Tag Archives: Precious Metals

Of Money and Metals: The Operation of a Free Money Supply Explained

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Of Money and Metals: The Operation of a Free Money Supply Explained

Of Money and Metals: The Operation of a Free Money Supply Explained is Volume II in the “Why what we use as Money Matters” series. Of Money and Metals presents the fallacies of the current day practice of circulating debt in the place of money and explains the urgent need for and the operation of a free money supply. This volume also explores the phenomenon of Bitcoins and digital currencies.

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Thank you for your support!

Of Money and Metals by David MInt

 

Precious Metals, Bitter MF Global Investors – Barrons.com

This was bound to happen. MF Global is the first of what will be many CME metals warehouse defaults.  The MF Global clients will take a 28% haircut placing their faith in the CME’s oversight mechanisms, according to Barrons:

http://online.barrons.com/article/SB50001424052748703856804577098740322633760.html?mod=googlenews_wsj?mod=googlenews_barrons

Barrons also reiterates that the CME still has not committed to back stopping the lost MF Global funds. Why any honest and informed person would continue to trade and store precious metals with the CME is beyond our limited comprehension.

Whether the missing MF Global client monies are eventually located, placed by the CME, replaced by Corzine and his accomplices, or not all, irreperable damage has been done to investor confidence as far as commodities go.

Equities won’t be far behind.

72 Hour Call for June 13, 2011

Today’s Call:  Price of Gold to fall.  Currently $1,534.80.

Rationale:  Nearly all asset classes are going to begin to cave in to a perceived deflationary spiral that is taking hold as inflation in food and energy costs begins to take its toll.  This will temporarily bring Gold and other precious metals down with it.  Government likely to announce new stimulus plans in the near future.

Result of Call for June 8, 2011:  Yield on 10yr US Treasury bond to fall (price to rise).  Was 2.962%, Currently 2.991%.  Bad Call. 

Calls to Date:  Good Calls: 28, Bad Calls: 20, Batting .583

Key Indicators for Monday, June 13, 2011

Copper Price per Lb: $4.03
Oil Price per Barrel:  $97.00

Corn Price per Bushel:  $7.82
10 Yr US Treasury Bond:  2.99%
FED Target Rate:  0.09%  FED STILL IN DESPERATION MODE

Gold Price Per Ounce:  $1,534

MINT Perceived Target Rate*:  2.25%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.4%
Dow Jones Industrial Average:  11,953
M1 Monetary Base:  $2,022,700,000,000 RED ALERT!!!
M2 Monetary Base:  $9,005,800,000,000 STARTING TO DRY UP?  NOT!

 *See FED Perceived Economic Effect Rate Chart at bottom of blog.  This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy.  This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.