Wednesday, November 13, 2013

Yellen's Remarks Released Early, Says "Fed has More Work To Do' Assuring More Dovishness GLD, MUX, TNR.v, GDX

  This system is rotten to the core, after our jokes during the day with observations that US dollar was falling out of bed, we know the reason from ZeroHedge report now. People in the know were playing it already yesterday as we have noticed in the USD print. Now US Dollar is falling hard towards 80.00 and Gold is spiking up.
  In the big picture preparations to install Janett Yellen were started long time ago with countless attacks on Gold and ECB Rate Cut, just to allow the FED room for her upcoming policies and save the US dollar from the waterfall.

Bitcoin Heist And Jim Rickards On Taper, Janet Yellen and Gold GLD, MUX, TNR.v, GDX

  "In this very interesting episode RT is reporting about the hunger for the FIAT Currencies alternatives and how it is driving the Bitcoin Bubble, but it is not The New Gold or even close to it - as we have written before. New security concerns are reported with the cryptocurremcy and Jim Rickards dissects the Currency War situation in the ECB, BOJ and FED race to the bottom. You will find out why Janet Yellen can not Taper and what is behind the Gold and why Gold Standard is still valuable option even today. 
  After our yesterday US dollar chart observations it has fallen out of bed so far today - maybe somebody already has received Janet Yellen's testimony for tomorrow's nomination hearing."

US Dollar And Gold This Week - Taper Talk And Who's Gonna Make The Walk GLD, MUX, TNR.v, GDX

  "We have quite an interesting print in US Dollar today - with all Taper assured talk from both side of the FED's mouth, US Dollar has ended with a big hesitation question mark. We do not know what to take here with all ongoing market manipulation, but would like to point it out and will be watching this week action in USD very closely.

Action in USD will be crucial for the Gold direction. We can expect another Gold hit and run accident around DC area with Janet Yellen going for nomination. Gold miners are showing diversion for the second day after Friday, even if today it was not so strong."

Peter Schiff: With ECB Rate Cut FED Has More Room To Increase QE Now GLD, MUX, TNR.v, GDX, SLV

 "Peter Schiff warns everybody: do not be fooled by all this Taper talk, the moment FED removes the QE we are going in recession. ECB Rate Cut gives more room for FED to increase QE now.
  The action in Gold and Gold miners will be the very good indicator of the real state of the financial markets. Any discussions will stay only the words without money flowing into the sector. China is buying record amount of Gold this year and now you can add countries like Thailand and Turkey into the mix as well. Thailand's biggest domestic gold importer expects to more than double purchases this year to 200 t from 92 t last year. Turkey's gold imports have doubled this year and purchases have reached already 251.4 t from January - the biggest tonnage increase since at least 1995, according to ZeroHedge.
  What do they know the others don't? The real situation with Gold at the Central Banks being leased out or Record Low COMEX inventories?"


Yellen's Remarks Released Early, Says "Fed has More Work To Do' Assuring More Dovishness

Just as the market was expecting, and may have been leaked once again, Janet didn't let anyone down. Today's exuberance in stocks matched only by confirmation that Janet Yellen has gained her helicopter pilot's license and is ready to take over the reigns of printer-in-chief from Bernanke.
The word cloud of the 914 words in her prepared remarks.
Key extracts, including Credit Suisse's take:
  • Support demand /lower for longer -"supporting the recovery today is the surest path to returning to a more normal approach to monetary policy"
  • No hurry to taper - "A strong recovery will ultimately enable the Fed to reduce ... reliance on unconventional policy tools such as asset purchases"
  • More transparency (think consensus FOMC projections) - "have strongly supported this commitment to openness and transparency, and will continue to do so"
  • Sup and Reg for bubbles not tighter policy " I am committed to using the Fed's supervisory and regulatory role to reduce the threat of another financial crisis"
  • And of course, status quo continues:  I believe the Federal Reserve has made significant progress toward its goals but has more work to do
In short: Get to work Mr. Chairwoman, and allow Congress to keep doing more of what they have been doing under the Fed's central planning: nothing.
* * *
Full testimony:

Vice Chair Janet L. Yellen

Confirmation hearing

Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, Washington, D.C.

November 14, 2013

Chairman Johnson, Senator Crapo, and members of the Committee, thank you for this opportunity to appear before you today. It has been a privilege for me to serve the Federal Reserve at different times and in different roles over the past 36 years, and an honor to be nominated by the President to lead the Fed as Chair of the Board of Governors.
I approach this task with a clear understanding that the Congress has entrusted the Federal Reserve with great responsibilities. Its decisions affect the well-being of every American and the strength and prosperity of our nation. That prosperity depends most, of course, on the productiveness and enterprise of the American people, but the Federal Reserve plays a role too, promoting conditions that foster maximum employment, low and stable inflation, and a safe and sound financial system.
The past six years have been challenging for our nation and difficult for many Americans. We endured the worst financial crisis and deepest recession since the Great Depression. The effects were severe, but they could have been far worse. Working together, government leaders confronted these challenges and successfully contained the crisis. Under the wise and skillful leadership of Chairman Bernanke, the Fed helped stabilize the financial system, arrest the steep fall in the economy, and restart growth.
Today the economy is significantly stronger and continues to improve. The private sector has created 7.8 million jobs since the post-crisis low for employment in 2010. Housing, which was at the center of the crisis, seems to have turned a corner--construction, home prices, and sales are up significantly. The auto industry has made an impressive comeback, with domestic production and sales back to near their pre-crisis levels.
We have made good progress, but we have farther to go to regain the ground lost in the crisis and the recession. Unemployment is down from a peak of 10 percent, but at 7.3 percent in October, it is still too high, reflecting a labor market and economy performing far short of their potential. At the same time, inflation has been running below the Federal Reserve's goal of 2 percent and is expected to continue to do so for some time.
For these reasons, the Federal Reserve is using its monetary policy tools to promote a more robust recovery. A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases. I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.
In the past two decades, and especially under Chairman Bernanke, the Federal Reserve has provided more and clearer information about its goals. Like the Chairman, I strongly believe that monetary policy is most effective when the public understands what the Fed is trying to do and how it plans to do it. At the request of Chairman Bernanke, I led the effort to adopt a statement of the Federal Open Market Committee's (FOMC) longer-run objectives, including a 2 percent goal for inflation. I believe this statement has sent a clear and powerful message about the FOMC's commitment to its goals and has helped anchor the public's expectations that inflation will remain low and stable in the future. In this and many other ways, the Federal Reserve has become a more open and transparent institution. I have strongly supported this commitment to openness and transparency, and will continue to do so if I am confirmed and serve as Chair.
The crisis revealed weaknesses in our financial system. I believe that financial institutions, the Federal Reserve, and our fellow regulators have made considerable progress in addressing those weaknesses. Banks are stronger today, regulatory gaps are being closed, and the financial system is more stable and more resilient. Safeguarding the United States in a global financial system requires higher standards both here and abroad, so the Federal Reserve and other regulators have worked with our counterparts around the globe to secure improved capital requirements and other reforms internationally. Today, banks hold more and higher-quality capital and liquid assets that leave them much better prepared to withstand financial turmoil. Large banks are now subject to annual "stress tests" designed to ensure that they will have enough capital to continue the vital role they play in the economy, even under highly adverse circumstances.
We have made progress in promoting a strong and stable financial system, but here, too, important work lies ahead. I am committed to using the Fed's supervisory and regulatory role to reduce the threat of another financial crisis. I believe that capital and liquidity rules and strong supervision are important tools for addressing the problem of financial institutions that are regarded as "too big to fail." In writing new rules, however, the Fed should continue to limit the regulatory burden for community banks and smaller institutions, taking into account their distinct role and contributions. Overall, the Federal Reserve has sharpened its focus on financial stability and is taking that goal into consideration when carrying out its responsibilities for monetary policy. I support these developments and pledge, if confirmed, to continue them.
Our country has come a long way since the dark days of the financial crisis, but we have farther to go. Likewise, I believe the Federal Reserve has made significant progress toward its goals but has more work to do.
Thank you for the opportunity to appear before you today. I would be happy to respond to your questions."

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