The “Markets” Are A Total Farce: Stocks Pushed Up – Gold Pushed Down By The Fed

I described the other day what a circus the inter-FOMC meeting periods have become.   One by one Fed clowns appear to describe an economy at full employment and threaten us with another one-quarter of one percent Fed Funds rate hike. Since this process has started last Monday, the S&P 500 has been flat but gold has been taken down methodically  about $80, or 6.7%.   The mining stocks as represented by the HUI have been dropped 12% from their high last week.

Yesterday the circus took on a new dimension.  SF Fed John Williams was once again out promoting rate hikes this year and even more rate hikes next year – LINK.  St Louis Fed clown Bullard was out yesterday pontificating that low rates  for too long could be risky – LINK.  You don’t  say, James?  Is he referencing the nominal .25% Fed funds rate since  lat e 2008?  OR is he referencing the negative real interest rates since well before 2008?  To which measure of interest rates are you are you referencing, James?

They both made some insane assertions about “full employment” in the economy.  Does that mean that anyone who wants to be a bartender or barista can find gainful employment?  But what about the 38% of the population that is no longer counted as part of the labor force?   A large majority have given up looking for work because it’s easier and pays better to soak off the taxpayer via Social Security Disability, Welfare and Student Loans.

Everyone knows that the true unemployment rate is over 20%.   This is based on applying the way the Government calculated unemployment in 1980.  We still have the issue of data collection and “massaging.”  The economy is far from healthy and the flow of economic reports from private sector sources, including regional Feds, continue to reflect an economy that is deteriorating down the level of economic activity in 2009.

The Fed needs to promote the idea of rate hikes in order to show consistency in policy with its narrative of “full employment, tight labor market conditions and an improving economy.”  Just as important, it reinforces the Fed’s ability to manipulate the price of gold.

The source of frustration for many of us is that higher rates correlate with lower stock prices and higher gold prices.    Days like today in the markets are difficult to watch because it’s driven entirely by false propaganda and direct intervention in the market by the NY Fed/Exchange Stabilization Fund.

While days like today may be painful to watch, the truth is that since the Fed began bashing gold with rate-hike drivel starting last Monday, the S&P 500 has not moved higher despite days like today which make it feel like the stock market is poised to hit an all-time high.

When the Fed pushes down the price of gold with paper during NY Comex floor-trading hours, take advantage of it by buying some physical gold or silver.

I have moved U.S.Government electronic monopoly money from my checking account into my  Bitgold account every day this week.  I don’t have the funds required to buy a 1oz. bullion coin everyday, but  BitGold  allows me to accumulate .9995% gold grams. This is bona fide allocated gold.

I want to make it clear that I’m not an affiliate or associated with Bitgold and do not get any ad revenues from Bitgold for the display link at the top (although I’m sure I could if I requested it).  I just really believe in the service and I think anyone can benefit from moving their digital bank credits out of the global Central Banking system and in to Bitgold.  I receive a 2% “bonus” if someone uses the links on this site to sign-up for Bitgold and everyone who opens a new account that is funded receives a 5% bonus.

I had an in-depth conversation with the CEO several weeks ago and when I find the time I am going to share my analysis of the with the subscribers of my Mining Stock and Short Seller Journals.

9 thoughts on “The “Markets” Are A Total Farce: Stocks Pushed Up – Gold Pushed Down By The Fed

  1. It’s Groundhog Day!!

    Is Punxtapawney Phil predicting an interest rate hike or negative interest rates?!?

  2. The whole system is a farce…….and they don’t care. Plus they don’t care that you know or that it’s killing you financially, spiritually, or physically. No one’s off limits.

    Register here for the Rally in Washington on June 16!
    Thank you Matt for
    your service to our country and for taking up the fight to change the
    FDA’s status quo while fighting your own battle with ALS. You are
    amazing!

    My Right To Try Now | Advocacy For Terminally Ill Patients
    https://www.facebook.com/gm604forals/posts/1778517679036239

  3. We now live in a centrally planned, command economy where not only does the State influence the “means of production”, but also practically every other facet of our lives. This includes banking and finance, healthcare, and information with the complicit involvement of the media (i.e. MSM). This includes the fundamental family unit, our sex lives, including the very definitions of male and female. It’s all about control, complete and total, and nothing else.

    Cash is “bad” because it can’t be tracked and NIRP is good because… Why? (Because we said so, comrade.)
    Gold is “bad” because it’s a vote against fiat currency and the entire corrupt banking system.

    Stocks going up is “good” because this is the new metric for the economy, even if it’s completely disconnected from reality, such as employment, real wages, private sector growth, etc. It used to be stocks went “up” because corp. earnings were good. Not so much right now. Stocks up because the intended incumbent socialist party criminal candidate is, well, having some issues in this area, although I’ve not seen an actual indictment yet. Laws are for the little people apparently.

    I’m sure this will work out for the better. Just look to current events in Venezuela, for example.

    “War is peace.
    Freedom is slavery.
    Ignorance is strength.” – George Orwell, 1984

    “Power is in tearing human minds to pieces and putting them together again in new shapes of your own choosing.” – George Orwell, 1984

    “The choice for mankind lies between freedom and happiness and for the great bulk of mankind, happiness is better.” – George Orwell, 1984

    “Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.” – George Orwell, 1984

    http://www.zerohedge.com/news/2016-05-24/more-young-americans-live-their-parents-any-time-great-depression
    “More Young Americans Live With Their Parents Than At Any Time Since The Great Depression”
    Submitted by Tyler Durden on 05/24/2016 17:00 -0400

    https://pjmedia.com/instapundit/228040/
    MARCH 1, 2016
    QUOTE OF THE DAY “‘A couple of years ago, [socialist Venezuela’s] then-minister of education admitted that the aim of the regime’s policies was ‘not to take the people out of poverty so they become middle class and then turn into escuálidos’ (a derogatory term to denote opposition members). In other words, the government wanted grateful, dependent voters, not prosperous Venezuelans.’”
    Or to put it another way, “They’ll turn us all into beggars ’cause they’re easier to please. . . .”

  4. I can’t wait for your independent views on bitgold. I’ve been in GoldMoney for many years.
    Your commentary is always excellent.

  5. All of this reminds me of what I witnessed after 9/11. Some family friends had an adult son who worked in the World Trade Center. For months, our friends had hope that their son would miraculously return home to his family. Denial is not just a stage of grief, but also a tenet of Keynesian monetary policy.

  6. The FED Heads are talking up rate hikes to put a “floor” in the Dollar … if they weren’t talking up rate hikes, the Dollar would have already crashed to sub 90 on the Dollar index … possibly an 88 handle by now.

  7. They will push gold down for next 2 weeks till next Fed meeting. Expect no surprises ,only bullshit talk about economy recovering.

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