http://harveyorgan.blogspot.com/2012/09/qe-to-infinity.html
QE to infinity....
Good evening Ladies and Gentlemen:
Gold closed the comex session up a whopping $38.50 to $1769.10. Silver also responded to finish up $1.49 to $34.72. The news that caused the spark in the precious metals and the Dow was the Bernanke announcement of QE to infinity. He announced that the Fed will purchase up to 40 billion dollars of mortgages per month indefinitely.It will also continue with it's program of "operation twist". Please, please note that this will now officially go onto the balance sheet of the Fed. The risk of hyperinflation has now heightened.
Gold closed the comex session up a whopping $38.50 to $1769.10. Silver also responded to finish up $1.49 to $34.72. The news that caused the spark in the precious metals and the Dow was the Bernanke announcement of QE to infinity. He announced that the Fed will purchase up to 40 billion dollars of mortgages per month indefinitely.It will also continue with it's program of "operation twist". Please, please note that this will now officially go onto the balance sheet of the Fed. The risk of hyperinflation has now heightened.
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and now commentary on the above:
(courtesy George Washington/zero hedge)
Submitted by George Washington on 09/13/2012 14:38 -0400
Before commencing this is the first time I can recall that the following as happened to future gold trading.
It seems to me that our bankers are in a little trouble tonight!!
CME Group: Gold Trading Halted Twice to Prevent Volatility
NEW YORK--Exchange operator CME Group Inc. (CME) said it halted trading in gold futures twice Thursday to prevent excessive price volatility, according to an email from a spokesman.
Stop Logic, a type of circuit breaker that pauses trading for between five and 20 seconds, was triggered at 12:14:47 EDT and at 12:31:20 EDT Thursday.
"Stop Logic offers market participants the opportunity to provide additional liquidity and permits the market to regain its equilibrium," the spokesman said in the email.
The total comex gold OI rose appreciably to the tune of 3750 as the bankers continued to supply the necessary paper. They must be shaking in their boots tonight. The non active delivery month of September saw it's OI fall by 1 contract from 49 to 48. We are now 2 weeks away from first day notice in the October gold contract. Generally this is a slow delivery month but judging from the action today we may get some excitement there as well. However I am sure that December will be the ultimate battleground. The total October gold comex OI rose by 125 contracts to 25,187. The big December contract has everyone fixated on the total OI. Today it rests at 316,831 a rise from 4223 contracts from yesterday's level of 312,608.
No doubt tomorrow's reading will be much higher still. The estimated volume today was a monstrous 244,189. The confirmed volume yesterday was also high at 203,556.
The total silver comex OI plays to the different drummer. Here the total OI fell by 1328 contracts from 121,050 down to 119,722 as the bankers are loathe to supply the necessary short paper. The active September contract saw its OI fall from 694 down to 412 for a loss of 282 contracts. We had 270 delivery notices filed yesterday so we lost an additional 12 contracts or 60,000 oz of silver standing.
The non active October silver contract saw it lose 7 contracts down to an open interest of 250 contracts.
The big December contract saw it's OI lose 722 contracts from 78,716 down to 77,994. The estimated volume at the silver comex today was enormous at 85,041. The confirmed volume yesterday was also huge at 74,136. It looks to me like the bankers are in serious trouble and we may get our long awaited banking failure due to a gold and/or silver default.
Activity was quite light today.
We had neither a customer deposit nor a dealer deposit.
We had the following dealer withdrawal from Brinks:
i) out of Brinks, 1199.87 oz
we had the following customer withdrawal from Brinks:
i) out of Brinks: 1060.85 oz
we had no adjustments.
Thus the dealer inventory remains at 2.52 million oz or 78.38 tonnes of gold.
The CME notified us that we had again zero notices filed so the total number of notices remain at 701 for 70100 oz of gold.
To obtain what is left to be served upon, I take the OI standing for September (48) and subtract out today's notices (0) which leaves us with 48 notices or 4800 oz left to be filed upon our longs.
(courtesy George Washington/zero hedge)
As Predicted, Bernanke Launches QE3 ... Which Will Destroy the Economy
We predicted last week that Bernanke would launch QE3 this week.
Today, the Fed announced that will buy $40 billion dollars of mortgages per month … indefinitely.
This is in addition to numerous other easing programs. As CNBCnotes:
In addition, the Fed said it will continue its program of selling shorter-dated government debt and buying longer-term securities, a mechanism known as Operation Twist. It also will continue its policy of reinvesting principal payments from agency debt and mortgage-backed securities back into mortgages.***“These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative,” the Fed statement said.and now commentary on the above:
(courtesy George Washington/zero hedge)And the Fed isn’t stopping there:“There’s strong hints that they’ll do Treasurys next,” Joe LaVorgna, chief economist at Deutsche Bank Advisors, said in a phone interview from London. “They’re pulling out all the stops to try to get this economy to gain some traction and, most important, to get unemployment down.”This sounds nice … except that the experts say that quantitative easing destroys the economy and – despite the initial optics of it – hurts the little guy.As we said in 2008: welcome to the Fed’s Weekend at Bernie’s.P.S. Yes … if you’re a homeowner, you will probably want to re-fi.
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It seems to me that our bankers are in a little trouble tonight!!
CME Group: Gold Trading Halted Twice to Prevent Volatility
Thu Sep 13 14:31:58 2012 EDT
Stop Logic, a type of circuit breaker that pauses trading for between five and 20 seconds, was triggered at 12:14:47 EDT and at 12:31:20 EDT Thursday.
"Stop Logic offers market participants the opportunity to provide additional liquidity and permits the market to regain its equilibrium," the spokesman said in the email.
Comex gold futures for December delivery, the most active contract, settled up 2.2%, or $38.40, at $1,772.10 a troy ounce.
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No doubt tomorrow's reading will be much higher still. The estimated volume today was a monstrous 244,189. The confirmed volume yesterday was also high at 203,556.
The total silver comex OI plays to the different drummer. Here the total OI fell by 1328 contracts from 121,050 down to 119,722 as the bankers are loathe to supply the necessary short paper. The active September contract saw its OI fall from 694 down to 412 for a loss of 282 contracts. We had 270 delivery notices filed yesterday so we lost an additional 12 contracts or 60,000 oz of silver standing.
The non active October silver contract saw it lose 7 contracts down to an open interest of 250 contracts.
The big December contract saw it's OI lose 722 contracts from 78,716 down to 77,994. The estimated volume at the silver comex today was enormous at 85,041. The confirmed volume yesterday was also huge at 74,136. It looks to me like the bankers are in serious trouble and we may get our long awaited banking failure due to a gold and/or silver default.
* * *
We had neither a customer deposit nor a dealer deposit.
We had the following dealer withdrawal from Brinks:
i) out of Brinks, 1199.87 oz
we had the following customer withdrawal from Brinks:
i) out of Brinks: 1060.85 oz
we had no adjustments.
Thus the dealer inventory remains at 2.52 million oz or 78.38 tonnes of gold.
The CME notified us that we had again zero notices filed so the total number of notices remain at 701 for 70100 oz of gold.
To obtain what is left to be served upon, I take the OI standing for September (48) and subtract out today's notices (0) which leaves us with 48 notices or 4800 oz left to be filed upon our longs.
and....
Activity was quite heavy in the silver vaults today.
We had the following customer deposit:
Into Delaware; 1901.5 oz
we had the following silver withdrawal from the customer:
i) out of Brinks: 104,080.48 oz
ii) out of Scotia; 3082.04 oz
total customer withdrawal: 107,162.52 oz
we had one adjustment whereby the dealer repaid the customer
20,141.64 oz and the vault was HSBC.
The total registered silver rests tonight at 39.418 million oz
The total of all silver rests at 141.082 million oz.
We had the following customer deposit:
Into Delaware; 1901.5 oz
we had the following silver withdrawal from the customer:
i) out of Brinks: 104,080.48 oz
ii) out of Scotia; 3082.04 oz
total customer withdrawal: 107,162.52 oz
we had one adjustment whereby the dealer repaid the customer
20,141.64 oz and the vault was HSBC.
The total registered silver rests tonight at 39.418 million oz
The total of all silver rests at 141.082 million oz.
The CME notified us that we had 18 notices filed for 90,000 oz.
The total number of notices filed so far this month total 1304 for 6,520,000 oz
The total number of notices filed so far this month total 1304 for 6,520,000 oz
To obtain what is left to be filed upon, I take the OI standing for September (412) and subtract out today's delivery notices (18) which leaves us with 1,970,000 oz to be served upon our longs.
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