Gold Standard News Daily - Real Money Blog
Posted M-F 6pm ET
11.25.15 - THANKSGIVING WISHES
Gold last traded at $1,070 an ounce. Silver at $14.16 an ounce.
NEWS SUMMARY: U.S. stocks inched higher Wednesday amid upbeat economic data ahead of the Thanksgiving Day holiday. The U.S. dollar rallied on speculation of a Fed rate hike in December.
Richard Russell: The Passing of an Icon -DowTheoryLetters
"It is with great sadness that we report the passing of Richard Lion Russell on Saturday, November 21. Richard wrote for Dow Theory Letters almost every day of his adult life, mailing the letter out faithfully every ten days to three weeks beginning in 1958. In 1991 Dow Theory Letters began publishing online, which allowed Richard to write daily. This he did until about a week before his passing. Dow Theory Letters was the longest investment letter in the industry continuously written by the same person. Richard had struggled for years with a terrible fear of dying, and held on for many days. We had a remarkable family bonding experience as we held a vigil at his bedside. We had a lot of time together to express our great love to him, speak to him from our hearts, both individually and collectively, and do a lot of crying and loving touch."
Over the past 30 years we have always admired the wisdom and balanced perspective of Richard (lion-hearted) Russell. We shall miss him greatly. His Dow Theory Newsletter has been a consistent beacon of light amid the growing economic darkness. We've featured his commentary often. Here's a 2012 sample of his perspective on owning physical gold at any price: "Gold possesses some properties that are beyond the scope of other investments. Gold can't go broke, because gold does not derive its purchasing power from the edict or control of any sovereign power or central bank. Gold has no counter-parties. Gold is tangible and is accepted everywhere -- in good times or bad. Gold exists outside the world's banking system. Unlike fiat money, gold is wealth on its own."
The Spirit of Thanksgiving -Kristol, Weekly Standard
"Happy Thanksgiving! And in celebrating Thanksgiving, why not pause to reflect on it? Thanksgiving seems to be a distinctively American holiday (with the possible exception of Canada).Other nations have independence days, memorial days, days commemorating the birthdays of their great leaders, etc. - but I'm not sure there's anything elsewhere much like Thanksgiving. And within the American tradition, Thanksgiving has always seemed to me an appropriate bookend to Independence Day. July 4th celebrates patriotic self-assertion, political independence and human self-government, Thanksgiving recognizes the other side of the coin, our dependence on something higher than us and our gratitude towards that higher being's beneficence."
The Origins of Thanksgiving -WhatSoProudlyWeHail.org
"Thanksgiving is a venerable and much beloved American holiday. In colonial times it was primarily a harvest holiday, in which the colonists offered thanks for a good harvest, sometimes by feasting, sometimes by fasting. A holiday was already celebrated in the Spanish colony of Florida in the 16th century, and in the British colonies of Virginia and Massachusetts in the 17th century, most famously in 1621, when the Pilgrims at Plymouth, Massachusetts celebrated their first successful harvest in the company of some of the Native American tribesmen. Thanksgiving became a regularly celebrated national holiday only during the Civil War, when Abraham Lincoln proclaimed a day of national Thanksgiving in 1863. The holiday became fixed to the fourth Thursday in November by an act of the United States Congress in 1941."
**Swiss America will be closed on Thursday and Friday in observance of Thanksgiving. We extend warm holiday wishes to all of our readers!**
11.24.15 - FREE MARKETS FEAR UNCERTAINTY
Gold last traded at $1,073 an ounce. Silver at $14.15 an ounce.
NEWS SUMMARY: U.S. stocks inched higher amid retaliation fears following a downed Russian jet and an upward revision of Q3 GDP. Meanwhile, precious metal prices rose on safe haven buying and a flat U.S. dollar.
Will Russian Response To Downed Jet Spark Financial Panic? -Lowell Ponte
"The shooting down of a Russian jet, killing or capturing its pilots and then shooting down a Russian rescue helicopter, coming on the heels of Isis downing a Russian airliner with the death of more than 200 on board, puts enormous pressure on Putin to back up his strong man image that is the basis of his popular support as Czar....Meanwhile, Russia shows no sign of withdrawing from the Sunni (e.g., Isis) vs.Shiite (e.g., Iran and the government of Iraq) war where Putin has taken the Shiite side and helped Iran's doomsday theocracy to move towards nuclear weapons. Indeed, wasn't Putin to be in Tehran this week for meetings with Iran's apocalyptic rulers? Russia would look like a paper tiger if it did anything to back out of this situation now. If the crisis sends oil (and gold) prices upwards, Russia could profit dramatically, and so could Iran and Sunni Saudi Arabia." Full story...
Global debt defaults near milestone -Financial Times
"Global debt markets are on the cusp of an unwelcome development with the number of companies defaulting on their obligations set to reach the century mark, driven largely by struggling US shale gas providers. Currently, 99 global companies have defaulted since the year began, the second greatest tally in more than a decade and only exceeded by the financial crisis which saw 222 defaults in 2009, according to Standard & Poor’s....The jump in defaults has been reflected in the average yield on US corporate junk bonds, rising from 5.6 per cent at the start of 2014 to 8 per cent at present, according to Barclays."
Craig R. Smith's comment: "With debt levels this high, any major hiccup could trigger a worldwide financial meltdown. Geopolitical fears and ongoing market uncertainty have the effect of slamming the brakes on free markets. If terrorism spreads, travel stops and commerce slows - we could find ourselves in a depression and a war. Time is running out on the opportunity to own gold at ridiculously low prices." Read The Timeless Truth About Gold & Silver.
Yellen Defends Zero Interest Rate Policy -Associated Press
"Federal Reserve Chair Janet Yellen says while many savers have been frustrated by years of low interest rates, the rock-bottom rates were needed to boost the economy after the Great Recession....Yellen was responding to a letter from Nader, who said he was writing on behalf of frustrated savers who have been getting near zero interest on their bank and money-market savings accounts. 'We are tired of this melodrama that exploits so many people who used to rely on interest income to pay some of their essential bills,' Nader wrote to Yellen in the open letter published on his blog. 'Think about the elderly among us who need to supplement their Social Security checks every month.'"
The Fed's great experiment in zero interest rates was doomed from the start, according to The Biggest Bank Heist in History.
From Hope To Nope - Consumer Confidence Crashes -Zero Hedge
"Just three months ago Consumer Confidence was peaking at 8-year highs and everything was awesome. Now, with the biggest miss since March 2009, Consumer Confidence crashed to 90.4 from 99.1. This is the lowest since September 2014 as the 'decline was mainly due to a less favorable view of the job market.' Almost every cohort - across age, income, race saw a collapse in confidence though we note low income and under-35s saw the biggest declines as Income Growth expectations plunge to the lowest in 14 months. That was not supposed to happen..."
The security roller coaster: Panic, forget, repeat -Bo Dietl/NYPD, NY Post
"Just over a week after ISIS terror attacks paralyzed Paris, Brussels is on lockdown. FBI Director James Comey says ISIS is in American cities now, too....Safety has once more become a primary concern for commercial and residential buildings, and now the calls for enhanced security measures are starting to come in again....The question, essentially, is this: Are we just going to react to such atrocities, or are we going to be prepared to prevent them? It’s time to learn from recent tragedies so that we can impede future violence."
11.23.15 - GOLD TO THRIVE AS PAPER DIES
Gold last traded at $1,066 an ounce. Silver at $14.03 an ounce.
NEWS SUMMARY: U.S. stocks hovered near flat line Monday amid downbeat existing home sales and U.S. manufacturing data. Meanwhile the U.S. dollar crested 12-year highs amid Fed rate hike speculation.
Swiss bank charges savers for deposits -AFP
"The Alternative Bank Schweiz (ABS) caused shockwaves with a letter sent to all clients in mid-October informing them that it would begin imposing interest charges on deposits in 2016....The -0.75 percent rate is meant to dissuade foreign investors buying and holding Swiss francs as a safe haven investment, which had been putting upward pressure on the currency....Some clients did not see things in the same light, jumping on the phone to demand explanations from their bankers."
In DON'T BANK ON IT! authors Craig Smith and Lowell Ponte warned readers back in 2014 that negative interest rates were coming on the heels of the Fed's zero interest rate policy. Read it to learn about the other 19 major banking risks facing depositors in the 21st century.
Gold and the Reverse Goldfinger Effect -Market Oracle
"In 1964 Sean Connery starred in the movie 'Goldfinger' in which the villain, a wealthy Brit named Goldfinger, attempted to revalue his personal gold hoard higher by a factor of 10. Goldfinger tried to render Fort Knox gold radioactive and unavailable, thereby increasing global gold prices. Call it the 'Goldfinger Effect.' By contrast, The 'REVERSE GOLDFINGER EFFECT' is quietly and unofficially selling (leasing) Fort Knox gold to SUPPRESS global gold prices.....Based on the massive increase in global debt (over $200 Trillion and counting) and the incredible increase in the supply of fiat currencies, many people believe the price of gold should be far higher. I think the 'Reverse Goldfinger Effect' has been used to suppress prices. When the truth is finally revealed, we shall see....Paper dies, gold thrives!"
We recommend buying physical gold now. The vast mispricing of assets - resulting from Fed and government's manipulative economic policies - have rendered physical gold as the only trustworthy asset insurance on earth. To learn more read The Timeless Truth About Gold & Silver.
Argentine to shrink state's role in economy -USAToday
"Mauricio Macri, Argentina's next president, decided to pursue a career in politics under the most harrowing of circumstances: 24 years ago, he was kidnapped for nearly two weeks and released only after his family - among the nation's wealthiest - paid the kidnappers a reported $2.5 million ransom....His victory on Sunday signals the effective end of a dozen years of leftist 'Kirchnerism' in Argentina, which featured heavy taxes on agricultural exports and heavy-handed government intervention in the economy....Macri promised to reduce the state's role in the economy and embrace more pro-business policies, as well as shift Argentina's foreign policy away from close relations with the anti-American governments in Venezuela and Iran and better ties with the USA."
NPR: Why 'National Progressive Radio' Is Dying -Washington Post
"NPR’s research shows a growing gulf in who is listening to the likes of 'Morning Edition' and 'All Things Considered,' the daily news programs that have propelled public radio for more than 30 years. Morning listening has dropped 11 percent overall since 2010, according to Nielsen research that NPR has made public; afternoon listening is down 6 percent over the same period....Perhaps more troubling are the broader demographic trends. NPR’s signal has gradually been fading among the young. The graying of NPR, and the declines overall, are potentially perilous to the public radio ecosystem. 'It’s a problem, and no one has really figured out what to do about it,' said Jeff Hansen, the program director at Seattle public station KUOW (94.9 FM)."
To better understand why Progressive-run NPR is declining, read WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE: AMERICAN DREAM VS. PROGRESSIVE DREAM.
11.20.15 - LIBERTY UNDER ASSAULT
Gold last traded at $1,076 an ounce. Silver at $14.09 an ounce.
NEWS SUMMARY: U.S. stocks rose Friday amid upbeat retail earnings and growing acceptance of a Fed rate hike in December. Meanwhile, the U.S. dollar rebounded while precious metal prices steadied for the week.
Commandos storm Mali hotel attacked by Islamists -Reuters
"Malian commandos stormed a luxury hotel in Bamako on Friday after Islamist gunmen took 170 people including many foreigners hostage in the capital of the former French colony, which has been battling rebels allied to al Qaeda for several years. Dozens of people were reported to have escaped or been freed, but at least three were dead. A security source said the gunmen had dug in on the seventh floor of the hotel as special forces advanced on them. There was no immediate claim of responsibility."
Liberty and its Enemies -Stossel/Fox Business
"In parts of the world, people are gunned down by terrorists. But on college campuses, America's most privileged children obsess about a 'right... not to be offended.' Nonsense! When government steps in to make sure no one's feelings is hurt - they threaten our real right to free speech....Government often threatens our freedom by wasting money: The U.S. Department of Health and Human Services spent $150 million in federal tax dollars performing tests to determine the effect of recreational drugs on animals, including $9.6 million to see if LSD causes a rabbit to blink more frequently, and $249,000 to find out if monkeys on cocaine make bad decisions. Most people would never pay for those things, but we didn't have a choice! When government spends our money, we can't buy things we actually want."
“[Most people] cannot grasp the concept of liberty. Always they condition it with the doctrine that the state, i.e., the majority, has a sort of right of eminent domain in acts, and even in ideas – that it is perfectly free, when it is so disposed, to forbid a man to say what he honestly believes…" – H.L. Mencken, Journalist “Sage of Baltimore” 1925....from Craig Smith's Introduction WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE: AMERICAN DREAM VS. PROGRESSIVE DREAM.
Stock Markets in "No Man's Land" -CNBC
"'The market seems to be very comfortable now assuming the economy is in the right place for a liftoff,'said Omar Aguilar, chief investment officer, equities, at Charles Schwab Investment Management....'It's all about the free money,' said Adam Sarhan, CEO of Sarhan Capital. 'All year they've been telling us they're going to raise rates. Pay attention to what the Fed does, not what they say.'....'I think the market's really in no man's land, to be honest. There's a lot of 'I don't know' out there,' said Peter Boockvar, chief market analyst The Lindsey Group."
The Party Is Over: "Bernanke Put" Is Replaced With "Yellen Call" -Zero Hedge
"Goldman Saks expects that after three years of disappointment, the development markets are 'about to turn the corner: '2016 could be the year EM assets put in a bottom and start to find their feet... there is the prospect of improved growth and better returns'...if the US economy does indeed grow 'above potential' as Goldman expects, what does that mean for US capital markets? According to the firm, the shift in central bank posture in 2016 will be unprecedented, and instead of the 'Bernanke Put' which pushed markets from 666 to over 2100 recently while the US economy kept deteriorating, will be replaced by the 'Yellen Call.'....selling in November and going away for the next year may be a good idea because if there is anything the world will have over the next year, it is a lot of bad news."
11.19.15 - FED FEARS, STOCKS CHURN, GOLD BOUNCES
Gold last traded at $1,077 an ounce. Silver at $14.22 an ounce.
NEWS SUMMARY: U.S. stocks ended near flat line Thursday amid downbeat earnings and endless December Fed rate hike speculation. Meanwhile, precious metal prices rose on bargain hunting and a weaker U.S. dollar.
Markets are cheering a Fed hike -CNBC
"The markets are cheering a likely Fed rate hike for three reasons, Merrill Lynch CIO Christopher Wolfe said Thursday. 'One, 2015 is mostly over, so they've already gotten to look through the earnings season; they're looking at 2016,' Wolfe told CNBC's 'Squawk Box.' 'The signs of a little bit of growth [next year] are there. Two is, the Fed being more clear actually reduces uncertainty in markets,' Wolfe said. 'They've made clear the slope of their hikes is actually quite low, so that's encouraging.' He also said the market has weathered recent geopolitical events well....The markets may be cheering on the Fed now, a tighter U.S. monetary policy could lead to a meltdown in Chinese stocks, Fidelity Investments' Jurrien Timmer warned on 'Squawk Box.'"
Yellen Letter Reflects Fed Panic -New York Sun
"Janet Yellen’s astonishing letter to the Speaker of the House, Paul Ryan, is a sign that the central bank is panicking over the fact that Congress is unhappy with the job the central bank has been doing. Mrs. Yellen’s letter, sent also to the minority leader, Nancy Pelosi, is a protest against a bill known as the Fed Oversight Modernization and Reform Act, which is nearing a vote in the House and would require the Fed to choose a rules for the formation of monetary policy and let the Congress and the public know what they are....Mrs. Yellen’s letter is particularly shocking given that it is precisely to the Congress that the Constitution grants the monetary powers."
"Are you aware that the Federal Reserve is not federal and has no reserve?," said Craig Smith in The History of Your Money. "The Federal Reserve banks are no more federal than Fred Smith's Federal Express! The average American today believes that there's truly a federal connection. The Federal Reserve banks are privately held institutions located all throughout the United States of America and where put into place by the Federal Reserve Act of 1913." Mr. Smith's latest book WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE: AMERICAN DREAM VS. PROGRESSIVE DREAM explains how and why the Fed may have doomed us to a zero growth world.
Four reasons gold could jump this year -Marketwatch
"For many gold traders, the only story worth following is the one about the Federal Reserve and when it will increase the benchmark interest rate. Not so for Frank Holmes, a longtime mining fund manager who is chief executive of U.S. Global Investors...In an interview with MarketWatch, Frank Holmes said four factors - shrinking real interest rates in the U.S., a dip in the dollar that led to a so-called 'death cross' formation, a jump in the global purchasing managers index and signs of increased demand from China - suggest that gold could finish the year higher, perhaps as high as $1,350 an ounce, which would be about 25% above Thursday’s close."
Mr. Holmes projection of a 25% rise in gold prices seems reasonable; and Frank is usually conservative. Regardless of the current market price of gold, we believe physical gold must be owned as wealth insurance so it matters not if speculators enter or exit 'paper' gold funds (ETFs) seeking short-term gains. Learn more about why owning gold coins makes good sense right now, read The Timeless Truth About Gold & Silver.
Is Times Square Next? ISIS Releases New Video -Zero Hedge
"Earlier this week, Americans were shocked - shocked - when ISIS released a new video threatening to attack Washington DC....Furat's latest effort (out last night apparently) is another France montage but there’s a notable 30 second portion which depicts a man building a suicide belt, strapping it on, walking into a crowd, and hitting the switch....There are still shots of New York (specifically Times Square) that flash throughout. So, basically, ISIS is threatening to detonate a bomb in Times Square, but don't worry, Bill De Blasio and NYPD Chief Bill Bratton say you should not be 'intimidated.'"
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