October Podcast Archive


10.31.12 - The Wisdom of Gold Transcends Politics of Envy - Listen

Gold prices rebounded toward $1,725/oz. Wednesday on bargain hunting, U.S. stock indexes reopened higher, then drifted lower. Gold last traded at $1,721 an ounce. Silver traded at $32.28 an ounce.

"Gold is one of the few common values that has united mankind throughout the millennia, transcending race, religion, politics and geography - a rarely noted fact but significant in light of today's cultural convergence and emerging global economy," wrote Craig R. Smith over a decade ago in his first book, Rediscovering Gold in the 21st Century.

US PRESIDENTIAL ELECTION HISTORY SUGGESTS THIS IS GOOD TIME TO BUY GOLD -HardAssetInvestor
If history is any indication, now is a good time to start loading up on gold. With the election so close, history suggests that gold prices will begin another uptrend soon after a winner is announced.

Gold markets — unlike the broader stocks and commodities markets—don’t discriminate based on which political party enters the White House. Rather, gold markets are more interested in stability and market visibility. This has been the case throughout the last decade and looks like it will be the case in this coming cycle as well.

great "AN ECONOMIC THRILLER!" - FREE REVIEW COPY OF "THE GREAT DEBASEMENT"
"THE GREAT DEBASEMENT reads like a real-world thriller with several possible alternative endings, yet only one possible outcome - and only one possible solution! Enlightening, prophetic and entertaining ... exposes flawed political and economic theory ... a timely, panoramic view of monetary truth ... past, present & future!” - Publisher (reg. $19.95 retail) but FREE for SwissAmerica.com subscribers who agree to write a short book review to post online.

ELECTION COULD CHANGE U.S. ECONOMY FOREVER, SAY EXPERTS: - YahooNews
Obama Victory Permanent, Romney Victory Could Be Short-Lived
The 2012 election could make permanent Progressivism as America's ruling political ideology, and lock in forever the economic change that began exactly one century ago with the election of 1912, says Craig R. Smith, whose latest book is THE GREAT DEBASEMENT: The 100-Year Dying of the Dollar and How to Get America's Money Back.

The 1912 election – which ushered in the income tax and Federal Reserve System in 1913 – gave Progressive politicians nearly unlimited power to tax, spend and borrow.

“This has produced the greatest confiscation of wealth in human history,” says Smith. “Today's dollar has been debased to only two pennies of its 1913 purchasing power, and at least $222 Trillion has deceptively been taken from the American people.”

U.S. CONGRESS MAY FACE ANOTHER DEBT-LIMIT SHOWDOWN IN 2013 - Reuters
A U.S. debt-ceiling increase could be headed for a Wall Street-rattling showdown in 2013 if Congress, as expected, shuns a quick and easy fix at the end of this year in favor of another round of last-minute brinkmanship.

Regardless of who wins the November 6 elections, many congressional aides and Capitol Hill observers are predicting that lawmakers will go right up to the deadline - probably around mid-February or early March - before increasing the $16.4 trillion limit on borrowing that is nearly exhausted.

COMEDIAN ‘REDISTRIBUTES’ CHILDREN’S CANDY IN HILARIOUS ‘OBAMA-STYLE’ HALLOWEEN PRANK - TheBlaze
In an “Obama-style” Halloween prank, Fox News contributor, actor and comedian Steven Crowder paid a visit to young trick-or-treaters at a local church’s “trunk or treat” event and attempted to “redistribute” their candy to make the system more “fair.” In the video, Crowder, dressed in a monkey costume, says the stunt is an attempt to teach kids about the American tax system.

Of course, the Obama administration’s official stance on tax policy is based on the belief that the rich aren’t paying their “fair share” in taxes — despite the fact that the nation’s top 10 percent of income earners pay roughly 70 percent of all federal income taxes.

UNSAVING THE U.S. ECONOMY - Reuters
The U.S. savings rate sank last month to its lowest since November, official data showed this week, in a sour reminder of how the economy is still dangerously exposed to any financial downturn or other shocks like the fiscal cliff. In September the rate was at 3.3 percent, a drop from 3.7 percent the previous month.

A low saving rate means consumers are spending too much in relation to their real earnings. Faced with the prospect of major tax hikes in the New Year, however, consumers soon may become more cautious.

More: Swiss America Gold Market News


10.30.12 - Megastorm of Economic Change Ahead - Listen

Gold prices steadied above $1,700/oz. Tuesday as Hurricane Sandy shut down NY financial markets for a 2nd day. Gold last traded at $1,710 an ounce. Silver traded at $31.81 an ounce.

"New York City awakened Tuesday to a flooded subway system, shuttered financial markets and hundreds of thousands of people without power a day after a wall of seawater and high winds slammed into the city, destroying buildings and flooding tunnels," reports AP

safe Sandy will end up causing about $20 billion in property damage and $10 billion to $30 billion more in lost business, making it one of the costliest natural disasters on record in the U.S., according to IHS Global Insight, a forecasting firm," reports CNBC.

"A BIG STORM REQUIRES BIG GOVERNMENT", says the NY Times Opinion Page. Never letting a perfectly good crisis go to waste, they argue that president Obama's BIG government has boosted FEMA, and that governor Romney's smaller federal government model would prefer delegating more resources to the states. America will decide in a week who is more right than wrong at the polls.

"The 2012 election could make permanent Progressivism as America's ruling political ideology, and lock in forever the economic change that began exactly one century ago with the election of 1912," says Craig R. Smith, whose latest book is The Great Debasement: The 100-Year Dying of the Dollar and How to Get America's Money Back.

THE SINGLE BEST REASON TO OWN GOLD - 24/7
Over the past 20 years the value of paper money has fallen tremendously. Over the last ten years the US dollar has lost 80% of its value, the Euro lost 83% and the British pound lost 84%, and it is a process that is far from over. This is why investors are opting to hold gold since it offers the ultimate store of value and inflation hedge. There appears to be some shift in gold activity lately from professional investors toward physical demand, says Robin Bhar, analyst with Societe Generale.

More: Swiss America Gold Market News


10.29.12 - Book Predicts U.S. Economic & Weather "New Normal" - Listen

Gold prices held steady above $1,700/oz. Monday as Hurricane Sandy preparation forces NY financial market closure. Gold last traded at $1,709 an ounce. Silver traded at $31.76 an ounce.

New Yorkers with no food in the house who decided Sunday to make a run to Trader Joe’s clearly have not thought this through. Long lines everywhere are what 'on-demand' shoppers are facing throughout the East Coast. Financial markets closed, assets frozen in fear of the worst.

NYC As Hurricane Sandy threatens to devastate the East Coast from Washington, D.C. to New York City, a prominent weather and climate expert wonders if this could be seen by some as an “October Surprise” from on High, a message from the heavens.

“Look at the recent signs,” says Lowell Ponte. “Hurricane Sandy is being described as one of the biggest storms in 100 years. Last winter brought record snow to the Northeast.”

“The continuing drought that devastated crops last summer was by some measures the worst since the Dust Bowl of the 1930s,” says Ponte, author of the renowned climate book The Cooling and retired Roving Science Editor at Reader's Digest Magazine.

Ponte's new book The Great Debasement: The 100-Year Dying of the Dollar and How to Get America's Money Back, his third book co-authored with famed business executive Craig R. Smith, includes a chapter titled “The Mandate of Heaven” and looks at how the U.S. economy could be shattered if its climate returns to the “normal,” more erratic weather of past centuries. Read Intro and “The Mandate of Heaven” sample pages.

ANTI-BUSINESS POLITICAL PARTY RETARDS INVESTMENT, JOBS, PROSPERITY - NewsRelease
“The days when we had separation of the free marketplace and state, may be gone forever after the November election,” says Smith.

“One of our two ruling political parties is bent on killing the goose that from the birth of America until 1913 laid golden eggs of prosperity,” says Smith.

“Today if you want a retirement nest egg, you'll have to lay your own.”

“Today's Democratic Party has built its power by redistributing wealth,” says Smith's co-author Lowell Ponte, a former think tank futurist. “Nearly two out of every three tax dollars are now spent as 'transfer payments,' taking money out of your pocket and moving it to the pocket of someone who Progressive politicians deem more worthy of spending the fruits of your labor than you are.”

SPECIAL OFFER: FREE REVIEW COPY OF "THE GREAT DEBASEMENT" (reg. $19.95 retail) for the first 100 subscribers who promise to write at least a one sentence book review to post online.

More: Swiss America Gold Market News


10.25.12 - Fed punishing savers and recovery - Listen

Gold prices rebounded Thursday on bargain hunting and a flat dollar after the Fed vowed to continue stimulus efforts. Gold last traded at $1,710 an ounce. Silver traded at $32.12 an ounce.

The U.S. economy is developing a split personality, reports Bloomberg. Consumers are gaining confidence and buying more, while businesses have cut spending by 17.8% in the last three months.

falling “There’s definitely something amiss here,” says Neil Dutta, senior U.S. economist at Renaissance Macro Research. “Corporate earnings do not paint the picture of such a positive consumer that we’re seeing.”

GOLD SUPPORTED BY FOMC STATEMENT, SOFT DOLLAR, IMPROVED INDIAN DEMAND - Forbes
Gold rose in early trading on Thursday in response to plans by the Federal Reserve to continue with their monetary policy, a softer US dollar and pick-up in physical demand from India. Since monetary policy is open ended, expect monetary easing and bond purchases to last longer, which is bullish for gold.

PINCHED SAVERS SEEN AS PART OF SLOW RECOVERY PUZZLE - Reuters
The Federal Reserve's strategy of holding interest rates near zero to spur the economy is creating a level of uncertainty for American savers that may be softening the policy's punch.

The central bank has held overnight interest rates near zero since late-2008, and it reiterated on Wednesday that it expects to keep them there through at least the middle of 2015.

Some officials at the central bank wonder if such an unusually prolonged period of low returns on bonds, certificates of deposit and other short-term investments is leading savers to cut back on spending more sharply than they normally would when interest rates drop, undermining the recovery.

THINK GOLD'S PRICEY NOW? WAIT UNTIL IT HITS $5000: SCHIFF - CNBC
According to noted investor Peter Schiff, runaway public spending and excessively loose monetary policy by the Fed and other central banks will cause gold to reach $5,000/ounce within the next two years. The head of Euro Capital stated in an interview, "gold's got only one direction to go, and that's higher."

GOLD SEEN OUTPERFORMING AS COMMODITY BULL RUN STALLS NEAR-TERM - BusinessWeek
Gold may outperform other commodities as the bull run in raw materials pauses amid slowing economies. Commodities will likely lack direction for the next 12 months and investors will focus more on relative-value trades. Many experts are favoring precious metals during this time and do not see gold in a "bubble" at their current prices.

More: Swiss America Gold Market News


10.24.12 - Dollar at Risk - No Matter Who Wins Election - Listen

Gold prices held above $1,700/oz. Wednesday despite profit taking and a firmer US dollar. Stocks fall after Fed speak. Gold last traded at $1,703 an ounce. Silver traded at $31.82 an ounce.

Today the Fed decided to hold firm to their stimulus plan as the economy remains sluggish. Stocks and commodities both slipped as the global economic news seems to spell no recovery.

MONETARY CLIFF? - GoldSeek
As the presidential election is rapidly approaching, little attention seems to be getting paid to the question that may affect voters the most: what will happen to the “easy money” policy? Federal Reserve (Fed) Chairman Bernanke’s current term will expire in January 2014 and Republican candidate Mitt Romney has vowed that if elected, he would replace Bernanke.

Given the tremendous amount of money the Fed has “printed” and the commitment to keep interest rates low until mid-2015, the election may impact everything from mortgage costs to the cost of financing the U.S. debt. Trillions are at stake, as well as the fate of the U.S. dollar.

money IT DOESN’T MATTER - 24HG
Saying that this or that administration would be better for the markets is pointless; it simply doesn’t matter who is president. Once November’s election is over, the market will play out in accordance with the technical setup that continues to evolve.

The public seems to believe that US presidents have the ability to ‘fix’ everything, including the economy and stock market. They don’t. Politicians’ belief that they can ‘fix’ things got America into its current morass. To think that one administration or another can somehow ‘fix’ it is a fairytale.

BANK DEMAND FOR GOLD TO BECOME INCREASINGLY DOMINANT - Mineweb
China has pursued gold more aggressively than any other country. Chinese economists, financial executives and government officials have encouraged citizens to invest in gold and, it would appear, have done much to increase China’s gold reserves. Perhaps the United States should follow China’s example.

In December 2011, Zhang Jianhua, research director of the People’s Bank of China, reportedly observed that “no asset is safe now. The only choice to hedge risks is to hold hard currency — gold.”

More: Swiss America Gold Market News


10.23.12 - B&O: Smiling Themselves Out of Office - Listen

Gold prices fell over 1% Tuesday on profit taking and a stronger US dollar. Stocks slide amid rising uncertainty worldwide. Gold last traded at $1,707 an ounce. Silver traded at $31.65 an ounce.

Stocks tumbled on Tuesday, with the NASDAQ ending below 3,000. Dow 13,000 looks to be next to crack amid weaker than expected earnings and a growing global debt and currency crises.

Meanwhile, CNBC reports "Donald Trump Vows to Drop a 'Very Big' Political Bombshell Wednesday".

"If US Goes Over ‘Fiscal Cliff,’ Dollar Could Fly" says another CNBC headline, arguing that if we fail to renew Bush tax credits it might boost the "safe-haven" fantasy known as the U.S. dollar.

We would not bet the farm on it. The dollar may be the best of the worst fiat currencies, but what if a nation announced even a partial gold-backing for their currency, such as the Chinese are considering? We could witness good money driving bad money out of circulation or into hyper-inflation.

ROMNEY WON THE PRESIDENTIAL DEBATE BY LOOKING PRESIDENTIAL - Telegraph
Obama had a painful case of Biden's smile.

biden The President wheeled out what must have seemed like a great, pre-planned zinger: “I think Governor Romney maybe hasn't spent enough time looking at how our military works. You mentioned the navy, for example, and that we have fewer ships than we did in 1916. Well, governor, we also have fewer horses and bayonets because the nature of our military's changed.” The audience laughed, Obama laughed, I laughed. It was funny.

But here’s why it was also a vote loser. For a start, Twitter immediately lit up with examples of how the US Army does still use horses and bayonets (horses were used during the invasion of Afghanistan). More importantly, this was one example of many in which the President insulted, patronized and mocked his opponent rather than put across a constructive argument.

MEMO TO CENTRAL BANKS: YOU'RE DEBASING MORE THAN OUR CURRENCY -RCM
At its most fundamental level, economic activity is no more than an exchange between strangers. It depends, therefore, on a degree of trust between strangers. Since money is the agent of exchange, it is the agent of trust. Debasing money therefore debases trust.

History is replete with Great Disorders in which social cohesion has been undermined by currency debasements. The multi-decade credit inflation can now be seen to have had similarly corrosive effects. Yet central banks continue down the same route. The writing is on the wall. Further debasement of money will cause further debasement of society. I fear a Great Disorder.

FED CONSIDERS UPPING QE3 SIZE AND LANGUAGE - Marketwatch
After historic changes last month, Federal Reserve officials will meet this week to discuss a possible expansion of the size of its third round of bond buying. However, no final decisions are expected from the Fed and the meeting and is being viewed as less of a cliff hanger after the drama from their meeting back in September.

TURKISH GOLD TRADE BOOMS TO IRAN, VIA DUBAI - Reuters
Couriers carrying millions of dollars worth of gold bullion in their luggage have been flying from Istanbul to Dubai, where the gold is shipped on to Iran, according to sources. Official Turkish trade data suggests nearly $2 billion worth of gold was sent to Dubai on behalf of Iranian buyers in August.

More: Swiss America Gold Market News


10.22.12 - A Reagan-Carter election repeat? - Listen

Gold prices rebounded above $1,725/oz. Monday on bargain hunting and a weaker US dollar. Stocks mixed. Gold last traded at $1,728 an ounce. Silver traded at $32.31 an ounce.

AP reports, "Taxes go up in 2013 for 163 million workers". So much for defending the Middle Class.

Today Fed Chairman Ben Bernanke explained strong dollar policy to the Indiana Economics Club, saying his policies have helped keep domestic inflation at the target rate of 2%. Our question; on which planet?

SATC Meanwhile, Michael Reagan says he believes we are witnessing a repeat of Reagan-Carter in 1980. "Remember that election when my Dad trounced Jimmy Carter? Back then all the polls had my Dad losing to Carter. With two weeks to the vote, everything changed. Americans asked, 'Am I better off than I was four years ago?' Americans voted to reject Carter's disastrous record."

Lastly, Michael Savage, the man who speaks out for "borders, language & culture" is back on the airwaves Tuesday, Oct. 23. Savage's top-rated radio show will now air from 9 p.m. to midnight Eastern time, Monday through Friday. Savage promises that he and his new radio syndicator, Cumulus Media Networks, "will make radio history."

TIME TO BUY GOLD AND SILVER: NOVEMBER SHOWS HISTORICAL STRENGTH - SeekingAlpha
Using a historical analysis of commodities you will see that November historically has been a successful month for gold. Right now, the main driver of gold has been currencies rather than safe haven hedging. While many don't expect another round of easing happening soon, a European bailout could be around the corner and cause gold prices to rise.

IMF'S EPIC PLAN TO CONJURE AWAY DEBT AND DETHRONE BANKERS - Telegraph
So there is a magic wand after all. A revolutionary paper by the International Monetary Fund claims that one could eliminate the net public debt of the US at a stroke, and by implication do the same for Britain, Germany, Italy, or Japan.

Specifically, it means an assault on "fractional reserve banking". If lenders are forced to put up 100pc reserve backing for deposits, they lose the exorbitant privilege of creating money out of thin air.

Entitled "The Chicago Plan Revisited", it revives the scheme first put forward by professors Henry Simons and Irving Fisher in 1936 during the ferment of creative thinking in the late Depression.

WITH HIS WELFARE EXPLOSION, IS OBAMA BUYING THE ELECTION? - RCM Larry Kudlow opines... With the unprecedented budget explosion of means-tested, welfare-related entitlements, does Team Obama think it can buy the election?

It's a cynical question. But I wouldn't put it past that cynical bunch.

Remember Harry Hopkins, Franklin Roosevelt's close aid? It was Hopkins who argued tax and tax, spend and spend, elect and elect. Sound familiar? And if I'm not mistaken, the high-tax, anti-rich, big-spending, redistributionist FDR is one of Barack Obama's idols.

More: Swiss America Gold Market News


10.19.12 - Fiscal Cliff Fears Fueled by Politics - Listen

Gold prices retreated below $1,725/oz. Friday on a firmer US dollar and profit taking. Stocks tumble on earnings/fiscal cliff. Gold last traded at $1,720 an ounce. Silver traded at $32.07 an ounce.

GET READY FOR THE GOLD BULL RUN - SeekingAlpha
The gold bull run has been talked about for many years and experts continue to raise the ceiling for the commodity, with some even suggesting that it has no peak. If historical patterns reveal anything, a short term run could be just weeks away. Now could be a good time to buy in low and ride out the potential rally.

BANKERS WARNING OF FISCAL CLIFF - FoxBusiness(Watch link)
"Obama is ready to veto a bill blocking ‘fiscal cliff’ without tax hikes for rich", says a Washington Post headline. The President is playing with fire, and it is the taxpayers who will get burned, said author and Swiss America Chairman Craig R. Smith to Fox Business anchor Neil Cavuto on Thursday night. Smith explains...

Craig Today 14 of 17 economists are warning of a severe recession if the Bush tax credits are not extended into 2013. This could trigger a further downgrade of the U.S. credit rating. This is bad news for the future of our nation and illustrates that our president has no concept of free market economics. In fact, his dislike for achievers is truly surprising.

What Republicans need to do is to point out to the public our successes in history, that lowering taxes is the key to growing government revenue - not higher taxes!

Mr. Obama's veto announcement was based 100% on politics, not on math. The latest CBO report confirms that tax increases right now would throw us back into recession or worse, it would likely mean another 2 million jobs lost and a paltry .8% - 1.7% GDP growth.

The bottom line: Mr. Obama's bad choices have grave ramifications for the public. He is being warned by leaders such as; major banks CEOs, the IMF, the CBO, economists and businessmen. It seems everyone in the private sector (except our president) wants to make 2013 a year of Growth instead of a year of Stagnation!

OFFICIALS: OBAMA READY TO VETO A BILL BLOCKING ‘FISCAL CLIFF’ WITHOUT TAX HIKE FOR RICH - WashPost
President Obama is prepared to veto legislation to block year-end tax hikes and spending cuts, collectively known as the “fiscal cliff,” unless Republicans bow to his demand to raise tax rates for the wealthy, administration officials said.

Freed from the political and economic constraints that have tied his hands in the past, Obama is ready to play hardball with Republicans, who have so far successfully resisted a deal to tame the debt that includes higher taxes, Obama’s allies say.

THE OTHER UNEMPLOYMENT RATE - CNNMoney
The US unemployment rate fell to 7.8% in September, but that doesn't mean the other 92.2% of adults are working. The unemployment rate only measures people who have searched for jobs in the last four weeks. Another statistic, employment-population ratio, stands at 58.7%, measuring what percent of the US adult population has a job.

More: Swiss America Gold Market News


10.18.12 - PREPARING FOR "2013 FISCAL ABYSS" - Listen

Gold prices eased back slightly Thursday on a firmer US dollar and weaker crude oil prices. Gold last traded at $1,741 an ounce. Silver traded at $32.77 an ounce.

Weekly applications for U.S. unemployment benefits jumped 46,000 last week to 388,000, the highest in four months. The increase represents a rebound from the previous week's sharp drop which many economists discounted.

Iranian hackers renewed a campaign of cyber attacks against U.S. banks this week, targeting Capital One Financial Corp. and BB&T Corp., reports WSJ.

The sovereign credit rating of the U.S. will be cut, according to PIMCO, the world’s largest bond fund. “The U.S. will get downgraded, it’s a question of when,” said Scott Mather, Pimco’s head of global portfolio management, today.

CEO WARNS OF FISCAL CLIFF CONSEQUENCES - Fox Business TV (Live 8pm ET)
Tonight at 8pm ET Swiss America Chairman Craig R. Smith will be a guest on Fox Business to discuss what to expect from the rapidly approaching 2013 'fiscal cliff'.

fiscal FORMER COMPTROLLER WALKER: IT’S A ‘FISCAL ABYSS,’ NOT FISCAL CLIFF - MoneyNews
The overwhelming majority of Americans feel fiscal reform should take priority this election season, though few expect it to happen, said David Walker, former Comptroller General of the United States.

The nonpartisan Congressional budget office warns failure to deal with the fiscal cliff on the part of Congress could send the country into a recession next year. “It’s not just the fiscal cliff, it’s the fiscal abyss,” Walker said.

"97 percent of the people believe our fiscal challenge is a major challenge and should be a top priority for the presidential candidates as well as other candidates for office, yet only 8 percent have confidence in their ability to work together to get something done in 2013,” Walker told CNBC.

HOW TO PROTECT YOUR ASSETS, RETIREMENT FROM 2013 FISCAL CLIFF - SpecialOffer
- 2013 Obamacare Tax Hikes: Did you know that 20 new or higher taxes on American families and small businesses lie dead ahead? It will be a nightmare in 2013, a disaster in 2014!

- 2013 Inheritance Tax Hikes: The estate tax exemption will drop all the way down from $5,120,000 to $1,000,000 and the tax rate is scheduled to jump from 35% to 55%.

Now is the time to review and reassess your tax liabilities coming due in 2013. Swiss America suggests moving a portion of your retirement funds and long- term investments into physical U.S. gold and silver coins for safety, growth and privacy.

GOV'T WARNS OF DIRE THREAT OF CYBER ATTACK ON U.S. - NYTimes
Defense Secretary Leon E. Panetta warned Thursday that the United States was facing the possibility of a “cyber-Pearl Harbor” and was increasingly vulnerable to foreign computer hackers who could dismantle the nation’s power grid, transportation system, financial networks and government.

In a speech at the Intrepid Sea, Air and Space Museum in New York, Mr. Panetta painted a dire picture of how such an attack on the United States might unfold.

MITT: TAKE BERNANKE'S RESIGNATION ON DAY ONE - Forbes
One of the latent issues of the 2012 presidential race is a referendum on the Bernanke Fed. If Romney is in, Bernanke is out. Jeffrey Bell, a colleague at American Principles In Action and a high octane analyst, observes, “It is crucial for Romney to invite Mr. Bernanke’s resignation immediately upon his inauguration rather than allowing him to serve out the remaining year of his term."

Chairman Bernanke is, indeed, a model technocrat. Taking his resignation, however, does not question either his character or his capability. It merely repudiates his — assuredly well-meant but, in practice, stagnation-inducing — easy money model.

Good money is good politics and good policy. If Romney is elected, America is poised to return to good money, resume strong economic growth, and experience dramatic job creation. Declaring China a currency manipulator can wait. Clean house first. Show America’s currency-manipulator-in-chief the door. Take Ben Bernanke’s resignation on Day One.

More: Swiss America Gold Market News


10.17.12 - Gold Price Rises With U.S. Monetary Base - Listen

Gold prices steadied near $1,750/oz. Wednesday on bargain hunting and a weaker dollar, stocks flat. Gold last traded at $1,749 an ounce. Silver traded at $33.20 an ounce.

WHY WE MAY BE DOOMED TO REPEAT BLACK MONDAY 1987 - Marketwatch
Prepare yourself for another stock-market crash as damaging as that of Oct. 19, 1987, writes Mark Hulbert. At current levels, that would mean a single-session Dow decline of more than 3,000 points.

WHAT WILL THE PRICE OF GOLD BE IN JANUARY 2014? - CaseyResearch
While many of us at Casey Research don't like making price predictions, and certainly ones accompanied by a specific date, it's hard to ignore the correlation between the US monetary base and the gold price. That correlation says we'll see $2,300 gold by January 2014.

chart

There are plenty of long-term charts that show a connection between gold and various other forms of money (and credit). Most show that one outperforms until the other catches up. But let's zero in on our current circumstances, namely the expansion of the US monetary base since the financial crisis hit in 2008. Chart above shows the performance of the gold price compared to the expansion of the monetary base since January 2008.

MICHAEL SAVAGE MOVES TO CUMULUS MEDIA NETWORKS - AllAccess
MICHAEL SAVAGE has inked a deal for CUMULUS MEDIA NETWORKS to syndicate his show, starting TUESDAY (10/23). The show will air 9p-midnight (ET).

“CUMULUS and SAVAGE will make radio history. The turbulent times we live in give Talk radio a new power. This is the biggest move of my radio career and I look forward to reaching many millions of new listeners on their flamethrower signals,” said SAVAGE.

COMPETITION TO BUY PHYSICAL GOLD IS FIERCE - KingWorldnews
King World News interviewed the "London Trader" to get his take on gold and silver markets. He states the competition with buying gold is extremely fierce right now as central banks want out of their dollars and euros. In the past, central banks were able to wait for price drops, but this is no longer the case.

CURRENCY WARS: U.S. ATTACK - SeekingAlpha
Doubling down on QE3, the Federal Reserve (Fed) Chairman Bernanke tells China and Brazil: allow your currencies to appreciate. One does not need to be a rocket scientist to conclude that Bernanke wants the U.S. dollar to fall. Is it merely a war of words, or an actual war? Who is winning the war?

Why call it a war? It was Brazil's finance minister Guido Mantega that first coined the term, accusing Bernanke of starting a currency war. Here's the issue: like any other asset, currencies are valued based on supply and demand. When money is printed, all else equal, supply increases, causing a currency to decline in value.

If the dollar is debased through expansionary monetary policy, there is upward pressure on other currencies. Those other countries like to export to the U.S. and feel squeezed by U.S. monetary policy.

More: Swiss America Gold Market News


10.16.12 - Inflation Up, Dollar Down - Listen

Gold prices rebounded near $1,750/oz. Tuesday on bargain hunting. Inflation up, dollar down, stocks cheer earnings. Gold last traded at $1,748 an ounce. Silver traded at $32.95 an ounce.

U.S. consumer prices jumped 0.6% in September, the Labor Department said Tuesday. Meanwhile inflation-adjusted hourly wages fell by 0.3% in September as inflation has climbed faster than pay increases.

inflation Gold has rallied $200 an ounce in the last two months due to fears the Fed's monetary stimulus might trigger inflation. The U.S. central bank said in September it would keep buying mortgage-backed securities until the job market improves dramatically, reports Reuters

Tonight's presidential debate will either make or break Obama, Donald Trump told CNBC's “Squawk Box". If President Obama doesn't produce a strong performance he can kiss the election goodbye.

SOCIAL SECURITY BENEFITS TO RISE A MEAGER 1.7% IN 2013 - CNBC
More than 56 million Social Security recipients will see their monthly payments increase by 1.7 percent in January. The increase was announced Tuesday when the government released CPI data, which determines whether people who receive Social Security get a cost-of-living adjustment.

NO FINANCIAL CRISIS WAS EVER CAUSED BY STABLE MONEY - Forbes
For some reason, the gold standard system has gained a reputation for causing crises. This is mostly from the Keynesian camp: they need floating currencies to play their funny money games.

The purpose of a gold standard system is to produce stable money. Nobody has found a better way to do so. For the most part, it works. So, how does this gold-based stable money cause a crisis? It doesn’t.

FISCAL CLIFF IS COMING - GoldReport
The latest QE3 is open-ended, allowing the Federal Reserve to create money every month, indefinitely. QE3 was announced just a few weeks ago and already there is talk about QE4. So, in my opinion, this is the death spiral of the US Dollar.

The same thing is going on in Europe and Japan. It's very troubling and, in my opinion, totally unsustainable. But, trying to predict a timeline for the ultimate demise is almost impossible. Adding in the derivative problems on top of all this debt, it's sheer insanity. So, where is gold going? It's going higher because this is the ultimate dynamic that will guide the investment world for the coming years.

More: Swiss America Gold Market News


10.15.12 - Gold Dip Offers Smart Buying Opp - Listen

Gold prices dipped below $1,750/oz. Monday on profit taking, invisible inflation and a firmer dollar, stocks rise on upbeat earnings. Gold last traded at $1,737 an ounce. Silver traded at $32.72 an ounce.

Gold prices touched a cycle-low today, according to technical analyst Jim Carrillo at Swiss America. This presents an excellent buying opportunity to harness the market volatility leading up to the presidential election.

chart Swiss America Chairman Craig R. Smith reminds Americans that the fiscal cliff we are facing Jan. 1, 2013 could quickly turn into a financial panic, which might also push gold prices up dramatically. Now is the time to get your financial house in order, before the next crisis hits.

GOLD AND THE DISAPPEARING YIELD - MarketOracle
What will result from today’s simultaneous central bank monetary easing is massive currency debasement and the buildup of inflationary pressures more than capable of crossing hyperinflation’s invisible line according to economist Darryl Schoon.

In the endgame of the bankers’ credit and debt ponzi scheme, gold is the ultimate two-edged hedge. Gold protects against both inflation and deflation....when inflation took hold in the 1970s, gold exploded upwards, rising from $35 per ounce in 1972 to $850 per ounce in 1980, an increase of 2,428% in just eight years.

What is equally as important, however, is what happened to gold during the Great Depression, the period when deflation stopped the US and world economy dead in its tracks. If, in 1928, $100,000 had been invested in the Dow, in 1938 the investment would have been worth only $10,000. If, however, that $100,000 had been invested in gold mining stocks, the investment would have increased to $1,000,000 by 1938.

BERNANKE DEFENDS QE FROM INTERNATIONAL CRITICISM - Marketwatch
Federal Reserve Chairman Ben Bernanke defended his central bank’s extraordinary efforts to revive the U.S. economy from international criticism, saying the Fed isn’t responsible for artificially boosting rival currencies — and that other nations should let market forces determine exchange rates.

FED CHIEF ROUNDS ON STIMULUS CRITICS - FinTimes
Guido Mantega, Brazil’s finance minister and one of the Fed’s most vociferous critics, on Saturday labelled the Fed’s ultra-loose monetary policy as “selfish”. Mr Bernanke expressed sympathy for these concerns, but said any costs for emerging economies should be weighed against the “very real benefits” of monetary easing by the Fed and other advanced economy central banks. He also said the link between ultra-loose monetary policy and international capital flows was “looser than is sometimes asserted”.

IN THE NEXT DEBATE ROMNEY MUST ADDRESS DOLLAR - New York Sun
When Governor Romney meets President Obama for the next debate, the question for which we are going to cock an ear is monetary policy. Mr. Obama is constantly talking about the crisis he inherited.

The dollar he inherited had a value of an 850th of an ounce of gold. Its value over the course of Mr. Obama’s nearly four years in office has plunged to less than half of what it was worth when Mr. Obama was sworn in. What does President Obama have to say for himself? And will Mr. Romney press the point?

More: Swiss America Gold Market News


10.12.12 - Calm Before Next Gold Rush - Listen

Gold prices retreated Friday on profit taking despite a weaker dollar, stocks flatten despite consumer sentiment uptick. Gold last traded at $1,753 an ounce, down 1.5% last week. Silver traded at $33.49 an ounce, slipping 3% last week.

It was a lackluster day on Wall Street, despite a sharp rise in consumer sentiment last month. The uncertainty over future earnings, the presidential election and approaching fiscal cliff is taking its toll.

Last night's V.P. debate was entertaining, if not informative. Vice-President Joe Biden's silly grins, interruptions along with a moderator who failed to intervene left voters, by and large, disappointed.

"This is disrespectful to millions of Americans who tuned in to hear both sides in this debate, not just Mr. Biden's side," opines Lowell Ponte at Newsmax.com.

Meanwhile, the epic battle between divergent worldviews hits 1,000 big screens nationwide tonight with the release of "Atlas Shrugged II". Early reviews give the film a thumb's up for both quality and timely content.

bull GOLD’S PRIMED FOR A BREAKOUT - Marketwatch
Gold prices have been sitting "just a stone's throw away" from record levels. The metal may finally be ready to break free from the tight trading range it has been stuck in for months. According to one expert, "the weight of the evidence points towards higher prices."

“The machinery of democracy ensures that the global economy will continue to be flooded with ‘new’ money — driving up the price of hard assets, particularly gold,” said Cary Pinkowski, chief executive officer of Astur Gold Corp.

A FORMULA FOR $12,000 GOLD - DailyReckoning
The gold coverage ratio measures the amount of gold on deposit at the Fed against the total money supply. “This ratio,” writes Guggenheim Partners chief investment officer Scott Minerd, “tends to move dramatically and falls during periods of disinflation or relative price stability.”

The gold coverage ratio is currently at an all-time low of 17%… yielding two tantalizing possibilities. “The historical average for the gold coverage ratio,” Minerd writes, “is roughly 40%, meaning that the current price of gold would have to more than double to reach the average.”

It gets better: “The gold coverage ratio has risen above 100% twice during 20th century,” most recently at gold’s 1980 peak. “Were this to happen today, the value of an ounce of gold would exceed $12,000.”

RICH, WORRIED AND BUYING AD TIME - CNN
Billionaire Thomas Peterffy is spending millions of dollars on television ads this election season with the cautionary message to avoid socialism. He told CNN he expects to spend $5-$10 million on the ad buy and has no specific mention of any politician or lawmaker, it is simply a plea for an end to what he sees as growing hostility to personal success.

"I grew up in a socialist country and I have seen what that does to people. There is no hope, no freedom, no pride in achievement," he says with a soft Hungarian accent in the ad. "The nation became poorer and poorer, and that's what I see happening here."

More: Swiss America Gold Market News


10.11.12 - After Fiscal Cliff? Dollar Freefall - Listen

Gold prices rebounded toward $1,775/oz. Thursday on dollar decline and bargain hunting, stocks bounce on weak buck. Gold last traded at $1,767 an ounce. Silver at $34.00 an ounce.

JOBLESS CLAIMS SLIDE, IMPORT PRICES RISE, TRADE GAP UP reports CNBC. The number of Americans seeking unemployment aid plummeted to 339,000 last week, the lowest level in more than four years.

A Labor Department spokesman said one large state accounted for much of the decline. "Thus, throw out the number and we'll try again next week," said Peter Boockvar, managing director at Miller Tabak in New York, to CNBC.

The U.S. is heading towards fiscal disaster and no one in Washington is doing anything about it, according to the authors of the Simpson-Bowles reform plan and Goldman Sachs CEO Lloyd Blankfein.

BEYOND THE FISCAL CLIFF: THE DOLLAR AT RISK? - MERK
Looking beyond the fiscal cliff, we are afraid the greenback may be at risk no matter who wins the election. We examine the risk to the U.S. dollar in the context of the likely policies pursued under either an Obama or Romney administration.

fiscal

A key difference promoted between Obama’s and Romney’s view of the world is the level of government spending. But independent of our political preferences, any level of government spending must be financed through revenue and borrowing. And that’s where we have a problem.

As far as policies are concerned, however, the implication may be that real entitlement reform – key to making our budgets sustainable - remains elusive. In the U.S., just as in the Eurozone, we may be tempted to “kick the can down the road” until the bond market forces us to tackle our problems. Until then, we believe inflation is the path of least resistance: the government nominally delivers on promises made, but the real value of entitlements received is eroded.

ANALYST SEES GOLD PRICE REACHING $5,000/OZ - TheNation
Gold could jump to US$5,000 per ounce over the next five years as investors lose confidence in major economies because of excessive public debt in the United States, Europe and Japan, a financial expert said yesterday. "If you look at the US 2013 budget, US public debt is $16 trillion and is estimated to rise to $26 trillion over the next 10 years," said Martin Armstrong, former chairman of Princeton Economics International.

THE MAGNITUDE OF THE MESS WE'RE IN - WSJ
The next Treasury secretary will confront problems so daunting that even Alexander Hamilton would have trouble preserving the full faith and credit of the United States.

The fixes are blindingly obvious. Economic theory, empirical studies and historical experience teach that the solutions are the lowest possible tax rates on the broadest base, sufficient to fund the necessary functions of government on balance over the business cycle; sound monetary policy; trade liberalization; spending control and entitlement reform; and regulatory, litigation and education reform. The need is clear. Why wait for disaster? The future is now.

WHAT CEOS KNOW THAT YOU DON'T - MSN
Despite rising consumer confidence and dubious employment gains, corporate executives are battening down the hatches. Average Americans are feeling pretty good right now. Home prices are starting to turn.

CEOs aren't buying it. Confidence is down. Spending and hiring plans are down. And with the start of Q3 earnings season, we're starting to see the impact this newfound fearfulness is having on the real economy...just 9% of CEOs believe conditions have improved since six months ago.

More: Swiss America Gold Market News


10.10.12 - Leaders whistling past 2013 'fiscal cliff' - Listen

Gold prices consolidated below $1,775/oz. Wednesday on a weaker dollar, stocks decline on earnings fears. Gold last traded at $1,762 an ounce. Silver at $33.98 an ounce.

The U.S. economy increased at a 1.3% annual pace in the second quarter and economists saw only a slight pick-up in the July-September quarter to a 1.6% growth rate. The economy is likely to expand at a 1.7% rate in the current quarter, according to the latest Fed 'Beige Book' reports MarketWatch.com.

2013 FISCAL CLIFF WORRIES BEING IGNORED - WATCH-Fox News

CRS According to Fox News host Neil Cavuto, as important as the 2012 presidential election is, no matter who wins we are facing a major fiscal cliff on Jan. 1, 2013, potentially causing 2.1 million job losses and an average tax hike of $3,500 next year.

Craig R. Smith was a guest on the program and said, "This is the most predictable, avoidable financial crisis in American history. The repealing of the Bush tax cuts and AMT will effect 30 million middle income earners. And 14 of 17 economists now agree it will throw us into recession. IF NY Times thinks this will be just a fiscal 'slope', they are dreaming."

ALL SIGNS POINT TO GOLD - Forbes
With another syringe of quantitative easing being injected into the U.S. economy’s bloodstream, Ben Bernanke is giving the markets their liquidity fix. The government’s liquidity shot promptly boosted gold and gold stocks, as investors sought the protection of the precious metal as a real store of value.

According to Morgan Stanley’s survey of 140 institutional investors in the U.S., gold sentiment was at its highest bullish reading since July 2011. So, gold investors, if you haven’t put in your orders, consider getting them in quickly, because the bulls are buying. Credit Suisse saw “massive inflows” into gold products in August.

JACK WELCH: I WAS RIGHT ABOUT THAT STRANGE JOBS REPORT - WSJ
The 7.8% unemployment figure released by the Bureau of Labor Statistics (BLS) last week is downright implausible. And that's why I made a stink about it. The labor-force participation rate, the growth in government workers, and overall job growth, all multidecade records achieved over the past two months —have to raise some eyebrows.

The possibility of subjectivity creeping into the process is so pervasive that the BLS's own "Handbook of Methods" has a full page explaining the limitations of its data, including how non-sampling errors get made, from "misinterpretation of the questions" to "errors made in the estimations of missing data."

The New York Times in a Sunday editorial, for instance, acknowledged the 7.8% figure is "partly due to a statistical fluke." The coming election is too important to be decided on a number. Especially when that number seems so wrong.

THE TIME FOR SILVER HAS ARRIVED! - SATC
Silver has broken out of a major 17 month consolidation to the upside, according to Jim Carrillo, Sr. broker at Swiss America and techincal analyst. The last two Silver buy signals led to a doubling in price. This action comes three months after the gold breakout noted in my article "The Time Is NOW!".

More: Swiss America Gold Market News


10.9.12 -"Ghost of Money" haunts savers- Listen

Gold prices dipped below $1,775/oz. Tuesday on profit taking and a firmer dollar, stocks slide on oil & earnings fears. Gold last traded at $1,763 an ounce. Silver at $33.90 an ounce.

The Ben Franklin Approach to making decisions is both simple and profound. It just requires making a plus and minus column and then listing the pros and cons of any important decision. The answer is easy enough for an elementary school child to understand.

franklin Likewise, Thomas Jefferson's advice about financial decisions in an era of paper money should also be taken to heart. In 1788 he wrote in a letter to Edward Carrington, “Paper is poverty ... it is only the ghost of money, and not money itself.”

Today everyone from federal judges to economists to citizens familiar with the U.S. Constitution understand that our U.S. dollar is no longer fit to be the world's reserve currency due to its in-credible shrinkage over the last decade, generation and century. Gold alone is a trustworthy store of value.

So, what will replace the dollar as the new reserve currency of the world? Stay tuned... the simple yet profound solution will be unveiled by Nov. 1, 2012.

DOLLAR’S DAYS AS RESERVE CURRENCY ARE NUMBERED - FinTimes
As the International Monetary Fund and World Bank redouble their warnings on the prospects for global growth, central banks continue to flood the markets with liquidity. America’s sovereign obligations will not hold their value indefinitely. And if they fail to hold their value, they will not hold investors’ confidence.

GOLD CAN SAVE US FROM DISASTER - Forbes
An unstable dollar is wreaking havoc on capital markets, depriving individuals of money for productive enterprises and future enterprises. The zero-interest-rate policy destroys capital by punishing savers and enabling central banks to allocate where capital goes.

GOLD: STRONGEST CURRENCY OF ALL - Mineweb
The perception of gold as a commodity is changing as more individuals are beginning to recognize that gold's price moves more as a stable currency than as a normal commodity. Gold price moves are being dictated more by global economic and political factors than by normal commodity economics of supply and demand.

IRAN: HYPERINFLATION CONCERNS SPARK GOLD DASH - Bloomberg
Iran has very few policy options to end turmoil in its currency markets. The rial has depreciated as much as 40 percent against the dollar in street markets since August and gold purchases have surged as residents seek to protect their savings.

FED JUDGES SUE OVER DOLLAR'S DECLINING VALUE - NYSun
It’s going to be illuminating to see whether the government appeals the big ruling on judges’ pay that was handed down last week at Washington. The plaintiffs are Judge Peter Beer and a coalition of some of the most distinguished judges on the federal bench.

The judges sued after Congress suspended automatic pay increases it had established to protect their honors from inflation. It turns out, though, that the historical record is clear what the Founders thought dollars were. They used the word “dollars” twice in the Constitution. By a dollar they meant 371 and 1/4 grains of pure silver or a 15th as many grains of gold.

So would the idea that the dollar would be permitted to decline over a decade to but a sixth of the number of grains of gold at which it was valued at the start of a decade. That is what has just happened in America.

WEALTH GAP BETWEEN CONGRESS AND AMERICANS WIDENS - Yahoo!Finance
According to a new report from The Washington Post, the median net worth of the current Congress rose 5% during the recession while it fell 39% for the average American. The wealthiest one-third of lawmakers saw their new worth rise 14%, causing many to ask how they can be representatives when they do not understand the life of the average American.

More: Swiss America Gold Market News


10.8.12 - 'Gold Money' Gaining Traction Globally - Listen

Gold prices eased back to $1,775/oz. Monday on mild profit taking and a firmer dollar, Wall St. ignores jobs anomaly, stocks fall. Gold last traded at $1,775 an ounce. Silver at $33.98 an ounce.

4 REASONS GOLD MAY BREAK THROUGH $1800 NEXT WEEK - SeekingAlpha
Gold is up 12% over the last three months and hit an 11-month high on Friday. Many are wondering if this positive strength will continue and this article explains four reasons gold could break through the psychological $1,800/ounce barrier next week. 1. Trader bullishness is rising, 2. Chinese traders returning from Golden Week holiday, 3. Spain may be close to requesting a bailout, and 4. Positive momentum.

atlas MOVIE REVIEW: AYN RAND'S ATLAS SHRUGGED, PART TWO - Forbes
Why not just disappear, and let society’s takers and wealth gap worriers figure out just how brutal life would be absent the genius of the talented? Atlas Shrugged, Part II, set for wide release in movie theaters this coming Friday, asks that question, and it’s answered in a very uplifting way. Simply put, the talented, from concert pianists to energy entrepreneurs to transportation visionaries, are beginning to shrug. This is occurring amid a terrifying slide of the dollar.

[Ed. Note: "Atlas Shrugged" is a novel written in 1957 by libertarian Ayn Rand, a refugee from communist Russia. She was an ardent believer in free market capitalism and limited government.]

SIGNS OF THE GOLD STANDARD ARE INCREASINGLY EMERGING...WORLDWIDE - Forbes
There have been a lot of experts all over the world who have been advocating a return of the gold standard. These experts range from columnists and political figures who have brought awareness to the gold standard and one of China's most respected and influential monetary authorities showed praise for the gold standard.

Meanwhile, Basel III, supported by the Federal Reserve and the FDIC, moves gold to a Tier I asset. In addition, this vote of confidence from the highest monetary authorities gives further impetus to the remonetization of gold.

‘WORST US QUARTERLY EARNINGS SINCE 2009’ - CNBC
The slowdown in the global economy and anemic US recovery is expected to result in one of the worst US quarterly earnings seasons since late 2009. Analysts expect earnings for the period ended September to decline, the first negative result after 11 consecutive quarters of gains.

More: Swiss America Gold Market News


10.5.12 - Jobs Data Too Good To Be True! - Listen

Gold prices eased back Friday on profit taking and a flat dollar, stocks mixed despite best jobs "data" in 29 years. Gold last traded at $1,781 an ounce. Silver at $34.51 an ounce. Both metals inched higher last week.

Job growth remained tame in September, reports CNBC but a big drop in the unemployment rate to 7.8% sparked a huge debate about what this meant for the economy — and the presidential race.

The government said the total number of workers employed surged by 873,000, the highest one-month jump in 29 years. The total of unemployed people tumbled by 456,000.

chart

Gluskin Sheff's David Rosenberg told Business Insider, "The economy miraculously boomed at its strongest rate since January 1983? If it's too good to be true..."

JOBS REPORT MET WITH SKEPTICISM - WeeklyStandard
This morning's jobs report released by the Bureau of Labor Statistics is being met with skepticism. The report found that, from August to September, the unemployment rate dropped from just above 8 percent to 7.8 percent.

In fact, when Labor Secretary Hilda Solis appeared on CNBC this morning, the first two questions for her were whether the books have been cooked. And the Wall Street Journal warns that these numbers should be taken "with a grain of salt."

"Unbelievable jobs numbers..these Chicago guys will do anything..can't debate so change numbers," tweets former GE CEO Jack Welch.

OBAMA “DOUBLE CON” COULD WIN ELECTION - NewsRelease
In July 2012 author and futurist Lowell Ponte predicted: "...you can expect the media to announce that the economy is suddenly improving thanks to President Obama, that official unemployment has fallen from 8.2 percent into the 7 percent range, and that the President was right and deserves to be reelected," said Ponte.

"But the only thing that has changed is that millions of welfare recipients are no longer seeking work. It's a double con game to fool voters," said Ponte.

“By eliminating this work requirement, President Obama has opened the way for millions to re-apply immediately for welfare – and for dependency on Big Government that will give them a selfish reason to vote for Mr. Obama's Big Government Party this coming November,” says Craig R. Smith, a monetary expert.

INVESTORS MAKE SWIFT GRAB FOR GOLD - FinTimes
Since traders first began to anticipate the US Federal Reserve's move to launch another round of quantitative easing, gold has barely paused for a breath. Since mid August, gold has jumped 12.5% to $1,795 an ounce. Over this time investors have lifted their gold holdings and are most bullish on gold in a year.

CENTRAL BANKS GONE WILD: MONEY IS NOW A TOTAL FICTION - RCM
Despite the operational idiosyncrasies of each central bank, they are entangled by something far more pivotal: operative theory. What I mean by operative theory here goes deeper than just their now-constant appeal to debasement. For all intents and purposes, global central banks view "money" as nothing more than "charta", a Latin word for "token".

The word itself is more meaningful than just its Latin etymology. In the early part of the 20th century, there was a school of thought advocating a full fiat system where money was nothing more than a creature of government whim. Through the power of taxation a government can essentially create currency or money from anything it wished: if government accepts sea shells as payment for taxes, sea shells become fiat money.

The word debasement itself is not just a semantic accident; it literally means to reduce status or esteem - very human concepts. More than anything, human nature needs value and meaning in money. Maybe central bankers should try their hands at investing without any meaning to money and capital - it doesn't work.

More: Swiss America Gold Market News


10.4.12 - The Latest Paper Currency to Crash - Listen - Listen

Gold prices rose toward $1,800/oz. Thursday on inflation fears and a weaker dollar, stocks cheered jobs data. Gold last traded at $1,790 an ounce. Silver at $34.97 an ounce.

Political theater took center stage last night as round one of the great debate officially began with a solid Romney win. The Democratic pundits and handlers watched in horror as Obama wilted without his teleprompter and media friends to prop up his failed "Progressive" worldview.

Round two commences next week with V.P. hopeful Paul Ryan up against Joe Biden. Today Biden promised a trillion dollar tax increase on the wealthy. It's 'game on' for the worldview war of the century with America's future hanging in the balance.

IRANIANS RIOT OVER CURRENCY PLUNGE - Reuters
Riot police clashed with demonstrators and arrested money changers in Tehran on Wednesday in disturbances over the collapse of the Iranian currency, (Rials) which has lost 40 percent of its value against the dollar in a week, witnesses said.

money A computer dealer said he had halted sales because of the volatility in the currency market. “The same product can change price within an hour,” he said by telephone.

The national currency dived to a record low on Tuesday of 37,500 to the dollar in the free market from about 34,200 on Monday. On Monday last week, it traded at around 24,600. On Tuesday Ahmadinejad blamed the crisis on the U.S.-led economic sanctions against Iran and insisted the country could ride out the crisis.

[Ed. Note: Over the last decade the price of gold in Rials has soared over 5200%, ten times faster than the 516% rise in U.S. dollars. Inflation spiked to 27% year-over-year in July. Could it be the Rial will be the next fiat currency to bite the dust? Stay tuned.]

QE3 COULD PUSH GOLD UP TO $2,400/OZ - Telegraph
Gold could hit an all-time high of $2,400 by next summer, driven up by a third round of quantitative easing in the US. The first round of QE in February 2009 caused the gold price to increase rapidly from a base of $900/oz – from which it has never looked back.

BlackRock fund manager Evy Hambro who invests in the precious metal and gold equities, predicted that QE3 could result in the gold price hitting $2,400/oz by the middle of next summer.

In his gold report this week he said: "The gold chart has turned decidedly bullish with the 50-day moving average rising above the 200-day moving average. The last time this happened was in February 2009, which interestingly was shortly after the implementation of QE1."

ROMNEY POLITELY CLEANED OBAMA'S CLOCK - RealClearMarkets
Mitt Romney politely cleaned Barack Obama's clock last night. A lethargic and, at times, tired looking President Obama was out-hustled, out-facted, out-energized, and out-informed by former Governor Mitt Romney.

"Romney went toe-to-toe with President Obama and looked presidential every step of the way. Romney kept an even demeanor, and showed himself as a man who was in control. It was a different Romney than I saw at the convention. It was much more of the Mitt Romney that I have come to know through many interviews and personal conversations throughout the years," says CNBC's Larry Kudlow.

More: Swiss America Gold Market News


10.3.12 - THE DEBATE: Growing vs. Shrinking Entitlements - Listen

Gold prices rose above $1,775/oz. Wednesday on inflation fears despite a firmer dollar, stocks deflate despite upbeat jobs data. Gold last traded at $1,777 an ounce. Silver at $34.63 an ounce.

IMF Chief Economist Olivier Blanchard Says Global Crisis Will Last a Decade, reports Reuters. Gold Seen Gaining in New York on Central Bank Stimulus As a Hedge Against Inflation, says Bloomberg.

duel CANDIDATES DUEL IN DENVER - DenverPost
President Barack Obama and Republican presidential nominee Mitt Romney face off at the first presidential debate Wednesday — an important moment for both candidates, but especially critical for Romney.

Presidential debates tend to reinforce, rather than sway, voter opinions. But in some instances, they can affect the dynamics of a race. Estimates show that more than 50 million people will watch the debate in an attempt to get answers about the economy, health care and the role of government.

EASY MONEY IS PUNISHING THE MIDDLE CLASS - WSJ
With the Republican Party committed to a gold commission and the Federal Reserve committed to easy money, a substantive debate about the principles underpinning our monetary system is finally in the offing. For sound money to carry the day, Republicans will need to do more than point out the still-hypothetical risks of easy money. The GOP will have to detail the harm that the middle class has already suffered as a result of a policy of low but persistent levels of inflation.

IT'S OCTOBER: IS THE STOCK MARKET CRASH-PROOF? - USAToday
"If something wicked this way comes in October, it is most likely to be war in the Persian Gulf," Edward Yardeni, chief economist and investment strategist told USA Today. A war would create global instability and fear. Oil prices would likely skyrocket, sapping what little growth there is out of the economy.

The coming stock market plunge will be sizable. More sizable than the last downturn in 2008-2009. The Dow could fall as much as 60%, says Harry Dent, author of The Great Crash Ahead and editor of newsletter Boom & Bust. "The Dow will hit a new low of 6000 or lower," says Dent. "Unfortunately, that is what investors have to look forward to."

DIGITAL CURRENCY: BRAVE NEW WORLD OR CRIMINAL HAVEN? - BBC
The rise of the internet has not only led to e-commerce, but also led to the emergence of e-money, which are currencies that only exist in the digital form. Advocates say such currencies promise to revolutionize the global money supply while opponents say this is a magnet for crooks.

More: Swiss America Gold Market News


10.2.12 - Investors Await The Great Economic Debate - Listen

Gold prices held near $1,775/oz. Tuesday on safe haven buying amid a weak dollar and EU fears, stocks retreat. Gold last traded at $1,774 an ounce. Silver at $34.62 an ounce.

The Chicago Fed head says the central bank will keep the QE spigot flowing until unemployment falls below 7%, according to CNBC. But a reader comments, "Quantitative Easing Such a nice, friendly way to say devaluing our currency isn't stealing from us."

money "Here are some terms that perhaps could be more applicable: Extortion, bank fraud, blackmail, bribery, kickback, embezzlement, larceny, mugging, robbery, looting, counterfeiting, currency scheme, insider trading, money laundering, Racketeering, securities fraud, pyramid scheme, shell game, investment scam."

US IS DEBT ADDICT ON 'BUDGETARY CRYSTAL METH' - CNBC
Stocks and bonds will be virtually worthless and gold and hard assets will be the only investments worth having unless the U.S. tames its addiction to debt and deficits, Pimco's Bill Gross told CNBC.

"The U.S., in fact, is a serial offender, an addict whose habit extends beyond weed or cocaine and who frequently pleasures itself with budgetary crystal meth. Uncle Sam’s habit, say these respected agencies (referring to CBO, IMF & BIS), will be a hard (and dangerous) one to break."

Astute readers will notice we today face a frighteningly similar situation (to Wiemar, Germany 1922) in both the U.S. and Europe. Today the trillions of dollars in stimulus is like a dangerous inflationary drug, a snake venom that is about to enter the economic bloodstream, writes author and Swiss America Chairman Craig R. Smith

This anticipation of higher inflation is what is driving gold prices up today because the world knows that gold alone is able to maintain a store of value. Gold has served as the world's ultimate form of inflation-proof money for thousands of years. Today we are witnessing a return to the gold standard by individuals and institutions regardless of whether our government acknowledges it or not, says Smith.

WHAT IS THE FED TRYING TO HIDE FROM AMERICANS? - NYSun
The value of the dollar, in other words, has collapsed to less than half of the number ounces of gold it was worth when President Obama acceded to the presidency and to less than a sixth of what its value was on the day George W. Bush acceded.

It sounds to us like chairman [Ben Bernanke] is warning Congress against passing Congressman Ron Paul’s audit-the-Fed legislation and Congressman Kevin Brady’s Sound Dollar Act, both of which would open up Fed policies to inspection...it is way past time for the Congress to open up the Fed’s operations for a proper inspection.

THE GOLD STANDARD EMERGING IN CHINA? - Forbes
China is preparing for a world beyond the inconvertible paper dollar, a world in which the renminbi, buttressed by gold, becomes the dominant reserve currency.

China is increasing its monetary gold reserves at an alarming rate. Five years ago China surpassed the US in gold production and five years from now it will own more gold than the US Federal government.

WARY AMERICANS SAVING MORE, EVEN AS GOVERNMENT ENCOURAGES RISK - WashPost
Americans have poured record amounts of money into savings accounts even though interest rates are at historic lows, new federal data show.

The total amount in those accounts climbed nearly 5 percent to $6.9 trillion in the spring, the highest level recorded since the Federal Reserve launched its regular reports on the flow of money in the economy in 1945. At the same time, other data show that Americans are fleeing the stock market and avoiding the purchase of new homes.

THE GREATEST POLITICAL SHOWDOWN ON EARTH - TheIndependent
Thirty-six days from today the next American president will have been elected. The winner will be the last man standing after a contest that began with Iowa's caucuses and continued on for four months through the primary season and nominating conventions. By the time it's all over, some $3bn may have been spent on the presidential election alone, in money raised by the candidates, their respective parties and outside groups.

More: Swiss America Gold Market News


10.1.12 - Gold Reflects Growing Inflation Fears - Listen

Gold prices rose above $1,775/oz. Monday on bargain hunting and a weaker dollar, stocks cheer upbeat factory growth data. Gold last traded at $1,777 an ounce. Silver at $34.80 an ounce.

chart GOLD JUMPS TO 10-MONTH HIGH ON U.S. STIMULUS SPECULATION - Businessweek
Gold prices jumped to a 10-month high after the Federal Reserve Bank of Chicago President Charles Evans said the US central bank can do more to boost the economy. This fueled concern that inflation will accelerate, causing investors to turn to the metal as a safe haven investment and a hedge against inflation.

WHY ALL ROADS NOW LEAD TO INFLATION - Craig R. Smith
Today we are following the exact same path as Wiemar Germany followed only on a global scale. As I see it, there are two probable outcomes; high inflation, similar to 1979-80 with double-digit inflation and interest rates, OR hyperinflation, which could end the dollar's reign as the reserve currency of the world. Yes all roads are leading to higher inflation today - and to higher gold prices.

DOLLAR FALLS MOST SINCE 2011 AS CENTRAL BANKS BUMP UP STIMULUS - Bloomberg
The dollar index fell by the most since the first quarter of 2011 after the ECB announced its pledge to protect the euro from unraveling and the Fed's announcement of open-ended debt buying. The Bank of Japan, who is expected to follow the Fed and ECB by expanding its balance sheet, is scheduled to announce their next policy decision on October 5.

AMERICA COULD BE ‘TAKEN OVER,’ WARNS ROSS PEROT - YahooNews
Former presidential contender Ross Perot is worried America is a, "sitting duck for an unnamed foreign invader." Citing an impending fiscal cliff, Perot warned of disaster in his new autobiography. The nation's weak economy has left us open for a hostile takeover.

More: Swiss America Gold Market News

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Gold$1248.35
Silver$17.39
Platinum$1272.00

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