Bernanke and the Federal Reserve 12.12.2012

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From Goldcore:

On Dec 12, 2012 the Federal Reserve took the bold, some would say reckless step, of linking its monetary policy to unemployment, creating concerns that the U.S. dollar will be debased even more in the coming months.

The US Federal Reserve will keep interest rates at close to zero until unemployment falls below 6.5%. This is a historic and very radical change to monetary policy. It is the first time a large central bank has ever tied its interest rate policy directly to one facet of the economy – unemployment.

The Fed said that

US Economy, Wealth Building Strategies

Buy Gold Into the Fiscal Cliff?

Gold begins to glitter. After breaking below $1,700, gold stages a strong comeback. And is there more pain in store for crude? A look at the trades, with CNBC’s Melissa Lee and the Money In Motion traders.

Review: What is the Fiscal Cliff?

The “fiscal cliff” is dominating the news right now. Federal Reserve chief Ben Bernanke coined the term to describe the potential recession-inducing scenario the U.S. is facing on Jan. 1, 2013, when the Budget Control Act of 2011 is scheduled to go into effect.

What is the fiscal cliff? It’s a more than $600 billion combination of tax

US Economy

Why the Fiscal Cliff is Good for Gold (VIDEO)

Would Resolution of Fiscal Cliff Drive Gold Prices Higher?

Midas Fund Portfolio Manager Tom Winmill on the factors that could boost the price of gold.

Why the Fiscal Cliff is Good for Gold

First and foremost, the fiscal cliff creates economic uncertainty. We’re already seeing that: Just the anticipation of the impasse in Washington has caused many businesses to freeze hiring and cut back on investment and expansion. Since time immemorial, gold has been a top safe haven investment during times of uncertainty and fear.

Secondly, if the tax increases and spending cuts occur, the U.S. will fall back into a

US Economy

Economic Realities of the US Economy (Charts)

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Conditions show weakness, not improvement. Soft-land enthusiasts face rude awakening challenges. Later in 2012 and especially 2013, expect tougher times to reshape their outlook. They’re always notoriously behind the curve.

Bad policy begets bad results. Force-fed austerity promises hard times getting nasty. In fall 2007, residential housing’s reversal shaped events going forward. administration policies have been spectacularly wrongheaded. Planned late year austerity when stimulus is needed will be disastrous.

Inflation is much higher than reported. So is unemployment, growing poverty, and public pain. At the same time, high food, energy, medical, transportation and other costs grow more unaffordable. Households with limited resources feel it most.Home prices haven’t stabilized. Meaningful job creation is moribund. Solutions for issues this important aren’t addressed. Rhetoric substitutes for sound policy.

The following charts display the economic realities looming in regards to the U.S. Economy.

Precious Metals Investing, US Economy

Chinese Group Buys 80% of AIG Plane Unit for $4.2 Billion

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Photographer: Ramin Talaie/Bloomberg

A Chinese group agreed to buy 80.1 percent of American International Group Inc. (AIG)’s plane-leasing unit for $4.23 billion in the nation’s largest acquisition of a U.S. company.

The International Lease Finance Corp. acquirers, led by New China Trust Co. Chairman Weng Xianding, have an option to buy another 9.9 percent, New York-based AIG said today in a statement. The transaction, which values ILFC at $5.3 billion, passes China Investment Corp.’s $3 billion purchase of a stake in Blackstone Group LP (BX) in 2007 as the biggest Chinese-U.S. deal.

A group of Chinese investors agreed to buy an

Precious Metals Investing, US Economy

Majority Doesn’t “Have A Right To Steal My Money Just Because They Voted For It” (Peter Schiff)

CNBC’s Eamon Javers reports the latest developments on “fiscal cliff” talks in Washington, and debating the financial benefits of raising taxes on the wealthy, with Peter Schiff, Euro Pacific Capital CEO, and Richard Brodsky, Demos senior fellow. PETER SCHIFF: First of all, I’m in the top two percent. Right now, I’m paying 45% of my total income in income taxes, both to the state of Connecticut and to the federal government, and if you take the 3% Medicare tax. After the tax hikes go into effect next year, more than half — more than half of my total income is going to go to the government. You tell me, what’s fair about that when

US Economy

2013 Silver Price Forecast: Silver Will Perform Like Gold on Steroids

The forecast for Silver is for the precious metal to set a a new all-time nominal price record, likely reaching as high as $54 an ounce. Despite silver’s dependency on gold, it does have some distinct fundamentals, too. Here are Peter Krauth’s, (Global Resources Specialist, Money Morning) key drivers for silver prices in 2013:

  1. The Gold/Silver Ratio: Before the financial crisis, the gold/silver ratio was around 50 (meaning an ounce of gold would buy you 50 ounces of silver) and trending downward. In late April last year silver exploded higher, pushing the ratio down below 30.

    That was short-lived, as silver’s dramatic rise was unsustainable. I had said so at the time. The ratio recently returned to a high level near 60. In 2013, look for the ratio to head back down again, meaning silver will rise faster than gold.

    On a long-term basis, I think we’ll see this ratio move down closer to 20. So right now, silver is looking rather undervalued relative to gold.

    2. gold-silver-price-chart-nov-2012

  2. Four More Years of Obama: The President has been very good for silver prices. In fact, he was so good, he
Silver as an investment