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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (20728)	1/7/2005 7:04:02 PM
From: JMK1	Read Replies (2) \| Respond to of 116555

Could we see a $4000 per oz. gold value in the next ten years. Here is an interesting read. It is from Nov. 2003 news.goldseek.com

To: mishedlo who wrote (20728)	1/9/2005 11:15:52 AM
From: russwinter	Respond to of 116555

<Heinz: "it sometimes buys longer dated paper in coupon passes (permanent additions to the money supply ). Not really a big factor in the bond market overall though - these buys are only operations aimed at influencing the level of liquidity in the domestic banking system. The Fed's balance sheet isn't a secret. you can look for yourself how many bonds they buy. no unusual monetization efforts in evidence thus far - of course that may happen at some point in the future, but it hasn't yet".> This commentary is about as much an altered reality as anything I can imagine! To avoid getting too lathered up, let me just address the monetization point. From 9-15 to 12-15 the Fed "bought securities" to the tune of $22,017 billion, or $1.693 billion a week. Annualized that's $88 billion. So they are directly debt monetizing about 20% of the US fiscal deficit, a remarkably high figure when you have foreign custodials (CBs) monetizing another $271.550 billion in the last year. By my pea brain math (271+ 88 = 359 billion) that suggests that virtually the entire US fiscal deficit is being directly monetized via the printing press, so please ask Heinz how he defines "unusual monetization effort"? financialsense.com Throw in the leveraged hangers on Caribean hedge fund crowd idorfman.com and you have a real witches brew if you think this is a real as opposed to a Soviet Union command and control market. Don't be to surprised if you wake up some morning to a real panic resulting in a bullet between your pocketbook and your ass if you are long this market: <you can look for yourself how many bonds they buy.> And yes by all means, look for yourselves Heinz and Mish: federalreserve.gov