The Fed takes Action

RocketDogRocketDog Posts: 823 Silver ✭✭✭✭
The Fed injected $53 billion last night, and plans to inject another $75 billion tonight, and they will probably drop the rate today. Anyone see signs of stress in the US financial system? Gold and silver have not moved on this news yet...
https://www.marketwatch.com/story/wall-street-raises-questions-about-feds-late-action-on-funding-squeeze-2019-09-17

Comments

  • GoldNRollGoldNRoll Posts: 233 Bronze ✭✭✭
    This action shows the obvious. The entire economy is easy money addicted and each time it's low on drugs, it screams for more. FED tries to keep a balance between easy money overdose (hyperinflation) and cutting the drug (interst rates skyrocket). But they cannot prolonge it for too long.

    I bet on 15 August 2021, precisely 50 years after the end of Breton Woods, to mark the beginning of a new monetary system based at least partially on gold.
  • RocketDogRocketDog Posts: 823 Silver ✭✭✭✭
    I hope you are right!
  • RocketDogRocketDog Posts: 823 Silver ✭✭✭✭
    Economic/financial news continues to be scary. Although I have a nice stash of gold/silver, I am still getting quite nervous about things.
  • GoldNRollGoldNRoll Posts: 233 Bronze ✭✭✭
    @RocketDog What can be worse than loosing everything and starting from zero :smile:
  • RocketDogRocketDog Posts: 823 Silver ✭✭✭✭
    Death?
    Thank you @GoldnRoll. I feel much better now! :D
  • GoldNRollGoldNRoll Posts: 233 Bronze ✭✭✭
    I agree, loosing everything for ever is worst than loosing everything and starting from zero :wink:
    I only hope fiat money will die before me, I don't ask that much :blush:
  • IrishGuyIrishGuy Posts: 206 Bronze ✭✭✭
    @RocketDog I think you will be far better off than 99% of people who do not save in gold/silver.

    It is amazing to me that you can have Repo issues (dollar shortages) basically QE again, momo earthquakes and biggest oil processor attached and market, gold and generally every indicator yawn and say everything is fine.
    Personally I think @GoldNRoll is correct and will will wake up and find new system /money in place with some gold backing and value much higher.
    I think they will blame JPMorgan and others as to why they had to revalue gold and if the theory is true that Fort Knox is empty then JPMorgan is at fault for leading it and not returning it.
    I was in India when they got rid of 88% of the currency to replace it with a new notes if they can do that to 1.3billion then it can happen in US / Europe. No accident I think that Christine Lagarde got the job over ever other central banker in Europe and we have quite a few.

    While I hate being a bit of a conspiracy theorist, I think you will be fine compared to the other 99% who do not invest in precious metals, just keep stacking!
  • RocketDogRocketDog Posts: 823 Silver ✭✭✭✭
    Thank you @IrishGuy and @GoldnRoll for your wise words. I agree that a currency reset could be a good thing. But...

    I think we in the USA are so used to stability that the average citizen can't imagine something like a currency crisis. There is a lot of "that couldn't happen here" type of attitude. Most Americans have not traveled abroad and have not seen things being better or worse in other countries. So they have no frame of reference other than the status quo. Not to mention our media being owned by corporate interests and politicians. The media ignores or downplays all the negative economic indicators. So Americans don't hear about it, unless they are searching for the news in alternative media. I think that leads to a huge amount of denial and inertia. I have been talking to coworkers and friends about the coming financial crisis and they look at me like I have two heads. They have not heard anything about it from any other source.

    I don't think Americans will wake up to what is happening until the ATMs stop spitting out money. In Europe, you have either suffered already in 2008 or you watched a neighboring country suffer. So the warning signs are more obvious and meaningful to you. I spent time in Iraq, and know what a lack of security looks like. I am worried that my fellow citizens will lose their minds. It could be more like a zombie apocalypse than currency crisis. I guess I will just be hopeful that cooler heads will prevail. I now live in a small town with a good sense of community. So I think locally I will be OK. I think the cities could go crazy.
  • RocketDogRocketDog Posts: 823 Silver ✭✭✭✭
    Bad day for metals and XAUMF stock. Reality is completely unhinged.
  • GoldNRollGoldNRoll Posts: 233 Bronze ✭✭✭
    Yesterday: "The Chicago PMI business barometer dropped to 47.1 in September from 50.4 in the prior month, MNI Indicators said Monday. Any reading below 50 indicates worsening conditions. Wall Street had expected a reading of 50. The barometer averaged 47.3 in the third quarter, the lowest level since the U.S. exited recession in the middle of 2009."

    Today: "American manufacturers posted the biggest contraction in September since the end of the 2007-2009 recession, reflecting a slowdown in the U.S. and global economies made worse by a tense trade war with China. The Institute for Supply Management said its manufacturing index fell to 47.8% last month from 49.1%, marking the lowest level since June 2009. That’s when the Great Recession ended."

    Dow Jones Industrial Average
    INDEXDJX: .DJI
    26,650.89 −265.94 (-0.99%)

    S&P 500 Index
    INDEXSP: .INX
    2,949.93 −26.81 (-0.90%)

    Gold
    1,484.39
    +18.70 (+1.28%)

    GoldMoney Inc
    OTCMKTS: XAUMF
    1.65 USD +0.0100 (0.61%)

    All good for gold :smile: It was normal for some traders to take gains on the last day of month and Q.

    But more than anything, the stock prices and the gold price will be influenced by the next Trump tweet.

  • RocketDogRocketDog Posts: 823 Silver ✭✭✭✭
    Yes. I guess it is just taking a while for all of the reality to cloud people's perceptions. Good time to buy.
Sign In or Register to comment.