Skip to comments.Gold, Bernanke, The Debt Ceiling Monologue And Dien Bien Phu
Posted on 10/07/2013 10:49:24 AM PDT by whitedog57
Ben S. Bernanke, the worlds most-powerful central banker, says he doesnt understand gold prices. If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011.
Bernanke, who holds economics degrees from Harvard College and the Massachusetts Institute of Technology and led the Federal Reserve through the biggest financial disaster since the Great Depression, told the Senate Banking Committee in July that nobody really understands gold prices and I dont pretend to really understand them either.
Central banks, which own 18 percent of all the gold ever mined, will add as much as 350 tons valued at about $15 billion this year, the London-based World Gold Council estimates. They purchased 535 tons in 2012, the most since 1964. Russia is the biggest buyer, expanding reserves by 20 percent since prices reached a record $1,921.15 an ounce in September 2011.
LOL! Nobody understands gold prices, but Central banks are hording it anyway!!!!
Lets help Professor Bernanke out. From Q4 2008 and the announcement of Quantitative Easing, gold prices shot up (white line). They continued to rise until QE3.
Once QE3 was announced in September 2012, gold prices fell (red box). They then stabilized when The Fed signaled tapering the purchases (yellow box)
Why did gold tank to badly with the advent of QE3? One reason is that Central Bankers were going wild buying gold then slowed. So, it wasnt so much about QE3, but rather an end to the voracious hording by central banks.
But will the debt ceiling crisis cause gold to skyrocket? Again?
President Obama has signaled that he will not negotiate with Republicans on the budget, Obamacare or the debt ceiling. He demands a full surrender and then he will negotiate.
Speaking of unconditional surrenders, the North Vietnamese General Giap who got the French to unconditionally surrender to his forces at Dien Bien Phu passed away recently. Maybe General Giaps spirit of destroying his enemy now rests with Obama and Harry Reid.
Say what you want, THOSE guys did all the dying over there!
He doesn’t understand the money supply or the fact that keynes was always wrong.
So are we the French in this case?
They never followed or understood Keynes anyway.
Keynes theory was temporary deficit spending to stimulate growth then a return to fiscal responsibility.
These idiots believe in deficit spending forever which Keynes warned against.
They believe in his formulas... example his prediction of x dollars of growth per x dollars of spending... it never works.
But if you are going to implement his theories you had better understand them and implement them as he wrote them.
Short injections of liquidity to stimulate growth and then back to fiscal austerity and repayment of the debt. Keynes did not believe in long term debt.
No, but those that worship at his alter do and that’s the problem.
another thing that kept gold prices down during QE3... was the selling of gold in the US by jpmorgan that continued until they were tapped in late July/ early August
expect it to continue to push as that supply is gone
How much did they sell? How do you know?
pretty much all f it
All the gold in the world? Wow!
all of their supply, roughly 2billion
2 million ounces, not 2 billion.
sorry, been starring at debt numbers all week... millions seem like pocket change and billions just roll off the keyboard
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