Harvey Organ, Thursday, April 7 2011
Filed under: Jim's Mailbox
Bring on QE3! “We Can’t Afford NOT to Do More,” Romer Says CIGA Eric
Kick the can down the road to live another day or face the economic consequences here and now? The choice will be made to kick the can down the road when cries of “save me” intensify as an election year approaches. The only unknown is whether the decision will be made during a backdrop of calm or panic. Either way, Americans face a sharp reduction in the general standard of living as a consequence of the brewing debt crisis. This is ensured regardless of the political choices and/or rhetoric.
Headline: Bring on QE3! “We Can’t Afford NOT to Do More,” Romer Says
Frustrated by "the suffering of real families," President Obama’s former top economic adviser recently called for action: "If I have a complaint about policy these days, it’s that we’re not doing enough," Christina Romer said in a speech last month at Vanderbilt University. "I think there are tools we have tools we have that we can use, and I think it’s shameful that we’re not using them." (See: Former White House Economist Blasts Inaction On Jobs)
With unemployment still near 9% and the "real" unemployment rate at 15.7%, "we can’t afford not to do more," Romer tells me in the accompanying video. "For heaven’s sake with this many people unemployed — think of what it’s doing to government revenues and support payments. If all you’re worried about is the budget deficit, it’s really important" to put people back to work.
Source: finance.yahoo.com
More…
Posted: Apr 07 2011 By: Dan Norcini Post Edited: April 7, 2011 at 4:34 pm
Filed under: Trader Dan Norcini
Gold withstands minor raid/silver continues to advance
Posted: Apr 07 2011 By: Jim Sinclair Post Edited: April 7, 2011 at 4:30 pm
Filed under: Jim's Mailbox
Bring on QE3! “We Can’t Afford NOT to Do More,” Romer Says CIGA Eric
Kick the can down the road to live another day or face the economic consequences here and now? The choice will be made to kick the can down the road when cries of “save me” intensify as an election year approaches. The only unknown is whether the decision will be made during a backdrop of calm or panic. Either way, Americans face a sharp reduction in the general standard of living as a consequence of the brewing debt crisis. This is ensured regardless of the political choices and/or rhetoric.
Headline: Bring on QE3! “We Can’t Afford NOT to Do More,” Romer Says
Frustrated by "the suffering of real families," President Obama’s former top economic adviser recently called for action: "If I have a complaint about policy these days, it’s that we’re not doing enough," Christina Romer said in a speech last month at Vanderbilt University. "I think there are tools we have tools we have that we can use, and I think it’s shameful that we’re not using them." (See: Former White House Economist Blasts Inaction On Jobs)
With unemployment still near 9% and the "real" unemployment rate at 15.7%, "we can’t afford not to do more," Romer tells me in the accompanying video. "For heaven’s sake with this many people unemployed — think of what it’s doing to government revenues and support payments. If all you’re worried about is the budget deficit, it’s really important" to put people back to work.
Source: finance.yahoo.com
More…
Posted: Apr 07 2011 By: Dan Norcini Post Edited: April 7, 2011 at 4:34 pm
Filed under: Trader Dan Norcini
Dear CIGAs,
Click chart to enlarge in PDF format with commentary from Trader Dan Norcini
For further market analysis and commentary, please see Trader Dan’s website at www.traderdan.net
David Blanchflower, professor of economics at Dartmouth College and a former policy maker at the Bank of England, was on Bloomberg earlier, discussing the flawed ECB decision to hike rates by 25 bps, just a day after Portugal went bankrupt, and calling it quite right, "a pretty big mistake." Blanchflower understandably compares today's move to the ill-fated hike in 2008 when the ECB was forced to promptly reverse course and loosen substantially when the bottom fell out of the market, although in reality today's situation is nothing like 2008 when one accounts for the EFSF which is essentially a Central Bank within a Central Bank: a pseudo pre-funded SPV whose only job is to provide liquidity to those countries in the block who are insolvent (and in the process keeping peripheral inflation rampant), while at the same time tightening liquidity in the core. In essence the ECB has been split in two: a good central bank and a bad central bank. The problem is the funding for the bad central bank is contingent on Germany which is becoming increasingly disenchanted with the whole failed Euro experiment, yet which is unable to leave the EUR since the DEM would surge by orders of magnitude to account for the country's strong economy, thereby burying the export sector. That in a nutshell is the summary of the tensions in Europe. And yes, Blanchflower is spot on that this house of cards construct held together by spit, superglue and prayer will all fall apart very soon.
Click chart to enlarge in PDF format with commentary from Trader Dan Norcini
For further market analysis and commentary, please see Trader Dan’s website at www.traderdan.net
US Prepares Operation "Boots On The Ground" A/K/A "The Presidente Was Only Keeeding"
Submitted by Tyler Durden on 04/07/2011 18:27 -0400The natural step in the US-led invasion of Libya's oil fields, which could be seen from a mile away and as was discussed on Zero Hedge previously, is about to unfold with the proverbial silver-tipped bang. Courtesy of Army Gen. Carter Ham we learn that the Nobel war prize winner "may consider sending troops into Libya with a possible international ground force that could aid the rebels, the former U.S. commander of the military mission said Thursday, describing the ongoing operation as a stalemate that is more likely to go on now that America has handed control to NATO." Nothing like a little land war in Asia, er, Africa, to distract the peasantry from an insolvent government which can't legally issue any more debt on top. Make no mistake though - this is all about "humanitarian intervention."
Guest Post: Silver Is Getting Too Popular… Right?
Submitted by Tyler Durden on 04/07/2011 16:24 -0400It’s no secret that the silver market is red hot. As I write, silver American Eagles and Canadian Maple Leafs are sold out at their respective mints. Buying in India has gone through the roof, especially noteworthy among a people with a strong historical preference for gold. Demand in China continues unabated. Silver stocks have screamed upward. So, as an investor looking to maximize my profit, I have a natural question: is the silver trade getting too crowded, meaning we’re near the top? Have the masses finally joined the party such that we should consider exiting? After all, it’s not a profit until you take it, and you definitely want to sell near the top.
Former BOE Policymaker On ECB Hike: "Pretty Big Mistake" - Explaining The Irreconcilable Euro Tensions In One Paragraph
Submitted by Tyler Durden on 04/07/2011 16:14 -0400David Blanchflower, professor of economics at Dartmouth College and a former policy maker at the Bank of England, was on Bloomberg earlier, discussing the flawed ECB decision to hike rates by 25 bps, just a day after Portugal went bankrupt, and calling it quite right, "a pretty big mistake." Blanchflower understandably compares today's move to the ill-fated hike in 2008 when the ECB was forced to promptly reverse course and loosen substantially when the bottom fell out of the market, although in reality today's situation is nothing like 2008 when one accounts for the EFSF which is essentially a Central Bank within a Central Bank: a pseudo pre-funded SPV whose only job is to provide liquidity to those countries in the block who are insolvent (and in the process keeping peripheral inflation rampant), while at the same time tightening liquidity in the core. In essence the ECB has been split in two: a good central bank and a bad central bank. The problem is the funding for the bad central bank is contingent on Germany which is becoming increasingly disenchanted with the whole failed Euro experiment, yet which is unable to leave the EUR since the DEM would surge by orders of magnitude to account for the country's strong economy, thereby burying the export sector. That in a nutshell is the summary of the tensions in Europe. And yes, Blanchflower is spot on that this house of cards construct held together by spit, superglue and prayer will all fall apart very soon.
Lear Capital: The Future of QE and Gold
Submitted by Zero Hedge on 04/07/2011 15:46 -0400Everyday Congressman Paul Ryan steals a few headlines with his plan to balance the Federal Budget. Ryan's plan is to cut $650 billion a year from the deficit.
To get a better feel for what this really means, let's take a few steps back to the beginning of the credit crisis. To rescue banks and stimulate the economy, the budget deficit increased from $455 billion in 2008 to $1.416 trillion in 2009. This deficit funded TARP and a variety of stimulus efforts from Cash for Clunkers to Energy Efficient Appliance credits.
To get a better feel for what this really means, let's take a few steps back to the beginning of the credit crisis. To rescue banks and stimulate the economy, the budget deficit increased from $455 billion in 2008 to $1.416 trillion in 2009. This deficit funded TARP and a variety of stimulus efforts from Cash for Clunkers to Energy Efficient Appliance credits.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
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