By Tom Luongo in Gold and Oil News
May 22, 2013 23:15
...Bond prices rise (click here) on the idea that the Fed will continue to be a buyer, but the reality is that this is nothing more than currency debasement and because of that investors should demand higher returns from their bonds in order to offset inflation, because like it or not, some of this printed money is making it into circulation. Go look at M1 if you don’t believe me. Finally, after the Chairman was done with his soft-shoe two-step the bond market called his bluff and pushed yields on the 30 year bond back over 3.2% which the Fed had been actively defending for days. Further weakness in the long end of the yield curve to end the week — especially above 3.26% — would be a bearish signal that the sell-off in bonds is gathering momentum after the Fed took a few weeks off from heavy bond buying to trash the price of gold....
By Dow Jones Business News, May 21, 2013, 05:18:00 AM ED
The Federal Reserve Open Market Committee (FOMC) (click here) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level....
May 22, 2013 23:15
...Bond prices rise (click here) on the idea that the Fed will continue to be a buyer, but the reality is that this is nothing more than currency debasement and because of that investors should demand higher returns from their bonds in order to offset inflation, because like it or not, some of this printed money is making it into circulation. Go look at M1 if you don’t believe me. Finally, after the Chairman was done with his soft-shoe two-step the bond market called his bluff and pushed yields on the 30 year bond back over 3.2% which the Fed had been actively defending for days. Further weakness in the long end of the yield curve to end the week — especially above 3.26% — would be a bearish signal that the sell-off in bonds is gathering momentum after the Fed took a few weeks off from heavy bond buying to trash the price of gold....
By Dow Jones Business News, May 21, 2013, 05:18:00 AM ED
By Jessica Mead
The South African rand tumbled (click here) to its weakest level in more than four years as the dollar pushed higher across the board Tuesday in the wake of slower-than-expected U.K. April inflation data.
An initial decline in sterling against the dollar, after British inflation data, triggered a wave of dollar buying that saw the greenback trade above ZAR9.50 against the rand, its highest level since April 1, 2009.
At 0841 GMT, the dollar was trading at ZAR9.5131, having climbed as high as ZAR9.5162 against the rand.
The rand has been under severe selling pressure so far this month, hit by a combination of a stronger dollar, weaker commodity prices--notably gold--and concerns that a new wave of strikes at South African mines and manufacturers might widen....
May 25, 2013
The S&P 500 declined for a third day on Friday, with the three major US stock indexes posting their first negative week since mid-April on lingering concern that the Federal Reserve may scale back its stimulus measures to support the economy.
Overview of offshore trading:
- SPI futures slipped 6 points to 4967
- The Australian dollar was buying 96.52 US cents
- The S&P500 closed slightly lower at 1649.6
- London's FTSE and Frankfurt's DAX both fell 0.6%
- Spot gold lost 0.4% to $US1386.60 an ounce
- Brent crude oil inched up to $US102.64
The Dow Jones index outperformed the broader market, rising 8.60 points, or 0.06 per cent, at 15,303.10, buoyed by a 4 per cent gain in Procter & Gamble. The broad-based S&P 500 was down 0.91, or 0.06 per cent, at 1649.60 points, while the tech-rich Nasdaq Composite slipped 0.28, or 0.01 per cent, to 3459.14....
Charles Kadlec, Contributor
2/6/2013
