The poor Republicans have their Mitt in the wringer. Everyone is ranting and raving against him. Why? Well, he's mostly right. But the 47% that Mitt was talking about don't really live "off the government."
The Federal Reserve’s announcement of a third round of quantitative easing (QE3) might have been the worst kept secret, yet the dollar plunged upon the announcement. Here we share our analysis on what makes the FOMC tick.
According to the former special inspector general for the $700-billion US Troubled Asset Relief Program (Tarp) that bailed out the US banking system in 2008, another financial crisis is all but inevitable and the cost will be even higher than the 2008 financial crisis.
So far, gold and silver have been the main beneficiaries, rising in the week before the FOMC meeting in anticipation of more stimulative monetary policies, and then, after the announcement, reacting to the aggressive monetary stimulus.
The US is confronting a structural problem. It is not a cyclical one that will go away with improved economic activity. Importantly, the failure to address this problem will eventually lead to hyperinflation and the destruction of the dollar.
Precious metals prices headed a bit lower at the opening this morning, mainly on the back of light profit-taking that ensued after the euro retreated and the US dollar rose owing to apprehensions about Europe and Asia.
Gold and silver opened marginally lower this morning while platinum and palladium continued to add to Thursday’s gains. Spot gold traded near $1,766 and spot silver near $34.50 as the New York session opened for the final day of the trading week.
This morning’s opening in New York brought with it some modest selling by participants ahead of the US Labor Department’s August jobs data. The principal take-away number was the decline in US unemployment to 8.1%.