Thursday, February 11, 2016

Sweden Interest Rates Go Negative- Gold Jumps Nearly 50 Bucks PreMarket

It may finally be over. I think we can say the 5 year gold bear market is done. You know it's a crazy morning when Zerohedge servers are so overwhelmed that I can't get to the site.

Gold jumps nearly 50 bucks this morning- silver and platinum are up but not like gold is.

Sweden is the latest counntry to announce negative interest rates. If negative interest rates are going to cause deposits to erode away- people are simply going to withdraw their money and find the means to preserve capital.

Gold is a perfect vehicle for capital preservation.

I am now expecting Mr. Yellen to try and talk back the gold jump today during Humphrey Hawkins testimony. She might say some dovish thing about rates- but at .25 it's either zero or negative- so I can't imagine gold will do anything but continue to go up.

We'll know the fix is in if she suddenly goes dovish- but I don't think it will matter much. People and gold are starting to sniff out the future as bankers try to end cash and confiscate deposits.


10 comments:

Compleat Patriot said...

Great "recession" round two.

Again like in 2007-08 jobs being put on hold until spring. Heard that before.

Celente say's this time it's twice as bad.

Oh well. Got my popcorn ready.

Anonymous said...

http://www.zerohedge.com/news/2016-02-12/jose-canseco-says-everyone-should-be-gold-predicts-1500-memorial-day

Gary said...

I can't figure negative rates out. Do they pay you to borrow money????

Brian said...

I don't think so Gary. The term "negative" only applies to customer deposits wherein they will charge you to keep your money. This should tell you how worthless cash is.

At any rate- I believe that savers in turn will cash out or buy gold and silver to preserve their wealth. This will cause a run on paper currency which does not exist in the trillions that they have- and it will also cause the PM's to rise.

Therefore the next big episode in financial wizardry will have the bankers eliminating cash altogether. This is already starting to happen as well.

Brian

MARK WILSON said...

Therefore the next big episode in financial wizardry will have the bankers eliminating cash altogether. This is already starting to happen as well.

I tried to pay my water and sewer bill in cash, at the bank that handles my townships account. They told me no way Jose.

On our currency:

THIS NOTE IS LEGAL TENDER FOR ALL DEBTS PUBLIC AND PRIVATE.

JACKASSES.

SWISS ON NEG RATES: http://www.bbc.com/news/world-europe-30530534

Anonymous said...

GOLD & SILVER WARS:

Rest assured, the ANGLO-AMERICAN BANKING CARTEL is still in control of things. I've learned when they appear weakest, to be forewarned. IF gold and silver get away from them, and the market for metals becomes one of willing buyers and sellers, they know it's game over. Who would put up with their sh!t IF we had an option to their paper mache games? Their expertise at getting traders offsides is legendary.

Many have called the bear market in gold over. It's not over, until the AABC-says it's over.

The MINISTRY OF ENLIGHTENMENT-propaganda war is in full swing with this gold squirt.

Here's one from the gold bugs:

1. Lines Around The Block To Buy Gold In London; BANKS Placing "Unusual Large Orders For Physical"
2. JPMorgan: "Things Have Gotten Out Of Control: People Have Confidence in Gold Than In Paper Money"
3. Shares plunge on global growth, bank fears; U.S. yields fall

Mr. Greg Hunter of USAWatchdog.com was gracious enough to request an Interview with Bo Polny...

This douche has been arm waving for 3-years gold is going parabolic.

Who knows what his agenda really is other than selling outrageous subscriptions to suckers.

Is gold and silver really the answer?

One needs to make up his, or her, mind(s).

A86

Anonymous said...

I forgot to mention, the slashing today is a CLASSIC ANGLO-AMERICAN BANKING CARTEL POWER MOVE: Markets closed for President's day, the day after VALENTINE'S DAY.

They've done this repeatedly on key date markers, like April Fools Day, ANNV OF PEARL HARBOR, etc., etc..

This will be another St VAL'S DAY massacre. How much will they slash it?

A86

Anonymous said...

FYI:


Goldman Tells Clients To Short Gold 5 Days After Saying Gold May Soar “Much Higher Over Time”


Dreams

February 15, 2016,1:51 pm

Forum Chat

Comments


Goldman Tells Clients To Short Gold 5 Days After Saying Gold May Soar “Much Higher Over Time”

http://www.zerohedge.com/news/2016-02-15/goldman-tells-clients-short-gold-5-days-after-saying-gold-may-soar-much-higher-over-

“”Bottom line, although 1,200-1,202 might hold in the near-term, there’s scope to extend much higher over time.” – Goldman Sachs, Feb 10, 2016


“As we maintain our view of rising US rates and hence lower gold prices with a 3-month target of $1100/toz and 12-month target of $1000/toz, we are recommending shorting gold through a GSCI-style rolling index” – Goldman Sachs, Feb 15, 2016“

A86

Anonymous said...

Another AABC-page from their playbook:

The CME-hiked margins on gold Friday.

What a coincidence.

Follow-thru to the downside Tues?

My guess: yes.

12-tons of gold were added to GLD-last week.

Probably will be used to slash gold lower?

Time will tell.

Anonymous said...

ONE MORE ON NIRP:

A86

GLOBAL ISSUES
A very important commentary from zero hedge where they discuss the “Doom Loop”
as countries or entities enter negative rates. The banking sector becomes increasingly less profitable as they have to pay for excessive reserves and are also afraid to lend out in an economy that is faltering;
“the death doom loop”:
(courtesy zero hedge)
This Is The NIRP “Doom Loop” That Threatens To Wipeout Banks And The Global Economy

Remember the vicious cycle that threatened the entire European banking sector in 2012?

It went something like this: over indebted sovereigns depended on domestic banks to buy their debt, but when yields on that debt spiked, the banks took a hit, inhibiting their ability to fund the sovereign, whose yields would then rise some more, further curtailing banks’ ability to help out, and so on and so forth.

Well don’t look now, but central bankers’ headlong plunge into NIRP-dom has created another “doom loop” whereby negative rates weaken banks whose profits are already crimped by the new regulatory regime, sharply lower revenue from trading, and billions in fines. Weak banks then pull back on lending, thus weakening the economy further and compelling policy makers to take rates even lower in a self-perpetuating death spiral. Meanwhile, bank stocks plunge raising questions about the entire sector’s viability and that, in turn, raises the specter of yet another financial market meltdown.