Wednesday, September 26, 2012

Oh the Web We Spin

Unless I'm missing something and the world is deleveraging faster than money can be printed, then we are all on course for a massive dose of price increases induced by inflating money supplies.

The implications of the QE to Infinity announcement two weeks ago is still filtering through the main-stream news and blogosphere. The general blogosphere opinion is this is the 'real' beginning of the end-game for the current monetary system. Will this be so? According to history, yes.

Will this time be different? Maybe. We, except the bankers, could all be missing the new, hidden policy that makes creating wealth from a stroke of an electronic pen somehow work. It never has in 5000 years, so lets hope there is a surprise.

Chris Martenson puts the current QE announcement like this:

"While the Fed can wrap this magic act in all sorts of covering language about dual mandates, maximum employment, and price stability, the simple fact remains that money printed out of thin air cannot, has not, and will not ever lead to prosperity.  How could it?  It arises without any effort at all, no work performed, no goods transformed or lives improved, no land planted and tended well, no services rendered, and no capital formed.  It is just conjured into existence.

It is just new money tossed after bad debts, with both remaining to work their different insidious effects on the economy and our daily lives.  If printed money could lead to prosperity, trust me – some culture would have worked it out long ago, because people every bit as clever and determined as those alive today (and with the same DNA software installed) have tried it again and again.

If it could work, then we should just print every household up a nice $1,000,000 check each year and let everybody stay home, take vacations, and drive nice cars.  It's just an absurd notion, and this is why you should keep a journal – you live in absurd times."


It seems rather obvious to me that this new money will cause price rises to key commodities and therefore hurt the pay-packets of the middle-class. Governments throughout history have always resorted to printing money as a form of stealth taxation. This time is no different, as there is no other choice for politicians.

So what happens to this extra money and how does it produce price rises? Well, the extra money is supposed to go into the US stock market and make people feel wealthier. But what if the stock market gets a severe jolt. Maybe a panic ensues for a myriad of possible reasons. What then? Where does this money flow? Into commodities, cash, gold, silver, houses? Who knows, but it probably will not be bonds, after all, how much more bubble pressure can sovereign bonds take before they explode leaving financial carnage for all to see.

Mr Bernanke has said he can 'mop up' this extra liquidity before it causes these sorts of massive price distortions. No on believes him, as it has never been worked before.

Inflation is simply an increase in the money supply. Price rises are caused by this money being let loose on a finite supply of 'things'. 'Experts' have said that QE will have no effect on the economy. They are right to a point. QE will not improve the economy, but it will have an effect. A most damaging one.

Oh the web we spin. Oh the mess we are in. The best way to protect yourself? Well, you know.

Gold in New Zealand dollars: $2142.75 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.06 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, September 24, 2012

Help With Gold Investing

You want to put some of your savings into gold? How much should you invest in gold? Should you buy gold and take delivery?

Here are 5 tips for the new Gold Investor.

1. How much should I invest in Gold?

This is a personal decision, but most commentators would recommend anything from 5 – 25% of your wealth should be in gold. It depends on how ‘bullish’ (or brave, or trusting in paper) you are.

Gold is an insurance for the bad times. Primarily an insurance against bad government. In the second world war, and other conflicts, many displaced people had much of their wealth in gold and actually carried their gold out with them when they had to leave countries. Will society ever break down like this again? Gold also has no counter-party risk. If you have it, then you own it

Gold will never go to zero value. Many other investments have that possibility.

2. How much gold bullion should be in my possession and how much in a vault?

It is sensible to have some physical gold bullion in your possession. The ratio is yours to decide. Small gold bars and gold coins are the best option. But remember that small gold pieces hold a large premium over spot price, so don't get too much. Buying large amounts form bullion companies and having it stored is the cheapest option. Perhaps around two months supply of gold is a good idea. You may even require it to purchase a fare out of your current location to another country.

For bullion storage I recommend The Anglo Far East Company. This company matches your gold investment with the actual physical gold. It is custodial, allocated gold and silver. You own it, they don't. It is a highly personalized, white glove service and has a minimum purchase amount. Their gold never leaves the LBMA good delivery system and can be transacted on anywhere in the world.

3. Where do I store my physical gold bullion?

Most people buy a safe and install it in a secure place in their home. Some put it in paint tins in their shed (but don't let anyone else clean out your shed!!) Others put gold into Bank Deposit boxes. Or you can split between the two. Remember it may be difficult to get YOUR gold out of a bank deposit box. Authorities can seize these boxes.

4. When do I sell my gold bullion?

Gold is very liquid and can be quickly sold in times of monetary stress. If you are looking at gold as an investment, then look at some of the better commentators on the internet for advice of when to sell. There are experts that will give this sort of advice for a fee. A well known gold company will tell their paid subscribers 24 hours after they have personally sold their precious metals.

5. Who will accept my small gold pieces when I need to trade them or sell them?

Most bullion dealers will be happy to buy pure gold. Also, in times of financial collapse gold will be acceptable as money to most people in exchange for goods or services.

In New Zealand we have little understanding of the world of gold. Those from Asia and the Middle-East and Eastern Europe have such a history. I suggest they would readily exchange goods and services for gold and silver.

(article repeated and updated from April, 2011)

Gold in New Zealand dollars: $2138.17 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.21 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, September 21, 2012

Quantitative Easing 8 and Remote Islands

Today, I draw your attention to two Ambrose Evans-Pritchard stories out of The Telegraph today. One looks at the fermenting problems between China and Japan over the Senkaku/Diaoyu Islands and the other a look at QE8 from Japan.

Not many of these events occur in isolation, it is just a matter of connecting the dots.

China, Japan and the world’s Agadir Crisis (1911)

Japan launches QE8 as 20-year slump drags on.

Gold in New Zealand dollars: $2134.53 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.82 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, September 19, 2012

Creative Schemes and Theft

What is the best way to get rid of onerous debt? If you are a banker that is?

First you dream up some wondrous scheme and give it a fancy-pants name. Names like, Quantitative Easing, Operation Twist, MBS buy-backs, blah blah.

You also have the option of pretending that the assets on your balance sheet have meaningful values. All you do is simply leave those values at what you bought them for or what you think they may be worth. Market value? Not on your life, that would look something like the truth. Pretend you have collateral.

But then again, I may be missing something. Theses deep minds in control of our hard earned wealth must have our best interests in hand? Yeah, right.

Of course the one aspect of all this money printing they don't tell you is who gets to use the money first. You see, having first use of new money, created out of thin air, is the best world you can live in. Before the money units get out there and cause higher prices, and they always do, you get to buy up assets at low and even distressed prices. Put it this way, you get to steal other people's wealth and they don't even know you are doing it.

This is why owning precious metals and other commodities, puts you as close to the 'new money' that you could possibly be. Not to steal wealth, but to maintain your own.

Then there's financial repression. Another brilliant phrase to redefine the word 'theft'. This is where your savings get pummeled with low deposit interest rates and the costs of goods and services increase by a greater amount than those deposit interest rates.  Of course this is why the Fed, the ECB and China, are buying their own government bonds. To keep interest rates low.

So have a think about this when next time someone (who should know better) tells you that holding physical gold and silver is high risk. Think, "increasing precious metals prices as money is printed and no counter-party risk" and rest assured.

Gold in New Zealand dollars: $2141.82 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.07 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, September 17, 2012

The Call to Print Getting Louder

The call today has gone out for New Zealand to start printing money.

Imports are cheap right now, but exports are suffering. Our competitiveness is hitting all-time lows.

But money printing for us may not have the desired effect. Confidence in a 'little' New Zealand dollar would not take long to disappear. New Zealand does not have the firepower to make a long-standing difference in huge money-markets. After all, New Zealand needs capital to rebuild Christchurch and to fund our deficit. Attracting that capital with higher interest rates is crucial. Right now we are stuck between a rock and a hard place

Those private interests, who lent money to us over the past ten years of profligacy, would not be happy campers if suddenly our dollar, and their investments, suddenly dropped through the floor in value.

Not happy indeed. This is mainly why the Government is holding back on money printing. Allowing private interests their day in the sun. Namely, a chance to grab assets of value before they disappear.

Maori aren't 'getting it' yet either. Water, air, these all mean nothing for ownership when we are already owned by those whom we borrowed from. If Maori want to grab ownership, using some reinterpretation of the Treaty, then good luck, there are far greater forces at play of which they have no control.

Money printing is not the answer, it sucks the wealth from savers, mainly the elderly.

Then again, once the tipping point is reached, we may not have a choice. Make sure you are protected.

Gold in New Zealand dollars: $2136.22 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.84 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, September 14, 2012

Money Printing to Infinity

How can we say this any different than, "This is it, money printing forever."

Now infinity is a large amount. Thinking about the concept of infinity has been known to drive people insane. Literally. Infinity has no end. Before this fiat party ends, many will not only be insane, but very angry. The riots you see in Egypt today will be a childrens party in comparison.

This latest round of stupidity has these main takeaway headlines (courtesy of ZeroHedge):

*FED TO KEEP POLICY STIMULATIVE FOR `CONSIDERABLE TIME'
*FED WILL ADD TO PURCHASES IF LABOR MARKET DOESN'T IMPROVE
*FED DOES NOT SAY WHEN MBS PURCHASE PROGRAM TO END
*FED TO BUY $40B MBS MONTHLY, CONTINUE `OPERATION TWIST'
*FED TO BUY MBS, EXTENDS ZERO-RATE POLICY INTO 2015

OK, so the Fed says it is for a 'considerable time'. Not really infinity. But in monetary debasement terms, a considerable time is long enough to destroy a currency. Just ask Germany in 1923.

Make no mistake, this is the end of fiat currencies as we know them. The $40 billion per month headline limit will be but a reference point and will shift upwards as quick as you can say 'inflation' or 'deficit'. Much like the German Constitutional court ruling that Germany will have an upper limit of €190 billion. Yeah, right...

There's a certain book, that has been around a while, that states, "Claiming to be wise, they instead became utter fools". OK, so give them some slack, what are they supposed to do. Remember the French King Louis XVI in 1789, he couldn't stop the runaway revolution train that was heading for him. He had to play with the cards he was dealt with. Likewise, Mr Bernanke has been dealt a set of cards called the fiat money system that was previously destroyed by Mr Greenspan. What's the poor man to do?

The NZD has also risen today on this news. That's a good thing if you hold wealth in NZ dollars. But New Zealand can't hold on much longer in this worldwide 'race to debase' and must decrease the value of the NZ dollar before export receipts get annihilated.

Fun times. Got gold and silver?

Gold in New Zealand dollars: $2125.72 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.75 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, September 13, 2012

What is Your Financial Breaking Point?

For those of us fortunate enough to have been born at a time of relative peace and prosperity, we find it difficult to make a mind-shift to a time when growth and abundance may not be the norm.

This article reminds us that we should have a plan in place to provide a way forward for the point at which our finances cannot meet our immediate needs.

Here is the article:

"Many people realize that the financial situation in the U.S. is deteriorating, yet these same people continue on with their daily lives assuming things will get better or will not affect them. Those that still have a stream of income are in much better shape than many but they have not thought about the reality of losing that income and what will follow. Those that have lost their income but still have sufficient savings to live on have not thought about the day when that money runs out and what will follow"...more here

Gold in New Zealand dollars: $2111.11 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.54 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, September 12, 2012

The Shrinking Purchasing Power of the Dollar

Think carefully about what this graphic may mean for you. This from www.wholesalegoldgroup.com

Click here for larger copy

Gold in New Zealand dollars: $2119.68 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.92 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, September 11, 2012

House Prices in New Zealand v Gold - August, 2012



As placed against gold ounces, house prices increased slightly in value. For Auckland house prices, it takes about 1 oz of gold more to buy a house in August compared to July. Prediction, based on precious metals prices stagnating over winter and now increasing, house prices are likely to deteriorate significantly against gold in September

Gold in New Zealand dollars: $2133.97 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.22 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, September 7, 2012

The Echoing Green

The Echoing Green by William Blake

The Sun does arise,
And make happy the skies.
The merry bells ring,
To welcome the Spring.
The sky-lark and thrush,
The birds of the bush,
Sing louder around,
To the bells cheerful sound.
While our sports shall be seen
On the Echoing Green.

Yep, happy days are here again. It's green all over the markets as prices rise; stock markets, precious metals, commodities. Risk is on, the birds are somehow 'louder around'.

Last night, there was a leak that Mr Draghi of European Central Bank fame, was to announce unlimited bond buying for cash strapped European countries like Spain and Italy. On this leak, up went precious metals.

Well, the leak was proven correct. Mr Draghi wants to wrestle control of European interest rates. So what's a Central Banker supposed to do? You got it, the only thing they can do, manipulate what is supposed to be a free bond market. Crank up the digital printing presses and buy as many bonds as necessary to halt those pesky bond interest rates from rising further and causing a catastrophic default event.

But there is a little hitch coming. Germany. Maybe this is why gold and silver showed a measured increase. The Germans vote on September 12 to agree or not to agreee to these bailouts. This could decide the fate of the whole of Europe. Then, of course, there is the counter-fire expected from the US Federal Reserve, as the Euro cannot be allowed to fall too far, hurting US exporters. 

But markets have liked what they see, so far. Spanish bond yeilds have already fallen. This could be it, this could be the answer to all our economic ills. We might all be wrong about money printing.

But then, William Blake ends his poem thus:

Till the little ones weary
No more can be merry
The sun does descend,
And our sports have an end:
Round the laps of their mothers.
Many sisters and brothers,
Like birds in their nest.
Are ready for rest;
And sport no more seen,
On the darkening Green.

Gold in New Zealand dollars: $2123.05 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.82 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, September 6, 2012

Another Non-event on the Road to the Inevitable

One constant about the European situation over the last two years is there's always another "critical" moment just around the corner to deal with. It reminds one of the old 'cry wolf' story. Do it once, just once, too often and your dead.

Anyway, here's a few quotes from news sources today around the coming ECB (European Central Bank) announcements tonight:

"U.S. stocks were little changed on Wednesday, with investors reluctant to make big bets ahead of a crucial meeting of the European Central Bank, which could announce new policies to help contain the euro zone's debt crisis.

Central Bank sources told Reuters the ECB was ready to waive seniority status on government bonds it buys under a new program which it is set to agree on at Thursday's Governing Council meeting.

Bloomberg earlier reported that the ECB would, with broad support from its council members, unveil an unlimited, sterilized program of bond purchases. The ECB has been expected to be cautious about disclosing the size of its bond-buying, given opposition from Germany's central bank.

Further details of the plan will be revealed by ECB President Mario Draghi after Thursday's meeting, but some analysts cautioned the ECB may opt to wait until after the German constitutional court rules on the region's bailout funds on September 12 to announce any new steps."

Ho Hum, just another non-event on the road to the inevitable. Who in their right minds would trade in markets like these?

Lastyl, for your further reading, look at this article on the current discussion around the gold standard returning.

Gold in New Zealand dollars: $2130.33 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.60 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, September 4, 2012

$16 Trillion and Counting..and That's Not the Deficit!

This is turning into a farce. At least for those who can see it. The Fed waxes elegant about the need for more ' financial accommodation' while surreptitiously printing money in proportions that would make the mafia blush.

Here's the latest report by an official US Government agency, the GAO nonetheless, about the Feds actions from 2007 to 2010.

While this report is scary in itself, what has been going on since?

Anyway, there is no doubt the "QE or not to QE" merry-go-round has been but a smokescreen for this horrendous exponential inflation of the money supply.

Wikipedia says, "The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for Congress. Often called the "congressional watchdog," GAO investigates how the federal government spends taxpayer dollars."

Here's a section from page 125 of the report:

"The Federal Reserve Board did not fully document the basis for its decisions to extend credit on terms similar to those available at PDCF to certain broker-dealer affiliates of four of the primary dealers. In September and November of 2008,

"However, to fulfill its statutory requirement under the Emergency Economic Stabilization Act of 2008 to publicly report on the justification of each action taken under section 13(3) of the Federal Reserve Act, the Federal Reserve Board included short descriptions of these exceptional credit extensions ...and did not provide complete explanations of how these exceptional credit extensions satisfied section 13(3) criteria."

In other words, the Fed was in such a panic, it didn't do the right thing and detail where the huge amounts of money was going and why.

Also, in a September 21, 2008, the Federal Reserve Board could not provide documentation explaining why these extensions were provided specifically to affiliates of these four primary dealers.

What!?

Furthermore, the Fed didn't understand what they were dealing with:

"FRBNY (New York Fed) hired vendors to help manage the complexities associated with its assistance to individual institutions and its interventions in new markets, such as the markets for commercial paper and asset-backed securities."

Great, that makes us all feel confident the bank of bankers knew what actually went on in the derivatives market.

Now here's the clincher, You may have thought that the Fed was allowed to bailout those big banks to the tune of $700 billion, that being TARP. You know, the urgent funds debated in a weekend during the crisis of September 2008.

Well, think again. While you were going about your normal work from 2007 to 2010, the Fed was passing out $16 trillion, yes you saw right, $16 trillion to large banks and their subsidiaries. Now if that doesn't make your hair curl, nothing will. And, it's not over.

As has been said before, the exponential rise in money supply will last but a brief moment, and then the system will die.

Here's the table from page 130 of the report:



Got gold and silver - physical?

Gold in New Zealand dollars: $2122.65 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.26 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, September 3, 2012

Pouring Money Down the Jackson Hole

The US is running huge trade deficits. That is they sell less to the world than they buy. Surprised? The strong dollar doesn't help this situation one bit. With the Chinese currency and the Euro getting weaker, the deficits just continue to get worse.

Jackson hole was a bit of a fizzer as far as the QE expectations were concerned. Bernanke didn't really say anything different, just that he said it again. Number three count by my reckoning. Words like, "We will accommodate if necessary." Meaning; you didn't hear me before, hear me now, money printing is actually inevitable folks, so get speculating now and stimulate the economy! Meanwhile, I'll pull the dollar lower so you can sell your stuff to Europe and get more money.

Bernanke has decided to take the dollar lower and to help the US and help Europe.

So the currency wars continue. The race to the bottom is quickening. Little old New Zealand though is caught in the middle once again. Our high interest rates attracting hot money flows (carry trade) from all over. But this isn't likely to continue once fund managers realise that all currencies are getting trashed.

Then, as now, watch out for the gold price to strengthen considerably as everyone heads for the currency exit.
Gold in New Zealand dollars: $2106.08 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $39.52 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________