Opening Bell: Markets rally on QE3 expectations

Opening Bell: Markets rally on QE3 expectations

business.financialpost.com

Here is a look at what markets were doing on Monday, August 22:

The Dow Jones gained 189.96 points, or 1.76%, to 11,007.61
The S&P 500 gained 21.81 points, or 1.94%, to 1,145.34
The Nasdaq gained 48.67 points, or 2.08%, to 2,390.51
The S&P/TSX gained 179 points, or 1.50%, to 12,187

But while stocks rallied, so did gold. Gold prices gained US$30.20 to reach a new record of US$1,882.50 an ounce, continuing the precious metal’s blistering rise in recent weeks. The price of gold is up mo

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Related AboveTopSecret.com Discussion Threads:
Wall Street Aristocracy Got $1.2T in Fed Secret Loans

I've been talking about this the last few days, and this is another chance to devalue the dollar and send the price of gold skyrocketting so that it can be later crashed.

Beware, this is outright theft and we have already experienced a recent release proving that Ben Bernake is just that, a theif in the night.

He hid the balance sheets from 2007 to 2010 where at it's worst, there were $1.2 Trillion in secret loans on the Fed's Books.

Welcome to the Weimar Repulbic of the US! Strap In!

business.financialpost.com
(visit the link for the full news article)

reply to post by sbctinfantry

SBC, I have a serious question that has bugged me since the first QE went into effect. The markets are world wide, of course, and operate by millions of trades coming from all over society, right? So, when it is apparently so obvious to us that Q.E. is just another flood of funny money that further dooms our system, how is it the markets react so well?

Is this really just very short term thinking and a rush for profit or COULD there be another factor entirely that some of us are missing in thinking this story can't end OTHER than a crash at this point? I can't see what I'd be missing, but I can't help but feel that wiggle of doubt as I keep watching the markets and others behave 180 degrees away from how I'd expect?

After reading your posts this afternoon, including some past ones, you seem a good one to ask on this. I'd feel a bit silly if I were the only one confused by this aspect of whats happening around us...but surely I can't be.

reply to post by sbctinfantry


Please forgive my ignorance, but would you be so kind as to explain how the price of gold can be simply elevated and dropped to cause a collapse specifically here in the US, while almost everyone else in the world considers it of immense value as well? In order to do such a thing wouldn't a solitary group have to have enough of it to make it seem nonexistent within the market? And in order to devalue it, would they not have to increase the supply of it?

reply to post by sbctinfantry

I've been talking about this the last few days, and this is another chance to devalue the dollar and send the price of gold skyrocketting so that it can be later crashed.

What do you mean by this? How/why would they crash gold?

Gold rising and rising and reaching new heights like never before simply means the U.S. economy is not going so well. No will of inducing fear but I think big troubles are ahead of us on a financial and economical side of view. With that being said, how long can the markets get manipulated before it really reflects the situation of the country? Only time may tell, but what is sure is that this is not going to take so long before the ride goes down again and for good.

P.S.: I offer no solution, for the simple and only reason that I think the best way to solve this thing will be a default or a crash of the economy. I do not believe cutting spending is possible with the huge amount of debt right now nor will the establishment will be ready for a consensus. I say after the rain may come the beautiful sky. U.S. economy ain't no exception in my opinion.



Thruthseek3r

well its all smiles smiles but then again do smiles actually assure people that were all happy.



www.bloomberg.com...

Originally posted by Rockdisjoint
reply to post by sbctinfantry

 

I've been talking about this the last few days, and this is another chance to devalue the dollar and send the price of gold skyrocketting so that it can be later crashed.

What do you mean by this? How/why would they crash gold?

Every bubble is a manipulation by the megarich to become more rich. It is called moneychanging. Using money to make money. It is called many other names in different forms, for instance usury. Basically, there are many different pyramid schemes, and explotations to gather wealth from the population and siphon it to those that already have it.

Why?

Because money is power. Money, at the megarich level, transforms into the shackles that bind the majority of the human race. Everyone has a price, and those that don't are killed.

As to how / why they crash gold, it's pretty simple if you are informed. Check the threads mentioned in the OP for more info.

A quick breakdown.

1) When the fiat currency is inflated, and all the wealth that can be safely stolen is siphoned, the banking cartel pushes the proleariat into gold.

2) Their disinfo agents claim that gold is a hedge against inflation, and the gold markets pour open. New businesses pop up, but the largest brokers are the banking cartels themselves. The price goes up, they buy and sell making money all the way to the top of the bubble.

3) Spread the lie. How to beat the FED? GOLD! How to stave off inflation? GOLD! How to fight the NWO? GOLD! How to survive when TSHTF? GOLD! Want to make a quick buck? GOLD! If we buy up all the GOLD, the banks will go BANKRUPT! (even though they are the ones making the profit from you, and if they go bankrupt they will be 'bailed out' by the government.)

4) When the public is paying exorbitant and ridiculous amounts of money for this metal, quietly sell off your holdings. The price drops massively. People get scared and start to sell for fear of the bubble collapsing. No one will buy for fear of the collapse and losing money. The price PLUMMETS to the bottom and GUESS who is there to buy it all back up?

The moneychangers.

Originally posted by Wrabbit2000
reply to post by sbctinfantry

 

SBC, I have a serious question that has bugged me since the first QE went into effect. The markets are world wide, of course, and operate by millions of trades coming from all over society, right? So, when it is apparently so obvious to us that Q.E. is just another flood of funny money that further dooms our system, how is it the markets react so well?

Is this really just very short term thinking and a rush for profit or COULD there be another factor entirely that some of us are missing in thinking this story can't end OTHER than a crash at this point? I can't see what I'd be missing, but I can't help but feel that wiggle of doubt as I keep watching the markets and others behave 180 degrees away from how I'd expect?

After reading your posts this afternoon, including some past ones, you seem a good one to ask on this. I'd feel a bit silly if I were the only one confused by this aspect of whats happening around us...but surely I can't be.

It is called Mutually Assured Economic Destruction.

It is based on Mutually Assured Destruction, to explain first understand this concept:

Mutually Assured Destruction

Mutual Assured Destruction, or mutually assured destruction (MAD), is a doctrine of military strategy and national security policy in which a full-scale use of high-yield weapons of mass destruction by two opposing sides would effectively result in the complete, utter and irrevocable annihilation of both the attacker and the defender,[1] becoming thus a war that has no victory nor any armistice but only effective reciprocal destruction. It is based on the theory of deterrence according to which the deployment, and implicit menace of use, of strong weapons is essential to threaten the enemy in order to prevent the use by said-enemy of the same weapons against oneself. The strategy is effectively a form of Nash equilibrium in which neither side, once armed, has any incentive to disarm thereafter.

en.wikipedia.org...

Mutually Assured Economic Destruction means that with ALL currencies tied to the dollar, anyone who tries to get out or go their own way faces everything from collapse of foreign trade to open warfare. Why, do you ask? Because if, say China, were to back out of the dollar, it would probably cause as much damage and possibly death as a modern atomic weapon. This devalues the holdings of any other nation pegged to the dollar, sends the price of oil (which is pegged to the dollar) skyrocketing, and forces the markets to correct, which means that either the dollar inflates (because the holdings are not 'in play' until they are released) or the Fed raises interest rates so high (to contract the money supply) that things like Gold plummet destroying the entire wealth of some people. Once the money supply contracts, things may return to normal, but it's going to be a long and messy process. People will starve when food is abundant, just because it can not be transported or afforded. China currently handles loans to the us of almost a $1 Trillion a year.

Good info on the topic :
www.rooseveltcampusnetwork.org...
www.nypost.com...

Feel free to share any info you come across as I am always researching.

I hope that helped!

Please forgive my ignorance, but would you be so kind as to explain how the price of gold can be simply elevated and dropped to cause a collapse specifically here in the US, while almost everyone else in the world considers it of immense value as well? In order to do such a thing wouldn't a solitary group have to have enough of it to make it seem nonexistent within the market? And in order to devalue it, would they not have to increase the supply of it?

I believe I have explained this already, above. So please refer to that answer, I hope it helped! Thanks!

I always heard a lot of talk about the QE3 but what does it mean for everyone, and what implications does it have?

Thanks.

reply to post by sbctinfantry


I see how the value of gold can be affected internally, thank you for that clarification, but my next question is will the demise of the dollar have any effect on the price of gold internationally?

We can expect QE3 directly or indirectly.

They may call it by some other fancy descriptions. It's only a matter of time.

Originally posted by sbctinfantry

Opening Bell: Markets rally on QE3 expectations

business.financialpost.com

Here is a look at what markets were doing on Monday, August 22:

The Dow Jones gained 189.96 points, or 1.76%, to 11,007.61
The S&P 500 gained 21.81 points, or 1.94%, to 1,145.34
The Nasdaq gained 48.67 points, or 2.08%, to 2,390.51
The S&P/TSX gained 179 points, or 1.50%, to 12,187

But while stocks rallied, so did gold. Gold prices gained US$30.20 to reach a new record of US$1,882.50 an ounce, continuing the precious metal’s blistering rise in recent weeks. The price of gold is up mo

 

Dow 10,854.65 +37.00 +0.34 %
Nasdaq 2,345.38 +0.00 +0.00 %
S&P 500 1,123.82 +0.00 +0.00 %

Tuesday, August 23, 2011, 7:50AM ET
U.S. Markets open in 1 hr 40 mins.

the above numbers are what the market closed at on Monday....
hardly an endorsement for an opaque QE3

in fact the economy precisely does not want a QE3 and all these Futures moves are in regards
to what Bernanke will reveal later this week at the Jackson Hole meeting on this coming Thursday 25th...

many speculators are gambling that a QE3 will not be forthcoming... until it is drastically needed (when no foreigners buy Treasuries at the weekly auctions & the Fed or its bevy of primary banks buy up the Treasury offerings)
the market speculation thinks that stocks like Apple, will rebound despite a falling dollar brought about by a QE3


in the long haul, its more likely that DOW 9,000 will be around in our future and not a DOW 12,000 like the speculators wish.

edit on 23-8-2011 by St Udio because: (no reason given)