Geithner speaks - Jobless Claims Report - May 17, 2012

May 17, 2012 Silver 5 minute chart

News due out at 8:30 am EST.

Initial Jobless Claims by American workers.

Treasury Secretary talks on the State of the Economy in the USA

At 7:30 am silver is quoted at 27.5 USD.

Yesterday there was a spike to a new low of 26.75 from 28 USD. The price quickly recovered to 27.75 and retraced to 27.5.

365 is the expected number for the initial job claims. The last number was 370.

The actual initial jobless claim showed no change. CNN claims that any number below 400 thousand is indicative that there is some economic growth in the USA.

Treasury Secretary Timothy F. Geithner has been dealing with the JP Morgan Jamie Dimon 2 billion dollar bat bet issue for the last week. Geithner and Dimon had had discussion on the Volcker rule and stronger bank regulations in recent meetings.

" We are in a much stronger positiion to manage those challenges
than is true for any other major economy in the world "

" Europe is still caught in the grip of a very tough financial crisis "

What did Timothy Geithner have to say about the State of the Economy on May 17, 2012 ?

One hour silver chart - May 17, 2012
testing the 100 SMA

Austerity alone won't work, says Geithner. He keeps on selling the American economy as being relatively strong in spite of the global conditions but stresses that " economic growth requites a willingness to do things and not just to cut things ". Geithner's May 17, 2012 State of the Economy speech included a reminder that the road to the November elections are will be a fierce battleground or high stake game of fiscal policy promises between the Democrats and Republicans looking to sway voter confidence.

The silver markets moved up and down about 1 percent initially. The bullish silver buyer loaded up to 28 USD per ounce silver an hour or so after the markets opened.

What moves silver ?

According to most economists, the printing of new money points to inflation or in a sense to the devaluation of the USD and to the buying of silver and gold.

If the rumour of Quantitative Easing - Act 3 - continue to circulate through the financial streets then likely the fever for gold and silver will follow suit.



What Bloomberg had to say about the Jobless Claims Report of May 17, 2012.