Why The Fed Wants To Buy Stocks – ICYMI Week Ended 10/1/2016 – Podcast

The Fed Launches Another Interest Rate Big Yack Attack.

The Most Talked About Rate Hike in History; When jawboning isn’t enough.

Yellen discusses possibility of The Fed Buying Stocks.

What does it mean for gold?

Yellen attacked on Capitol Hill for being politcal.

Trump attacks Fed’s independence during the debates.

CNN Counters: Fed IS independent.

Gold sales surge, silver sales flat.

European Banks in Trouble

Top Gold And Silver Stories from the week ended October 1, 2016.

Buy Canadian Silver Maple Leaf Coins

The top story of the week- Debates

While trump may have been on the defensive in matters that don’t matter- 1972 lawsuit, calling a woman fat twenty years ago, he hit clinton on the deletion of 33,000 emails.

Top economic stories of the week: Deutsche Bank, Fed chatter re interest rates and equity purchases.

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Gold and silver

Gold closed last week at $1337.10 and closed this week at $1315.80 (-1.6%)

Silver closed last week at $19.67 closed this week at $19.15 (-2.6%)

The gold and silver ratio ended the week at 68.72: 1 to


Chart of the Week

silver etf holding september 30 2016

Silver ETF demand has soared in 2016.

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You Tube Notes to this report

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Here are the stories we wrote, followed or commented on.

September 26, 2016


Bloomberg: Biggest buyers of US Treasuries are selling like never before

How Russia’s Central Bank Held the Line

US Plans another series of Dollar Coins

US Economic Data

Dallas Fed Manufacturing Business Index: -3.7 (September) vs -6.2

New Home Sales 609K, Exp. 600K

September 27, 2016

From Smaulgld.com


Russia’s Sberbank CIB becomes member of Shanghai Gold Exchange

Gold Mining Hits Record Death Toll in South Africa

Gold Price Hits Record High… In Burma

Texas Gold Depository

Gold Lower as Trump Presidency Seems Less Likely After Debate

EVEN THOUGH nearly all polls show he won!


UAE-China trade receives fresh momentum “Direct Yuan Trading”

US Economic Data

Markit Service PMI 51.9, Exp. 51.1

Richmond Fed’s Sept. Manufacturing Survey at -8 vs Est. -2

Consumer Confidence 104.1, Exp. 99, Last 101.1

Case Shiller 20 City Composite 5%, Exp. 5.1%

Grocery Prices are plunging! Supermarket staples are incredibly cheap right now

How did Roman coins from the fourth century get to a castle in Japan?

Fed Chatter

Fed Vice Chairman Urges diversity

Why Yellen may quit if Trump wins

U.S. Mint Sales Update

U.S. Mint reported selling 295,000 American Silver Eaglesand 9,500 American Gold Eagles today.

MTD American Silver Eagles sold 1,600,000 & American Gold Eagles sold 64,500
YTD American Silver Eagles Sold 30,500,500 /American Gold Eagles sold 550,500

The U.S. Mint reported selling 0 one ounce American Platinum Eagle coins.
YTD 20,000 American Platinum Eagle coins sold.

The U.S. Mint reported selling 1,500 American Gold Buffalo coins.

MTD 14,500 sold

YTD 146.000 sold

The U.S. Mint Reported selling (-500) Theodore Roosevelt National Park five ounce silver America The Beautiful Coins.

YTD Sales of Theodore Roosevelt National Park 29,500

You can compare pricing and shipping charges on American Gold Eagles coins of all sizes at these web sites:

Golden Eagle Coins
JM Bullion
Money Metals Exchange

Buy American Gold Eagle Coins

September 28, 2016


Silver ETF Assets Soar to Record, Buoyed by Industrial-Use Bets


Chinese company top bidder for Glencore mine in Kazakhstan

Gold buy orders hit record high amid policy uncertainty

Russian Central Bank says has no aim to raise is gold share reserve %
Translation: we don’t mean too, just happens

Update “We are a country that is third in the world in terms of gold production and we have the opportunity to buy it using our national currency.”
“Bank of Russia will buy about 200 tonnes of gold this year to replenish its gold reserves, after buying 206.4 tonnes in 2015.”

How Gold Came to South Korea’s Rescue

US Economic Data

Durable Goods 0.0%, Exp. -1.4%
Defense capital goods new orders +23.6%

Reuters: “a positive signal for the business investment outlook” (up 0.8% Month over month) BUT down year over year

OPEC agrees to oil output cut OPEC agrees to oil output cut

The Fed’s Big Yack Attack

January 26-27 X-market crash
March 15-16 X
April 26-27 X
June 14-15 X- brexit
July 26-27 X- brexit
September 20-21 X- just because
November 1-2 ?
December 13-14 ?

Here is who spoke in the last twenty four hours

SF Fed President John Williams:

From the guy who said FOUR rate hikes this year would be appropriate.

“I would support an interest rate increase” “US economy can handle a rate hike” “An easy way to convince markets of something is by doing it,” Williams said.

Fed Chair Janet Yellen

December 2105 Fed internal projetions -four rate hikes in 2015

End of March – rate hikes but slowly, basically calling off April rate hike projections changed to TWO rate hike.

May – Rate hike likely appropriate for June

August Case for rate hike in September has strengthened

Yellen testifies says rate hike appropriate-

No fixed timetable but economy ready for a rate hike this year ‘warning that without a change soon, employment growth could cause the economy to “overheat”

St. Louis Fed President Bullard

March- Bullard sees case for April Rate Hike

June – We may only need one rate hike through 2018

August-September might be a good time to raise rates

September – Yellen testifies that a rate hike is appropriate this year.

Chicago Fed President Charles Evans

August one rate hike appropriate this year

We’ll Likely Be Stuck With Low Rates ‘for Some Time’

Minneapolis Fed President Kashkari

Declining To Raise Interest Rates Was The ‘Right Move’ / U.S. Economy Not in Immediate Danger of Overheating.

Federal Reserve Cleveland President Mester

Fed’s Mester says it’s appropriate to raise interest rates

Fed Esther George

Fed’s Esther George: It’s time to remove some accommodation

Why the Rate Hike Talk?

From Smaulgld.com December 2015

‘All year we have said all year, the Federal Reserve would raise rates by the end of the year, to stay ahead of the other central banks and to boost demand for U.S. Treasury bonds, which according to yesterday’s Treasury report is clearly in decline.

The Fed’s policy is focused primarily on protecting the United States’ most valuable asset – the dollar and its ability to get the world to buy treasuries so it can continue fund the massive welfare/warfare state.

Fed policy is NOT about protecting the too big to fail banks, the economy, the stock market or the job market – those are secondary objectives. The Fed’s primary objective is to protect the U.S. Treasury and its ability to sell U.S. Treasury Bonds.

From Smaulgld.com December 2015

What’s next for the Fed?

‘We believe the Fed will continue to push the concept that they are on a rate hike path (data dependent, of course) because the economy is improving and that “job gains” will eventually boost consumer spending and inflation. Having gained credibiity for raising rates, Ms. Yellen and Fed officials will talk about another rate hike for months sending conflicting signals that they might raise rates, might not raise rates or might lower rates.

The Fed won’t throw the towel in and reverse course until either the data clearly indicates a recession or another financial crisis occurs.

Also see Will the Fed Sacrifice the Dollar to Save the Markets

Yellen’s Day on Capitol Hill

Yellen grilled on Brainard

Yellen Talks About Fed Buying Stocks

Here is the clip of Representative Scott Garrett of New Jersey and Ms. Yellen

During Yellen’s testimony before the House Financial Services Committee Congressman Mick Mulvaney asked about the potential of the Fed to buy stocks:

“There’s been some attention in the last few months about the recent decision by the Bank of Japan to start purchasing equities and my question to you is fairly simple. Is the United States Federal Reserve looking at the possibility of adding the purchase of equities to its tool box as it looks at monetary policy?”

“Well, the Federal Reserve is not permitted to purchase equities. We can only purchase U.S. treasuries and agency securities. I did mention in a speech in Jackson Hole, though, where I discussed longer term issues and difficulties we could have in providing adequate monetary policy. Accommodation may be somewhere in the future, down the line that this is the kind of thing that Congress might consider, but if you were to do so, it’s not something that the Federal Reserve is asking for.”

Fed can’t take rates to negative if the dollar is the world’s reserve currency but they can continue to prop up one of the US greatest assets the stock market by doing pre bail out of companies and ensuring the US stock market is always “safe” as backstopped by the Fed’s buying.

Excuse: Other central banks are doing it.

They want to KILL the markets or at least tame them.

If they buy stocks equities will have a floor under them but not gold.


This is a set up to ask for congressional approval after the next stock market crash.

Janet also fumbled her answer on the Labor Force Participation Rate


German Government Prepares Deutsche Bank Bail out

Deutsche bank can “collapse” but ECB will either provide liquidity (in exchange for shares) and gain more control, nationalization

Central Banks eventually will displace “private banks”

James Comey testifies to Congress

Comey was not in room with Hillary during her questioning and doesnt’ know who was in the room

Mr. Gohmert to Mr. Comey: why give immunity to get a laptop from Cherly mills????

Mr. Poe: You gave immunity to Combetta- will you reopen the case?

Desantis to Comey: Any one else would have been a court martialed

James Comey; You cant call us weasesls!

September 29, 2016

US Economic Data

2nd quarter GDP revised up to 1.4%
surge driven by spending on healthcare, housing and utilities

Pending home sales fell 2.4 percent in August to 108.5, its lowest reading since January

Commerzbank to fire 20% of workforce


Russia to add 200 tons of gold to reserves in 2016

Gold Bulls Feeling frayed

Is a Trump Win Good for Gold?

Kirkland Lake Gold to take over Newmarket Gold in $1-billion deal


Declining silver demand

Fed Chatter

Atlanta Federal Reserve President Dennis Lockhart wants to see more improvement before hiking U.S. rates, but expects to raise rates, before long

Philadelphia Fed President Harker

Harker says December rate rise appropriate on current trajectory

CNN propaganda

CNN Insists: Why the Federal Reserve isn’t political!

Politico covers the story and provides the Trump debate clip here

US Mint Sales Update

U.S. Mint reported selling 75,000 American Silver Eaglesand 7,500 American Gold Eagles today.

MTD American Silver Eagles sold 1,675,000 & American Gold Eagles sold 72,000
YTD American Silver Eagles Sold 30,575,500 /American Gold Eagles sold 558,500

The U.S. Mint reported selling 0 one ounce American Platinum Eagle coins.
YTD 20,000 American Platinum Eagle coins sold.

The U.S. Mint reported selling 500 American Gold Buffalo coins.

MTD 15,000 sold

YTD 146,500 sold

The U.S. Mint Reported selling 0 Theodore Roosevelt National Park five ounce silver America The Beautiful Coins.

YTD Sales of Theodore Roosevelt National Park 29,500

September 30, 2016

Roman coins found in Japanese castle ruins

From Smaulgld.com


Secret Alpine Gold Vaults Are the New Swiss Bank Accounts

easier to store than silver

Gold buying picks up ahead of India’s festive season, China holiday

Dutch ABN Amro to fire thousands

DB to settle for $5.4 billion?

WSJ re DB and its survival, or talk of the need for a government bailout: Such talk is unrealistic, even wild.

US Economic Data

Personal Income 0.2%, Exp. 0.2%,
Personal Spending 0.0%, Exp. 0.1%

Reuters Falls “unexpectedly”

Chicago PMI 54.2, Exp. 52.0, Last 51.5 but employment component slipped

Atlanta Fed!

Reduces 3rd quarter GDP projection from 2.8% to 2.4% was 3.8%

UMich 91.2, Exp. 90.0, Last 89.8

War on Cash

Countries where cash is near extinction

U.S. Mint Sales Update

U.S. Mint reported selling 0 American Silver Eaglesand 7,000 American Gold Eagles today.

MTD American Silver Eagles sold 1,675,000 & American Gold Eagles sold 79,000
YTD American Silver Eagles Sold 30,575,500 /American Gold Eagles sold 565,000

The U.S. Mint reported selling 0 one ounce American Platinum Eagle coins.
YTD 20,000 American Platinum Eagle coins sold.

The U.S. Mint reported selling 2,500 American Gold Buffalo coins.

MTD 17,500 sold

YTD 149,000 sold

The U.S. Mint Reported selling 0 Theodore Roosevelt National Park five ounce silver America The Beautiful Coins.

YTD Sales of Theodore Roosevelt National Park 29,500

You can compare pricing and shipping charges on American Gold Eagles coins of all sizes at these web sites:

Golden Eagle Coins
JM Bullion
Money Metals Exchange

Buy American Gold Eagle Coins

Buy American Gold Eagle Coins

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