US GOVERNMENT SHUTS DOWN - 1,000,000 TO WORK WITH NO PAY - SILVER HITS

[volrathy]

the US government has so much gold. SO MUCH!

they could sell it to cover their debts.

I dont believe they have any gold. I think its all leased out. The only stuff left in their vaults is owned by other countrys and even then its just gold painted tungsten

 

[MrMango]

One would think that with all this talk of default, that the gold and silver price should go up.

Why? In USD maybe but if they can't raise the debt ceiling then they can't print more dollars. If they can't print more dollars then the same amount of dollars will be chasing the PM. Sure it can be driven away from other assets but the rocket ship we all wait on requires mass printing.

lack of confidence comes to mind as a reason.

A lack of confidence in gold at the moment has me a little stumped, I'm not shocked, but if I were a betting man I would have put money on it performing a little better recently.

Exactly what I meant. If other countries have a lack of confidence in the US$, ie. if it defaults. Then one would think they would be unloading US$ and debt now for what ever price they can get. Causing the gold and therefore theoretically the silver price to increase.

 

[Gunna]

the US government has so much gold. SO MUCH!

they could sell it to cover their debts.

I dont believe they have any gold. I think its all leased out. The only stuff left in their vaults is owned by other countrys and even then its just gold painted tungsten

I think they are claiming that whole 'possession is 9/10ths of the law' spiel.

http://nsnbc.me/2013/04/18/federal-...-audit-of-germanys-gold-held-in-u-s-vaults-2/

 

[Director]

http://www.zerohedge.com/news/2013-10-08/least-now-its-obvious-whos-charge

It's clear to everyone by now that the government of the largest country in the world is careening towards default in just over 200 hours.

Yet curiously, even though the US government's completely ridiculous, untenable fiscal situation is a front page embarrassment for the entire world to see, markets have barely budged.

A few very short-term rates have shot up, but for the most part, stocks are very close to where they were before the shutdown.

The US 10-year yield has actually dropped over the last month, from 2.95% in mid-September to 2.64% today pretty much where it was a week ago before the shutdown began.

(Bear in mind that the 10-year yield in Italy, Spain, etc. were all over 7% at the most recent peaks of their respective crises)

Meanwhile, other rates like the 30-year Treasury and 30-year fixed mortgage rates are even a hair lower than they were a week ago.

Where's the calamity? Where's the panic?

There's been almost none.

The conventional wisdom right now is that, since the government shutdown is reducing US GDP growth by approximately 0.1% per week, the Fed is going to keep printing money to the tune of $85 billion per month (or roughly $1 TRILLION annually).

Remember, at the beginning of the global financial crisis, the Fed had less than $500 billion in US Treasury securities and almost zero mortgage backed securities (MBSs).

Today, the Fed owns over $2 trillion of US government debt (a 4-fold increase) and another $1.3 trillion in MBSs.

They've completely mopped up every ounce of liquidity. And in doing so, they've twisted interest rates and manipulated every asset class from stocks to bonds to real estate to commodities along the way.

Stocks and bonds haven't moved because nobody cares what's happening in the US government anymore. And that's because every serious investor understands that the US government long since abdicated any economic power to the banking sector.

Everyone knows that the Fed is going to keep printing money, ergo they're going to keep sending markets higher.

The US government and the incompetent elected officials are just giant stooges in this deeply flawed monetary system.

And this debt ceiling charade only proves it. The secret is out there in the open. And now it's completely obvious who's really in charge.

 

[Pirocco]

the US government has so much gold. SO MUCH!

they could sell it to cover their debts.

I dont believe they have any gold. I think its all leased out. The only stuff left in their vaults is owned by other countrys and even then its just gold painted tungsten

Over the period 2011-2013(projected) central banks bought 1400 tonnes gold.
Over the period 1997-2010 central banks sold 5671 tonnes gold.
The 2 biggest gold Exchange Traded Funds with a physical stock:
http://us.ishares.com/product_info/fund/overview/IAU.htm 175 tonnes gold
http://www.spdrgoldshares.com/usa/#data 891 tonnes gold.
These ETF's were the biggest gold sellers of 2013, they sold many hundreds tonnes.
So actually, central banks were a, maybe THE, major price driver, they pushed the price down before 2011 and pushed it up after 2011.
What 'confidence' are we then talking about? The confidence central banks have in gold? Haha, they sell low and buy high. Their confidence is just irrelevant.

 

[Pirocco]

One would think that with all this talk of default, that the gold and silver price should go up.

People became smarter than trapping once again in a scaremongering story.
And that's good. Delivers more ounces until the next crisis / inflation wave.

 

[MrMango]

One would think that with all this talk of default, that the gold and silver price should go up.

People became smarter than trapping once again in a scaremongering story.
And that's good. Delivers more ounces until the next crisis / inflation wave.

Perhaps, although it seems to me everyone is on auto pilot. Shouldn't people be screaming from the roof tops, " The US is about to default, buy Gold"? I don't know it doesn't make much sense to me. Perhaps we will have to wait for them to default before price improvements. I just don't get it, every day a default looks more likely yet no movement in price.

 

[Yippe-Ki-Ya]

One would think that with all this talk of default, that the gold and silver price should go up.

Why? In USD maybe but if they can't raise the debt ceiling then they can't print more dollars. If they can't print more dollars then the same amount of dollars will be chasing the PM. Sure it can be driven away from other assets but the rocket ship we all wait on requires mass printing.

85 billion dollars per month not enough printing for ya?