As Silver Touches $34.90, US Mint Runs Out Of Bullion Blanks, Halts American Eagle Silver Coin Production

Submitted by Tyler Durden on 03/02/2011 09:45 -0500

The scramble for non-dilutable currencies hits a frenzy as silver just touches on a fresh 31 year high of $34.90. To commemorate this historic event, the US Mint has halted American Eagle silver coing production, in addition to its ongoing halt of American Buffalo coins: "because of the continued demand for American Eagle Silver Bullion Coins, 2010-dated American Eagle Silver Uncirculated Coins will not be produced. The United States Mint will resume production of American Eagle Silver Uncirculated Coins once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products."



Read this and learn how to protect yourself...Before it's too late... The clock is ticking...
The Silver Bullet And The Silver Shield   

Central Planning Pavlovian Reaction: Chairsatan Speaks -> Dollar Plunges

Submitted by Tyler Durden on 03/02/2011 11:01 -0500

Call it central planning's Pavlovian reaction: the Chairsatan is speaking, which leads to an immediate plunge in the dollar. And as the flight to safety trade now means dump the dollar, nominal assets benefit from the Bernank's third mandate: Russell 2,000 to 20,000, at about the same time as there are 20,000 representatives left of the US middle class.

Jan Hatzius Issues A Correction To Bernanke's Take Of The Goldman Analyst's Report

Submitted by Tyler Durden on 03/02/2011 10:00 -0500

During his presentation to the Senate yesterday (to be followed promptly by another presentation before Congress shortly), Bernanke discussed the impact of the $61 billion spending cut on GDP. In doing so he referenced a report published by Goldman strategists Jan Hatzius and Alec Phillips. He did so incorrectly. And the first thing Hatzius did this morning is to correct the Chairman: "Some have wondered—e.g. in the Q&A portion of Fed Chairman Bernanke’s monetary policy testimony on Tuesday—how such seemingly small cuts could have such a noticeable impact.  But it is important to remember that we are talking about a hit to the quarter-on-quarter annualized growth rate of spending here, not about a hit to the level of GDP.  For illustration, it is useful to go through a simplified version of the calculation underlying our estimates for the House-passed spending cut." Hatzius clarifies further: "We estimate that the $25bn cut in our budget projections reduces growth in Q2 by around 1 percentage point (annualized); this effect is already incorporated in our forecast that real GDP will grow 4% (annualized).  In addition, we estimated that the $61bn cut passed by the House would reduce growth in Q2 and Q3 by 1½-2 percentage point (annualized) in Q2 and Q3.  (In other words, relative to the assumptions currently embedded in our forecast, the House-passed package would imply an additional ½-1 percentage point drag on growth in Q2 and an additional 1½-2 percentage point drag in Q3.)  Spending would then be maintained at that lower level thereafter, and the effect on GDP growth would dissipate quickly in Q4 and would be essentially neutral by 2012 Q1." So perhaps the Chairman will keep this in mind as this report is surely reference once again today.



Silver Squeeze to Continue  

 

 

Libya Planes Fire Missiles On Oil Facility Port Town Of Brega

 

And Defense Secretary Gates Just Uttered The Magic Word...

Submitted by Tyler Durden on 03/02/2011 11:30 -0500

US Defense Secretary Gates says establishing no-fly zone for Libya would require an attack on Libya
As a result, the entire crude complex levitated higher as if HFTed by the Fed's POMO desk.