Wednesday, September 18, 2013


Today was a "Fed Day". Meaning there was a meeting of the Federal Reserve and the minutes of the meeting were released to the public at 2pm EST.

The financial world awaits the release of these minutes because they give an indication of the Fed's outlook, and the Fed's stance on interest rates, inflation, and the economy.

The Fed decision is recorded here on Bloomberg.

But it was the same on CNBC.

The news today is that the Fed did NOT start reducing their buying of US Treasury bonds. Ie, they did not start to taper their purchases. Expectation of a "taper" had been a matter of speculation in the stock and bond markets for some time, with the specter of  a rise in long term interest rates, as a result of a lack of Fed support, weighing on the markets. Stocks and bonds.

A funny thing happened today.

The gold and silver markets responded to the news 3 minutes before the news was released.
I was watching SLV at the time. It started to rally on big volume before the release of the news from the FED. Gold and GLD did the same.

This fact of an early reaction was briefly mentioned on CNBC.    Briefly.

A similar occurrence occurred a couple months ago regarding some economic data from one of the major universities that does economic research. It may have been the "purchasing managers index" or something similar.
As it was reported on CNBC, the fact that the markets responded before the official release of the data to the public was not anything new, and they went on to report that private studies are often sold to private concerns a few seconds before they are released to the public. This being private enterprise in action and as a way for the publisher of the study to make money.

The Federal Reserve Board is not a private business. Is it?
Then why did the markets in gold and silver explode minutes before the data/minutes were publicly released?

The charts:

the daily move
by the minute
SLV daily
and by the minute:
Does the Federal Reserve Board release the minutes of their meeting early to those who can pay for the information?
If so, why? Do they need the extra money?
They can print the fucking money if they need it.  Who gets the information early?
And why?!
somebody had early warning.
This looks like more proof of the fact that it takes money to make money.
And one more reason for more regulation of the big money.
Grab yer pitchforks!

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