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February Blog Archives 2015

February Blog Archives

2.27.15 - Zero Interest Stunting U.S. Growth

Gold last traded at $1,213 an ounce. Silver at $16.58 an ounce.

ECONOMY: The Commerce Department said Friday that U.S. gross domestic product expanded at a 2.2% annual rate in the fourth quarter, adjusted downward from 2.6%. This is very near stall speed, which has the Fed cornered between the risks of continuing with zero interest and the risks of raising interest. Central banks have slashed monetary policy rates in 2015 in at least 17 countries - in some cases pushing interest rates negative. On Wednesday, for the first time in history, Germany began selling 5-year bonds at a negative yield.

STOCKS: U.S. stock indexes fell on Friday as downbeat GDP and manufacturing data provided little insight to investors. In February, the Dow rose 6.1%, the S&P 500 advanced 5.8% and the Nasdaq rose 7.6% in the same period. All three indexes were down in January. But, authors Craig Smith and Lowell Ponte caution readers in their latest White Paper saying, "It is a shared hypnotically-induced mass illusion that stocks now have more value than they really do. As Forbes columnist Charles Biderman put it, what the Fed is doing to achieve this levitation of the stock market through conjured money would be a crime if anyone other than the Fed did this."

DOLLAR: The U.S. dollar held on to gains on Thursday after hitting levels not seen since 2003. But what have we seen to justify the stronger dollar? Is the US economy hitting on all cylinders? Hardly. The reality is the US national debt is soaring above $18 trillion and the federal government continues to rack up huge budget deficits every fiscal year. Nothing has changed. The US dollar just happens to be the "healthiest horse in the glue factory" during today's global currency war.

OIL: Brent crude had its biggest monthly gain in nearly six years, rising 1.6% in February. "Oil’s Big Swings Are the New Normal," reports WSJ. Volatility is discouraging longer-term investors. "Benchmark oil prices rose by 60% from June through January, followed by a jump of more than 30% in the first two weeks of this month."

GOLD: Gold prices rebounded Friday after dipping 6% in February which followed an 8% rise in January. Analysts see higher prices ahead after gold held firm above key psychological support at $1,200 an ounce. Gold is set to benefit as central banks worldwide are panicking in their fight against stagnant economic growth and deflation with currency creation schemes such as Quantitative Easing. Currency devaluation underscores the safe-haven value of gold as a wealth insurance.

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2.26.15 - Economic Freedoms Assaulted

Gold last traded at $1,210 an ounce. Silver at $16.62 an ounce.

INTERNET: The FCC ends 20-years of Internet Freedom. AP reports, "Internet service providers like Comcast, Verizon, AT&T, Sprint and T-Mobile now must act in the 'public interest' when providing a mobile connection to your home or phone, under rules approved Thursday by a divided Federal Communications Commission. The 3-2 vote was expected to trigger industry lawsuits that could take several years to resolve." It appears the courts will rule the Internet from now on. The FCC has become the new the "Department of Internet." Internet transparency and freedom will soon become merely a memory.

ECONOMY: The U.S. Inflation rate goes negative for first time since 2009, largely because of cheaper gasoline, as the CPI in January sunk by 0.7%. Meanwhile, the so-called economic recovery is not helping job seekers much as jobless claims surged 31,000 to 313,000.

STOCKS: U.S. stocks drift lower Thursday on weak fundamentals and disappointing job data. "Stock-market gains are making us dangerously complacent," reports Marketwatch. Diversify now, before the next economic surprise happens suddenly.

WEALTH ASSAULT: Both our President and Vice President are from the government, and they're here to "help" you. President Obama wants to limit retirement options for the Middle Class by protecting helpless consumers against the free market, while Vice-President Biden wants to "emancipate" private wealth.

"A lot of wealthy white and black people aren't bad, but they control 1 percent of the economy and this cannot stand," said Vice President Joe Biden during a February 23 speech about Black History Month. "It's not fair because the business experts are saying that concentration of wealth is stunting growth. So let's do something that's worthy of emancipation."

Lowell Ponte responds: "Vice President Biden speaks the Obama Administration's usual Progressive class warfare 'envynomics' of polarizing divide-and-conquer political rhetoric that depicts the rich as enemies of the rest of us." Lowell's conclusion: "Free market wealth is earned voluntarily. Government wealth has been taken by force."

GOLD: Gold prices rose again Thursday, despite a sharply higher U.S. dollar and sharply lower crude oil prices. This illustrates a new trend in precious metals that we cover in detail in our 2015 Real Money Perspectives newsletter: Gold is no longer merely a commodity (like oil) nor an investment (like the dollar). If Gold were a commodity its price would have fallen in half, like oil prices have. If gold were an investment, its price would not have remained stable during the 2014 stock market and dollar rally. Gold is the ultimate form of money, get some today before prices take off again. As Alan Greenspan once said, "Gold and economic freedom are inseparable."

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2.25.15 - Fed's Zero Interest Policy Goes Negative

Gold last traded at $1,201 an ounce. Silver at $16.43 an ounce.

STOCKS: U.S. stocks teetered Wednesday, struggling to hold record levels, as investors listened to more of the same arguments by Fed Chairwoman Janet Yellen. Meanwhile, some stock market analysts are now calling for between a 10% and 50% stock market correction in 2015 or 2016, referencing the 40% market corrections in both 2000 and 2008. The classic Swiss asset diversification strategy recommends no more than 25% in stocks, 25% bonds, 25% real estate, and 25% gold. Many investors today are very over invested in stocks and bonds.

FED: Fed Chairperson Janet Yellen today testified they are not yet certain if the slow rate of U.S. economic growth is the “new normal”, while admitting, "There will be job losses as a result of the drop in oil prices." Perhaps the highlight of Yellen's closing day of testimony was a shouting match with Rep. Mick Mulvaney, Republican from South Carolina, about why she gave a speech on income inequality.

BANKS: "J.P. Morgan Chase, the largest US bank by assets, is preparing to charge large institutional customers for some deposits," reports WSJ. "The [negative interest rate] moves have thrown into question a cornerstone of banking, in which deposits have been seen as one of the industry’s most attractive forms of funding." Negative Interest Rate Policy (or NIRP) has already become the norm in several EU countries. The European Central Bank (ECB) cut a key interest rate below zero in June 2014; followed by Denmark, Switzerland and Sweden. New 2-min video: The Fed is Trapped in ZIRP World

INTERNET: Federal Communications Commission chairman Tom Wheeler refused to testify before Congress Wednesday saying,"the future of the Internet is at stake." Which sounds like a rather bad excuse. The FCC poised to act on the so-called "Net Neutrality" Thursday by adopting its controversial Open Internet rules. If the FCC passes new rules limiting the freedom on the internet, experts expect legal challenges will soon follow. As Swiss America Chairman Craig Smith says, "The government can mess up a one-piece puzzle." Let us hope the FCC does not practice over reach into the last free marketplace.

OIL: Oil prices jumped up 3% Wednesday on rising demand, despite rising inventories. Meanwhile, President Obama vetoed the Keystone bill as he promised, which would have created at least 10,000 new jobs and helped to keep a lid on oil prices. As gas prices begin rising, Americans will remember whom they can thank; the Progressive's relentless war on the energy infrastructure which is designed to cripple the oil and gas industries.

GOLD: Gold and silver prices rebounded Wednesday on bargain hunting and rising physical demand. Today virtually every currency, stock, bond and bank deposit is at risk of being mispriced. Daily headlines are screaming of the potential risks of new market bubbles created by the Federal Reserve's rampant artificial money creation over the last six years. But not so for physical money consisting of gold coinage - which will always be respected and accepted worldwide - because it is a pure, debt-free asset held safely in your own hands. With gold in hand you're positioned to preserve your wealth for a lifetime as well as for the next generation.

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2.24.15 - The Fed is Trapped in ZIRP World

Gold last traded at $1,197 an ounce. Silver at $16.19 an ounce.

STOCKS: The Dow mildly cheered the Fed's announced "patience" regarding raising interest rates along with the EU decision to extend Greek debt another four months. Meanwhile, the London stock exchange (FTSE 100) is partying like it's 1999, reaching fresh 16-year highs as investors cheered the Greek bailout and upcoming EU trillion-dollar stimulus plan patterned after the Fed.

FED: America's mysterious, unelected Fourth Branch of Government (aka The FED) has decided to keep interest rates at ZERO until the end of 2015 or beyond. Fed Chairwoman Janet Yellen testified before Congress today, saying, "The [FED] Committee judged that it can be patient in beginning to raise the federal funds rate. And that it is, "unlikely that economic conditions will warrant an increase in the target range for the federal funds rate for at least the next couple of FOMC meetings." Translation: Since the U.S. economy has not recovered yet, we will continue punishing the 99% while enriching the 1%.

ZIRP: Is extending ZIRP good news or bad news? Well, it's good news for BIG government, BIG banks and big Wall Street speculators. BUT, it's BAD news for the Middle Class, according to The ZIRPing of America.The Fed's Zero Interest Policy has created economic bubbles - in stocks, bonds, debt and the dollar - which could soon blow up. And, the Fed has trapped us in a 'ZIRP World' of stagnant jobs and wages which could lead to another recession or worse!

CONFIDENCE: U.S. consumer confidence fell in February as Americans felt less confident about current economic conditions and considerably less confident about the next six months. Why are consumers losing confidence? Because they have been promised an economic recovery, complete with job and wage growth for all of the trillions in debt, but over the last six years these promises have been proven to be purely motivated by politics and lacking any true substance.

GOLD: Speaking of substance, gold prices dipped on Tuesday after the Greek debt decision and Yellen's Fedspeak. But, will gold and silver prices become the next bank rigging scandal? Bloombergreports, Banks Face U.S. Manipulation Probe Over Metals Pricing. It appears the world's biggest banks may have manipulated the prices of precious metals as part of their currency-rate rigging scheme, according to The U.S. Justice Department. Gold price rigging has been documented for over a decade by GATA.org. Thankfully, market manipulation efforts usually fail in the long-term - as the bright light of the free market eventually exposes darkness. Because gold is debt-free money it should be no surprise the gatekeepers of today's global credit/debt system seek to artificially hold gold prices down. Gold reflects reality. Fight back! Buy some physical gold today at rock-bottom prices before runaway money/debt creation leads to runaway gold prices.

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2.23.15 - Stocks Fall on Uncertainty

Gold last traded at $1,200 an ounce. Silver at $16.25 an ounce.

STOCKS: U.S. stocks slid lower Monday as oil dropped below $50 a barrel, further hurting energy companies. President Obama is expected to formally veto construction of the Keystone XL oil pipeline this week which could create 10,000 good paying, U.S. jobs. Meanwhile, stock market technician Carter Worth told CNBC today the S&P Index, currently around 2,110, could fall 14% to below 1,820. He also said a Federal Reserve rate hike could inspire this move.

PREPAREDNESS: "1 in 3 Americans on verge of financial ruin," reports Marketwatch. A new poll shows that 37% of Americans have credit card debt that equals or exceeds their emergency savings. "Over one in three Americans are teetering on the edge of financial disaster." This underlines the crushing of the U.S. middle class, who must rely on credit cards to pay for essentials and have been punished by stagnant wages and the economic uncertainty created by the Fed's ZIRPing of America.

BANKS: "Swiss banks now refusing to allow withdrawals," reports The Examiner. Dr. Jim Willie, author of the Hat Trick Newsletter reports Swiss banks are refusing to allow withdrawals and account closures for customers holding large deposits in the amounts of hundreds of millions or billions of Euros and Francs. This and much more is discussed in DON'T BANK ON IT!

GOLD: Prices steadied near $1,200 an ounce Monday as the U.S. dollar rose. "In a negative or low yield environment, gold performs well," says Ashish Bhatia, director of central banks and public policy at the World Gold Council. As central banks worldwide continue printing money at record levels they also bought 477 tons of gold in 2014, 17% more than the previous year.

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2.20.15 - Why Gold Matters

Gold last traded at $1,204 an ounce. Silver at $16.39 an ounce.

In a time of deceit, telling the truth is revolutionary act – George Orwell

EU: Eurogroup ministers and Greece have agreed on a draft accord that could extend Greece’s bailout four months; which means the markets have four months of illusion ahead. However, Ambrose Evans-Pritchard reports in the Telegraph, "ECB risks crippling political damage if Greece is forced to default this June."

STOCKS: The decision to kick the Greek debt can further down the road, along with investor optimism and unbridled faith in central banks across the globe, pushed stock prices to close higher Friday. The S&P Index hit a new record high of 2,110.

BANKS: The New York Times reports, New Rules Spur a Humbling Overhaul of Wall St. Banks. If only that were really true. Authors Craig R. Smith and Lowell Ponte point out that big banks have actually grown 30% since 2009 as a result of the Fed's Zero Interest Rate Policy (ZIRP).

"The Fed has rigged interest rates and asset prices to the extent that investors can no longer distinguish reality from fiction ... It is then logical to conclude that the end of the Fed's manipulation of interest rates and money supply will lead to a collapse of this phony consumption-driven economy, as it also takes the stock market along for the ride down," wrote investment advisor Michael Pento in 2014.

Smith and Ponte conclude, "With central banks boasting of their plans to debase national currencies via deliberately-created inflation – today it makes urgent sense to diversify and convert a portion of one's savings from paper fiat money into solid, reliable stores of value such as gold." What is the future of ZIRP? Read The ZIRPing of America to discover four possible scenarios.

GOLD: "Put simply, gold matters because it historically doesn't really correlate to macro variables and the stock market. An exciting year lies ahead, and for risk management, a 'golden era' may soon come," writes Michael A. Gayed at Marketwatch. According to Swiss gold expert Egon von Greyerz. "People don’t realize that gold at $1,200 today is cheaper than it was at $300 in 2002. It’s not only cheaper today on a relative basis but it’s strategically much more important now than it was back in 2002." This illustration clearly shows how gold has preserved wealth over the last six decades in comparison with cash, cars and homes. Call Swiss America to find out why gold will likely continue serving as wealth insurance for many decades (and centuries) to come.

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2.19.15 - Fed Signals Stock Bulls To Run

Gold last traded at $1,207 an ounce. Silver at $16.38 an ounce.

STOCKS: U.S. stocks closed narrowly mixed Thursday after the S&P 500 touched a new record high - despite lower oil prices and concerns about Greece. Germany stunned the market by rejecting another Greek bailout extension. "A Stock Market Alarm Is Sounding," reports The Fiscal Times. "This is a stock market that's growing increasingly dependent, and less satisfied, by the flow of stimulus from the Fed. The end of the QE1 and QE2 programs were associated with major market pullbacks of 20 percent or more. We could be in for a violent retest of recent lows as the bubble of enthusiasm in stocks is popped by any number of factors." Meanwhile Wal Mart, the most-hated retailer in America, beat forecasts and says it will pay hourly workers at least $9 an hour.

FED: Authors Craig Smith and Lowell Ponte report, "$7.5 Trillion mostly printed out of thin air by the Fed and Treasury have turned Wall Street into a casino flush with easy money. Companies run on borrowed cash while creating deceptively high stock values by buying back their own shares. One recent study calculates that ZIRP, the QE (Quantitative Easing) policy it produced, and bookkeeping gimmicks have overvalued today's stocks by at least 86 percent."

ZIRP: "ZIRP/NIRP Is Killing Fractional Reserve Banking," reports Zero Hedge, reflecting the same sentiments as Swiss America's newest White Paper, The ZIRPing of America. "Could zero/negative interest rates be the end of the fractional banking system and force deposit holders into gold and silver?" asks Zero Hedge. "With increasing negative real interest rates gold and silver look more attractive by the day." We agree 100%!

HAPPY?: And the happiest state in America is ... Alaska! Go figure. Hawaii came in #2 which is understandable. USA Today reports, "The 2014 rankings, released Thursday, are based on over 176,000 phone interviews with people in all 50 states. The Index measures how people feel about and experience their daily lives, and looks at their health across five categories: purpose, social, financial, community and physical." Another major component in lifting your happiness and peace of mind is proper asset diversification which includes physical gold as wealth insurance. Call Swiss America today at 800-289-2646. Who knows, you just might sleep better and feel happier - no matter where you live.

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2.18.15 - FED To Keep "ZIRPing" America

Gold last traded at $1,200 an ounce. Silver at $16.26 an ounce.

FED: Federal Reserve officials are leaning toward keeping rates at zero "for a longer time" than wanted, according to minutes from the January meeting released Wednesday. The majority of Fed governors appear to be in no hurry to hike interest rates - showing yet another vote of no confidence in the so-called U.S. economic recovery.

ZIRP: In 2008 America faced the worst financial crisis since the Great Depression. One major bank had failed and others were at risk of collapse. To save our economy, the Federal Reserve gambled by going pedal to the metal with its accelerator, slamming bank interest rates all the way to Zero. This Zero Rate Interest Policy (ZIRP) made money virtually free for our biggest banks. This wild new policy was supposed to save these banks and start them lending again. However, as monetary expert Craig R. Smith and veteran think tank futurist Lowell Ponte write in their new White Paper, The ZIRPing of America: The Federal Reserve's Zero Interest Rate Policy (ZIRP) Is Hazardous to Our Economic Health, this caused crazy unintended consequences. Read more: ZIRP Has Given America "Financial Diabetes," Say Experts

STOCKS: U.S. stocks traded lower on Wednesday as investors digested the latest Fed meeting minutes amid continued uncertainty over the Greece-euro zone negotiations.

INDICATORS: U.S. housing starts fell in January, crude oil prices fell $2 to $51.52 a barrel. The U.S. dollar traded higher against major world currencies and the U.S. 10-year Treasury note edged lower to trade near 2.11 percent.

GOLD: Gold prices slipped lower early on, then rebounded on rising investor demand near the close. Meanwhile, scuba divers off the coast of Israel uncovered a treasure trove of gold coins dating back 1,000 years. Israel's Antiquities Authority said 2,000 gold coins were discovered by chance when members of a diving club stumbled upon them. But you don't need diving lessons to start adding gold coins to your portfolio with Swiss America, just call us toll-free at 800-289-2646.

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2.17.15 - Trapped in "ZIRP World"

Gold last traded at $1,208 an ounce. Silver at $16.37 an ounce.

STOCKS: U.S. stock markets traded narrowly higher on Tuesday, pressured by a deadlock between Greece and its creditors after talks collapsed on Monday. Weak readings on U.S. manufacturing and housing also weighed on investors' moods.

FED: The Federal Reserve should wait until the end of the summer to raise interest rates, given the amazingly weak GDP growth (2.6%) rather than hiking in June as promised, said Wharton School professor Jeremy Siegel to CNBC.

ZIRP World: Don't Bank On It! authors Craig R. Smith and Lowell Ponte remind Americans, "If the Fed tries to end ZIRP by raising interest rates beginning in June, this could soon cost taxpayers an extra $1 Trillion or more each year in interest for the huge debt our bloated government built up over the past seven years when interest rates were zero."

"ZIRP World has become a trap that will be hard to escape," says Mr. Smith in his new White Paper The ZIRPing of America.

The one supposedly-bright spot of our economy is the stock market, soaring to the edge of 18,000. But this is an illusion, a mirage, warn Smith and Ponte.

"ZIRP and $7.5 Trillion mostly printed out of thin air by the Fed and Treasury have turned Wall Street into a casino flush with easy money. Companies run on borrowed cash while creating deceptively high stock values by buying back their own shares," warn Smith and Ponte.

"Former savers are being herded into the risky stock market," says Ponte. "If interest rates go up, don't be surprised to see the artificially inflated stock market go a long, long way down."

GOLD: Precious metal prices slipped lower Tuesday on technical selling, but if Greece decides to bail out of the euro, gold prices could rise $200 an ounce quickly, says Frank Holmes of U.S. Global Investors. Bottom line: Gold is priced very reasonably today, but the situation could change quickly.

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2.13.15 - Exposing The Prosperity Mirage

Gold last traded at $1,228 an ounce. Silver at $17.30 an ounce.

STOCKS: U.S. stocks brushed off worries about oil prices, Greece and the Ukraine, sending the DJIA back near 18,000. But what if the 6-year boom in U.S. stock prices is just a giant mirage; masking one of the biggest economic manipulations in history hoisted upon the world by desperate central bankers at the Federal Reserve?

According to a new study by the Harvard Kennedy School of Business, the attempt to end 'Too Big to Fail' banks has backfired in a big way. Big banks have grown 30% larger since 2009. Small community banks are no longer able to compete with big banks. Their assets have shrunken by 19%, according to Fiscal Times, hurting small local farmers most.

And what about the middle class? Today the U.S. economy is still firmly stuck in quagmire - with lackluster economic growth, few new jobs and stagnant wages. While central banks worldwide are fretting over deflation (falling prices), most Americans are fretting over the rising cost of living.

The ZIRPing Of America:A brand new White Paper by Craig R. Smith was released today explaining how stocks, bonds and the U.S. dollar could be rising so fast, while so many millions of Americans feel like they are financially sinking.

"What the Fed did back in December 2008 may have changed forever the American economy and the values shaped by our views of money, work and the role of government," writes Mr. Smith. Here is a short excerpt from this important new White Paper examining what has caused stock prices to double since 2009 ...

In ZIRP World, and the Quantitative Easing (QE) Fed policies that zero interest rates led the Fed to turn to, a vast hallucinatory mirage of stock market growth emerged. Since ZIRP began, the S&P 500 has soared by 200 percent.

Take a step back from this frenzy of the Wall Street casino near 18,000 and you can begin to see more clearly. Through ZIRP and its related QE policies, the Fed has flooded the stock market with easy money.

Companies since the financial crisis began have spent more than $2 Trillion of this easy money not to make their companies more innovative or efficient, but to buy back shares of company stock.

Imagine that you are a company with 10 million shares of stock and you buy back half of them, instantly putting the issues of dividends and debt and executive stock options in a more favorable light. The value of your remaining shares greatly increases, even though the company may be bringing in no more customer dollars than before.

Yet because of the easy Fed money from ZIRP and QE, your company now appears to be growing and successful, and you look like a genius. This then lures more stock buyers, desperately seeking the income that the Fed's low interest policies have taken away from their bank accounts.

This 'wealth effect' that former Fed Chair Ben Bernanke intended to create to stimulate consumer spending and the economy is based on inflation and easy money conjured by the Fed out of thin air. It is at best a self-fulfilling prophecy, a shared hypnotically-induced mass illusion that stocks now have more value than they really do. It is at worst a con game, a Ponzi scheme, a trick used to rob the gullible. As Forbes columnist Charles Biderman put it, what the Fed is doing to achieve this levitation of the stock market through conjured money "would be a crime if anyone other than the Fed did this."

SPECIAL OFFER: As a Real Money Perspectives subscriber, you have access to read this vital new White Paper, The ZIRPing of America right now at this link. Invest a few moments over this President's Day holiday to discover the truth about how "ZIRP World" helped create today's over-leveraged situation and why, as interest rates rise, our own economy built of overvalued paper stocks and easy paper money could be severely damaged.

**Swiss America Trading will be closed on Monday, February 16th in observance of Presidents' Day**

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2.12.15 - EU Train Wreck Warning

Gold last traded at $1,222 an ounce. Silver at $16.87 an ounce.

EU: "Germany faces impossible choice as Greek austerity revolt spreads," reports our friend Ambrose Evans-Pritchard at the London Telegraph. Says Ambrose: "The political center across southern Europe is disintegrating. Only two people can now stop the coming train-wreck. German Chancellor Angela Merkel and her finance minister Wolfgang Schauble." "What's happening to Greece today, will be happening to Italy tomorrow. Sooner or later, default is coming," says Italy's Beppe Grillo.

STOCKS: A weaker U.S. dollar boosted oil prices and stocks Thursday. "One big fear about dollar strength: a stock bubble," warns Marketwatch. Meanwhile, American Express stock dropped to a four-month low after it lost an exclusivity deal with Costco.

DEBT: "US budget deficit running 8.3%," report Associated Press. "For the current budget year, government revenues total $1.05 trillion, an increase of 8.7 percent from the same period a year ago. Government spending totals $1.24 trillion, up 8.3 percent over last year."

ZIRP: "Sweden cuts rates below zero as global currency wars spread," reports the London Telegraph. Zero Interest Rate Policy (ZIRP) is quickly spreading worldwide, and is now morphing into Negative Interest Rate Policy (NIRP) in Europe. The European Central Bank (ECB) cut a key interest below zero in June 2014; followed by Denmark, Switzerland and Sweden. The Federal Reserve's ZIRP began back in December 2008, offering the big banks virtually free money, a policy that continues more than six years later. Has it boosted U.S. growth, jobs or a recovery? No. It has failed, say authors Craig R. Smith and Lowell Ponte. (More on this Friday)

PRESIDENTS: Today is the 206th anniversary of Abraham Lincoln's birth, which used to be a national holiday, along with George Washington on February 22. In 1986 we combined them into President's Day to make room for Martin Luther King Jr. Day. While Lincoln's birth may be glossed over, the 150th anniversary of his death this year won't be. The Boston Globe reminds us, "After an elaborate service at the White House, Lincoln's body went on a 15-day, 1,700-mile train trip, stopping for no fewer than 12 funeral processions in cities such as New York and Chicago, where his body was removed from the train and displayed in an open casket. Historians say that the funeral 'tour' was the most prolonged, elaborate, and most repeated ceremony in US history. Mourners by the tens of thousands waited hours to pay their respects. Solemn crowds would gather to watch as the train slowly made its way to Springfield, Ill., where Lincoln would finally be entombed."

GOLD: Precious metal prices rose Thursday on a weaker dollar, a decline in retail sales and a rise in jobless claims. Gold's price fluctuates daily as short-term speculators attempt profit making and taking. Swiss America clients are learning to ignore the daily noise and keep their eyes on the prize. Gold always serves as wealth insurance, whether prices are up or down.

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2.11.15 - Markets Held Hostage by Uncertainty

Gold last traded at $1,220 an ounce. Silver at $16.80 an ounce.

STOCKS: U.S. stocks traded mixed on Wednesday as investors focused on developments in Greece's negotiations with euro zone finance ministers. "The market is being held hostage to the uncertainty over the Greek crisis," said Marc Chaikin, CEO of Chaikin Analytics. Swiss America's 2015 Real Money Perspectives newsletter explains why this rising level of uncertainty can be overcome by "preparing for the worst, while expecting the best."

CYBER-THREAT: U.S. creates new agency to fight cyberthreat reports Reuters. Yesterday President Obama's homeland security and counterterrorism adviser, Lisa Monaco said the new Cyber Threat Intelligence Integration Center will "rapidly pool and disseminate data on cyberbreaches, which are ballooning in size and sophistication." Amit Yoran, president of security firm RSA, said the series of high-profile attacks showed that change was needed. "We aren't getting the cyber job done," he said. Stay ahead of the curve by reading DON'T BANK ON IT! which covers 20 major back risks and the only real solution to cyber-crime.

ECONOMY: We are reminded often by the Fed and mainstream financial press that the U.S. is enjoying a growing economic recovery, despite decling GDP, retail sales and jobs data. Investor Steve Ricchiuto stunned CNBC hosts Tuesday by launching into a rant about the lack of real economic recovery and the Federal Reserve's forecasts being 'pie in the sky'. "That's not what The Fed is telling us," said CNBC host Sara Eisen.Herein lies the problem with mainstream financial news, they appear to want us all to put blind faith in what the Federal Reserve claims is true, even as uncertainty grows.

FED: Fed's Fisher calls 'audit the Fed' backers 'sheep in wolves' clothing' reports LA Times. Richard Fisher, the outgoing president of the Federal Reserve Bank of Dallas, said he believes the movement led by Rand Paul (R-Ky) to enact legislation allowing audits of the Fed's monetary policy decisions is an attempt to cover up for lawmakers' failings on economic policy. The Republican-controlled House easily passed "audit the Fed" bills in 2012 and 2014; both time the legislation stalled. Now that Republicans are in the majority, the legislation might actually make it to President Obama's desk. [Editor's Note: Richard Fisher, the Federal Reserves' inflation hawk, presently owns over $1 million in gold according to annual filings of the 12 Fed presidents for 2010 ... Watch what they do, not what they say].

GOLD: Precious metal prices slipped to one-month lows Wednesday - which means it is a great time to buy more gold. A recent 15-year asset return analysis published at NumismaticNews.com shows the DJIA is up 53.7% compared to gold prices, which are up 337%. This clearly illustrates why a diversified portfolio must include gold for safety and long-term growth.

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2.10.15 - Greek Brinksmanship

Gold last traded at $1,232 an ounce. Silver at $16.87 an ounce.

GREECE: Greece's last minute offer to Brussels changes absolutely nothing, writes London Telegraph. In the latest chapter of the ongoing Greek tragedy, Greece has escalated its demands while offering some concessions to meet the terms of their proposed 246 billion euro bailout deal to stay in the EU. "The art of Game Theory brinkmanship is to convince opponents that you are utterly defiant, almost insane, and willing to bring the temple crashing down on everybody’s heads. Then you smile and talk turkey," writes the Telegraph.

STOCKS: U.S. stocks rallied in early trading after speculation that Greece and its international creditors were moving toward agreement; but gains moderated after Germany's finance minister denied rumors of the commission's willingness to grant Greece a six month extension on its debt obligations.

SMALL BUSINESS: The U.S. small-business sentiment gauge slipped in January on a decline in optimism over sales growth and business conditions. This should be no surprise given the current administration's anti-small business growth policies. The Fed has been favoring big business and big banks ever since they began their zero-interest rate policy (ZIRP) back in 2009.

FED: "The Federal Reserve should raise interest rates in June," says Richmond Fed President Jeffrey Lacker. San Francisco Federal Reserve President John Williams told the Financial Times on Tuesday that the Fed is getting "closer and closer" to raising rates. The problem is no one knows what will happen when rates rise. "The economy may move up or melt down," warns the Manhattan Institute.

DOLLAR: Meanwhile the buck bounced back from losses on Monday amid Greek hopes. A strong dollar over the long-term is a sucker's bet, but the hedge fund industry - which has grossly underperformed benchmarks for some time now - has pushed net bullish dollar positions to a record $48 billion. This makes the U.S. dollar "The Healthiest Horse in the Glue Factory," as we cover in our 2015 Real Money Perspectives.

GOLD: Gold prices eased back on Tuesday after rising Monday. Gold is always and will forever be the "anti-dollar", offering insurance against the long-term downward trend of the U.S. dollar. By owning gold you have an escape hatch from the failed Fed policy of money-printing. Owning gold means you hold, in your hand, money whose intrinsic value cannot be systematically stolen by governments or central bankers. Don't wait to buy gold, buy gold and wait! says Swiss America Chairman Craig R. Smith.

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2.9.15 - The Year of the Sheep

Gold last traded at $1,241 an ounce. Silver at $17.07 an ounce.

CHINA: China's Year of the Sheep officially begins January 19th. But it appears the American public is at the biggest risk of getting shorn in 2015. China Behind Anthem Hack Attack - Fox/Cavuto Video - China is strongly linked to the last major U.S. hack attack, this time striking 80 million policyholders with Anthem, one of America's largest health insurance companies. Fox News host Neil Cavuto asks author and Swiss America Chairman Craig R. Smith, "What will our enemies do with all of this data?" According to Smith, part of the hackers' motive is a reselling of this vital private information for the purpose of setting up fake cyber crime accounts. The other component is espionage, demonstrating that hackers can worm their way into the U.S. Defense Department. Mr. Smith reminds viewers China is a Communist country who does not play by the same international rules. They are willing to lie, cheat and then steal American intellectual property - hurting individuals, corporations, businesses, as well as compromising our nation's safety. Craig wonders, where is our President on this issue? And the bigger question: What if a door is still left open for hackers to get back into Anthem's system in the future?

GREECE: "The euro is like a house of cards. If you pull away the Greek card, they all come down," says Yanis Varoufakis, the Greek finance minister. "The integrity of monetary union and the security system of the Eastern Mediterranean are both hanging from a thin Greek thread," writes Telegraph Senior Economics reporter Ambrose Evans-Pritchard.

STOCKS: U.S stocks traded lower Monday on China's growth concerns as both imports and exports fall. Add to this growing EU worries about Greek debt and threats to exit the EU.

OIL: Crude oil prices climbed near $54 a barrel today after OPEC's output forecast was lowered. Recent oil volatility has severely impacted the U.S. shale production as well as the Russian, Venezuelan and Brazilian economies which are all extremely oil-dependent for ongoing economic growth.

BANKS: The Guardian reports, US Gov Faces Biggest Leak in Banking History. "The US government will come under intense pressure this week to explain what action it took after receiving a massive cache of leaked data that revealed how the Swiss banking arm of HSBC, the world's second-largest bank, helped wealthy customers conceal billions of dollars of assets."

GOLD: Precious metal prices climbed toward $1,250 an ounce amid safe-haven buying and a weaker U.S. dollar. Seasonal buying is expected to peak as the Chinese New Year approaches and ongoing economic uncertainties escalate. According to Swiss America Chairman Craig R. Smith, "Never buy or sell in a panic!" The best time to buy gold as wealth insurance is when the markets are calm, rather than waiting until after the next major trigger event. When it comes to asset protection, it is wiser to be one-year early than one-day late.

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2.6.15 - U.S. Jobless Recovery Advances

Gold last traded at $1,234 an ounce. Silver at $16.69 an ounce.

JOBS: The Labor Department said the U.S. created 257,000 jobs in January, outpacing estimates. Average hourly earnings grew by 0.5 percent, reflecting a rise in the minimum wage that went into effect in January in nine states. The unemployment rate rose from 5.6 to 5.7 percent. Why? Because low paying jobs were outpaced by a falling labor participation rate of 62.9% - the lowest since Jimmy Carter.

STOCKS: U.S. stocks opened higher then fell on Friday despite a "strong" jobs report. It seems investors now fear upbeat jobs will increase the likelihood of a Fed interest rate hike sooner rather than later. Meanwhile, 94-year old RadioShack, the first to sell computers, pulled their plug Thursday and filed for bankruptcy.

US DOLLAR: The dollar index, which measures the greenback against a basket of six major currencies, was last up 1.1 percent at 94.589 on upbeat jobs data. The buck's rally, which started in May 2014 and is now up 20 percent, has some experts saying the greenback may be poised for a major sell off. The 2014-15 global currency war has now boosted the buck to the world's 'best of the worst' currencies.

CHINA: "Chinese State-Sponsored Hackers Suspected in Anthem Attack," reports Bloomberg News. The information stolen from insurance giant Anthem includes; names, birthdays, medical IDs, social security numbers, street addresses, e-mail addresses, employment and income information - and ranks among the largest in corporate history. DON'T BANK ON IT! author Craig R. Smith will be discussing today's raging international cyberwar -which he refers to as "THE biggest threat facing Americans" - tonight on FOX Business TV at 6pm MT.

BANKS: "Russians advised to pull their money out of banks and prepare for black market in cash" writes Andrey Panov, a freelance columnist for Vedomosti. The ruble has tanked over 50%, from 33 rubles to the dollar to 67 rubles over the last year. Panov advises Russians to take their savings out of the banks.

GOLD: Precious metal prices came under pressure Friday amid upbeat jobs data and a stronger dollar. As discussed Thursday, this means owning gold as wealth insurance is temporarily less expensive, which we think represents a great buying opportunity. With the income tax deadline approaching, it is also wise to consider converting some of your retirement assets into precious metals while they are still at sale prices.

STRESSED: 72 percent of adults say they fretted about their finances in the past month, according to a new "Stress in America" survey from the American Psychological Association (APA). Stress related to financial issues also has a significant impact on Americans' health and well-being. Ameriprise Financial's recent survey of Baby Boomers found that emotional, financial and health preparation are the keys to a successful retirement.

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2.5.15 - The World's Fail-safe Form of Money

Gold last traded at $1,262 an ounce. Silver at $17.19 an ounce.

STOCKS: U.S. stocks traded higher on Thursday, encouraged by oil gains, while shaking off concerns about Greek debt and banking woes. "With a seriously weak banking system worldwide, funny money printed out of thin air all over the world and higher taxation coming; we are headed for some major market trouble," writes senior analyst Jim Carrillo.

JOBS: First-time weekly jobless claims in the U.S. rose by 11,000 to a seasonally adjusted 278,000, the Labor Department said today. The consensus forecasts for January's nonfarm payrolls data expect the U.S. economy to have created 231,000 jobs in January.

EU: Greek markets tumbled after the European Central Bank raised the pressure on the country's new anti-austerity government. The ECB said it would no longer accept junk-rated Greek government bonds as collateral for cheap central bank cash because it could not assume, "a successful conclusion of the bailout program review."

FED: Federal Reserve Chairman Janet Yellen lashed out at Senator Rand Paul's plan to give Congress more oversight over the central bank. Rand reintroduced his "Audit the Fed" legislation last month with 30 co-sponsors, including Senators Ted Cruz and Marco Rubio.

DEBT: The world is awash with more debt than before the global financial crisis erupted in 2007. China's debt relative to its economic size now exceeds US levels. Global debt has increased by $57 trillion since 2007 to almost $200 trillion - far outpacing economic growth.

RETIREMENT: President Obama's massive $4 trillion 2016 budget includes targeting retirement accounts, with over a dozen provisions that could directly impact your retirement savings, including a 28% maximum tax benefit for contributions.

GOLD: Daily gold price fluctuations should be mostly ignored. Why? Because today virtually every currency, stock, bond and bank deposit are mispriced. Not so for gold, because physical gold coins will always be respected and accepted worldwide as a pure, debt-free asset; wealth insurance if you will. TheStreet.com founder Jim Cramer agrees. Cramer says "Gold is an insurance policy." If we are happy about lower mortgage, auto or health insurance prices; why are we not equally as happy about lower wealth insurance (gold) prices? The answer: We're still thinking of gold as just another commodity ... or investment, when in fact it is the world's fail-safe form of money. Read more in our 2015 Real Money Perspectives newsletter.

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2.4.15 - China's Central Bank Cuts Bank Reserve Requirements

Gold last traded at $1,264 an ounce. Silver at $17.39 an ounce.

Overnight, China's central bank announced a system-wide cut to bank reserve requirements for the first time in over two years. The move was in an effort to unleash a fresh flood of liquidity to fight off economic slowdown and deflation. China's central bank will cut its reserve requirements to 19.5 percent for big banks, a reduction of 50 basis points, freeing up 600 billion yuan.

This reduction follows a surprise cut to guidance lending rates by the People's Bank of China back in November. Because that had an insignificant impact on producing productive investment, many had predicted a more dramatic move by the central bank, which it has now delivered.

This decision by China's central bank boosted gold prices. Metal prices tend to rise on growth-boosting measures from China because it is a major raw commodity importer.

In other economic news, the U.S. services sector had a modest rebound in January but companies reported the weakest level of new business growth in more than five years. "Companies are clearly struggling at the moment, with the surveys recording the smallest increase in new orders seen since the financial crisis six years ago amid weaker US and global economic growth and the strong US dollar," said Chris Williamson, chief economist at Markit.

The U.S. private sector also suffered in January, adding only 213,000 jobs, falling short of the median forecast of 225,000 jobs made by analysts. The sharpest decline of jobs was in professional and business services while trade/transportation/utilities saw the biggest jump.

According to Moody's Analytics Chief Economist Mark Zandi, "Businesses in the energy and supplying industries are already scaling back payrolls in reaction to the collapse in oil prices, while industries benefiting from the lower prices have been slower to increase their hiring."

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2.3.15 - New Feature Commentary: 2015 Gold Breakout

Gold last traded at $1,260 an ounce. Silver at $17.32 an ounce.

Swiss America has published a new feature commentary by James M. Carrillo that makes the case for a breakout in gold in 2015.

Mr. Carrillo's analysis includes a combination of technical, fundamental and macroeconomic analysis, which all result in the same conclusion: investors need to add gold to their holdings.

The report is available for free at the link below and we urge you to share it with friends, family and colleagues:

http://www.swissamerica.com/article.php?art=02-2015/201502020224f.txt

Gold is already proving Mr. Carrillo right thus far in 2015, having outperformed most other major asset categories. But what we have seen thus far may pale in comparison to what may come.

Writing for Yahoo Finance, Dr. Thomas Carr, also known as Dr. Stoxx, provides seven reasons why the price of gold could further surge to at least $1,800 per ounce and possibly as high as $3,000 per ounce:

1. The U.S. dollar is severely overextended.

2. Central banks--Russia, China, The Netherlands, Malaysia and others--are buying gold.

3. China's demand for gold could continue to escalate.

4. Past efforts by Western central bankers at holding down the price of gold have failed and could produce a backlash, sending prices higher.

5. When and if oil rebounds, many gold producers will have to curtail operations that are only continuing now due to low energy costs.

6. QE-type money printing is creating a huge bond bubble. When that bubble bursts, the best safe haven will be gold.

7. Government policies suggest that now is the time to accumulate gold.

One reason of course that the price of gold has been rising has been central bank activity, especially drastic interest rate cuts and money printing in the form of Quantitative Easing-like programs.

Yale professor and former Chairman of Morgan Stanley Asia, Stephen Roach believes all these efforts are not likely to restore sustainable economic growth, but are likely to undermine currencies and cause economic and financial market dislocation.

That is a recipe for a global breakout in gold.

Another factor that has generally been supportive of gold prices has been economic uncertainty in the US. Lately most of the economic data indicate the US economy seems to be slowing. Today was no exception.

According to the Commerce Department, new orders for U.S. factory goods fell for a fifth straight month in December. New orders for manufactured goods declined 3.4% as demand fell across a broad sector of industries. Economists had forecast new orders received by factories sliding only 2.2%. Moreover, November's orders were revised to show a 1.7% drop instead of a previously reported 0.7% fall.

Over the long-term, gold has been a hedge against a falling stock market. A widely-watched stock market yardstick, the Dow Theory, is now signalling that the U.S. stock market’s major trend is down. That suggests investors need to seek the security of gold.

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2.2.15 - Hedge Funds Turn to Gold as Economy Shows More Signs of Cracks

Gold last traded at $1,279 an ounce. Silver at $17.21 an ounce.

Hedge funds are the most bullish on gold in more than two years, betting the metal’s allure will strengthen as slowing economies in Europe and Asia threaten U.S. expansion.

Speculators increased their net-long position by 80 percent this year, U.S. government data show. The U.S. economy expanded at a slower-than-forecast pace in the fourth quarter and Federal Reserve officials acknowledged global risks at the end of their policy meeting last week.

Gold prices in January capped the biggest monthly gain in three years. Policy makers in Europe and Asia are adding to stimulus as they battle cooling growth, boosting the appeal of alternatives to currencies being revalued. Weaker foreign expansion has increased speculation among investors that the Fed will wait longer before raising U.S. interest rates. The race to devalue currencies is escalating even more and we begin the month of February and today is about to add a new victim: Denmark.

Denmark is battling to avoid its krone becoming the next victim of the global currency wars, wielding a combination of negative interest rates plus market interventions to sell its own currency plus scrapping government bond sales as it defends its peg to the euro.

Denmark sprang a rate-cut surprise last week; the central bank will now charge depositors 0.5% for the privilege of having kroner on deposit. The bank's third easing in less than two weeks came after it spent as much as 100 billion kroner ($15 billion) this month trying to weaken its currency.

Meanwhile, on this side of the Atlantic, two fresh signs have emerged that the US economy is also showing signs of slowing.

Two measures of manufacturing sentiment in January matched their worst performance in a year, a sign that sputtering overseas growth as well as the rapid deterioration in commodity prices is hurting U.S. businesses.

The Institute for Supply Management’s manufacturing index slowed to a reading of 53.5% from 55.1% in December, below the consensus forecast for a reading of 55%.

A similar index from Markit said much the same thing as the ISM report. Markit’s manufacturing purchasing managers index stayed at 53.9 in January, which also was the worst reading in a year.

In addition, U.S. consumer spending slipped in December. The Commerce Department said Monday that consumer spending fell 0.3% in December.

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