Best-selling author Doug Casey wrote “Crisis Investing” at the time when the U.S. political landscape was transitioning from the Carter Administration to the Reagan Administration. Now, Casey sees a coming crisis that is equal or worse than the Civil War. Casey explains, “In the U.S. right now, there seems to be so much antagonism it’s almost like pre-Civil War. There is actually hatred in the U.S. at this point. It used to be the Republicans and Democrats could disagree, but they could have a civil conversation about a difference of opinion. Now, it’s active hatred between these two groups. This is not going to end well.”
Click through for the full post. Let's hope it won't be the case.
What will replace the current system after it self-destructs? That's the question. You know those disclosures on your credit card statements? That it will take 27 years to pay off your balance if you only make the minimum payment each month, and so on? You might not be aware of it, but America's "credit card"--our national debt--comes with its own disclosure statement:
The most commonly cited bullish arguments in favor of gold right now are the problems faced by the Old Continent, mainly the elections in certain countries. So let's analyze them individually to consider their potential impact on the gold market.
Question: Why do Central Banks and Governments hate gold? Answer: Because they can’t print it “An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense – perhaps more clearly and subtly than many consistent defenders of laissez-faire – that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.” – Alan Greenspan, “Gold and Economic Freedom”
Eight years after the crisis of 2008-09, central banks are still injecting $200 billion a month into the global financial system to keep it from imploding.
If you want a central banker to choke on his croissant, read him this quote from socio-historian Immanuel Wallerstein: "Countries (have lost the ability) to control what happens to them in the ongoing life of the modern world-system." Stated another way, Wallerstein is asking: what do central banks no longer control? The quote is from Wallerstein's recent meditation on China: China is Confident: How Realistic?
Mexican billionaire and retail magnate Hugo Salinas Price is a big proponent of using silver as money in Mexico. Salinas Price explains, “The idea is not to go back to a silver standard, but to create a parallel currency which would be a monetized silver coin. It would not bear a stamped value. It would be a plain silver coin with a quoted value given to it. This value would be adjusted upward with a fall in the value of the peso or a rise with the price of silver.”
Click through for the full post and video interview.
These disintegrative forces are easy to see but elusive to pin down. Nobody defines themselves as self-serving, greedy and lacking in virtue. Everyone feels trapped in the system.
With the media's hyperactive three-ring circus blasting 24/7, it's easy to forget that everything consequential is happening beneath the surface, out of sight and largely out of mind. What's going on beneath the surface is structural and systemic--for example, the 4th Industrial Revolution that is transforming the global economy and social order, regardless of political ideologies or our wishes. Centralization--the "solution" to every problem since 1940--is now the problem.Centralization generates corruption, privilege, rentier skims, institutionalized rackets and pushes one-size-fits all failure down the chain of command.
Click through for the rest of the article. The tensions boiling up under the surface of things are some of the things that way heavy upon me.
The status of the U.S. gold reserves has long been a point of discussion, as all information on the subject is closely guarded by the Treasury. Although information on annual audits is available, the average person is unaware of it; and even those who know it exists generally don’t know where to find it. Couple these facts with the public’s widespread distrust of Congress and government agencies, and it’s no wonder that rumors about the nation’s gold supply have run rampant for decades. Nearly every coin and/or investment forum on the Internet, if you dig deeply enough, has hosted discussions on the existence of the gold, with participants often calling for independent audits to prove the gold is still there.
On April 4, 2011, Representative Ron Paul (R-TX) introduced H.R. 1495, the Gold Reserve Transparency Act of 2011, “to provide for an audit of all gold owned by the United States.” The bill was referred to the House Subcommittee on Domestic Monetary Policy and Technology, which held a hearing on June 23 of that year. Witnesses were Gary T. Engel, director of Financial Management and Assurance, U.S. Government Accountability Office (GAO); and Eric M. Thorson, inspector general of the U.S. Treasury. The report on the hearing (serial no. 112-41) can be viewed here. The 273-page document consists of a transcript of the hearing and related appendices, which include gold assay reports, audit reports on U.S. gold holdings, the Mint’s Schedule of Inventory of Deep Storage Gold Reserves, and the Fed’s Schedule of Inventory of Gold Held.
Macroeconomic researcher Rod Kirby thinks the world is well on its way to much higher inflation. Kirby explains, “Some people say there is a dollar shortage in the world. I do not believe there is a dollar shortage. I think we are seeing evidence that there are too many dollars in the world, not too few. Look at real estate prices around the world. In Canada, they are at record levels. In America, they are at record levels. Real estate prices are at record levels in Britain. There are record levels in Australia. They are at record levels in China. This is not what you’d expect in an environment where there are too few dollars. We are seeing the equity markets rally day after day and make new all-time highs. These are not the kinds of things you see when there are too few dollars. In my view, this might be the thin edge of the wedge of a crack-up boom. Money is getting to the street because money is being taken out of dark pools on the dark side of the U.S. Treasury and is being injected into the market place as bonds are being sold off and redeemed. The world is flush with money, extremely flush with money.”
“All Manipulation Ends In Tears” Egon von Greyerz continues: “But all manipulation ends in tears. The longer it takes before a market gets back to its unmanipulated equilibrium, the bigger the adjustment will be. In the meantime, investors believe that their portfolios will continue to grow to the sky. Nobody fears the fact that P/E’s are 80% above the average or that bond yields are around zero or negative in some cases. But in bubble markets not much is needed to change sentiment.
There is a lot of talk about the Trump effect. Is the new US president going to continue to fuel market sentiment or will he cause a collapse? It is of course not Trump that will change the direction of markets. More likely, he could simply be one of the catalysts that will cause the credit and stock market bubble to burst. When markets are overbought, overvalued and overloved, there is not much needed to reverse the direction. And this is where we are now. A change in sentiment and fear will make markets turn on a dime.
In last week’s column, I described how today’s government-created circulating coins and currency do not meet all of the functions of money. Specifically, while they may serve as a temporary medium of exchange, government-created currencies do not serve the function of money as a long-term store of value.
The U.S. dollar is a perfect example of this. At the beginning of 1933, the U.S. dollar was equal in value to 0.04838 of an ounce of gold. Since then, as of early this week, the value of the dollar had fallen 98.3 percent to just 0.00081 of an ounce of gold.
This regular decline in value is actually a standard policy of the U.S. government. In the periodic meetings of the Federal Open Market Committee, the concluding announcements state a targeted depreciation rate for the U.S. dollar of 2 percent per year (which, according to government data, is a target not achieved in recent years but, in the real world, has been higher than this rate).
When the system is rigged, "democracy" is just another public-relations screen to mask the unsavory reality of Oligarchy.
Democracy in America has become a hollow shell. The conventional markers of democracy--elections and elected representatives--exist, but they are mere facades; the mechanisms of setting the course of the nation are corrupt, and the power lies outside the public's reach.
History has shown that democratic elections don't guarantee an uncorrupt, functional government. Rather, democracy has become the public-relations stamp of approval for corrupt governance that runs roughshod over individual liberty while centralizing the power to enforce consent, silence critics and maintain the status quo. Consider Smith's Neofeudalism Principle #1: If the citizenry cannot replace a dysfunctional government and/or limit ...
Click through for the rest. The system we live in is not healthy.
Gold prices headed higher Tuesday, as the U.S. dollar declined, especially against the euro, as traders eyed the presidential race in France and the U.K. prepared its exit from the European Union.
April gold GCJ7, +0.66% rose $8.10, or about 0.7%, to trade at $1,242.10 an ounce, with prices again poised to settle again at the highest level since March 1.
The ICE U.S. Dollar Index DXY, -0.56% which measures the greenback’s strength against a basket of six currencies, dropped 0.7% to 99.737—trading at its lowest levels since early February. Weakness in the greenback has helped to provide support for dollar-denominated gold prices.
The precious metals complex enjoyed a strong week mostly due to a post-Fed explosion on Wednesday. Although gold stocks sold off to end the week, they finished up almost 5% for the week. Gold gained 2.4% on the week while Silver gained 2.9%. The miners enjoyed massive gains following the previous two rate hikes and that has some optimistic about a repeat scenario. However, the miners and metals need to prove they can recapture their 200-day moving averages before we become optimistic. Precious metals should trend higher in the short-term if the current macro technical landscape does not change. The US Dollar index has fallen below its 50-day moving average and could fall another 2% to moving average support. Also, despite the Fed rate hike, the 10-year yield did not make a new high. Bonds could rebound and the huge speculative short position, if unwound could add to the rebound. A rally in Bonds coupled with a weak US Dollar would help precious metals.
A funny thing happened on the way to a low-risk environment: loans in default (non-performing loans) didn't suddenly become performing loans.
If we had to summarize what's happened in eight years of "recovery," we could start with this: everyone's been pushed into risky assets while being told risk has been transformed from something to avoid (by buying risk-off assets) to something you chase to score essentially guaranteed gains (by buying risk-on assets). The successful strategy for eight years has been buy the dips because risk-on assets always recover and hit new highs: housing, stocks, bonds, bat guano futures--you name it.
Gold Soared During Last Rate Hike Cycle From Peter Boockvar: Ahead of the 3rd Fed rate hike, the US dollar for all the world’s love for it is barely higher than it was two years ago. On March 13th 2015 the euro heavy dollar index closed at 100.33 and today stands at 101.34. On that day in March 2015 the euro closed at $1.0496 and is near $1.07 today. This is with all the divergence in monetary policy between the Fed and the ECB…
The battle raging in the Deep State isn't just a bureaucratic battle--it's a war for the soul, identity and direction of the nation.
When do the unlimited powers of the Intelligence/Security agencies threaten America's domestic and global national interests? The CIA and its political enablers claim the agency's essentially unlimited powers, partially revealed by Wikileak's Vault 7, pose no threat to America's interests, since they are intended to "defend" American interests. This is the rationale presented by neocon CIA allies in both political parties: the CIA can't possibly threaten America's interests because the CIA defines America's interests.
From Jim Rickards, Editor, Rickards’ Gold Speculator:
When the Fed raised interest rates in December, many believed gold would plunge. But it didn’t happen.
Gold bottomed the day after the rate hike, but then started moving higher again. And for the last 10 weeks it’s been up about 12%, despite some up and down fluctuations.
Incidentally, the same thing happened last year when the Fed tightened in December 2015. Gold had one of its best quarters in 20 years in the first quarter of 2016. So it’s very interesting to see gold going up despite headwinds from the Fed.
Normally when rates go up, the dollar strengthens and gold weakens. They usually move in opposite directions. So how could gold be going up when the Fed’s tightening and the dollar’s strong?
Click through for the full article. Interesting read.
Submitted by cpowell on Mon, 2017-03-06 15:41. Section: Daily Dispatches 10:45a ET Monday, July 6, 2017
Dear Friend of GATA and Gold:
Former U.S. Rep. Ron Paul, R-Texas, announced over the weekend that he will be going to Arizona to support state legislation there to define gold, silver, and other monetary metals as legal tender and exempt transactions in them from capital gains taxes. Paul's announcement comes in his commentary headlined "Arizona Challenges the Fed's Money Monopoly" and it's posted at the Ron Paul Institute's internet site here:
I thought I would put today in perspective for those throwing in the towel on gold and silver. 23,000 silver contracts were sold in just a few minutes this morning. This equates to 115 million ounces. For perspective, there are only two countries in the world that produce this much in one year, Mexico and Peru. China roughly produces 115 million ounces but the production is not normally sold onto world markets.
Looking at this from a “company” perspective, no single company even comes close to producing 115 million ounces. In fact, the three largest silver producing companies in the world, Fresnillo, KGHM Polska, and Goldcorp only produce about 125 million ounces combined over a year’s time.
Today’s action, selling 115 million ounces of silver is an impossibility in any “real world” governed by any real rule of law because of the above production numbers. As I have said for years when these raids occur, “no one has this much silver to sell, and no one would be stupid enough to sell in this fashion if they were trying to get the best price possible for themselves or their client”.
From Jim Rickards, Editor, Rickards’ Gold Speculator:
America is going broke.
That’s not an opinion or scare tactic — it’s a fact based on simple arithmetic. President Trump could be forced to face this fact as early as March 15, the date the latest U.S. debt ceiling suspension ends.
Government debt is growing faster than the economy. If you extend that trend, and that’s exactly what official government projections do, you reach a point where higher taxes cannot cover interest expense, investors lose confidence in the bond market, and a death spiral of higher deficits, higher interest rates, and still higher deficits spins totally out of control.
This does not mean the end of America, let alone the end of the world. There are several ways out of the debt death spiral. It’s just that none of the ways out are easy, and all of them will cause massive losses to unprepared investors.
Click through for the full article. I know I've said it for years, now, but debt is the driving force that I think is going to be one of the main triggers to bring economies to their knees.
There are many reasons why Imperial Rome declined, but two primary causes that get relatively little attention are moral decay and soaring wealth inequality. The two are of course intimately connected: once the morals of the ruling Elites degrade, the status quo seeks to mask its self-serving rot behind high-minded "virtue-signaling" appeals to past glories and cost-free idealism. Virtue signaling is defined as "the conspicuous expression of moral values by an individual done primarily with the intent of enhancing that person's standing within a social group," "the practice of publicly expressing opinions or sentiments intended to demonstrate one's good character or the moral correctness of one's position on a particular issue" and "Saying you love or hate something to show off what a virtuous person you are, instead of actually trying to fix the problem." Yes, yes and yes.
Gold has powered higher in a strong new upleg since the Fed's mid-December rate hike. But the core group of traders who usually fuel early-upleg gains has been missing in action in recent months. The gold-futures speculators have not done any meaningful buying since gold bottomed. This anomaly is a very-bullish omen for gold. Since these traders' buying has yet to start, they need to do lots of catch-up buying. Since the day after the Fed's second rate hike in 10.5 years in mid-December, gold has surged 10.0% higher at best as of the middle of this week. Naturally these strong gains were really amplified by the gold miners' stocks. The leading GDX VanEck Vectors Gold Miners ETF blasted 34.6% higher over that same short span, trouncing the broad-market S&P 500's mere 1.4% gain! The gold sector is really shining. But nevertheless it's been a strange gold upleg distorted by the markets' extreme Trumphoria. Normally new gold uplegs see a distinct three-stage buying pattern that fuels their advances. Gold's initial gains off lows are driven by futures speculators buying to cover their shorts. The resulting gold reversal and surge entices in still more futures speculators on the long side, which really accelerates gold's upside.
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