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August 10, 2010 / Hal (GT)

Let the Quantitative Easing Continue.


The FED came out today and did… what exactly? Yeah. That’s right. Pretty much nothing. The reason I believe is that they don’t have any more rabbits in their collective debt ridden hats.

This morning one of the first things I did when I turned on my smart phone was point it at the real time stats page on Lear Capital for a quote on the gold spot price. Gold had slid slowly down below $1,200 over night. As I watched throughout the morning with the app on my desktop it pretty much followed that course till the FED came out with their decision to buy Treasuries with maturing mortgage debt. That”s when it spiked. And is currently trading at $1,205.60.

All that said, I’ve a few links to some worthy reads for you today.

This is a short must read: JESSE’S CAFÉ AMÉRICAIN | Why the Official Antipathy to Gold and Silver? The Second Oldest Profession

Every so often someone asks, ‘Why do the government and the banks manipulate the price of gold and silver?’

Next via Jim Sinclair: The Root Causes Of Hyperinflation

The main cause of hyperinflation is a massive and rapid increase in the amount of money, which is not supported by growth in the output of goods and services.

Another must read from Expected Returns: Gold: The Next 6 Months

During the Great Depression, massive capital flows into bonds preceded a major concentration of capital in gold. A global debt crisis forced FDR to devalue the dollar even though he maintained that he would not devalue. The dumb money believed FDR; the smart money anticipated the inevitable devaluation and accumulated gold.

This is telling for our economic future: Wal-Mart prices on the rise: JP Morgan study

Go read: Here are three pieces of data worth listening to that seem to proclaim the economy is still not on the mend.

Until next time.

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