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8.26.16 - Duel Fed Speak Fuels Market Volatility

Gold last traded at $1,325 an ounce. Silver at $18.74 an ounce.

NEWS SUMMARY: Precious metal prices zig-zagged Friday after Fed Chair Janet Yellen's speech was undercut by Fed Governor Fisher's speech. U.S. stocks fell Friday on downward-revised GDP growth data and confusion after the Fed's dualistic statements dampened an early rally.

"Bad Cop" Fischer Spoils "Good Cop" Yellen's Party: Stocks Plunge, VIX Spikes -Zero Hedge
"Despite Yellen's hawkish tone, market participants clung to dovish hopes in her words... but Stan Fischer just clarified 'Yellen's comments are consistent with a possible September hike' and that has spoiled the party in stocks, bonds, gold, and the dollar... *FISCHER: BIG ISSUES IN GROWTH ARE INVESTMENT, PRODUCTIVITY....*FISCHER: FED IS RESOLUTELY NOT A POLITICAL BODY....*FISCHER: NOT TOO CONCERNED ABOUT ASSET BUBBLES NOW."

The financial markets whipsawed following Fed Governor Fischer's comments, which left the door open for a September and/or December rate hike. The Fed strategy is to keep the markets dazed and confused, but not depressed. After many years of financially-repressive, near-zero interest rates, the Fed still believes they can trick the world into believing a soft landing can still be engineered. Don't buy it! Instead buy gold as wealth insurance against a hard landing - which history tell us is the most likely outcome.

Jackson Hole Years of Fed Missteps Fueled Disillusion With the Economy and Washington -Wall Street Journal
"Once-revered central bank failed to foresee the crisis and has struggled in its aftermath, fostering the rise of populism and distrust of institutions....The Fed in particular is a case study in how the conventional wisdom of the late 1990s on a wide range of economic issues, including trade, technology and central banking, has since slowly unraveled. Once admired globally for their command of the economic system, central bankers now are blamed by the left and right for bailouts during the financial crisis and for failing to foresee and manage forces suffocating the global economy in its aftermath. David Einhorn, founder of the hedge fund Greenlight Capital, cites the fable of the ant and the grasshopper, in which a famished grasshopper begs a thrifty ant for help in wintertime after failing to stockpile food during warmer weather. 'We had the grasshoppers party from 2002 to 2007 and winter came and the Fed bailed them out,' said Mr. Einhorn, referring to financial firms and individuals who lived above their means. 'Now the ants are pissed.'"

As public disillusionment spreads, expect a major backlash against those who perpetuated and promoted the illusion. Gold is not an illusion, but rather real money which stands the test of time. Read more in The Timeless Truth About Gold & Silver.

There's No Recovery for Central Bankers to Create -Real Clear Markets
"Former Fed official Kevin Warsh writes earlier this week in the Wall Street Journal: 'The groupthink gathers adherents even as its successes become harder to find. The guild tightens its grip when it should open its mind to new data sources, new analytics, new economic models, new communication strategies, and a new paradigm for policy.' He is of the growing chorus of even former insiders and members of past authority who are calling for letting go of the ideological rigidity set in place during the New Deal....The entire premise of activist central banking will be revealed as false; indeed it has already been revealed so by its own actions. Central bankers cannot create the recovery because there is no recovery for them to create. Their monetary understanding of the modern age is limited by their ideologically driven intentions to not understand. The world now knows through wasted time alone that something big is off, that the global economy is not right."

The Sinister Side of Cash -Rogoff/Wall Street Journal
"When I tell people that I have been doing research on why the government should drastically scale back the circulation of cash - paper currency - the most common initial reaction is bewilderment. Why should anyone care about such a mundane topic? But paper currency lies at the heart of some of today’s most intractable public-finance and monetary problems. Getting rid of most of it - that is, moving to a society where cash is used less frequently and mainly for small transactions - could be a big help....The first stage of the transition would involve very gradually phasing out large denomination bills that constitute the bulk of the currency supply. Of the more than $4,200 in cash that is circulating outside financial institutions for every man, woman and child in the U.S., almost 80% of it is in $100 bills. In turn, $50 and $20 bills would also be phased out, though $10s, $5s and $1s would be kept indefinitely."

Here we have another predictable argument from a well-know economist in favor of removing cash from circulation, echoing Larry Summers and a host of others. They hope to sway public opinion toward further government intrusion into U.S. citizens' lives by blaming cash for crime. Cash equals personal freedom and privacy, which the ruling oligarchy prefers to control. Read more in our White Paper: The Secret War on Cash.

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8.25.16 - Fed's Indecision Bodes Well for Gold

Gold last traded at $1,324 an ounce. Silver at $18.61 an ounce.

NEWS SUMMARY: Precious metal prices steadied Thursday on a flat dollar and Fed uncertainty. U.S. stocks traded mixed a day ahead of a key speech from Fed Chair Janet Yellen.

Gold to Hit $1,600 by Christmas: ScotiaWealth's Fishman -Bloomberg
"Elliott Fishman, Director, U.S. & International Trading, ScotiaWealth joins Bloomberg TV Canada's Pamela Ritchie to discuss why he's bullish on gold and expects it to go as high as $1,800." According to Mr. Fishman $1,600 an ounce gold is the next stop on the way to $1,800 in the next year. If he is correct, that represents a 60% price increase from $1,060 - where gold prices began January 1, 2016.

Regardless of gold's price, we strongly believe it deserves a place in every portfolio as wealth insurance. Get all the facts now, before the next price stop, read our 2016 Gold Report - World Edition.

Yellen The Era of Centralization Is Ending Right Before Our Eyes -Zero Hedge
"The most critical element of the BREXIT is that it is THE closing bell being rung on the period of Centralization from 2009 to today. What do I mean by Centralization? I am referring to the era of Central Planning of the global economy by Central Banks....In the world of Central Planning, politics, not economics, drives policy. Any sensible economist would have realized QE and ZIRP couldn’t generate GDP growth around 2011. However, in the world of Central Planning, the political implications of admitting this (relinquishing control of the financial system and permitting debt defaults/ restructuring to begin) is akin to political suicide....We firmly believe the markets are preparing to enter another Crisis. With over 30% of global bonds posting negative yields, the financial system is a powder keg ready to blow."

As the world's most elite group of globalists assemble this week in Jackson Hole, it is comforting to know their plan to bring the global economy down via financial repression is failing miserably. Like an emperor with no clothes, those in the know understand that the globalist house of cards is about to fall. Make sure you own the most decentralized form of money on earth: GOLD!

Why It's Time to Go "Maximum Overweight" in Gold -Money Morning
“Most American consumers do their banking with one or more of the 10 biggest U.S. banks, like Bank of America Corp. or Wells Fargo & Co., with more than $10 trillion in assets. In any case, it's safe to say few, if any, Americans bank with Raiffeisenbank Gmund am Tegernsee, a small co-operative bank outside Munich, Germany. But now it's vital Americans know what's happening in the tiny bank with the big name. The European Central Bank's negative rate on deposits has forced the small co-op to implement negative interest rates (what it creatively calls a "custodian charge") of its own...on private clients....As I've said, the consequences of negative-interest-rate policies – financial repression – are soon to be widely felt. That's why some of the world's ultimate ‘in the know’ investors are making a beeline for gold right now. And when you see what's coming down on our heads, you'll see why it's a good idea to follow them before prices get much higher…”

45 Years Without Gold -Mises Institute
"When World War I began, many analysts believed that the international gold standard would keep the war short. A war of attrition was not thought to be possible because the disciplining effects of the gold standard — capital flight and gold outflow — were supposed to restrain the ability of states to mobilize resources in times of war....The gold standard was never the same after World War I. It survived in a modified form until August 15, 1971 — 45 years ago this month — when President Nixon cut the last link between the world monetary system and gold. The initial idea was to temporarily suspend the limited convertibility that existed; only governments could request reimbursements of gold against dollars. Unfortunately, there is nothing more permanent than temporary emergency measures....For ordinary people, the result is an inability to maintain their wealth without risk....These past 45 years have been a monetary experiment that has not ended well."

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8.24.16 - Fed Credibility on the Line Friday

Gold last traded at $1,329 an ounce. Silver at $18.68 an ounce.

NEWS SUMMARY: Precious metal prices fell Wednesday after short-term speculators sold $1.5B in gold future contracts. U.S. stocks drifted lower again awaiting fresh direction from Fed speak on Friday.

Major banks, ICAP join up to create digital currency -Seeking Alpha
"UBS, Deutsche Bank, Santander, BNY Mellon and broker ICAP have teamed up to create a digital currency called the 'utility settlement coin'. The firms hope that the currency will become an industry standard used to clear and settle financial trades over blockchain, the technology that bitcoin is based on. The banks and ICAP are pitching the idea to central banks and hope to launch the utility settlement coin in early 2018. The project is competing with similar initiatives from the likes of Citibank, Goldman Sachs and JPMorgan, which are developing separate digital currencies."

inflation chart Rates down, inflation up: it's 'never been worse' for cash savers -Telegraph
"The plight of cash savers will worsen rapidly in coming months, economists warn, as the twin trends of rising living costs and falling returns intensify. A combination of falling interest rates and an uptick in inflation means most cash deposits are already losing value....If inflation now rises to 3%, it's possible that inflation will reach a record multiple of the rates payable on cash - maybe even of as much as ten times."

'Angry White Male' New Book Release -Wayne Allyn Root/Amazon
"The mainstream media and ultra-liberal Democrats can’t understand why white voters, especially white men, are so angry. Wayne Allyn Root is an angry white male, and he knows why. This is his story, his testimony, and a look at what’s happening to an entire group of good people: law-abiding, tax-paying, hard-working, middle-class people. Root has declared 2016 the year of the 'Angry White Male' - a demographic he calls 'the soccer moms of the 2016 election.' In this explosive new book, 'the Trump phenomenon' is seen through the eyes of the ultimate angry white male who is determined to save the middle class. According to Root, 'What has been done to the predominantly white middle class in the past eight years is unimaginable and mind- numbing. You need to face the truth before you can act on it....That action starts with putting a plan in place to protect yourself and save our nation.'"

Jackson Hole: the three tough questions central banks must ask themselves -Telegraph
"The men and women who control the global monetary system get together for three days to debate the challenges facing the world economy – and how they might use monetary policy to fix it. This year’s title is ‘Designing Resilient Monetary Policy Frameworks for the Future’, which could mean almost anything. The markets are waiting for some clues from the Fed chairman Janet Yellen on whether there will be another rate rise this year. In truth, however, a quarter point on rates won’t make much difference. Instead, in a world awash with printed money, with deflation becoming permanent, with bonds from major economies paying negative yields, and with weirder and weirder experiments, from below-zero rates to abolishing cash, gaining increasing traction, they would be better off taking a look at themselves, and asking some hard questions. Here are three good ones to start with: is quantitative easing actually working? Have we broken the banking system? And isn’t it time to update economic models that no longer tell us much about the real world?”

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