11.30.15 - Gold: The Best Insurance
Gold last traded at $1,065 an ounce. Silver at $14.08 an ounce.
NEWS SUMMARY: U.S. stocks traded lower Monday on lagging retail sales ahead of key jobs data on Friday. Meanwhile precious metal prices rose on month-end short covering despite a firmer U.S. dollar.
Chinese yuan added to IMF reserve currencies -CNBC
"The International Monetary Fund agreed Monday to add the Chinese yuan to its currency reserves basket. The decision — which marks another step in China's global emergence — came after the IMF evaluated China's role as an exporter and the yuan's role as a 'freely usable' currency. IMF Managing Director Christine Lagarde noted the currency's inclusion is a 'clear representation of the reforms' taking place in China. The addition of the yuan, or renminbi, will take effect next October."
Swiss America Chairman Craig R. Smith has warned the U.S. dollar is today facing an increasing risk of losing its exclusive reserve currency status in his latest special report What's Next For The Dollar?
Paris climate deal spells end of the fossil era -Telegraph
"A far-reaching deal on climate change in Paris over coming days promises to unleash a $30 trillion blitz of investment on new technology and renewable energy by 2040, creating vast riches for those in the vanguard and potentially lifting the global economy out of its slow-growth trap. Economists at Barclays estimate that greenhouse gas pledges made by the US, the EU, China, India, and others for the COP-21 climate summit amount to an epic change in the allocation of capital and resources, with financial winners and losers to match. They said the fossil fuel industry of coal, gas, and oil could forfeit $34 trillion in revenues over the next quarter century – a quarter of their income - if the Paris accord is followed by a series of tougher reviews every five years to force down the trajectory of CO2 emissions..."
The Best Insurance Policy Ever Written -Zero Hedge
"Get the hard asset now while it's undervalued my friends. Hold your nose, dive in and simply consider it heavily discounted long term insurance, as you would any required insurance policy. After all, wouldn't you buy the best long standing health insurance policy ever written, if it were offered at the same low price it was over 5 years ago? If that doesn't convince you more 'sophisticated' cock-sure modern investors to hold a nominal percentage of your financial assets in precious metals, strictly for wealth preservation purposes, perhaps the simple facts below will resonate with you sharp shooters. What is it that you don't understand about the New Monetized Millennium? The best performing asset class of this millennium is gold, by a country mile...2000-2016 Gold up 500% vs.2000-2016 S&P up 50%...Near zero% interest rates / ZIRP / QE / NIRP, as far as the eye can see....This is why nearly all of the richest individuals in the world hold a percentage of their financial assets in precious metals for wealth protection, including the central banks of the wealthiest and most advanced nations on the globe."
Gold is the world's ultimate currency, store of value and wealth insurance policy in today's uncertain financial world, read more in The Timeless Truth About Gold & Silver.
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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!**
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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."
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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.
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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."
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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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11.18.15 - FED RATE HIKE LIKELY TO FAIL
Gold last traded at $1,066 an ounce. Silver at $14.08 an ounce.
U.S. manufacturing clearly in recession -CNBC
"Manufacturing and corporate profits are both in recession mode, even though the rest of the U.S. economy continues to limp along. The latest confirmation of troubles came Monday with the Empire State manufacturing index, a gauge of New York activity that clearly shows contraction in the sector. Collectively, the readings over the past month indicate the worst manufacturing climate since March 2009, just as the economy was escaping the throes of the Great Recession."
Fed 'Liftoff' Is All About Inspiring Confidence - Zero Hedge
"The Fed's Bill Dudley confirmed this morning why The Fed is so keen to raise rates no matter what - 'liftoff will signal The Fed's confidence in the US economy.' As a reminder, all these countries also wanted to 'signal confidence' in the economy. They lasted on average a few months before they had to unsignal....As we noted previously, the question then becomes: if the Fed does hike in December as over 90% of economists predict, will it be the first bank that avoids having to promptly 'unhike', which is unlikely or far more realistically - how long until the Fed is forced to admit 'policy defeat' and go right back to ZIRP, or perhaps even NIRP, ultimately sliding right into QE4."
Yellen Warns Against Fed Reforms -Fox Business
"Federal Reserve Chair Janet Yellen on Tuesday warned against proposed reforms that would give Congress more oversight of the central bank, saying the changes would politicize U.S. monetary policy. The FORM Act, backed by a group of Republican members of Congress, 'attempts to increase transparency and accountability through misguided provisions that would expose the Federal Reserve to short-term political pressures,' Yellen wrote.... The central bank has come under fire from mostly Republican lawmakers (but also from Democrats) for having perhaps too much power over the U.S. economy given its unilateral ability to raise or lower interest rates without having to answer to any higher authority."
FBI braces for Islamic State holiday terror attacks -Washington Times
"With another round of holidays fast approaching in the shadows of last Friday’s Paris attacks, FBI officials on the front lines of the war on terrorism see a new round of threats rising and worry they don’t have all the tools to cope, according to interviews with The Washington Times....Officials familiar with the bureau’s preparations, speaking only on condition of anonymity, said Director James Comey has put a brave public face on the bureau’s fight against ISIS that masks significant tensions behind the scenes with the Obama administration. Bureau officials are deeply worried they don’t have enough resources to track a growing number of radicalized Americans inspired by the Islamic State, with more possibly entering as President Obama opens the borders to thousands of Syrian refugees."
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11.17.15 - MARKETS IGNORE TERRORISM, DOLLAR DILEMNA
Gold last traded at $1,068 an ounce. Silver at $14.17 an ounce.
The Stock market's final bull stage -Marketwatch
"Market tops are like knocking over a Coke machine. You can't do it in one push. You gotta rock it back and forth a few times, and then it goes over....Fun fact of the day: By the time the Dow Jones Industrial Average made its final 1929, 1961, 1973, 1981, 1990, 2000 and 2007 bull market highs, 25%- 55% of all NYSE stocks were already down more than 20% (Based on data from Lowry Research Corporation). It’s incredible that 25%-55% of the stock market universe was already in a bear market at the same time the DJIA peaked."
The Fed's US Dollar Dilemma -Nasdaq
"The dilemma is the monetary policy divergence and a US dollar that is heading higher....So the Fed seems stuck between a rock and a hard place. It desperately wants to start the normalization process but the divergence with other central banks means it is going it alone. This risks pushing the dollar even higher and to the point where it will not only impact the economy but make it difficult to achieve its inflation goals. What this suggests is the Fed will go out of its way to sound dovish assuming it hikes rates in December by emphasizing the normalization process will be a gradual one....The potential impact on the dollar is likely to be a consideration as it poses a dilemma for the Fed but not to the extent that it would sway the vote."
"Today the dollar is the tallest midget in the world of paper currencies and is set for a fall," writes Swiss America Chairman Craig R. Smith. According to Bloomberg News, "Anyone looking for the dollar to surge after the Federal Reserve lifts interest rates has a short memory. The U.S. currency strengthened an average of almost 9 percent during the six to nine months prior to the past three rate-rise cycles. After that, it's been a downhill ride, with the six-month drop averaging about 6 percent.” Learn more about What's Next For The Dollar?
Government benefits from low rates, savers suffer -Washington Times
"Do not expect to get a higher real rate of interest on your savings - ever. Traditionally, people could expect to receive 2 or 3 percent more than the rate of inflation on their savings or money market accounts....Now, if you are lucky, you may be receiving a half percent or so interest rate, about equal to the rate of inflation, yet the IRS still taxes you on this meager amount even though you have had no real interest income. So, at the end of the year, you are worse off - a negative return - because you did the responsible thing, and that was to save for your retirement or for various emergencies that come along with life."
WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE: AMERICAN DREAM VS. PROGRESSIVE DREAM has an entire chapter explaining why the Fed, government and crony capitalists are the only beneficiaries of zero interest rates while Middle Class savers are the victims of negative interest rates.
Thanks Janet - The Cost Of Rent Rising At Fastest Pace In 8 Years -Zero Hedge
"The cost of 'living' in America in anything but a cardboard box under an overpass is rising at its fastest rate in 8 years. Both overall 'shelter' and 'rent' inflation are running at their hottest pace of the 'recovery'... and this is happening as wage growth remains stagnant despite the promises that any minute now it will rise. Well done Janet..."
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11.16.15 - DID THE FED KILL CAPITALISM?
Gold last traded at $1,083 an ounce. Silver at $14.22 an ounce.
NEWS SUMMARY: U.S. stocks see-sawed up and down on Monday in the wake of weekend Paris terrorist attacks. Meanwhile, safe haven buying lifted precious metal prices despite a stronger U.S. dollar.
Paris attacks put dagger through heart of liberal Europe -Telegraph
The Paris attacks that killed at least 128 people on Saturday night will put renewed pressure on Europe Schengen agreement and threaten the 'very essence' of the European way of life, as far-right parties seek to capitalize on the attacks, analysts have warned. With Paris now enduring this second major terror bloodbath in under a year, questions are now being asked about how much longer both Europe’s open border system and vision of a tolerant, multicultural society can survive. 'With Paris in lockdown and France closing its borders, we can see all too clearly that what is at stake here is the very essence of our way of life in Europe,' said Davis Lewin, the deputy director of the Henry Jackson Society, a conservative think-tank."
Bernanke Lacked "The Courage to Act" -Ponte/Newsmax
"The Fed may have killed capitalism in 2008 by money-warping us into ZIRP, zero interest rate policy, an alternative universe where interest rates are zero; government is addicted to free money; thrift pays no interest; borrowing is free, at least to giant entities; and the stock market casino goes up while the real economy wallows. Craig R. Smith and I explain all this in our latest book, out this month: WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE: AMERICAN DREAM VS. PROGRESSIVE DREAM. Can we ever return to pre-Bernanke, non-crony capitalism; or would the attempt blow up our economy and future? Thus far the Fed lacks the courage to act, to raise interest rates above zero."
"This 'wealth effect' that former Fed Chair Ben Bernanke intended to create to stimulate consumer spending and the economy is based on inflation and easy money conjured by the Fed out of thin air....In essence, the Fed offered the big banks and certain other entities virtually free money, a policy that continues almost seven years later....What the Fed did in 2008 was no mere adjustment. Imagine those episodes of 'Star Trek' where the Starship Enterprise escapes danger by going into warp drive, only to find itself in a whole different galaxy where the old familiar laws of economics and star charts that point the way home no longer work." [WE HAVE SEEN THE FUTURE... Chapter Nine "Unreal Economics", pages 156, 151]
Islamic State threatens attack on Washington D.C. -Reuters
"Islamic State warned in a new video on Monday that countries taking part in air strikes against Syria would suffer the same fate as France, and threatened to attack in Washington. The video, which appeared on a site used by Islamic State to post its messages, begins with news footage of the aftermath of Friday's Paris shootings in which at least 129 people were killed. 'We say to the states that take part in the crusader campaign that, by God, you will have a day, God willing, like France's and by God, as we struck France in the center of its abode in Paris, then we swear that we will strike America at its center in Washington,' the man said."
IMF backing to make yuan world reserve currency -AFP
"China on Saturday welcomed backing from IMF experts that the yuan should be included in its reserve currencies, saying the move would strengthen the world's financial system. Now the world's second-largest economy, China asked last year for the yuan to be added to the elite basket of SDR currencies, but until recently it was considered too tightly controlled to qualify. IMF chief Christine Lagarde said the fund now deemed the yuan 'meets the requirements to be a freely usable currency' -- a key hurdle to joining the yen, dollar, pound and euro as a leading unit in international trade."
Read: What's Next For The Dollar?
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11.13.15 - U.S. GOLD DEMAND UP 207% IN Q3!
Gold last traded at $1,080 an ounce. Silver at $14.20 an ounce.
NEWS SUMMARY: U.S. equity markets were solidly lower on Friday despite upward consumer confidence - amid lower wholesale inflation and retail sales data - which could postpone a December Fed rate hike. Meanwhile, the U.S. dollar rose and precious metal prices remained steady.
Americans buying Tons of Gold -CNNMoney
"When people are scared about the economy and financial markets, they rush to gold. Boy, were they worried in recent months. U.S. demand for gold bars and coins surged 207% during the third quarter, the World Gold Council said on Thursday. The skyrocketing demand signaled a level of interest in gold investment 'not seen since the global financial crisis,' the group said.... Gold watchers chalk up Americans' newfound love for gold to two major factors: prices looked relatively cheap and financial markets were in turmoil."
Americans are quietly following their instincts to buy physical gold at bargain prices to protect their wealth - regardless of negative press from mainstream economists and other financial "friends of paper money". Learn more about why owning gold such a smart move right now, read The Timeless Truth About Gold & Silver.
Republicans’ Speak Up For Hard-Money -NY Times
"What we saw in Tuesday’s presidential debate was something relatively new on the policy front: an increasingly unified Republican demand for hard-money policies, even in a depressed economy. Ted Cruz demands a return to the gold standard. Jeb Bush says he isn’t sure about that, but is open to the idea. Marco Rubio wants the Fed to focus solely on price stability, and stop worrying about unemployment. Donald Trump and Ben Carson see a pro-Obama conspiracy behind the Federal Reserve’s low-interest rate policy....The interesting question is what will happen to monetary policy if a Republican wins next year’s election."
We are pleased Republican presidential candidates are speaking up for the restoration of monetary sanity. In their new book, WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE: AMERICAN DREAM VS. PROGRESSIVE DREAM, Craig R. Smith and Lowell Ponte explain how the Fed's fiat money and Progressives collectivist goals have distorted market values: "The Fed’s growing power has transformed and politicized the U.S.economy into a hybrid like itself, no longer truly free enterprise, but not yet fully collectivized as Progressives desire. Our money is now Federal Reserve Notes un-backed by the gold that America’s Framers looked to for independent solid value." (Chapter Eight: Unreal Economics, p. 158)
Bond Market's Dire Warning for Stocks -CNBC
"One side of the market is about to drag down another, according to Oppenheimer's head of portfolio strategy. And it's still unclear which side will lose out. High-yield bonds have taken a tumble this month...This indicates that traders see more risk in the high-yield market than they have in the past.... 'Because we are entering an interest rate-hiking environment, we have to recalibrate where the valuation is in high yield if we're no longer going to be at the zero interest rate bound going forward,' he said.... Crude oil has tumbled more than 10 percent in November, and many firms that issue high-yield debt are in the energy space."
Iowa Voters Don't Believe Economy Is Better -Fivethirtyeight.com
"Paul - he asked me not to use his last name - spent 40 years as a union ironworker until the company he was working for went out of business in 2010. Rather than sit in the union hall and wait for more work, Paul, now 64, decided to retire....'The economy is just one-sided as hell,' he said. 'No matter what Wall Street’s doing, for the common man, things aren’t getting any better.'... But in his distrust of Washington, he sounded like the many Iowans I talked to who were backing anti-establishment candidates. He was doing OK, but that didn’t mean he trusted anyone in Washington to keep the economy on track. 'Nothing has changed since they crashed the economy the last time,' he said. 'They’re going to do it again.'"
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11.12.15 - FED'S 'PERMA-ZERO' RETHINK
Gold last traded at $1,081 an ounce. Silver at $14.22 an ounce.
NEWS SUMMARY: U.S. stocks traded sharply lower Thursday on investor concerns about oil, employment data and Federal Reserve speeches. Precious metal prices inched lower despite a weaker U.S. dollar.
Apple predicts the death of cash -Telegraph
"The next generation of children born in Britain 'will not know what money is', the boss of Apple has predicted. Tim Cook, the chief executive of technology giant, forecast the death of cash by the time current university students have a family. Cash is still used for more than half of payments by consumers, according to Payments UK, the industry body, but its popularity is falling as people switch to cards and smartphone apps such as Apple Pay and Google Wallet..... Banks and companies such as Apple have an incentive to promote such messages because they earn money when people use a credit card or alternative payment system to pay."
It's a sad statement that the next generation will not know what what money is. Learn more about the future of our money in What's Next For The Dollar?
Fed's Bullard Worries About "Perma-Zero" Rates -Fox Business
"St. Louis Fed President James Bullard, a prominent hawk who is ready to raise interest rates, said the United States and other industrial nations may nevertheless be entering an era of permanently low rates and inflation that will require a rethink of monetary policy. Bullard said his 'monetarist background' continues to make him nervous that inflation is about to erupt after years of Fed monetary stimulus....Based on the relationship between nominal interest rates, inflation, and the real interest rate adjusted for inflation, Bullard said it is possible an equilibrium has set in that will be hard to break. If true, he said, it could mean zero rates become common, possibly leading to increased market volatility, and pressure to make strategies like quantitative easing a regular feature of Fed policy."
Speaking of "perma-zero", the Fed is also responsible for perma-zero economic growth, as we explain in The Biggest Bank Heist in History.
Central Banks Snapping Up Gold -Bloomberg
"Central banks and other institutions boosted gold purchases to the second-highest level on record in the quarter to September as countries including China and Russia sought to diversify their foreign-exchange reserves.... Russia, China and Kazakhstan are among states buying bullion this year....'Diversification of reserve assets, especially among developing nations, remains the primary motivation for this increase in official gold reserves, as many recognize that the economic and geopolitical outlook continues to look far from certain,' the World Gold Council said."
Smart money buys tangible assets at bargain price levels which likely will not continue much longer, as we cover in The Timeless Truth About Gold & Silver.
Cyber Threat Underscores Safety of Owning Texas Land -Bloomberg
"The growing menace of hackers gaining access to the financial system concerns Texas billionaire Ross Perot Jr. enough that he’s keeping key records in file drawers in case the Internet goes down. Yet his perch as chairman of Hillwood, the largest landowner in the Dallas-Fort Worth region, helps him sleep at night. 'What I like about land is I can drive out and check on it,' Perot, 57, with a net worth of $2.1 billion on the Bloomberg Billionaires Index, said last month in an interview in his Dallas office. 'It doesn’t go anywhere. It’s hard to steal land.'"
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11.11.15 - AMERICA'S FAITH-BASED CURRENCY
Gold last traded at $1,085 an ounce. Silver at $14.32 an ounce.
NEWS SUMMARY: U.S. stocks struggled for gains Wednesday in thin Veteran's Day trading amid losses in the energy and consumer sectors. Meanwhile, precious metal prices were steady on a weaker dollar.
The stock ‘index bubble’ is bursting -CNBC
"The easy days of taking a bullish position on stocks as a whole and watching them soar has come to an end. So warns investing strategist and currency trader Boris Schlossberg of BK Asset Management. With the S&P 500 roughly flat for 2015, 'It may be that the 'index bubble' is finally starting to burst and stock pickers will rule the day once again,' Schlossberg said Tuesday....After six incredible years for stocks, Schossberg predicts that 'you're going to see these averages actually be very average through next year.'"
U.S. Dollar: The Barbarous Relic -SprottMoney
"Almost certainly, everyone reading this piece will have heard the phrase 'barbarous relic' used in reference to a particular currency in our current monetary system. The problem is that (invariably) this label is attached to the wrong currency....One hundred years ago; the Federal Reserve was created to (supposedly) manage and 'protect' the value of the U.S. dollar. During that century; the USD has lost roughly 98% of its value, and it has been losing value at an ever-accelerating rate....Geopolitically, it is now universally acknowledged (by every nation except the United States) that China’s renminbi is displacing the U.S. dollar as the global 'reserve currency'. At precisely the same time the Federal Reserve has hyperinflated the supply of U.S. dollars, the demand for U.S. dollars is collapsing. In terms of supply and demand; the U.S. dollar is a monetary relic."
THE GREAT DEBASEMENT: The 100-Year Dying of the Dollar and How to Get America's Money Back (2012) by Craig Smith and Lowell Ponte explains further: "The dollar has become a faith-based currency in which fewer and fewer people around the world believe. This great debasement of America's money is by far the largest confiscation of wealth in world history. The Federal Reserve System, created by Progressives in 1913 to give America an 'elastic' money, has taken on such enormous and far-ranging powers that it has become 'the fourth branch of government'."
The Economy: Election’s Most Important Issue -Hoover
"Sclerotic growth is the overriding economic issue of our time. From 1950 to 2000 the US economy grew at an average rate of 3.5% per year. Since 2000, it has grown at half that rate, 1.7%.... Two percent, or less, is starting to look like the new normal.... Over long periods of time, economic growth comes from one source: productivity, the value of goods and services each worker can produce in a unit of time. In turn, productivity comes from new ways of doing things. New ideas, at heart; new inventions, new products, new processes, new technology; new ways of organizing companies; new and better skills among workers....The golden rule of economic policy is: Do not transfer incomes by distorting prices or slowing competition and innovation....It takes great political leadership to force the political process to obey the economic rule."
GOP Debate Tackles Jobs, Taxes -Fox Business
"The debate began with a discussion on the minimum wage given the news on Tuesday that New York Gov. Andrew Cuomo raised the floor to $15 an hour for public employees in the state. Real-estate mogul Donald Trump and retired neurosurgeon Dr. Ben Carson, the two leaders in the polls, both argued against increasing the minimum wage. 'If you raise the minimum wage, you’re going to make people more expensive than a machine,' Florida Sen. Marco Rubio said....Sen. Ted Cruz of Texas said his plan for a flat tax of 10% for all Americans 'would produce booming growth and 4.9 million new jobs within a decade.'....'Each one of those tax plans is better than the mess we have now,' Trump said."
Climate Alarmists Want 'A World Without Capitalism' -Investors
"Climate Change: Researchers from developed nations who insist that humans are warming the planet have inadvertently given Third World nations a weapon to shake down capitalist nations. Or was that the plan all along? Third World nations haven't developed their economies because their governments are often run by con men, thieves, killers and tyrants....According to the Bolivian government, which takes its orders from extreme-left President Evo Morales, 'the failed capitalist system, (which) promotes consumerism, warmongering and commercialism, causing the destruction of Mother Earth and humanity, (has) triggered the climate crisis.'....Pushing America off its economic perch has long been a goal of the international community, as well as those in this country who fancy themselves as 'internationalists' and 'citizens of the world.'"
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11.10.15 - ECONOMIC SUBSTANCE VS. SYMBOLISM
Gold last traded at $1,088 an ounce. Silver at $14.35 an ounce.
NEWS SUMMARY: U.S. stocks traded mixed Tuesday as investors sold technology company shares, including Apple. Meanwhile, precious metal prices steadied on bargain hunting despite a stronger dollar.
Baltimore Braces For Trials By Fire -PRBuzz
By Lowell Ponte - "Are the riots, looting and arson of last April about to re-ignite as six police officers individually go on trial, starting this month? We remember news images of the Baltimore riots in April 2015....Those riots - which injured 200 police, damaged 350 businesses, and set fire to 150 vehicles and 60 structures – were sparked by allegations that six Baltimore police officers had caused fatal spinal injuries to Freddie Gray, a small-time drug dealer in this city where nearly one resident in 10 uses heroin. On November 30, the first of these police officers goes on trial, with the rest to follow, one by one, in January, February and March. If convicted of involuntary manslaughter and other charges, Officer William G. Porter, Jr., 26, could face 20 years in prison. If acquitted, he might be hit with federal charges from President Barack Obama’s Justice Department. Porter being found guilty or not guilty might ignite new protests, violence and looting....More people have been murdered in 2015 in Baltimore than in New York City, with a population more than 13 times larger. Murder and violence are rising sharply in 35 Progressive-run American cities where police are undermined, and crime – from illicit drug use to illegal immigration – has been 'decriminalized' and given political sanctuary."
In their new book WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE: AMERICAN DREAM VS. PROGRESSIVE DREAM, Craig R. Smith and Lowell Ponte explore the past, present and future of Baltimore, Maryland, once one of the top two destinations for immigrants seeking the American Dream.
6 Topics for a Substantial GOP Debate on Economic Issues -Fox Business
"On Tuesday, the FOX Business Network and the Wall Street Journal have an opportunity to rectify that earlier missed opportunity during another televised debate that will focus primarily on economic issues.....Here are six topics the candidates could discuss that would shed light on their views.... 1) Weak wage growth: the headline labor numbers have been strong recently.... 2) Lack of high-tech skills: employers and economists have said one reason Americans aren’t getting paid more is because they’re producing less.... 3) Corporate tax reform: U.S. companies pay the highest corporate tax rate (35%) in the industrialized world.... 4) Higher interest rates: the Federal Reserve appears poised to raise interest rates in December.... 5) Energy policy: falling oil prices have had a significant impact on the sprawling U.S. energy sector.... 6) Climate change: is climate change a real concern?"
It will be interesting to see if the topics listed above are covered in tonight's debate, which GOP candidates stand up for free market capitalism and offer the most practical solutions to undo the last seven years of Progressive economic decline.
US Banks Are Not "Sound", Fed Report Finds -Zero Hedge
"Late last week, a consortium of financial regulators in the United States, including the Federal Reserve and the FDIC, issued an astonishing condemnation of the US banking system. Most notably, they highlighted 'continuing gaps between industry practices and the expectations for safe and sound banking.'... They identified a huge jump in risky loans due to overexposure to weakening oil and gas industries. Make no mistake; this is not chump change. The total exceeds $3.9 trillion worth of risky loans that US banks made with your money. Given that even the Fed is concerned about this, alarm bells should be ringing."
In DON'T BANK ON IT! monetary expert Craig R. Smith and futurist Lowell Ponte show why it has become illogical, and hazardous to your wealth, to trust your money to today's increasingly vulnerable and unsafe banks.
JPMorgan's Largest Cyber Breach Ever -Bloomberg News
"Hackers and conspirators in more than a dozen countries generated hundreds of millions of dollars in illicit proceeds on pump-and-dump stock schemes and particularly lucrative online gambling, prosecutors said. From 2012 to mid-2015, the suspects and their co-conspirators successfully manipulated dozens of publicly traded stocks, sent misleading pitches to clients of banks and brokerages whose e-mail addresses they’d stolen, and profited by using trading accounts set up under fake names, prosecutors said....The global network stretched from Israel to the U.S., with a dozen online casinos and payments that ran through Cyprus, Azerbaijan and Switzerland."
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11.9.15 - AMERICAN DREAM VS PROGRESSIVISM
Gold last traded at $1,088 an ounce. Silver at $14.41 an ounce.
NEWS SUMMARY: U.S. equities traded sharply lower Monday as investors weighed a possible Fed rate hike in December. Meanwhile, precious metal prices steadied on a weaker U.S. dollar
US debt is three times more than you think -TheHill
"The former U.S. comptroller general says the real U.S. debt is closer to about $65 trillion than the oft-cited figure of $18 trillion. Dave Walker, who headed the Government Accountability Office (GAO) under Presidents Bill Clinton and George W. Bush, said when you add up all of the nation’s unfunded liabilities, the national debt is more than three times the number generally advertised....He said Americans have 'lost touch with reality' when it comes to spending. Walker called for Democrats and Republicans to put aside partisan politics to come together to fix the problem."
Has the World Lost Faith in Capitalism? -Wall Street Journal
"If you want to find people who still believe in 'the American dream' - the magnetic idea that anyone can build a better life for themselves and their families, regardless of circumstance - you might be best advised to travel to Mumbai. Half of the Indians in a recent poll agreed that 'the next generation will probably be richer, safer and healthier than the last.'....Life is also getting better in the U.S., on multiple measures, but the survey found that 55% of Americans think the 'rich get richer' and the 'poor get poorer' under capitalism....To paraphrase Winston Churchill, they think that capitalism is absolutely the worst economic system - except for all of the others that have been tried from time to time. Forty-nine percent still agree that free enterprise is the best system for lifting people out of poverty; only 18% disagree."
Clearly 51% of American's could use a refresher in capitalism vs. socialism/progressivism. Thankfully, a hot new book by authors Craig Smith and Lowell Ponte explains it all: We Have Seen the Future and It Looks Like Baltimore: American Dream Vs. Progressive Dream (Amazon book review): "This easy to understand book offers a panoramic view of how Americans can reverse the Progressive/Socialism trend which today threatens to wipe out the American dream. Is it possible to overcome the destructive forces of drug addition, racism, violence, poverty and crony capitalism which so many Progressive-run cities in America face? This book helped me to see this epic battle with more clarity. Let us all hope and pray the American dream wins out over the Progressive nightmare!" FREE 16-page Executive Summary
Yuan Moves to Topple Dollar -Bloomberg
"China took another step to boost the yuan’s global usage, saying it will start direct trading with the Swiss franc, as the nation pushes its case for reserve-currency status at the International Monetary Fund. The link will start on Tuesday, the China Foreign Exchange Trade System said in a statement, making the franc the seventh major currency that can bypass a conversion into the U.S. dollar and be directly exchanged for yuan....'This is an important step in strengthening bilateral economic and trade connections between China and Switzerland,' the People’s Bank of China said in a statement on its website on Monday."
China's long-term strategy is replacing the U.S. dollar as the supreme world reserve currency, as Craig Smith explains in What's Next For The Dollar?
Million Student March aims for free college tuition and cancellation of student debt -Marketwatch
"Surrounded by other students typing on their laptops in a basement lounge a few escalator rides down from street level, the group’s conversation flowed easily from the mundane - how many fliers each could hand out in 15 minutes - to their lofty goals: The cancellation of all student debt, free tuition at public colleges and universities, and getting campus workers a minimum wage of $15 an hour....The protest is the latest front in the fight against the pressure student debt is increasingly placing on Americans, particularly young people. Presidential candidates have offered their own proposals for curbing the problem; Sen. Bernie Sanders (I-Vt.) earlier this year proposed a march of 1 million students in Washington, D.C. earlier this year."
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11.9.15 - AMERICAN DREAM VS PROGRESSIVISM
Gold last traded at $1,088 an ounce. Silver at $14.41 an ounce.
NEWS SUMMARY: U.S. equities traded sharply lower Monday as investors weighed a possible Fed rate hike in December. Meanwhile, precious metal prices steadied on a weaker U.S. dollar
US debt is three times more than you think -TheHill
"The former U.S. comptroller general says the real U.S. debt is closer to about $65 trillion than the oft-cited figure of $18 trillion. Dave Walker, who headed the Government Accountability Office (GAO) under Presidents Bill Clinton and George W. Bush, said when you add up all of the nation’s unfunded liabilities, the national debt is more than three times the number generally advertised....He said Americans have 'lost touch with reality' when it comes to spending. Walker called for Democrats and Republicans to put aside partisan politics to come together to fix the problem."
Has the World Lost Faith in Capitalism? -Wall Street Journal
"If you want to find people who still believe in 'the American dream' - the magnetic idea that anyone can build a better life for themselves and their families, regardless of circumstance - you might be best advised to travel to Mumbai. Half of the Indians in a recent poll agreed that 'the next generation will probably be richer, safer and healthier than the last.'....Life is also getting better in the U.S., on multiple measures, but the survey found that 55% of Americans think the 'rich get richer' and the 'poor get poorer' under capitalism....To paraphrase Winston Churchill, they think that capitalism is absolutely the worst economic system - except for all of the others that have been tried from time to time. Forty-nine percent still agree that free enterprise is the best system for lifting people out of poverty; only 18% disagree."
Clearly 51% of American's could use a refresher in capitalism vs. socialism/progressivism. Thankfully, a hot new book by authors Craig Smith and Lowell Ponte explains it all: We Have Seen the Future and It Looks Like Baltimore: American Dream Vs. Progressive Dream (Amazon book review): "This easy to understand book offers a panoramic view of how Americans can reverse the Progressive/Socialism trend which today threatens to wipe out the American dream. Is it possible to overcome the destructive forces of drug addition, racism, violence, poverty and crony capitalism which so many Progressive-run cities in America face? This book helped me to see this epic battle with more clarity. Let us all hope and pray the American dream wins out over the Progressive nightmare!" FREE 16-page Executive Summary
Yuan Moves to Topple Dollar -Bloomberg
"China took another step to boost the yuan’s global usage, saying it will start direct trading with the Swiss franc, as the nation pushes its case for reserve-currency status at the International Monetary Fund. The link will start on Tuesday, the China Foreign Exchange Trade System said in a statement, making the franc the seventh major currency that can bypass a conversion into the U.S. dollar and be directly exchanged for yuan....'This is an important step in strengthening bilateral economic and trade connections between China and Switzerland,' the People’s Bank of China said in a statement on its website on Monday."
China's long-term strategy is replacing the U.S. dollar as the supreme world reserve currency, as Craig Smith explains in What's Next For The Dollar?
Million Student March aims for free college tuition and cancellation of student debt -Marketwatch
"Surrounded by other students typing on their laptops in a basement lounge a few escalator rides down from street level, the group’s conversation flowed easily from the mundane - how many fliers each could hand out in 15 minutes - to their lofty goals: The cancellation of all student debt, free tuition at public colleges and universities, and getting campus workers a minimum wage of $15 an hour....The protest is the latest front in the fight against the pressure student debt is increasingly placing on Americans, particularly young people. Presidential candidates have offered their own proposals for curbing the problem; Sen. Bernie Sanders (I-Vt.) earlier this year proposed a march of 1 million students in Washington, D.C. earlier this year."
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11.6.15 - MARKETS SINK ON UPBEAT JOBS DATA
Gold last traded at $1,087 an ounce. Silver at $14.69 an ounce.
NEWS SUMMARY: U.S. stocks struggled Friday following better-than-expected U.S. jobs and wage data, which boosted the odds of a Fed interest rate hike in December.
When Good News Becomes Terrible News -Zero Hedge
"'Everything is awesome.' The Fed got just what it wanted... surge in jobs and a surge in wages - which has sent December rate hike odds from 56% to 74%. This appears to be a problem for everything else. The dollar has soared (EURUSD almost a 1.06 handle), Bond yields have exploded (though the long-end is notably outperforming), stock prices plunged, and commodities across the board are getting hammered."
Today's jobs report anomaly presents an excellent buying opportunity for physical gold. Don't wait to buy gold, buy gold and wait! Read The Timeless Truth About Gold & Silver.
'Strange' stock market rebound -Reuters
"The double-digit stock-market rebound after a bruising summer has put European shares back into positive territory for the year, but sentiment around the central-bank-fueled rally remains fragile....'We can observe that the market continued to be really driven by what is going on with the central banks. If we just look at the fundamentals of the economy it's very difficult to be very optimistic about equities,' Jérôme Schupp, Head of Research at SYZ Asset Management, said."
Caring For The Next Generation -CitizenLink/YouTube
Smart 5th grader explains in two minutes why older folks (over age 12) in the U.S. must stop living beyond our means. This video is presented by CitizenLink.com which advances legislation protecting families and rallies pro-family voters to the polls to make sure your voice is heard.
Orwellian Lie: Socialism Is Capitalism -Investors
"Ideology: Socialism is a lot of things, but 'entrepreneurial' ain't one of them. That Bernie Sanders can describe it as such shows the Orwellian low our political discourse has reached. 'To me, what democratic socialism is about is to maintain the strong entrepreneurial spirit that we have in this country,' the Democrat presidential hopeful told the Wall Street Journal. 'To continue to produce wealth, but to make sure it is more equitably distributed than is currently the case.'....President Obama is the worst offender. 'I actually believe in the free market,' he said two summers ago as he urged that 'private capital should take a bigger role in the mortgage market.' That, Obama quipped, 'sounds confusing to folks who call me a socialist.'"
The political world is about to get more confusing as the 2016 presidential race heats up. One book will help you understand what is at stake - none other than the American Dream: WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE (FREE 16-page Executive Summary).
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11.5.15 - SCIENTISTS FINALLY DEBUNK 'PEAK OIL' MYTH
Gold last traded at $1,104 an ounce. Silver at $14.98 an ounce.
NEWS SUMMARY: U.S. stocks struggled to find reasons to rally on Thursday ahead of key jobs data on Friday. Meanwhile, precious metal prices steadied despite a firmer U.S. dollar.
White House Unveils Secretive 'ObamaTrade' Details -The Hill
"The much-anticipated release of the final text of a sweeping Asia-Pacific trade agreement became a reality on Thursday morning, kicking off what is expected to amount to months of intensive debate on Capitol Hill. The U.S. Trade Representative’s office dropped the details of the massive 12-nation Trans-Pacific Partnership (TPP) deal - 30 chapters and more than 2,000 pages - exactly one month since the agreement was completed on Oct. 5 in Atlanta. The text of the TPP deal will be under the microscope of Congress and the broader public for at least 90 days before President Obama can sign the agreement between the United States and 11 other nations — Australia, Canada, Japan, Malaysia, Mexico, Peru, Vietnam, Brunei, Chile, New Zealand and Singapore."
Earth Is An Oil-Producing Machine - We're Not Running Out -Investor's Business Daily
"Ever since M. King Hubbert in the 1950s convinced a lot of people with his 'peak oil' theory that production would collapse and we'd eventually exhaust our crude supplies, the clock has been running. And running. And it will continue to run for some time, as technology and new discoveries show that there's still an ocean of oil under our feet....British Petroleum is saying 'the world is no longer at risk of running out of resources'....This information backs up the idea that Earth is actually an oil-producing machine....There seems to be plenty to go around - and there will probably still be a lot left when technology, not hurried by government mandates and subsidies but guided by market forces, produces practical and affordable renewable energy. But for now, enjoy our cheap, abundant and efficient 'fossil' fuels."
In their groundbreaking 2005 book Black Gold Stranglehold, Jerome Corsi and Craig Smith exposed the fraudulent science that has made America so vulnerable: the belief that oil is a fossil fuel and that it is a finite resource. Truth stands the test of time. The “Peak Oil” crowd is now gone. The “Abiotic Oil” crowd is now growing. Ten years ago the scientific community ridiculed Mr. Smith and Corsi's premise, but now they are embracing it. Forty years ago Lowell Ponte wrote The Cooling which debunked the central premise of the environmental movement's "global warming" myth. We highly recommend carefully reading what Lowell and Craig have to say about the political and economic realities our nation faces today in their brand new book, WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE (FREE 16-page Executive Summary).
Uncle Sam Needs a Haircut -MillerOnTheMoney
"Mainstream America is losing jobs, pinching pennies, and worried about the future while the Federal Government continues to reward themselves. In private industry, if expenses exceed income, management must cut costs and raise revenue. Generally the revenue increase comes from adding new customers, not raising prices....How about tasking the social security administration with investigating the 6.5 million people over age 112 who are collecting social security checks? How about reducing food stamp fraud? Any regular grocery shopper can tell stories about people in the grocery line paying with food stamps blatantly abusing the system. With 45 million recipients there are plenty of places to look."
Read Dennis Miller's financial advice to retirees in Where retirees should invest today.
America's #1 Killer Has No Trigger or Gas Peddle -CNS News
"'Drug overdose deaths are the leading cause of injury death in the United States, ahead of motor vehicle deaths and firearms (deaths),' the Drug Enforcement Agency announced on Wednesday. In 2013, the most recent year for which data is available, 46,471 people in the United States died from drug overdoses, and more than half of those deaths were caused by prescription painkillers and heroin. That compares with the 35,369 who died in motor vehicle crashes and 33,636 who died from firearms, as tallied by the federal Centers for Disease Control and Prevention."
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11.4.15 - FED CONFUSION, VOTER CLARITY
Gold last traded at $1,112 an ounce. Silver at $15.06 an ounce.
NEWS SUMMARY: U.S. stocks retreated Wednesday despite upbeat jobs data after the latest Fedspeak hinted of a December rate hike.
FED: 2015 rate hike a 'live possibility' -CNBC
"Federal Reserve Chair Janet Yellen said Wednesday that December would be a 'live possibility' for a rate hike if the upcoming data are supportive....Yellen also provided testimony on the health of U.S. banks, which has improved, but some problems still remain....Nevertheless, the country's biggest banks still have substantial compliance and risk-management issues, which have undermined the confidence in them, she said."
The latest Fedspeak adds to year-end economic uncertainty to the financial markets. "The political and economic cost of exiting and escaping this zero interest rate policy [ZIRP] trap can be high and painful," write Craig Smith and Lowell Ponte in their new book, WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE Chapter Nine: "Unreal Economics" (FREE 16-page Executive Summary).
Kentucky Elects Conservative Governor -Fox Business
Swiss America Chairman Craig Smith was a guest on Fox Business channel's "Cavuto Coast to Coast" program today discussing the surprise election of conservative businessman Matt Bevin as the new Kentucky governor. Voters responded positively to Mr. Bevin's inspiring message of how to recapture the American dream. According to Mr. Smith this could be the beginning of a major shakeup in establishment politics in 2016. Watch the interview HERE
Gold: "wall of worry" vs. "slope of hope" -Marketwatch
"Just as bull markets like to climb a so-called 'wall of worry,' according to contrarians, bear markets like to descend a 'slope of hope.' Recent gold market sentiment certainly is more reminiscent of the latter than the former. Contrarians argue that a more durable bottom comes when there is widespread bearishness that is stubbornly held on to in the wake of any initial rally off of a low."
It's always entertaining to read anti-gold technical arguments by mainstream investment reporters. They consistently fail to explain to the public that the most important reason to own physical gold is not as an investment, but rather as wealth insurance. Often comments to such stories are even more interesting, such as Frank A. who writes, "The gold market will rally from here, as soon as the Feds lose control, which is just around the corner. Nothing is 'normal' these days, the markets are manipulated by the Feds and their cronies (banksters). As such, I wouldn't pay attention to charts that are based on historical patterns. We are going to be making history!" We agree, as discussed in The Timeless Truth About Gold & Silver.
Lawmakers sound alarm over failing ObamaCare co-ops -Fox News
"Congressional lawmakers are raising alarm over the rapid collapse of several so-called ObamaCare 'co-ops' -- government-backed alternative health plans -- that are failing, leaving tens of thousands of customers scrambling for coverage, and billions in taxpayer-funded startup loans at risk. To date, nearly half of the 23 co-ops established under the Affordable Care Act have gone or are expected to go under by the end of the year. The latest to be barred from selling insurance on the official marketplace is in Arizona.... The senators said nearly 870,000 people nationwide have enrolled in the co-ops....Under the plan, taxpayers provided $2.4 billion in loans to set up the nonprofit co-ops as alternatives to major insurers."
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11.3.15 - FREE MARKETS VS. PROGRESSIVE POVERTY
Gold last traded at $1,114 an ounce. Silver at $15.24 an ounce.
Cyberattack Extortion Targeting Banks -Fox Business
"A federal agency that regulates the U.S. financial services industry issued a warning Tuesday to U.S. banks of the growing threat of cyberattacks involving extortion. The Federal Financial Institutions Examination Council (FFIEC) said in a statement that cyberattacks against financial institutions to extort payment in return for the release of sensitive information are increasing....In perhaps the highest profile cyberattack on a large U.S. bank, hackers last year breached JPMorgan’s (JPM) vast computer network comprising the accounts of 76 million households and seven million small businesses."
In DON'T BANK ON IT! authors Craig Smith and Lowell Ponte reveal 20 ways you could lose your banked money to one of 125,000 Chinese cyber-warriors half a world away; to greedy banksters; or to rapacious spendaholic politicians who desperately need ever-more revenue to keep expanding the welfare state.
The Explosive Growth Of Poverty In America -TheEconomicCollapseBlog
"During this election season, politicians of all stripes are running around telling all of us how great we are, but is that really true?...Poverty is reaching unprecedented levels in this country, and the middle class is steadily dying. There aren’t enough good jobs to go around, dependence on the government has never been greater, and it is our children that are being hit the hardest. If we have this many people living on the edge of despair now, while times are 'good', what are things going to look like when our economy really starts falling apart?"
MENtors needed for Baltimore kids -Baltimore Sun
"In the days and weeks after the April riots in Baltimore, hundreds of people interested in becoming mentors to city youths called Big Brothers Big Sisters of the Greater Chesapeake. In six months, the organization fielded four times as many inquiries as it did in all of 2014. But only 14 Baltimore men have completed the process of applying, interviewing and being matched to a child, according to the organization. The dismal showing prompted a broad range of city leaders - six Baltimore City Council members, two state senators, and the city's police and fire chiefs - to call Monday for at least 100 more male mentors to apply by the end of the month. They dubbed their campaign 'Bmore, Be BIG.'"
Big Government Progressive politicians feel the best way to solve poverty and crime is to increase entitlement programs and pass more gun control regulations. Authors Craig Smith and Lowell Ponte reveal Baltimore’s little-noticed seeds and secrets of greatness that could help restore the American Dream in their new book, WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE (FREE 16-page Executive Summary)
A new sound money movement for the GOP? -The Hill
"Between Donald Trump's strident objection to currency manipulation as an infringement on free trade and Texas Sen. Ted Cruz's clarion call for 'getting back to rules-based monetary policy,' it seems that the importance of sound money for the proper functioning of free-market capitalism might be coming to the forefront as a winning political issue....What's needed is a proposal for establishing new monetary rules that accomplish two big objectives: (1) reconnecting the value of the dollar with the real economy and (2) restoring order to the global currency system. With regard to the first goal, leading Republican presidential candidate Dr. Ben Carson focused on the need for monetary reform in a recent 'Marketplace' radio interview....Lamenting the impact of fiscal irresponsibility on monetary policy, Carson pointed out that the U.S. dollar was decoupled from domestic gold convertibility in 1933 and from the gold-anchored Bretton Woods international monetary system in 1971. 'Since that time, it's not based on anything,' he stated. 'Why would we be continuing to do that?'"
It is good to hear the news that some conservative politicians are willing to get to the root problems of our monetary issues, such as we discuss in The Timeless Truth About Gold & Silver.
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11.2.15 - U.S. GOVERNMENT'S UNEQUAL PAY
Gold last traded at $1,135 an ounce. Silver at $15.41 an ounce.
NEWS SUMMARY: U.S. stocks wavered on Monday on mixed economic data ahead of Friday jobs report while the U.S. dollar drifted lower.
$20 trillion man: National debt nearly doubles under Obama -Washington Times
"When President Obama signs into law the new two-year budget deal Monday, his action will bring into sharper focus a part of his legacy that he doesn’t like to talk about: He is the $20 trillion man. Mr. Obama’s spending agreement with Congress will suspend the nation’s debt limit and allow the Treasury to borrow another $1.5 trillion or so by the end of his presidency in 2017. Added to the current total national debt of more than $18.15 trillion, the red ink will likely be crowding the $20 trillion mark right around the time Mr. Obama leaves the White House."
Progressive Economics: The Rise Of Bureaucracy -Forbes
"Bureaucracy is suffocating America; yet, the bureaucrats themselves are doing quite well....As the graph shows, the economic gap between private-sector and public-sector has continued to widen during the Obama presidency....In the U.S. today, the advance of the progressive ideology and political dominance has produced the increasing bureaucratization of life. We already may have passed the point of no return in the United States in the drift toward bureaucratic tyranny....'The main matter is: Capitalism or Socialism? Which?' This is the existential question facing America and the world today..."
Today Americans faces an epic political and economic battle for our future. Which visionary 'dream' will rule our nation? The American Dream? Or the Progressive-Socialist-Utopian Dream? Authors Craig Smith and Lowell Ponte reveal Baltimore’s little-noticed seeds and secrets of greatness that could restore the American Dream in their new book, WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE (FREE 16-page Executive Summary)
How QE Helped Wall Street Steamroll Main Street -Bloomberg
"Wall Street is counting its winnings from seven years of easy money....The results represent a clear victory for Wall Street over Main Street, according to the team of Michael Hartnett, BofA’s chief investment strategist....'Zero rates and asset purchases of central banks have, thus far, proved much more favorable to Wall Street, capitalists, shadow banks, ‘unicorns,’ and so on than it has for Main Street, workers, savers, banks and the jobs market,' the BofA team wrote. 'The Wall Street boom, Main Street bust narrative is one central banks would very much like to avoid in 2016,' they said."
Stock market investors love the Fed's QE and government stimulus of all types because it artificially pumps up stock values, as explained in The Biggest Bank Heist in History.
U.S. Manufacturing Hits Lowest Level Since May 2013 -Fox Business
"U.S. manufacturing activity slowed in October for a fourth straight month... The Institute for Supply Management (ISM) said its national manufacturing index slipped to 50.1 this month from a reading of 50.2 in September. A reading above 50 indicates expansion in the manufacturing sector."
