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It’s here, after the Fed’s decision to leave Interest Rates unchanged and to buy $300 billion in Treasuries, plus another $750 billion minimum in buying mortgage backed securities; the markets woke up this morning to the realization Inflation is coming back. Gold which closed down $29 yesterday but immediately shot up after the announcement on spot pricing. Today the market has caught up and as I speak Gold is up $66.90 at $956 oz. I hope you have been listening to this blog and have gotten in. If you were on the sidelines- this is the time to still get in as $1050 first target. After that $1250 oz so get in while you can. We have Lift-Off! – Good Investing- jschulmansr

“Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.” –Trader Dan Norcini

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Claim a gram of FREE GOLD today, plus a special 18-page PDF report; Exposed! Five Myths of the Gold Market and find out:

·        Who’s been driving this record bull-run in gold?

·        What Happens When Inflation Kicks In?

·        Why most investors are WRONG about gold…

·        When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

=========================================================

A new site that is in pre-launch state that will become a virtual world – chat, shop, play, videos, etc. Anyways they are giving free shares (that should become actual company shares) to anyone who signs up and more shares if you refer people. To Sign up (Free) and receive your shares click here.

 

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Where is the Dollar heading? Part 1 — A Must See!

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 Gold rallies over 7% as Fed move fuels inflation fears

By Moming Zhou, MarketWatch Last update: 1:14 p.m. EDT March 19, 2009







NEW YORK (MarketWatch) -- Gold futures climbed to top $950 an ounce after 

the Federal Reserve pledged to purchase as much as $1.15 trillion in U.S. bonds 


and mortgage-backed securities to encourage lending, sparking worries of inflation 


ahead. "Looking ahead, we fear inflation. It may be that Dr. Bernankenstein has 


created a monster beyond his control," Michael Farr, president of Farr, Miller & 


Washington, said of Fed Chairman Ben Bernanke. 




The U.S. dollar's losses in the wake of the Fed's move also lifted gold prices, 


with investors buying gold as a hedge against inflation and a weaker dollar. 




Gold for April delivery surged $66.5, or 7.6%, to $955.6 an ounce on the 


Comex division of the New York Mercantile Exchange. It climbed to $963.5 


earlier in the session, the highest level in nearly one month. Gold's gain came 


after it lost $27.70 to end at $889.10 Wednesday, the lowest closing level 


in two months. 




Wednesday's floor trading ended before the Fed announced its decision. 


George Gero, a precious metals trader for RBC Capital Markets, called gold's 


quick reverse from an nearly $30 dollars to up more than $60 "shock and awe." 


The Fed's plan "could change [the] inflation outlook and result in a greater 


trading range," he added. 




Silver prices marked an even bigger rally. Silver for May delivery jumped 


12.7% to $13.445 an ounce. 




'Gold is well-placed to re-challenge $1,000 an ounce.'


— -- James Moore, TheBullionDesk.com




The Fed said it would buy longer-term Treasury bonds to help arrest a 


deepening slide in the U.S. economy, a surprise move that also sent stocks 


soaring and triggered violent moves in other markets. 




The Fed's move, one of several actions taken Wednesday aimed at making 


it less expensive to borrow money, doubled the amount of money the central 


bank has poured into the economy to try to stimulate economic activity. 


Read: The Fed Minutes. 




"The Fed's announcement of further quantitative easing triggered renewed 


inflation fears," wrote James Moore, a precious metals analyst at 


TheBullionDesk.com. "Gold is well-placed to re-challenge $1000 an ounce." 




Holdings in SPDR Gold Shares (GLD94.15, +1.06, +1.1%) jumped to 


1,084.33 tons Wednesday, up 15.28 tons from a day ago, according to 


the latest data from the fund. The total is nearly 80 tons higher than 


a month ago. 




In economic news Thursday, the number of people collecting 


state unemployment benefits jumped by 185,000 to a record seasonally-


adjusted 5.47 million in the week ending March 7, while new claims dipped 


by 12,000 to 646,000 in the week ending March 14, the Labor Department 


reported Thursday. See Economic Report on weekly jobless claims. 




On Wall Street, stocks meandered between gains and losses following 


Wednesday's rally. Asian and European stocks also moved higher. In energy 


trading, crude jumped more than 7% to about $52 a barrel. 

 




Moming Zhou is a MarketWatch reporter based in New York.


 


 






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Gold, T-Bonds, and Russia's Tu-160 Bombers -Seeking Alpha












A torrid tale of politics, gossip and a shiny, yellow threat to world peace...




Germany in 1944 could buy materials during the war only with gold. 


Fiat money in extremis is accepted by nobody...



- Alan Greenspan, then-Fed chairman, May 1999



FOR A WORLD-LEADING MARKET turning over $60 billion per day, 


London's wholesale gold dealers sure spook easy sometimes.






"I've just heard central banks have been selling. You hear anything?" 


asked one breathless contact of BullionVault on Wednesday... just 


before the Federal Reserve's $1.25 trillion shot in the arm gamed 


the gold price so hard, so fast, the conspiracy theorists at GATA 


should demand a Congressional hearing into Ben Bernanke's 


long Comex position.


 


More often than not, however, professional dealers get all 


aflutter about rumors of central-bank buying, not selling. In 


late 2008, it was supposed to be the Saudis. Last month it was 


the Russians – or so gossip claimed. Gossip that the Kremlin 


was only too happy to buoy.


 


Come mid-March, the People's Bank of China (PBoC) fired up 


the tittle-tattle – and again, as if on purpose – by forecasting 


that despite "safe haven" demand for the US dollar in 2009, 


gold prices would "fluctuate at high levels...possibly 


breaking through previous highs..."


 


Now this week a report by the oh-so-sexily-named 


Central Banking Publications says that out of 39 reserve 


managers controlling $3.2 trillion in official currency and 


bullion hoards – some 42% of the world total – well over 


one-in-two feels Buying Gold would make a smarter move 


today than it did this time last year.


 


So are the emerging powers hoarding gold today or not? 


What's a private citizen trying to look after his or her own 


to make of this chatter?


 


Well, as a rule, it means little or nothing for the price of gold 


day-to-day. And like GATA's claims – 


highly detailed, much derided – that Western governments 


regularly fix the gold market to cap its ascent, rumors of 


central-bank buying never prove quite as dramatic as 


central-bank action to either defend or debase the 


currencies against which it's priced instead.


 


Raise overnight interest rates to double digits, for instance 


as the Federal Reserve's Paul Volcker did in the early 1980s 


and non-yielding gold will tumble against high-yielding cash. 


 


Cut and hold rates at zero, in contrast...while creating, say, 


$1 trillion of fresh money in a 425-word statement, as Ben 


Bernanke did Wednesday...and you'll send Gold Prices higher, 


just as surely as the Maestro's apprentice strolling into London 


and buying 50 tonnes on his own account.


 


Investment-house analysts, meantime, are more focused on 


the possible 400-tonne sale mooted to help save the world-


saving International Monetary Fund (IMF). Yet the really big 


driver so far this year remains mutual-fund managers buying 


paper-shares in ETF trusts. Western coin buyers paying 


10% mark-ups (or more...!) are meantime wrestling with Asian 


scrap-jewelry sellers as to who can tip the balance of apparent 


supply and demand.


 


Large-scale gold purchases by Beijing or the Kremlin would 


anyway come at the pit-head, rather than on the open market, 


as they look to "slow and steady accumulation" in the words 


of UBS's highly-regarded John Reade recently, quoted by the 


Financial Times. 


 


Buying gold direct from domestic miners was 


how South Africa more than doubled its official reserves in the 


late 1960s. China and Russia now stand first and fourth among 


the world's gold-producing nations. Why announce their 


intentions, sticking a premium onto their dealer's offer, 


by going through the open market?


 


But behind the dealing-room noise, however, the cold facts 


of Asian, Middle East and Russian gold hoarding point to a 


deeper trend – an ugly if grand historical shift that finds its 


last cyclical turn almost 10 years ago to the day.


 


In mid-1999, the Swiss, European and UK central banks 


announced gold sales that did indeed shake the market. 


Back then, the Gold Price had been tumbling for the best 


part of two decades – thanks first to those double-digit US 


rates, and then to the fast-growing number of high-return 


alternatives for investment cash that sprouted worldwide 


as interest rates began to fall back but remained well north 


of the rate of inflation.


 


Prompted by investment-bank advisors and analysts, the 


late 20th century's heavy selling by West European 


governments coincided not only with both a multi-year 


low in the gold price and a bubble in earnings-free tech stocks. 


 


It also came together with Francis Fukuyama's "end of history" 


and Tony Blair – the UK prime minister then guilty of bombing 


neither Belgrade nor Baghdad – declaring his to be "the first 


generation [in Europe] that may live our entire lives without 


going to war or sending our children to war."


 


Put Blair's cant to one side (if you're not retching). Why did 


Europe's central banks have so much gold to sell in the first 


place? As BullionVault has noted before, the continent's 30-


year scrap between its big nation states was preceded and 


worsened by frantic gold hoarding amongst the major players. 


 


Because a government must trust in another's long-term survival 


when accepting its paper as payment. Whereas gold bullion, as 


former Fed chief Alan Greenspan famously said – and just before 


the UK announced its 415-tonne sales back in May 1999 as it 


happens – "still represents the ultimate form of payment in 


the world.


 


"Germany in 1944 could buy materials during the war only with 


gold. Fiat money in extremis is accepted by nobody. Gold is 


always accepted."


 


Why else did the Nazis march straight to seizing the central-bank 


vaults on reaching Vienna, Prague and Warsaw? Why else did the 


United States grow its hoard from 500 tonnes in 1900 to almost 


20,000 by the eve of World War Two...nationalizing privately-held 


gold on pain of a $10,000 fine or imprisonment when F.D.R. took 


office at the depths of the Great Depression? (See 


Hoarding for War, Vaulting for Victory for more...)


 


Now, two generations later, China's official gold reserves remain 


unknown and unknowable to outside observers. But it has become 


the world's No.1 gold-mining state thanks to the collapse in South 


African output. And the fresh deluge of US money debasement only 


confirms why Beijing's bankers "hate you guys" as one policy-maker, 


Luo Ping – director-general of 


China's Banking Regulatory Commission – put it last month.


 


"Once you start issuing $1 trillion or $2 trillion," he said to the 


Financial Times, five weeks before the Fed issued...ummm...$1.25 


trillion of new cash..."we know the Dollar is going to depreciate.


 


"So we hate you guys but there is nothing much we can do. Except for 


US Treasuries, what can you hold? Gold? You don't hold Japanese 


government bonds or UK bonds. US Treasuries are the safe haven. 


For everyone, including China, it is the only option."


 


Further west (but only a little, politically), Russia's official gold reserves 


have swelled by one-half this decade on the IMF's data, with new 


purchases peaking in August 2008 – just as the 58th army rolled into 


Georgia to defend South Ossetia's illegal, breakaway republic.


 


Under Vladimir Putin, the Kremlin said it wanted gold to grow from 


2.5% to fully one-tenth of its foreign currency reserves, meaning 


four-fold growth of its bullion hoard if not a collapse in its paper a


ssets. Just last month, the central bank stated that it was Buying Gold. 


On the available data, it had already added 109 tonnes to its hoard in the 


15 months starting Jan. 2007 at a cost of some $27 billion.


 


Oh sure, that's peanuts compared to the total $4 trillion-worth of gold 


now thought to be above-ground at today's prevailing prices. But the 


vast bulk of that gold is held as jewelry, not monetary units like coins 


or bars. And according to Tsar Putin himself back in 2007, before this 


burst of gold-hoarding really got started, the ratio of 


Russian government debt to its national gold reserves was already 


stronger than for any other state in Europe.


 


Never mind how wide of the mark that metric was; Putin's claim shows 


how much Gold Bullion matters to Russia's political confidence – a 


swagger only called into use when debt and foreign currencies slide 


into crisis. And then this week, the current Kremlin incumbent, Dmitry 


Medvedev, goes and announces that he's "rearming" Russia, using the 


very word – "rearmament" – that Europe fretted over and feared all 


through its short 20-year peace between the first and second world wars.


 


Specifically, "[I will] increase the combat readiness of our forces, first 


of all our strategic nuclear forces," Medvedev declared Tuesday, piling 


historical weight onto Monday's more Cold-War-style news that 


Roscosmos, the Russian space agency, is planning a manned lunar 


mission for 2015.


 


Oh, and then there was Sunday's news from Venezuelan socialist 


crackpot Hugo Chavez that Russia's long-range Tu-160 "Black Jack" 


bombers – each capable of carrying 12 nuclear warheads – are welcome 


to use the Caribbean island of La Orchila. You know, just for re-fuelling, 


cleaning the windscreen, emptying the ash-trays...but not ever as a 


permanent base.


 


So this isn't the Cuban missile crisis. Not yet at least. But the Kremlin's 


new saber rattling must still have caused a shock at the White House – 


just as it shocked anyone not tracking Russia's fast-growing gold reserves. 


Either that, or Team Obama is so smart, they were expecting some kind of 


pre-emptive strike ahead of the Fed's nuclear blast in the T-bond market.


 


"Foreign demand for long-term Treasuries has disappeared over the last 


few months," writes Brad Setser – an ex-US Treasury and IMF official, 


former economist for Nouriel Roubini's doom-and-gloom funsters at RGE 


Monitor, and a visiting or associate fellow pretty much everywhere worth 


having deep thoughts on big subjects. Studying the latest official data 


(released Monday) in his blog for the Council for Foreign Relations, "It is 


striking that for all the talk of safe haven flows to the US, foreign demand 


for all long-term US bonds has effectively disappeared," he explains. 


 


In particular, "Over the past three months, almost all the growth in 


China's Treasury portfolio has come from its rapidly growing holdings of 


short-term bills, not from purchases of longer-term notes...and it is also 


still selling [mortgage] Agency bonds."


 


All told, China continued to buy US Treasury debt; it is "the only 


option" for China, Russia and everyone else at this stage of the game, 


as Luo Ping wailed  to the FT last month. But of the $12.2 billion China 


purchased in January, fully 95% were short-term bills. "Russia also, 


interestingly, added to its holdings of short-term Treasury bills," Setser 


says.


 


And then, with the latest Treasury fund-flow data revealed...BOOM! 


The Federal Reserve explodes the Dollar by printing $300bn to buy 


30-year US debt, plus another $750bn to buy mortgage-agency bonds.


Someone's got to buy this stuff, and the forced buyers of this decade-


to-date are starting to tire. They might just be looking to Buy Gold for 


much more than "portfolio diversification" as well.


 


There. How's that for a gold-market rumor...?





========================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report; 

Exposed! Five Myths of the Gold Market and find out:

·        Who's been driving this record bull-run in gold?

·        What Happens When Inflation Kicks In?

·        Why most investors are WRONG about gold… 

·        When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault 

========================================================

Where is the Dollar heading? Part 1 - A Must See!




========================================================

 

My Note:  Rumors or not Gold is up $69.70 On the Day! - 


Good Investing - Jschulmansr

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Nothing in today's post should be considered as an offer to buy or sell any securities or other 


investments; it is presented for informational purposes only. As a good investor, consult your 


Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s and related information 


carefully before you make any investing decisions and/or investments. –  jschulmansr