Jonflyfish wrote:As a side note- Folks are talking about the fed and QE3 since the minutes were released. I'm keeping a careful eye on crude oil and the cracks. QE3 would push crude at even higher levels and would squeeze the juice out of the economy. I think QE3 isn't likely anytime soon because of this. The fed has their backs against the wall and that leaves the administration at risk during an election year. Unless there is renewed talk of SPE releases, crude remains a real focal point. If SPE releases are rumored again then there is panic at the top and it won't be enough to cure anyway. The sweet-sour backwardation still exists, showing signs of a global, not domestic concern. It would only be a drop in the bucket and not sustainable.
If I'm wrong and QE3 happens soon, prices at the pump and just about everything else (except wages) would soar to levels that would create mayhem in the streets. Not a winning combination when the floating base currency is still tight and unemployment remains high.
Cheers!
Read a great article on Zerohedge and felt the need to go back and find JFF's post about this scenario. Take it slow and read the whole thing.
http://www.zerohedge.com/news/2013-02-2 ... n-and-gold
Here's an example of a few great lines:
Academics such as Professor Antal Fekete made a call for the imminent demise of the international monetary system. (Fekete, 2008) and based on his studies of the gold basis believed that gold was entering permanent backwardation. So what would extended or permanent backwardation imply? According to Prof Antal Fekete, “gold going into permanent backwardation means that gold is no longer for sale at any price, whether it is quoted in dollars, yens, euros, or Swiss francs. The situation is exactly the same as is has been for years: gold is not for sale at any price quoted in Zimbabwe currency, however high the quote is. To put it differently, all offers to sell gold are being withdrawn, whether it concerns newly mined gold, scrap gold, bullion or coined gold.”
Dollars would be bidding for gold, but gold simply wouldn’t be accepting dollar bids. This would imply a gold price of zero or infinity, take your pick. Since physical gold would no longer be convertible into dollars.
Then later:
Money is moving down Exter’s pyramid and while the final denouement may be days, weeks, months or years off, we are certain it would be preferable to be years early as opposed to a day late.
Here's Exter's Pyramid:
- Exters Pyramid.jpg (63.96 KiB) Viewed 1490 times
Another thing to think about is how the Obama administration, with the willing assistance of the mainstream media, was able prior to Nov. 6th: (1) keep the price of gasoline down, (2) minimize poor economic conditions out of the news, (3) distract us from getting to the bottom of Benghazi. Those actions helped secure the election for them.
So here's the best stock recommendation I can give you. Buy the stock symbol PHYSICAL.
