International Forecaster November 2010 (#1) - Gold, Silver, Economy + More
By: Bob Chapman, The International Forecaster

 

Treasury Explains Why It Pausing Its Reduction In Auction Sizes (Hint: It Has To Do With QE2)

 

Back to Reality

Posted: Nov 03 2010     By: Greg Hunter      Post Edited: November 3, 2010 at 12:13 pm
Filed under: Greg Hunter, USAWatchdog.com
Courtesy of Greg Hunter’s USAWatchdog.com 

Dear CIGAs,
Now that the mid-term elections are over, it is time to get back to reality.  Just because House Minority Leader John Boehner is taking over for Nancy Pelosi as Speaker of the House doesn’t mean the economy will get better.  Yes, the Republicans can now, pretty much, put the kibosh on the Obama agenda with big victories in the House and Senate, but is that enough to turn things around?  In a word–no.
The economy is functioning so poorly the Federal Reserve has widely telegraphed it will start another round of Quantitative Easing. It has been jokingly called “QE2” by the financial press.  What is QE2?  It is more Fed money printing to finance the country and revive the economy.  This kind of QE has never been done before in human history on this scale.  How much money will the Fed print?  The consensus among many economists is $500 billion, but that is just a start. Yesterday, Reuters warned, “Fed Chairman Ben Bernanke has said long-term asset purchases are an effective way to lower borrowing costs when rates are near zero, but a program of this size and scope is untested and many worry further expansion of the Fed’s balance sheet sets the stage for inflation or another asset bubble.”  (Click here for the complete Reuters story.)  
The Fed will start small but leave its plan of action open-ended.  In other words, it will commit to print as much as needed to buy treasuries and mortgage-backed securities to get the economy going again. One senior currency trader at HSBC, Daniel Hui, said on Bloomberg last week, “We think the eventual expansion of QE could be as large as $2 trillion if the Fed is serious about preventing deflation.”  (Click here for the entire Bloomberg interview.)
Citywire, a British publication, is one of many media outlets reporting that Goldman Sachs wants twice that amount of QE.  It reports, “The bank said that based on its own analysis the Fed ought to pump in a further $4 trillion in order to achieve the monetary easing the economy needs. . . “  (Click here for the complete Citywire story.)  
Former Bush economic advisor Marc Sumerlin talked about the upcoming Fed QE about a month ago on CNBC, “To me, it starts to get interesting at six to seven trillion dollars,” Sumerlin said.  (Click here for the CNBC interview and my post called “Could a Dollar Crash Be Coming Soon?”)  
More…

 

Five Bitter Pills or One Sweet but Deadly?

 

Saxo Bank Joins Chorus Of Voices Calling For End Of The Federal Reserve

 

Treasury Refunding Statement Released: $32/$24/$16 Billion In 3/10/30 Years, $72 Billion Total, Puts Rand Paul On Collision Course With Debt Ceiling

 

Goldman Cuts Bank of America Price Target From $19 To $16 Even As It Continues Understating Putback Problems

 

Guest Post: The Fuzzy Logic Of Useful Idiots

 

Jim’s Mailbox

Posted: Nov 03 2010     By: Jim Sinclair      Post Edited: November 3, 2010 at 12:11 pm
Filed under: Jim's Mailbox

Technical Look At Silver CIGA Eric
Silver is battling with Fibonacci (Fibo) resistance around $25. Clearly a breach of $25 would suggest a sharp surge to the upper trading channel between $28 and $30. Expect the advance to slow at the next Fibo resistance level within the upper band. Any break and retest of the upper trading channel would support the onset of plateau move or higher-order trend acceleration to the all time highs over the short-term.
The unusual money flows in the silver market reflect a game in which the stakes have increased substantially. As the stakes of the game increase, expect volatility within the trend to increase as well. The increased volatility is certain to transfer more ownership from weak to strong hands.
Silver London PM Fixed:
More…




Dear Lt,
It looks like the banks are squirming as this gets worse and worse by the minute. No amount of QE will help these Main Street folks service their debt.
Best,
CIGA BT

Challenges await on document woes Associated Press
8:43 p.m., Thursday, October 14, 2010
LOS ANGELES | Lenders seized more U.S. homes this summer than in any three-month stretch since the housing market began to bust in 2006. But many of the foreclosures may be challenged in court later because of allegations that banks evicted people without reading the documents.
A total of 288,345 properties were lost to foreclosure in the July-September quarter, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service. That’s up from nearly 270,000 in the second quarter, the previous high point in the firm’s records dating back to 2005.
Banks have seized more than 816,000 homes through the first nine months of the year and had been on pace to seize 1.2 million by the end of 2010. But fewer are expected now that several major lenders have suspended foreclosures and sales of repossessed homes until they can sort out the foreclosure-documents mess.
On Wednesday, officials in 50 states and the District of Columbia launched a joint investigation into the matter.
More…