the Fed sends Federal Reserve notes(digitally created out of thin air) to say Canada in return for Canadian dollars(also created digitally and out of thin air).Both central banks have no law that limits what they can invest foreign reserve assets,and according to the Bloomberg article fully 23% of the central banks in the world own equities,ie stocks.

Need to prop up a market without directly using your own balance sheet?How do you buy billions in stocks,when legally you can not just create the money to?Simple.Swap currencies with another central bank and call them foreign reserves and those reserves have no legal barriers as to how central banks invest or "save" them.

Makes it pretty clear why the Fed has increased currency swaps by such a huge percentage yes?The Fed says they have increased the swaps to "stabilize" markets and because of the increasing demand for dollars.I say BS it is being done to buy equities.

Well done central bankers,and I hope someone is investigating this.

 

[smokingman]

4/29/2013
Perth Mint Works Through Weekend as Gold Demand Surges on Price - Bloomberg

"Coin sales by the U.S. Mint are set for the highest month since December 2009, while premiums to secure supplies in India rose to five times the level before the slump. We haven’t seen levels like this since the 2008 global financial crisis,” Currie said yesterday. “Compared to March sales, April sales have doubled or tripled,”


"The U.S. Mint said on April 23 it suspended sales of coins weighing a 10th of an ounce after demand more than doubled from a year earlier. The mint has sold 209,500 ounces of gold coins so far in April from 62,000 in March, according to data compiled by Bloomberg. The U.K. Mint said purchases tripled in April"
“We worked all weekend to keep the factory running to make more stock and that was only to fill orders,” Currie said from the facility founded in 1899. “We’re being inundated with people buying products.”

 

[smokingman]

Consumer spending up by .2% this quarter and incomes where up by the same .2%.Most every category of consumer spending goods,durable goods,and non durable goods where actually down for the quarter.Leaving just two categories that increased.Personal consumption and services.

Breaking down the increases services showed an almost 1% increase while personal consumption was up .14%.So are people spending more on massages,eating out,and insurance(all categories in services).Not really,the bulk of the increase was in just one item,house hold utilities.House hold utilities had a slight increase in the quarter up 42% by BLS government figures.

So yes consumer spending is up.Good thing consumer spending does not include gas or food right?Other wise consumer spending would be up 6-9%.

How is that recovery?....but but....the Federal Reserve says there is no inflation.

Link to data,graphs,and a further break down of the BLS report.
"Freely Traded Markets Are An Anachronism; Fundamental Rules No Longer Apply" | Zero Hedge

 

[smokingman]

• *DRAGHI SAYS ECB HAS OPEN MIND ON NEGATIVE DEPOSIT RATE
• *DRAGHI SAYS WILL COPE WITH NEGATIVE CONSEQUENCES IF WE ACT

ECB "Technically Ready" To Ask Depositors To Pay Banks For Holding Their Money | Zero Hedge

 

[GodFearinGunTotin]

• *DRAGHI SAYS ECB HAS OPEN MIND ON NEGATIVE DEPOSIT RATE
• *DRAGHI SAYS WILL COPE WITH NEGATIVE CONSEQUENCES IF WE ACT

ECB "Technically Ready" To Ask Depositors To Pay Banks For Holding Their Money | Zero Hedge

OK Smokingman--You'll have to clue me in on what this means. Normally graphs that move in a negative direction over time are bad. But I'm not sure what the implications or impacts of this news means.

 

[smokingman]

OK Smokingman--You'll have to clue me in on what this means. Normally graphs that move in a negative direction over time are bad. But I'm not sure what the implications or impacts of this news means.

The Euro lost value when compared to the Federal Reserve note(quite a bit for such a short time period).
The German bond yield went negative as a panic to find a "safe" asset was sought.Would you keep money in your bank if you knew ahead of time they where going to charge you interest(on top of the possibility your deposits would be used to bail out their mistakes)?So many in the market went to German 2 year government notes it drove the yield into negative territory(for only the second time in history).
In short the EU banking crisis just got new legs as depositors(especially large ones)flee the system ahead of negative deposit rates.As I said if you found out your bank was going to start charging you interest on your deposits would you leave your money in the bank?