Central Banks- Bringing in More Transparency?

Well well well, score one for the good guys! Last week’s post “Central Banking is a Joke, And You Are the Punchline” was about how central banking is a joke played by the rich against regular people. 

We really took Fed employees Kaplan and Rosengren to task for trading and owning securities whose markets are actively influenced by the Fed.

To reiterate, central bankers have extraordinary inside information on the matters of interest rates and money printing done in furtherance of propping up the equity market, so why should they be allowed to trade equities?

Two Out of Three are Bad

We cannot be sure that Fed Chair Jerome Powell read our post, but neither are we sure he did not. What is important is that four days after we posted, both Rosengren and Kaplan have announced their impending retirements from employment at the Fed! 

These two investors will not likely be as successful away from the corridors of power as when they walked the halls.

Who Controls The Silver Market?
Watch Ed Steer only on GoldCore TV

Here is a linkage to reporting on the resignations from Reuters titled: Fed resignations don’t blunt calls for broader ethics changes. 

Notable quotes from that article include 

As Powell looks to be appointed to a second four-year term, “The Federal Reserve from Powell on down is desperate to end this scrutiny without looking into whether there should be legal repercussions,” for Dallas Federal Reserve president Robert Kaplan and Boston Fed president Eric Rosengren, said Jeff Hauser, head of the progressive Revolving Door Project.

We find the above quote to be quite rich ironically. It seems that Chair Powell is helping Rosengren, and Kaplan walk the plank quickly and quietly. Since doing so is Powell’s best way to sweep this scandal under the rug prior to his own reappointment. 

How it is possible then that anyone anywhere believes that central banks are somehow independent of their sponsoring governments?

Download Your Free Guide

Click Here to Download Your Copy Now

And here is the joke of central banks laying bare for all to see…

Fed critics have said the U.S. central banks needs stricter ethics standards. Noting that both men have said their investing activity was approved by ethics officers and comported with rules against using the Fed’s troves of market-moving information for personal gain.  The resignations are “grossly insufficient,” said Dennis Kelleher, head of the Better Markets think tank on financial regulation. He called for Powell to make a “full disclosure of everyone at the Fed who traded during the pandemic while in possession of nonpublic information .” 

Conflict of Interest in Central Banking

How can it be that bad behavior which is worth resigning over is also behavior good enough to have been explicitly approved by ethics officers?

Moreover, the only possible answer is central banks themselves are an immense inherent conflict of interest which no amount of box checking by compliance staff can put right.

Moreover, what are the repercussions for these resigning employees?  Likely none. There is no sign either Rosenberg or Kaplan will be sanctioned by their superiors.

Also, no discussion has come to light about the requirement for disgorging these investment winnings in the pursuit of fairness. Once again, the ‘heads I win, tails you lose’ approach to risk taking is applied to bankers.

And do you know who does not need ethics officers?  A physical bar of silver – that’s who!

The point is that physical precious metals are no one’s counterparty risk. This means no bureaucrat or compliance person can deny the wealth by scooping some of it for themselves.

Are We In A Financial Bubble?
Watch Peter Grandich on GoldCore TV

Here is what we are looking at right now.  Stocks are cheaper than government bonds. Oil is cheap than stocks.  Gold is cheap than Oil, and Silver is cheap than gold.

Since all of these things will snap reverse like a snake once rates start to rise. We are looking forward to that moment when central banks are no longer able to suppress interest rate for the benefit of their own employees.


From the Trading Desk


Stock Update:

Gold coins such as Philharmonics starting as low as 4.5% over the spot.

We have a range of gold coins and bars available at low premiums.

Silver coins for Ireland & the EU – Delivery, and Storage at new lower premiums

Starting as low as spot plus 29% for Silver kangaroo’s.

Silver Britannia’s, Silver Philharmonics & Silver Maples are available from spot plus 30%.

Silver Britannia’s for UK– Delivery or storage is still available at the lowest premium in the market also (which includes VAT at 20%). Purchase these online.

Silver 100oz and 1000oz bars are also available VAT-free in Zurich starting at 8% for the 1000oz bars and 12.5% for the 100oz bars.

We have also recently added Gold 250 Gram & 500 Gram bars.

These are available for storage and delivery starting at spot plus 3.2% for the 250-gram bars & 3.1% for the 500-gram bars.

Please see below our extended trading hours.

** We have extended our opening hours. Phone lines, online ordering and WebChat are now open until 09:00-22:00 (Europe/Dublin) USA 09:00 to 17:00 EST**

Market Update:

Continued inflationary pressures are finally being admitted by the Fed which is supporting their tapering narrative.

While inflation ultimately is positive for precious metals, they have benefited from the excessive money printing of the last few years.

Moving the tapering up in the schedule or even the increase in the tapering narrative has kept gold and silver relatively capped to the upside and vulnerable still to the downside in the short term.

The Fed is being cautious with regards to the intensity of the taper-talk so as not to spook equity markets too much.

It is definitely a case of trying to influence the market with their words rather than their actions at this point.

Gold and silver have not fared well in this environment.

The further downside expected in metals is short-term if either the taper-talk increases or the stock markets react negatively to the same.

A realisation that the Fed has painted itself into a corner and in reality has little scope for any sort of a meaningful taper will see gold and silver break to the upside once again.


Buy Gold Coins


GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

29-09-2021 1741.65 1737.15 1288.65 1290.88 1493.12 1492.39
28-09-2021 1739.65 1733.75 1273.25 1280.55 1489.84 1484.44
27-09-2021 1749.15 1755.30 1277.75 1279.61 1495.35 1500.08
24-09-2021 1755.15 1746.80 1280.56 1275.86 1495.74 1491.24
23-09-2021 1771.05 1750.00 1295.88 1274.18 1510.00 1490.65
22-09-2021 1775.35 1773.40 1302.40 1300.79 1513.31 1512.00
21-09-2021 1766.45 1774.45 1290.57 1299.25 1505.37 1513.25
20-09-2021 1757.15 1757.75 1284.83 1285.62 1501.48 1500.24
17-09-2021 1766.10 1755.95 1280.25 1275.00 1499.24 1493.79
16-09-2021 1781.45 1747.95 1289.41 1269.19 1513.52 1486.81

Buy gold coins and bars and store them in the safest vaults in Switzerland, London or Singapore with GoldCore.

Learn why Switzerland remains a safe-haven jurisdiction for owning precious metals. Access Our Most Popular Guide, the Essential Guide to Storing Gold in Switzerland here

Receive Our Award Winning Market Updates In Your Inbox – Sign Up Here

Stephen Flood

Stephen Flood is the CEO of GoldCore. He is a former Wall Street equity trader and FinTech expert. He has been involved in the precious metals markets since 2004 and has appeared as an expert contributor on CNBC, CNN, BBC, RTE & Bloomberg TV and has had articles published in the Irish Times, Irish Independent and The Sunday Business Post.

Also on news-goldcore-com

Videos

Jerome Powell – The Hawk is back

The Black Friday Stock Market Crash – Gareth Soloway

Inflation Is Everywhere – Kevin Muir Macro Tourist

Blog posts

Jerome Powell – The Hawk is back

Ex Federal Reserve Advisor Danielle DiMartino Booth sees the new Jay Powell as the old Jay Powell. The Chair of the Federal Reserve has pivoted back to his hawkish stance. The “retiring” of the phrase “transitory inflation” signals Jerome Powell intends to tackle inflation head-on and speed up their plans to taper their bond purchase […]

READ MORE

The Black Friday Stock Market Crash – Gareth Soloway

Black Friday 2021 saw the largest stock market sell-off since 1931. Is this the start of a bigger crash, has the trend changed or is this just a one-time blip? We ask Gareth Soloway of InTheMoneyStocks.com what his charts are suggesting and why he is so bullish on gold Watch the Video to Learn More […]

READ MORE

Why Governments Hate Gold

Do governments hate gold?  The answer: Yes — Governments hate gold because they cannot print it, and it is difficult for them to control. Because they cannot print it or easily control it, gold has little use to them during the never-ending schemes to tax and then redistribute wealth. India is a recent example of […]

READ MORE

Featured

Silver – 7 Reasons it is Still Set to Soar

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Jerome Powell – The Hawk is back

The Black Friday Stock Market Crash – Gareth Soloway

Inflation Is Everywhere – Kevin Muir Macro Tourist

Blog posts

Jerome Powell – The Hawk is back

Ex Federal Reserve Advisor Danielle DiMartino Booth sees the new Jay Powell as the old Jay Powell. The Chair of the Federal Reserve has pivoted back to his hawkish stance. The “retiring” of the phrase “transitory inflation” signals Jerome Powell intends to tackle inflation head-on and speed up their plans to taper their bond purchase […]

READ MORE

The Black Friday Stock Market Crash – Gareth Soloway

Black Friday 2021 saw the largest stock market sell-off since 1931. Is this the start of a bigger crash, has the trend changed or is this just a one-time blip? We ask Gareth Soloway of InTheMoneyStocks.com what his charts are suggesting and why he is so bullish on gold Watch the Video to Learn More […]

READ MORE

Why Governments Hate Gold

Do governments hate gold?  The answer: Yes — Governments hate gold because they cannot print it, and it is difficult for them to control. Because they cannot print it or easily control it, gold has little use to them during the never-ending schemes to tax and then redistribute wealth. India is a recent example of […]

READ MORE

Featured

Silver – 7 Reasons it is Still Set to Soar

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE