Fed to Announce $20bn Taper to Begin in Sept, QE to End in June 2014

How it could be done it 3 simple steps;

CNN
Simples :lol:

 

What date will it be when Bernanke announces what he's really going to do.....I cant wait much longer?

 

Whenever he can be bothered... He's not attending Mr Jackson's Hole this year, a first for someone in his position for more than two decades. It's usually the platform for which he announces changes to the Fed's policies.

Some believe his absence and thus no keynote Fed speech means the chances of a change (ie taper announcement) are significantly reduced.

 

Bloody hell i'm over all this Fed Bullshit.....That fuckin Bernanke is a complete moron!

 

Bit of an update from only an hour ago at Jackson Hole......And Bens definitely not not there. Would'nt you think the moron would be there for his very last JH attendance.....somethings bloody going on and I don't like it!

http://economictimes.indiatimes.com...consequences/articleshow/22024695.cms?curpg=2

 

And a Bloomberg article in which some suggest the U.S economy is finally turning for the better.....Surely that will only be temporary for a few years until the money printing starts catching up with them?

http://www.bloomberg.com/news/2013-...year-high-on-fed-support-for-qe-tapering.html

 

Summers isn't there either and he's currently the favourite to take over Bernanke's role. They probably politely declined the invite with 'Nah, CBF'.

 

Freakin assholes screwing with everyones money and not even attending extreemly important meetings.

 

so please tell me WHAT WILL HAPPEN TO GOLD PRICE??? DOWN or up???

 

In theory gold should go down if the taper happens, but if this NATO gangbang happens with Syria then who knows

 

The taper to I infinity crowd got it way wrong as too have the hyperinflation crowd and the u.s. dollar collapse crowd. Movement out of sovereign debt will happen around the world including the u.s. but this is not the same as moving out of u.s. currency. Long term bonds are going to plummet in value which will increase yield. Only a brain dead central bank would be a guaranteed buyer once bonds collapse. It is the quickest way to lose a lot of money very quickly and it would be counterproductive.
Watch the u.s. dollar to see golds reaction. If it is still a negative correlation then the current war inspired price rise may be short lived. Gold has to be able to stand on its own as this will provide the confidence to slingshot to all new highs. If not, it will be resigned to behaving as expected for the near future. The u.s. dollar will be making all time highs soon enough so all will be revealed.

 

Bloody hell Tolly you got a good grip on whats really going on....Meanwhile i'm trying to make sense of what you just wrote?

 

In simple terms, the inevitable rapid rise in interest rates will crush bonds. Whoever has the bonds........well I will ask the question have you ever played the card game Donkey?......if you pay a thousand dollars for a bond with a 3% yield and interest rates go to 6%.....you will only get 500 bucks for it so that its yield will equal the interest rate if you sell it in the open market. The bond boom is over and the the start of the higher interest cycle is beginning already.....Asian countries have been forced to raise interest rates to stem capital flow......remember this key word.....capital flow...it is what is going to send the u.s. dollar to new highs...the u.s. stock market to new highs and crush sovereign bonds. Gold currently has a tendency to move in the opposite direction to the u.s. dollar so a rapid rise in the dollar at the moment would be very negative for gold. Understand that this relationship is not written in stone and that gold can and will rise with the dollar but the confidence has to be there. This confidence is difficult to measure so we must keep our eyes on the signs that those moving capital into gold are confident that it is in a genuine and strong bull market.
In time the u.s. dollar will falter after the other currencies have been through their worst nightmares and then gold will shine, as too will oil, gas coal, wheat, real estate etc, etc.......and so will inflation and so will unemployment......it will be a case of " they were the best of times, they were the worst of times".......it will all depend on where you stand. Those free of debt with savings and secure high paying jobs will find it much easier than everyone else.

 

I don't even have a job at the moment let alone a high paying one!