Japan Joins The QE Race – Who Can Print The Most Money?

After what appeared to be a coordinated effort by Europe and the U.S. to print their way to prosperity, Japan quickly joined the race to eternal QE with the surprise announcement of additional monetary easing.

TOKYO—The Bank of Japan took surprisingly strong steps to further ease its monetary policy on Wednesday, following similar steps by the Federal Reserve, as it tries to tackle entrenched deflation, an export-sapping strong yen and the impact of slowing global growth.

The central bank's policy board decided at the end of a two-day meeting to increase the size of its asset-purchase program—the main tool for monetary easing with near-zero interest rates—to ¥80 trillion ($1.01 trillion) from ¥70 trillion.

The move came after the Fed introduced another round of quantitative easing last week, which put renewed upward pressure on the yen.

"These measures in pursuit of powerful monetary easing will make financial conditions for such economic entities as firms and households even more accommodative by further encouraging a decline in longer-term market interest rates and a reduction in risk premiums," the central bank said in a statement released together with the rate decision.

Board members voted unanimously to expand the scope of the asset-purchase program. The BOJ also decided to leave its policy rate, or the unsecured overnight call loan rate, unchanged in a 0.0%-0.1% range.

Japan has been in an endless loop of money printing ever since stocks and real estate crashed in the early 1990's after one of the biggest financial bubbles in history.  Twenty years of quantitative easing and monetary stimulus have resulted in stagnant wages, the largest debt to GDP ratio in the world and a stock market that is still off 75% from its high.  Except for printing additional money, Japan seems flat out of options for reviving its economy.

Courtesy yahoo finance

Does anyone really expect this desperation tactic to cure Japan's problems?

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Ron Paul Accuses The Federal Reserve of Devastating America

While Wall Street cheers the Federal Reserve's decision to engage in perpetual quantitative easing, Congressman Ron Paul says the Fed is devastating the U.S. economy through its blatant manipulation of interest rates.  According to Ron Paul, manipulating interest rates to the zero bound level has caused a massive misallocation of capital, destroyed the purchasing power of the U.S. dollar and will eventually lead to another financial crisis.

Ron Paul's warnings have been routinely dismissed by both Wall Street and his colleagues in Congress.  The majority of the American public know that something is seriously wrong with our financial system but can't quite connect the dots between the Fed and lower wages and higher prices.  Those who do understand how the Fed is destroying the U.S. economy and are worried about preserving their wealth, should simply copy the investment strategy of Ron Paul who has gone all in on gold and silver.

By Ron Paul

One of the most enduring myths in the United States is that this country has a free market, when in reality, the market is merely the structural shell of formerly free institutions. Government pulls the strings behind the scenes. No better illustration of this can be found than in the Federal Reserve’s manipulation of interest rates.

The Fed has interfered with the proper function of interest rates for decades, but perhaps never as boldly as it has in the past few years through its policies of quantitative easing. In Chairman Bernanke’s most recent press conference he stated that the Fed wishes not only to drive down rates on Treasury debt, but also rates on mortgages, corporate bonds, and other important interest rates. Markets greeted this statement enthusiastically, as this means trillions more newly-created dollars flowing directly to Wall Street.

Because the interest rate is the price of money, manipulation of interest rates has the same effect in the market for loanable funds as price controls have in markets for goods and services. Since demand for funds has increased, but the supply is not being increased, the only way to match the shortfall is to continue to create new credit. But this process cannot continue indefinitely. At some point the capital projects funded by the new credit are completed. Houses must be sold, mines must begin to produce ore, factories must begin to operate and produce consumer goods.

But because consumption patterns have either remained unchanged or have become more present-oriented, by the time these new capital projects are finished and begin to produce, the producers find no market for their goods. Because the coordination between savings and consumption was severed through the artificial lowering of the interest rate, both savers and borrowers have been signaled into unsustainable patterns of economic activity. Resources that would have been used in productive endeavors under a regime of market-determined interest rates are instead shuttled into endeavors that only after the fact are determined to be unprofitable. In order to return to a functioning economy, those resources which have been malinvested need to be liquidated and shifted into sectors in which they can be put to productive use.

Another effect of the injections of credit into the system is that prices rise. More money chasing the same amount of goods results in a rise in prices. Wall Street and the banking system gain the use of the new credit before prices rise. Main Street, however, sees the prices rise before they are able to take advantage of the newly-created credit. The purchasing power of the dollar is eroded and the standard of living of the American people drops.

We live today not in a free market economic system but in a “mixed economy”, marked by an uneasy mixture of corporatism; vestiges of free market capitalism; and outright central planning in some sectors. Each infusion of credit by the Fed distorts the structure of the economy, damages the important role that interest rates play in the market, and erodes the purchasing power of the dollar. Fed policymakers view themselves as wise gurus managing the economy, yet every action they take results in economic distortion and devastation.

Unless Congress gets serious about reining in the Federal Reserve and putting an end to its manipulation, the economic distortions the Fed has caused will not be liquidated; they will become more entrenched, keeping true economic recovery out of our grasp and sowing the seeds for future crisis.

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Set Includes Chester Arthur Presidential $1 Coin and Alice Paul Bronze Medal

A new product from the United States Mint features an uncirculated Chester Arthur Presidential $1 coin and a bronze medal depicting Alice Paul and the Suffrage Movement.

Chester Arthur Presidential $1 Coin and Alice Paul Bronze Medal Set

Listed as the first release this year in the U.S. Mint’s series of Presidential $1 Coin & First Spouse Medal Sets, the Chester Arthur Presidential $1 coin and Alice Paul bronze medal may be purchased for $9.95 directly at www.usmint.gov.

Alice Paul was not a first lady, but she is depicted on the inaugural 2012 First Spouse Gold Coin as mandated in the authorizing coin legislation. Chester Arthur’s wife had died of pneumonia before he became president, which set into motion the specific language in the legislation to honor Alice Paul and the Suffrage Movement. Suffragist Alice Paul was born during Arthur’s term.

As announced earlier this year, pricing is lower than previous medal sets. Collectors can still buy older sets directly from the United States Mint, but those dated 2011 will cost $14.95 and those from 2010 are priced at $11.95.

As shown in the image above, both the Chester Arthur $1 coin and Alice Paul bronze medal are enclosed within a display card that features a background image of the former President. The combination of $1 coin and bronze medal has, in the past, proven popular depending on who is featured. The set depicting the Lincoln’s has current sales of 15,116. Last year’s sets, however, are much lower. The one depicting the Grant’s are the best at 6,421.

Uncirculated Chester Arthur dollars can be acquired through other U.S. Mint products that include it. The coins first debuted on April 5, 2012.

Currently, bronze medals featuring Alice Paul cannot be purchased separately. In the past, the Mint had sold bronze medals by themselves, starting when the gold coins featuring the honored lady were released. On October 11, 2012, the U.S. Mint launched the lice Paul and the Suffrage Movement Gold Coins but it did not offer her bronze medal.

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Gold Bullion Coin Sales Soar 76% In September, Silver Sales Up 13%

According to the latest report from the U.S. Mint, demand for both gold and silver bullion coins during September surged to the highest levels since January.

Total sales of the American Eagle Gold bullion coins during September soared 75.6% to 68,500 ounces from 39,000 ounces in August.  Monthly sales of gold bullion coins have fluctuated widely during 2012 with a high of 127,000 ounces in January and a low of 20,000 ounces in April.   The average monthly sales of gold bullion coins through September is 53,500.

Total sales of the American Eagle Gold bullion coins through September total 481,500 ounces.   Unless sales surge dramatically during the last three months of the year, 2012 will be the fourth year of declining sales of the gold bullion coin.   As detailed below, the all time record for sales of the gold bullion coins was during 2009 when sales exceeded 1.4 million ounces.

Gold Bullion U.S. Mint Sales By Year

U.S. Mint sales of the American Eagle Silver bullion coins during September totaled 3,255,000 ounces, up 13.4% from August sales of 2,870,000 ounces.

Investor demand for the American Eagle Silver bullion coins has been relatively consistent throughout the year.  After a very strong January during which over 6.1 million coins were sold, demand remained strong with monthly sales well in excess of 2 million ounces except for February when sales slumped to 1,490,000 ounces.  If monthly sales of the American Eagle silver coins continue at the September sales pace, total sales for 2012 will be close to the record year of 2011 when almost 40 million ounces were sold.

Total annual sales by the U.S. Mint of the silver bullion coins since 2000 are shown below.  Sales for 2012 are through September.

American Silver Eagle Bullion Coins

The American Eagle gold and silver bullion coins produced by the U.S. Mint can only be purchased by Authorized Purchasers who in turn resell the coins to other dealers and the general public.  Numismatic versions (uncirculated or proof) of the American Eagle series coins can be purchased by the public directly from the U.S. Mint.

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Collector 2012-P Hawaii Volcanoes Silver Uncirculated Coin Opening Sales

Opening sales for the 2012-P Hawaii Volcanoes National Park Five Ounce Silver Uncirculated Coin appeared in the latest U.S. Mint sales report.

Starting sales for the 2012-P Hawaii Volcanoes National Park Five Ounce Silver Uncirculated Coin started quicker than the previous 2012-dated released

Sales began on Monday, September 24, and by Monday, October 1, collectors ordered 9,186 coins at $204.95 each.

This starting total beat inaugural sales, with similar Monday through Monday time frames, of the three prior America the Beautiful Five Ounce Silver Uncirculated coins. Below is a list of their debuting sales and their release dates.

2012-P Hawaii Volcanoes National Park Silver Uncirculated Coin2012-P Acadia National Park Silver Uncirculated Coin2012-P Chaco Culture National Historical Park Silver Uncirculated Coin2012-P El Yunque National Forest Silver Uncirculated Coin

Most of the time, a new coin boosts buying activity for other available coins in its series, but sales for only half of the older issues outperformed their prior week’s gains. Purchases across the Mint’s coin collecting products, however, were down comparatively as 53 experienced increased sales over the previous round, after 67 in the last report showed week-over-week improvements.

The only numismatic item to sell more than the Hawaii Volcanoes Silver Uncirculated Coin was the 2012-W American Silver Eagle Proof Coin, which rose by 12,133. Other top weekly sellers were the 2012 Proof Set with 7,661 orders, followed by the 2012 Silver Proof Set and 2012 U.S. Mint Uncirculated Set. Those two advanced by 4,032 and 2,552 respectively.

All available sales on U.S. Mint coin collecting products are below. The first three columns of the table provide weekly United States Mint sales increases between the listed time periods, offering a sense of recent trends. The last column provides the latest United States Mint sales totals as of Monday, October 1. Bullion coin tables are found toward the bottom, with the most recent sales as of Wednesday, October 3. (NLA = No Longer Available.)

2012 STAR-SPANGLED BANNER COINSBicentennial Silver Dollar Set2012 INFANTRY SOLDIER SILVER DOLLARS2012 American Eagle Platinum Proof Coin2011 American Eagle Platinum Proof Coin2012 American Eagle Silver Uncirculated Coin2011 American Eagle Silver Uncirculated Coin2012 American Eagle Gold Uncirculated Coin2012-S Proof Silver Eagle Two-Coin Set2012 AMERICAN EAGLE GOLD PROOF COINS2011 AMERICAN EAGLE GOLD PROOF COINS2012 American Buffalo Gold Proof2011 American Buffalo Gold ProofEliza Johnson Uncirculated (2011)Julia Grant Uncirculated (2011)Lucy Hayes Uncirculated (2011)Lucretia Garfield Proof (2011)Lucretia Garfield Uncirculated (2011)Making American History Coin & Currency Set2012 United States Mint Silver Proof Set2011 United States Mint Silver Proof Set2012 America The Beautiful Quarters Proof Set™2011 America The Beautiful Quarters Proof Set™2012 America The Beautiful Quarters Silver Proof Set™2011 America The Beautiful Quarters Silver Proof Set™2012 Presidential $1 Coin Proof Set™2011 Presidential $1 Coin Proof Set™2012 Annual Uncirculated Dollar Coin Set2012 United States Mint Uncirculated Set®2011 United States Mint Uncirculated Set®2012 Presidential Uncirculated Dollar Set™2011 Presidential Uncirculated Dollar Set™2012-P Presidential $1 Four-Coin Set2012-D Presidential $1 Four-Coin SetAMERICA THE BEAUTIFUL 5 OZ SILVER UNCIRCULATED COINSGettysburg National Military ParkVicksburg National Military ParkChickasaw National Recreation AreaChaco Culture National Historical ParkHawaii Volcanoes National ParkAMERICA THE BEAUTIFUL QUARTERS SETS – ADDITIONAL2012 America the Beautiful Quarters Uncirculated Set2011 America the Beautiful Quarters Uncirculated Set2010 America the Beautiful Quarters Uncirculated Set2011 America the Beautiful Quarters “Circulated” Set2010 America the Beautiful Quarters “Circulated” SetAMERICA THE BEAUTIFUL 3-COIN SETHAWAII VOLCANOES QUARTER BAGS & ROLLSCHACO CULTURE QUARTER BAGS & ROLLSEL YUNQUE QUARTER BAGS & ROLLSCHICKASAW QUARTER BAGS & ROLLSVICKSBURG QUARTER BAGS & ROLLS2011 RUTHERFORD B. HAYES $1 COIN ROLLS2011 JAMES GARFIELD $1 COIN ROLLS2012 CHESTER ARTHUR PRESIDENTIAL DOLLARS2012 GROVER CLEVELANDPRESIDENTIAL DOLLARS2012 BENJAMIN HARRISON PRESIDENTIAL DOLLARSPRESIDENTIAL $1 COIN & FIRST SPOUSE MEDAL SETS™KENNEDY HALF-DOLLAR BAGS & ROLLSNATIVE AMERICAN GOLDEN DOLLAR ROLLSU.S. Mint SALES: 2012 BULLION COINS*

*Includes 2011-dated coins.

AMERICA THE BEAUTIFUL 5 OZ SILVER BULLION COINS

Check this site’s section of US coins for more information on many of the above coin collecting products.

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US Silver Coins for Collectors Suspended to Raise Prices

Sales have been suspended for several U.S. Mint collector silver coins since Wednesday, October 3, as price increases are pending.

The 2012 American Silver Eagle Proof Coin was one of the thirteen coins suspended for re-pricing

Prompting the U.S. Mint’s action was the steadily higher price of silver on the London Fix. In a memo from the bureau’s spokesperson, the price increases were necessary as silver has been between $30.00 – $35.00 since August 23, 2012.

Thirteen collector products, consisting of American Silver Eagle coins and America the Beautiful Five Ounce Silver Uncirculated Coins, are affected. All are composed of 99.9% pure silver. A list of the suspended coins and their price increases follow.

2012-P Hawaii Volcanoes National Park Silver Coins from $204.95 to $229.952012-P Acadia National Park Silver Coins from $204.95 to $229.952012-P Chaco Culture National Historical Park Silver Coins from $204.95 to $229.952012-P El Yunque National Forest Silver Coins from $204.95 to $229.952011-P Chickasaw National Recreation Area Silver Coins from $204.95 to $229.952011-P Vicksburg National Military Park Silver Uncirculated Coin from $204.95 to $229.952011-P Olympic National Park Silver Uncirculated Coin from $204.95 to $229.952011-P Glacier National Park Silver Uncirculated Coin from $204.95 to $229.952011-P Gettysburg National Military Park Silver Uncirculated Coin from $204.95 to $229.952012-W American Silver Eagle Proof Coins from $54.95 to $59.952012 American Eagle Silver Uncirculated Coins from $45.95 to $50.952011 American Eagle Silver Uncirculated Coins from $45.95 to $50.952012 Annual Uncirculated Dollar Coin Set, which contains a 2012 American Eagle Silver Uncirculated Coin, from $54.95 to $59.95

At this time, the U.S. Mint online product pages for the collector products above state,

"This product is temporarily unavailable for product repricing."

No indication of when sales will resume has been given.

Coin Collecting News Update: The Mint placed the coins back on sale at their higher prices during the morning of October 10.

One collector American Silver Eagle product that is still available is the Making American History Coin and Currency Set for $72.95. It contains one collector 2012-S American Silver Eagle Proof Coin and one Series 2009 $5 Note.

As for other U.S. Mint sets containing silver coins and commemoratives, they consist of 90% silver and so they are also still for sale, at this time.

Check the Coin Collecting News section of US coins for more information on many of the above coins.

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US Mint Circulating Coin Production Figures for September 2012

Production figures from the United States Mint for September 2012 show a surge in the amount of circulating coins. Levels were higher than the previous month and from the same time last year.

Finalized mintages for the Denali National Park Quarter were not revealed, but US Mint coin production figures for September do indicate they are being produced

Coin production of cents, nickels, dimes, quarters and dollars totaled 905,340,000 last month compared to the 655,500,000 in August and the 811,420,000 in September 2011. In fact, last month ranked third highest over the past 12 months.

This grid lists the coins produced by the U.S. Mint in September. Notice that no Kennedy halves or Presidential $1 coins were struck.

Coin production figures from January through September total 7,285,010,000. Of that amount, 3,574,250,000 were minted in Denver and 3,710,760,000 in Philadelphia. These are the two U.S. Mint facilities tasked with manufacturing American circulating coinage. The year-to-date amount is the highest since 2008.

The U.S. Mint does breakdown its figures by a coin’s design. Subtracting those amounts from the total production numbers reveals an excess of more than 77.4 million quarters that have yet to be assigned. These are very likely a portion of the Denali National Park Quarters that will begin circulating in early November.

For reference, here are the current published U.S. Mint coin production figures for this year’s quarters and $1's.

First Term Cleveland Presidential $1Second Term Cleveland Presidential $1

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