The aftermath from the Typhoon Haiyan disaster in the Philippines is now being more widely reported, and the scale of the disaster is now being revealed. Scenes of sheer devastation greet the eye. Our sympathies extend to those poor benighted people..
That out of the way, we turn to money matters once more and while dipping into Bloomberg earlier today, I heard something, I never thought I’d hear – An apology… Not from our own financial or political masters, but from a former Fed Official
Andrew Huszar, a Federal Reserve Official for nine years, wrote an Op-Ed piece in the Wall Street Journal this morning and in it wrote:
“I’m sorry America… As a former Federal Reserve Official, I was responsible for executing the centre-piece program of the Fed’s first plunge into the bond-buying experiment, known as Quantitative Easing.”
An apology? What for? His interviewer Erik Schatzker asked him the same question, His answer, surprisingly, didn’t surprise. He said: “We knew after QE1, that it wasn’t working.” He went on to add that they knew that their efforts really just bailed out the Banks, but his final admission is what shocked me, when he said that the economy was in a similar if not worse state than it was in 2007.
Erik’s co-presenter – Stephanie Ruhle jumped on that suggesting that the growth was better, etc etc, and he acknowleged it was, but that suggests all is not well…
Well there’s a surprise… Peter Schiff, who runs The Schiff Report, also thinks the Fed’s actions were bizarre, and that the damage will come back to bite us all in the derriere.
Of course the Chinese are using some of the Fed’s largesse to buy up as much gold and silver as they can. According to several reports, their imports through Hong Kong have steadily risen from about 36 metric tonnes in 2001, to 86 tonnes in 2008, 114 tonnes in 2010, 375 tonnes in 2011, 625 tonnes, in 2012, and to-date in 2013, over 1,000 tonnes.
Along side this, their output from their own mines has steadily grown whereby they are now the biggest Gold producer in the world with over 300 million ounces mined in the last year for which results are known. But also reports have come through that they’ve been scouring Africa and buying up output from artisanal miners at the spot price, and at the rate of circa 40 tonnes per month.
If this is true, then they are already the second largest holders of Gold in the world after the U.S’s 8,700 tonnes – If they still have it?
Reports surfaced in 1974, that the Gold in the Federal Reserve vaults had gone…
The magazine article in the “The National Tattler Magazine”, of the U.S., claimed – “All the Gold in Fort Knox is gone”
This hit the news stands on June 30, 1974. On July 3, Louise Auchincloss Boyer, who was attributed as the source of the story, and who was an executive secretary to Senator Nelson Aldrich Rockefeller, had fallen from her tenth storey apartment window at 530, East 86th Street in New York.
What perhaps adds to the mystery behind this story is that her death was reported as – “Probable Suicide” and reported in the New York Times the following day.
Recent reports, that Germany wants its gold back and has been told it will take up to 6 or 7 years further adds to this mystery.
I wonder if we will ever get to the truth, or an apology for that little mystery?
Until next time…