Tag Archives: Federal Reserve

Fed Lies & Propaganda Won’t Stop Gold & Silver Rise

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In the aftermath of continued propaganda from the Federal Reserve, today King World News spoke with one of the top economists in the world about what the Fed is really planning.  Michael Pento spoke candidly about the frightening situation the US faces and how the Fed is trapped, despite mainstream media and Fed misinformation.  

Pento:  “Bullard said that any exit would start probably within the next several months at the earliest.  And that’s if it was the result of stronger data.  The data I see is very, very weak.  We had a Non-Farm Payroll report that came out last month which showed that aggregate hours worked were down.

Goods producing jobs lost 9,000 jobs.  So the economy is very weak.  Regional manufacturing surveys are very weak.  There is no reason for the Federal Reserve to take away the punch bowl….

“The stupidity of the Federal Reserve is so blatant here.  In 2007 the Federal Reserve took interest rates to 5 1/4%, and the economy cratered because we had $48 trillion in debt, and a Debt/GDP ratio of 353%.  Interest rates rose and the economy cratered.

We were entering a Great Depression.  Bernanke lowered interest rates to 0%, and debt increased all the way up to $54 trillion.  So why would anybody believe, Mr. Tepper or anybody else, that if the Federal Reserve stopped buying all of our issued debt, if they started to raise interest rates and unwound their balance sheet, and rates went anywhere near 5%, why wouldn’t the same thing happen again?

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/22_Fed_Lies_%26_Propaganda_Wont_Stop_Gold_%26_Silver_Rise.html

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The Fed Destruction & A Cascading Panic Among Investors

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On the heels of continued propaganda from the Fed today, 40-year veteran, Robert Fitzwilson, wrote the most extraordinary piece for King World News.  Fitzwilson, who is founder of The Portola Group, discusses the tragedy of what is unfolding and how key markets are responding such as gold and silver to the ongoing drama.

Below is Fitzwilson’s exclusive piece for KWN:

Fitzwilson:  “Whether intended to be so or not, today was the equivalent of the stress tests that the Federal Reserve and their counterparts overseas conducted on banking institutions.  It was the markets instead which were tested this time.

Early into the trading this morning, Chairman Bernanke suggested that it was too dangerous to tighten monetary policy.  His comments caused equities and precious metals to soar and U.S. Treasury interest rates to decline.  His words suggested more printing, more asset purchases and continuing inflation of the stock and bond bubbles….

“Subsequent to those comments, Chairman Bernanke then suggested that the so-called “tapering” of quantitative easing could also be on the table.  Stocks and precious metals sold off, and interest rates spiked higher.  The range for the Dow Jones Industrials was almost 300 points on the day.

For gold and silver, the spread was $60 and $1.14, respectively.  Brent crude oil also had a wild ride during the day, ranging between $103.79 and $102.22 per barrel.  The most interesting market move today was for many of the gold and silver mining companies.  There were very strong performances.

We also had the release of the minutes for the Fed Open Market Committee meeting conducted on April 30th and May 1st.  The views expressed at the meeting were at times dovish and others were hawkish.  This too caused more turmoil in the markets, with the Dow Jones, gold, silver and oil all finishing near the lows.  Interest rates closed near the highs as fixed income sold off.  One observer said that the Chairman had an insurrection on his hands.  Maybe, maybe not.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/23_The_Fed_Destruction_%26_A_Cascading_Panic_Among_Investors.html

Gold Is Getting Slammed Now

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However, it didn’t take long for everything to head back down in the other direction when the question was put to Bernanke: could the Federal Reserve begin tapering back its bond purchases by Labor Day?

Bernanke didn’t rule it out as a possibility as long as there was enough improvement in the economic data to warrant such action.

This isn’t inconsistent with anything that the Fed has said before – bond buying will scale back when the Fed thinks the economy can finally handle less monetary stimulus – but markets took this as an opportunity to sell off.

And gold keeps heading lower. It just edged down a bit more with the release of the minutes from the FOMC‘s April 30-May 1 monetary policy meeting.

Now, the shiny yellow metal is trading 1.5% lower on the day, at levels around $1357.