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7.31.15 - Why The War On Cash?

Gold last traded at $1,094 an ounce. Silver at $14.74 an ounce.

NEWS SUMMARY: U.S. stocks traded mixed Friday after disappointing earnings from Exxon and Chevron and weak U.S. wage growth data. The U.S. dollar fell which, together with month-end bargain hunting, helped to propel precious metal prices higher.

Fed's trillions haven't helped worker paychecks -CNBC
"The central bank printed $4.5 trillion and all we got was a lousy 0.2 percent wage increase. After years of easing never seen before in global central banking history, the Federal Reserve's efforts have amounted to little when it comes to stimulating 'good' inflation, particularly in terms of wage increases....Taken together, the numbers seem less an indication of the rip-roaring economy Fed stimulus was supposed to generate and more an indicator of the same old, same old: Outsized benefits to stock market investors and debt-heavy corporations, with little feeding back into the real economy." If all of this sounds familiar, it is because this is what our books and White Papers, such as The Biggest Bank Heist in History, have been warning about.

secret war The War On Cash: Why Now? -Mises Institute
"What exactly does a 'war on cash' mean? It means governments are limiting the use of cash and a variety of official-mouthpiece economists are calling for the outright abolition of cash. Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash....Why Now?....Cash in hand cannot be chipped away by negative interest rates or fees....eliminating physical cash also eliminates the possibility of bank runs, as there will be no form of cash that isn't controlled by banks."

Who's Behind The War On Cash? - Research Report
The U.S. Government and Federal Reserve are fighting against cash on many fronts. Banks must now report cash withdrawal or deposit of $10,000 or more. Banks must also report to the government any financial behavior on your part it deems 'suspicious' or 'unusual.' In THE SECRET WAR, discover why...
* Under threat of regulatory punishment, banks must now spy on you for the government.
* Our government has made it risky to carry cash due to tougher asset forfeiture laws.
* 'Operation Choke Point' targets 30 types of businesses labeled as 'high-risk'.

Who needs the Fed? The rate hike cometh on its own -Reuters
"As traders, market pundits and economists jaw over whether the Federal Reserve this year will lift its benchmark lending rate for the first time in almost a decade, several corners of the U.S. bond market are not waiting around....Banks, money market mutual funds and other investors do not want to be stuck with low-yielding debt when the U.S. central bank finally does begin raising interest rates, something it last did in June 2006....The interest rate on three-month T-bills that mature on Sept. 17, when the Fed releases its next policy meeting statement, rose to almost 7 basis points on Thursday, the most in nearly 14 months."

About That Asterisk on Your Social Security Statement -National Review
"At first glance, the statement did not appear menacing. I was told I could expect to receive a benefit of 'about $2,136 a month' upon reaching age 70 - which certainly seems like good news. But immediately I thought of a parallel of President Obama’s infamous Obamacare promise: 'If you like your Social Security, you can keep your Social Security.' Then, as if on cue, I saw an asterisk with the following message: The law governing benefit amounts may change because, by 2033, the payroll taxes collected will be enough to pay only about 77 percent of scheduled benefits. I could not believe I was seeing the equivalent of what I was just thinking, but with a new twist, 'If I like my Social Security, I can keep 77 percent of it.'"

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7.30.15 - Data Confirms Government & Fed Policy Failure

The Worst Expansion Since World War II Was Even Weaker -Wall Street Journal
"The economic expansion - already the worst on record since World War II - is weaker than previously thought, according to newly revised data. From 2012 through 2014, the economy grew at an all-too-familiar rate of 2% annually....While there have been highs and lows in individual quarters, overall the economy has failed to break out of its roughly 2% pattern for six years."

Is 1.5% Economic Growth in 2015 Enough? -FOX Business
Fox Business host Neil Cavuto asks Swiss America Chairman Craig R. Smith if he's encouraged or worried by recent economic numbers? According to Mr. Smith this is the slowest recovery since WWII. CRSfox What concerns Smith most is that neither the Obama administration nor the Fed's fiscal policy is working. Today there is so much malinvestment - as a result of zero interest rate policy - and we are about to see those chickens come home to roost. Fed policy is creating massive distortions in the market. Smith's concern is that if we continue at the pathetic 2% growth rate (based on part-time work and record low participation), businesses will not have the confidence to invest and grow the economy. We need to get our fiscal house in order. Even former Fed Chair Alan Greenspan is worried by the growth of social spending from 15.5% in 2005 to 19.2% in 2014 ... and growing. To read the full story, request Mr. Smith's FREE Research Report The Biggest Bank Heist in History

Low rates are the problem, not the solution -Bill Gross, CNBC
"'Money for nothing' interest rate policies have failed, bond guru Bill Gross said in a broadside Thursday against global central banks. High-risk companies have been able to borrow on the cheap and stock markets have soared, but there's been little in the way of true investment to show for all the years of low rates, the Janus Capital fund manager said....In the fallout, Gross wondered what would happen to the 'zombie' companies issuing junk bonds, as well as those firms that have spent trillions on stock buybacks to boost share prices."

Tips for Catastrophe Protection -Miller on the Money
"Parenting never ends. My granddaughter bought her first car and asked me about insurance. She had two quotes: one with a $100 deductible and a second for $500 deductible. She was leaning toward the $100 deductible because 'it was only $10 more per month'. So why not take that option? I explained the higher premium policy buys an additional $400 in coverage and costs $120/year more. In a little less than 3.5 years and she would pay $400 in additional premium to the insurance company. Unless she planned to start wrecking a car every 3.5 years, it wasn’t a good investment. The lesson was simple, you self-insure for the small stuff, and buy insurance for the catastrophe." To discover the importance of "wealth insurance" against financial catastrophes read The Timeless Truth About Gold & Silver

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7.29.15 - WHY THE FED IS CORNERED

Gold last traded at $1,092 an ounce. Silver at $14.74 an ounce.

NEWS SUMMARY: U.S. stocks gyrated higher Wednesday despite downbeat housing data and the latest Fed statement - which provided no further clarity on the timing of lifting U.S. interest rates. Fedspeak modestly boosted the U.S. dollar index, precious metal prices held steady.

Is the Fed About to Make It Worse? -The Nation
"A Fed decision to raise interest rates, expected sometime this year, amounts to a vote of confidence in the economy - a declaration that we have achieved the robust recovery we need. 'We are close to where we want to be, and we now think that the economy cannot only tolerate but needs higher interest rates,' the chairwoman of the Federal Reserve, Janet Yellen, told Congress during a July 15 policy briefing. But for many millions of Americans, the recovery has yet to arrive, and for them, a rate hike will be disastrous."

balance sheet Fed Now Faces Four 'Zero Interest Rate Policy' (ZIRP) Outcomes -The Biggest Bank Heist in History

1. ZIRP CONTINUES and, at least in the short run, causes another artificial boom based on financial bubbles. The mass hallucination of hypnotized people continues.

2. ZIRP CAUSES STAGNATION and an economy that 'lingers in a recession-like, anemic state.' The government has gone $7.5 Trillion deeper into debt since 2009, but a stagnant U.S. economy struggling to maintain 2 percent growth...

3. ZIRP TRIGGERS FINANCIAL COLLAPSE as governments and giant banks default on the huge, low-interest debts they have run up. The economic landslide that began in 2008 can no longer be held back and this time drags the whole economy down with it.

4. ZIRP IS OVERCOME by American optimism and effort. The American people's hard work, faith and traditional values triumph over Progressive collectivism. We kick government-dependent addiction to Uncle Sugar's Progressive welfare state, and are cured of economic diabetes. Life again becomes naturally sweet, prosperous and free.

On the day that people have their own independent solid money again, the Federal Reserve and all its schemes like ZIRP can be bypassed on our road back home to America. The biggest bank heist in history will be over, and you will no longer be paying the price for Banks and Government getting gain from your pain.

To read the full story, request a FREE copy of The Biggest Bank Heist in History

Hillarynomics -New York Post
According to Fox Business's Charlie Gasparino, "Hillary Clinton thinks quarterly earnings reports are bad. She believes something called 'short termism' from activist investors like Carl Icahn is the root of all economic evil. Her remedy to make the world fair again: ramping up taxes on trades held for less than two years - to more than 40 percent under her 'six-year sliding scale.'.... One more thing worth considering: It was none other than Bill Clinton, with a huge assist from a Republican Congress, who cut capital-gains taxes in the late 1990s - a move that most mainstream economists say helped propel the mighty 1990s economy to new heights."

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7.28.15 - CONFIDENCE IN CENTRAL BANKERS FAILING

Gold last traded at $1,094 an ounce. Silver at $14.66 an ounce.

NEWS SUMMARY: U.S. stocks rebounded from a five-day losing streak Tuesday, as investors looked past falling consumer confidence and China's continued stock market rout. Meanwhile, bargain hunting lifted gold prices near $1,100 an ounce, despite a firmer dollar.

57% of Americans Say Economy is "Getting Worse" -Gallup
"Gallup's Economic Confidence Index continued its gradual, downward slide, reaching -14 for the week ending July 26. This represents a 10-month low for the index....39% of Americans said the economy is 'getting better,' while 57% said it is 'getting worse.'....The instability abroad could be fueling Americans' doubts about the health of the U.S. economy, not to mention that the Dow closed lower several days in a row last week." So much for the economic "recovery" gaining traction in 2015.

bank Fed Getting Nervous About Zero Rates -Fox Business
"The Fed has said it wouldn’t raise rates until it met its dual mandate of full employment, which it defines as an unemployment range of 5.2%-5.6%, and price stability, which it defines as a 2% annual inflation rate. The unemployment rate now stands at 5.3% but inflation has remained stubbornly low - hovering for months at about half the Fed’s 2% target - because wages have been stagnant for months. 'This will very likely mark the 53rd meeting in a row in which the Fed has made no change in interest rates. It also may well be the last in this string with the Fed taking a first tightening step in September,' said David Kelly, chief global strategist at JPMorgan Funds....'The Fed is nervous about not being able to cut rates in response to the next recession if they never raise them from essentially zero,' Kelly said." No need to anxiously await the Fed's statement for the latest economic clues about interest rate hikes, just read The Biggest Bank Heist in History.

Gold Is 'Insurance if the Banking System Fails' -NewsMax
"Marc Faber, publisher of The Gloom, Boom & Doom Report, says nearly all asset markets are overvalued so it’s best just to stash away your cash right now and you’ll be poised to buy when market bubbles finally pop. But he does suggest allocating 25 percent of your investment portfolio to gold. 'Gold is insurance if the banking system fails,' he said at the CFA Analyst Seminar in Chicago in a presentation titled, 'Inflating Asset Markets and Deflating Real Economic Activity? Strategies for Global Investors.'" Watch: Pat Boone Explains Why Gold is Wealth Insurance.

Homeownership Drops To 48-Year Low; Rent Soars To All Time High -Zero Hedge
"Earlier today, the US Census released its latest homeownership data, which confirmed that for what is left of America's middle class, owning a home has become virtually impossible, with the homeownership rate plunging from the lowest level since 1986, or 63.7%, to just 63.4% the lowest reading since the first quarter of 1967. And the punchline, which should come as no surprise to anyone: with housing no longer affordable to most, the median monthly asking rent just rose to a record $803 across the US....There is no surprise why this is happening. As Bloomberg notes, the biggest culprit is wage growth which 'hasn’t kept up with surging home prices...'"

China is losing control -Telegraph
"Margin debt on the Chinese stock market has reached $1.2 trillion. 'We suspect that it’s a matter of time before banks may have to face the music,' Bank of America says. Chinese equities have suffered the sharpest one-day crash in eight years, sending powerful tremors through global commodity markets and smashing currencies across East Asia, Latin America and Africa....The violence of the moves unnerved investors worldwide, stirring fears that the Communist Party may be losing control after stoking a series of epic bubbles in property, corporate investment and equities to keep up the blistering pace of economic growth....'Large parts of the market are closed, and those stocks that are still trading are selling off regardless of support measures. Clearly something very serious is happening,' said one economist....This in turn risks setting off a 'bank run' on the shadow banking system as investors lose trust in wealth management funds, fearing that their deposits in the $2.1 trillion industry no longer have an implicit guarantee." Indeed, the risks of a bank run are rising, as Craig Smith and Lowell Ponte explain in DON'T BANK ON IT!

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