Bill Gross' Explains The FOMC Decision: "QE 2.5 Today, QE 3, 4, 5 … Lie Ahead"

Why Did Silver & Gold Just Spike Higher, You Ask?

When the world’s financial system is hanging by a thread, the Corporatocracy can always count on Uncle Ben for a seemingly endless supply of free money.
The Federal Reserve just extended its (unconstitutional) pledge to keep interest rates outrageously low through 2014, as Mark Gongloff at WSJ puts it, “long after the scheduled Mayan apocalypse.”
So expect more of the same. Artificially low interest rates, which will allow the Congress critters to borrow and spend in perpetuity. The agenda here is to keep the Ponzi going at least until the November election.
For those of you who are new here, that means keep stacking physical silver and gold because the world’s printing presses just got greased.
You can read Mark Gongloff’s article “Fed on Hold Til Two Years After Mayan Apocalypse, Markets Cheer“, here.




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Fed Slashes Growth Outlook, Six Fed Officials Do Not See Rate Hike Until 2015

This is just getting better and better:

• FOMC: 2012 GROWTH AT 2.2%-2.7% VS 2.5%-2.9% IN NOV. FORECAST
• ELEVEN OF 17 FED OFFICIALS SEE MAIN RATE ABOVE 0.25% IN 2014
• SIX OF 17 FED OFFICIALS SEE NO RATE INCREASE BEFORE 2015
• FOMC DOESN'T SET SPECIFIC LONG-RUN GOAL FOR EMPLOYMENT LEVEL

Japan is now seriously blushing. As for the reality of the Fed's forecasts, they are absolutely worthless, so no point in even spending one minute on them.

New "Stolper" Is Out, Says To Go Bullish EURUSD, With 1.29 Stop

The one we have all been waiting for. Stolper about to be 9 out of 9 with a 0.000 hit rate.

Goldman Stolpers Clients Again, This Time With Short Bond Call

Goldman does it again. Whereas the exploits of one Tom Stolper are well known, and frankly much expected by the general community due to his infallible advice and 100% inverse track record, we did not realize just how pervasive his M.O. was within the broader firm. Now we do. As a reminder, on Monday Goldman came out with a recommendation to sell the 10 Year. "We are now of the view that a break to the upside, to 2.25-2.50%, is likely and recommend going tactically short. Using Mar-12 futures contracts, which closed on Friday at 130-08, we would aim for a target of 126-00 and stops on a close above 132-00."" This naturally generated a healthy dose of skepticism by Zero Hedge: " As a reminder, don't do what Goldman says, do what it does, especially when one looks the firm's Top 6 trades for 2012, of which 5 are losing money, and 2 have been stopped out less than a month into the year." Sure enough, anyone who did the opposite, i.e. buying the 10 year, has now returned +1.48% in three days. Goldman: always working for the client.

Spain Is Now Officially Europe's Broke(n) Gramophone

It was only yesterday that we noted that Spain (and its 23% unemployment) had tipped its cards to expose its utter desperation, when its PM basically begged for a Euroepan bailout. As a reminder, his words: "We support a rescue mechanism, the bigger the better, for it to act as a dissuading element for certain things that we've been going through lately," Rajoy told reporters after meeting his Portuguese counterpart, Pedro Passos Coelho." Certain things such as... a collapsing economy and the threat that neighbor Portugal may soon be in freefall bankruptcy? That said, we have no clue how to describe the escalation that just took place as Spain has once again indicated it is not only on the ledge, but one foot now off it. It probably is a gramophone (it's like an iPod only not made by children). Just not sure if Broken or Broke is the right adjective.

• Rajoy Says Spain Wants Europe Rescue Fund to be Bigger

The MF Global Bankruptcy Filing: Did the Regulators Sell Out the Public for JP Morgan?

more »

Gold Chart -

Trader Dan at Trader Dan's Market Views - 1 hour ago

Gold shattered overhead resistance near $1680 and has continued higher as momentum based buying is coming in driving out panicked shorts who were hoping for a halt in the advance to occur as the market encountered bullion bank selling originating at $1680. The FOMC made that a mirage as a zero interest rate environment for the next two years means an environment in which it pays to own gold. The yellow metal pays no interest but at this point, neither do short term Treasuries and those offer no protection from currency induced price increases. Just look at what is occuring across the... more » 

 

FOMC to MARKETS - "WELCOME TO THE PARTY"

Trader Dan at Trader Dan's Market Views - 1 hour ago

Or in the words of Captain Jack Sparrow. "Drink up me hearties". The FOMC just gave the green light to every hedge fund manager between here and the planet Mars to cram every bit of leveraged funds they can borrow or beg into the commodity sector and the equity markets. Gold soared through overhead resistance at $1680 as if it was non-existent. Silver shattered $32.50 rebounding over $1.50. Crude oil is now back over $100 and gasoline just soared another $.05/gallon. Gasoline prices alone have now rallied 40 cednts a gallon since November. Get ready for more pain at the pump. Here w... more » 

Watch Bernanke's Press Conference Live

Because live is better than dead. And just in case he lets one slip just what his price target for the Russell 2000 (aka the US GDP) is and how much gold the Fed will secretly lease. As a reminder, from Alan Greenspan testimony to Congress in July 1998: "Central banks stand ready to lease gold in increasing quantities should the price rise."

Obama’s State of the Union Address Registers at 8th Grade Reading Level

[Ed. Note: As has been so often discussed here at SGTreport, the reason you might be having a hard time engaging your neighbors, friends and colleagues in meaningful conversations about the Federal Reserve system, monetary policy, tyrannical legislation, the burgeoning police state and unconstitutional wars of aggression - is because the majority of Americans is now functionally illiterate.]
by Byron Tau, Politico.com:

President Obama’s 2012 State of the Union address again rated at an 8th grade comprehension level on the Flesch-Kincaid readability test — the third lowest score of any State of the Union address since 1934.
The University of Minnesota’s Smart Politics conducted an analysis on the last 70 State of the Union addresses and found that President Obama’s three addresses have the lowest grade average of any modern president. “Obama‘s average grade-level score of 8.4 is more than two grades lower than the 10.7 grade average for the other 67 addresses written by his 12 predecessors,” they conclude.
“The Flesch-Kincaid test is designed to assess the readability level of written text, with a formula that translates the score to a U.S. grade level. Longer sentences and sentences utilizing words with more syllables produce higher scores. Shorter sentences and sentences incorporating more monosyllabic words yield lower scores,” the University of Minnesota’s Eric Ostermeier explains.
Read More @ Politico.com

John Embry: Fiat Currency System Meltdown Has Huge Implications for Gold and Silver

While not something he wants to see happen, Sprott Asset Management’s John Embry says, he can’t see the global financial situation improving, which has bulilsh implications for gold.
by Geoff Candy, MineWeb.com:
GRONINGEN – The 12th year of gold’s bull cycle could well be the best to date for the yellow metal, if Sprott Asset Management’s John Embry is correct.
Speaking on Mineweb.com’s Gold Weekly podcast, Embry said, “If the economies are as damaged as I think they are, particularly in Europe, (I don’t think they are as good in China or the US as they are trying to crack them up to be)…. I think gold and silver prices could conceivably see the biggest percentage gains this year that they’ve had in the entire bull market”
He says, although he doesn’t want to be right, he can only see two realistic scenarios – both of which are bullish for gold. If the world stops supporting the debt in the system, the global financial system will face a hard deflation event, or he says, the continued creation of debt will result in mounting inflation down the road.
Read More @ MineWeb.com




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