Thursday, January 17, 2013

How Does the Fed Make Money?



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Top UBS Analyst Predicts Carnage For The US Dollar & Equities

from KingWorldNews:

On the heels of Germany looking to repatriate their gold, today King World News spoke with top UBS analyst Peter Lee about his rather frightening forecasts for the US dollar and equities. Interestingly, his call for the dollar to plunge comes right after Germany expressed that it wants its gold out of the Fed and back inside German vaults. If Lee is right in his outlook, this will have massive global ramifications. Lee also provided KWN with some incredible charts to back up his rather ominous predictions for both the dollar and equities.
Here is what top UBS analyst Peter Lee had to say, along with powerful charts: “We are nearing a couple of inflection points coming up in the markets. There is a distinct possibility that all of this converges in the upcoming two-year window between 2013 and 2014. This will be greatly impacting equities, bonds, and currency markets.
Peter Lee continues @ KingWorldNews.com


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McAlvany Weekly Commentary

Signs of Failed Leadership


About this week’s show:
-Debt economics 101 (actually 107)
-Asian and European transitions
-AB’E-nomics: Sumo monetary expansion

Read | Subscribe@iTunes


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Japan Godzilla, France the Next Greece Whilst US Plays Debt Crisis Games


by John Mauldin, The Market Oracle:
“There are decades when nothing happens and there are weeks when decades happen.” – Vladimir Ilyich Lenin
“People only accept change when they are faced with necessity, and only recognize necessity when a crisis is upon them.” – Jean Monnet
“If something cannot go on forever, it will stop.” –Herbert Stein
As we begin a new year, we again indulge ourselves in the annual (if somewhat futile) rite of forecasting the year ahead. This year I want to look out a little further than just one year in order to think about the changes that are soon going to be forced on the developed world. We are all going to have to make a very agile adaptation to a new economic environment (and it is one that I will welcome). The transition will offer both crisis and loss for those mired in the current system, which must evolve or perish, and opportunity for those who can see the necessity for change and take advantage of the evolution.
Read More @ TheMarketOracle.co.uk

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Why It’s Taking 7 Years For Gold To Be Returned To Germany


from KingWorldNews:
Today acclaimed money manager Stephen Leeb told King World News the reason Germany is only getting small portions of their gold sent to them over the years is because the gold is not at the Fed. Leeb also believes the United States is now running out of physical gold to sell in their price suppression scheme. Here is what Leeb had to say: “There are two main parties engaged in a battle for economic and monetary supremacy in the world. This is China vs the United States. Interestingly, at least for a period of time, both countries don’t want to see the price of gold take off.
The Chinese don’t want to see the price of gold take off because they still want to buy a lot of it. The Chinese took in at least 1,000 tons of gold last year, and maybe even more. This total represents Hong Kong imports plus their own production.”
Stephen Leeb continues @ KingWorldNews.com

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How Palladium “Fits” into the Coming Precious Metals’ ‘Dotcom Mania’



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The Greatest Resource Shortage You’ve Never Heard of

by Chris Mayer, Daily Reckoning.com:
Long-time readers know I like investing in food production. It’s a good place to be in general, for some simple reasons.
One of my favorites is to look at how diets have shifted over time. China, India, and the rest of the emerging markets have gotten a lot bigger in the last decade. They’ve gotten richer. As part of that, they are eating a more calorie-rich diet.
So, as these countries eat more calories, they will propel investment in agriculture and food production. There’s opportunity here.
Along those lines, as food prices continue to climb, the price of phosphate rock ought to follow. That’s because it is crucial to the world’s food supply, for which it serves as a fertilizer, and there is no replacement.
Read More @ DailyReckoning.com


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What Happens After The US “Default”?

from Zero Hedge:
Call it “X Date”, call it “D(elinquent/efault)-Day”, call it what you will: it is simply the day past which the US government will no longer be able to rely on “extraordinary measure” to delay the day of reckoning, and will be unable to pay all its bills without recourse to additional debt. It is not the day when the US defaults, at least not defaults on its debt. It will begin “defaulting” on various financial obligations, such as not paying due bills on time and in full, but since this is something Europe’s periphery has been doing for years, it is hardly catastrophic. It will hardly be pleasant, however, as some 40% of government obligations go unfunded, and the US is converted to a walking, talking bankruptcy as unsecured claimants rush to demand priority, as the market, long living on hope and prayer, realizes that only now is it truly without a cliff under its feet, and most importantly, as suddenly $500 billion in maturing debt between February 15 and March 1 finds itself in a very, very precarious position.
Read More @ Zero Hedge.com


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