Home » Posts tagged 'gold telegraph' (Page 2)

Tag Archives: gold telegraph

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

The U.S. is Shackled by Historic Debt

May 22, 2018

The U.S. is Shackled by Historic Debt

Do you feel as if you’re drowning in debt? It’s worse than you think. The U.S. government reached a new milestone when our country’s debt topped $21 trillion for the first time. The national debt grows by an average of $17,000 every second – more than some people earn in an entire year. That’s only an average, and During the past eight months, the national debt grew by $52,000 per second. And the trend toward bigger and higher spending is only getting worse.

The ratio of national debt to GDP is at 105 percent, larger than the economy as a whole. In 1981, the national debt comprised a mere 31 percent of GDP. We are not moving in the right direction. The Treasury Department has plans to borrow $1 trillion this year, an 84% jump from last year.

When individuals borrow, they can use the money wisely to increase their wealth. That’s what happens when people make good investments. What does the government do with all this money? While some of it may be put to good use, the National Science Foundation’s spending $856,000 on having mountain lions run on treadmills can’t be termed prudent spending. Nor can the $2 billion spent on former President Obama’s healthcare website. In 2017, Brooklyn, NY spent $2 million on a 400 square feet restroom in a public park. Flushing money down the toilet?

Even the government’s legitimate spending is out-of-control. In 2017, half the entire budget went toward Social Security and Medicare. More than all tax revenues are spent on entitlement programs and defense. The rest is “borrowed,” and that creates interest payments. Of course, as the debt increases, so do the interest payments. Which means the government needs to borrow even more money just to pay interest on money it’s already borrowed. What happens when the U.S. debt reaches $30 million? President Trump is showing no signs of curtailing this spending/borrowing spree.

…click on the above link to read the rest of the article…

Canada has NO Gold but a Mountain of Debt… Things Will End Badly

April 26, 2018

Canada has NO Gold but a Mountain of Debt… Things Will End Badly

While other central banks have been busy increasing their gold reserves, Canada sold off all its gold reserves in 2016. The Bank of Canada ranks last globally out of 100 major central banks.

There is precedence in a central bank selling off its gold, and it didn’t work out very well. In 1999, when the price of gold was low at $282.40 an ounce, the United Kingdom sold half of its gold reserves, worth approximately $6.5 billion. The sale raised $3.5 billion. By 2007, the price of gold had risen to $675.00 an ounce, and the UK had lost more than £2 billion. This financial disaster, known as Brown’s Bottom, did not work out well. And Canada appears to be following in its footsteps.

With many uncertainties globally, Canada’s gold sale could have serious consequences.

Fed signaling interest rate hikes = ✔
Fed shrinking balance sheet = ✔
National debt rising rapidly = ✔
Household debt rising = ✔
Weak growth = ✔
Rising inflation = ✔
Geopolitical risks = ✔

But hey, things are going to be fine…

In this age of fiat currency, many people forget that gold is actually money, and has never stopped from functioning as a reliable store of value. Gold is a relatively liquid currency and one of the most highly traded.

According to Canada’s senior Finance Department economist Morneau, the reason for the gold sale was the cost involved in storing the gold and the fact that gold offers a poor return. That seems like strange logic since gold has outperformed the S&P 500 since 2000. The price of gold went from $35.00 an ounce in 1967 to over $1,300 today.

As former Federal Reserve chairman Alan Greenspan has said:

…click on the above link to read the rest of the article…

The Dollar’s 70-Year Dominance Slowly Coming To An End

April 20, 2018

The Dollar’s 70-Year Dominance Slowly Coming To An End

The US dollar hasn’t been backed by gold since 1971, but that might change soon. Republican Congressman Alex Mooney is proposing that the US once again place value on the dollar by backing it with physical gold. The problem is, the Federal Reserve has been printing money with the abandon of a drunken copy machine, and the 147.3 million ounces of gold being held in Ft. Knox may not be enough to cover the out-of-control fiat currency currently in circulation.

According to Alex Mooney’s bill, the dollar has decreased 30 percent in purchasing power since 2000. It has lost 96 percent of its value since 1913. On an average, the US is devalued by 50 percent every generation.

The Federal Reserve – silently robbing you of your purchasing power ever since 1913…

RETWEET if you agree. 🔥🔥

If the gold standard were to be reinstated, control of the dollar would revert to free market forces instead of the whim of the Federal Reserve. It would mean that each dollar would have its equivalent in gold, as it did prior to 1913. At that time, the US economy grew at a robust annual rate of 4 percent compared to an average annual growth of 2 percent since 2000.

Officially, the US has 8,133.5 tons of gold in reserves, although the government won’t confirm that number. No one is permitted inside the various vaults to verify. Even the purity of the available gold bars is in question, as many may not conform to industry standards. As other countries contemplate the return to the gold standard, unless the US catches up, the dollar will lose its dominance as the world reserve currency.

…click on the above link to read the rest of the article…

The Slow Extraction of Freedom: The Liberty Crisis

March 29, 2018

The Slow Extraction of Freedom: The Liberty Crisis

Today’s world has been coined the “Interconnected Age.” There is plenty of positives with removing friction in communication; however, there is a significant negative. Government and corporations are keeping an eye on our every move.

We like to think we enjoy some fundamental liberties, however governments and corporations continue to assault our privacy on a daily basis. The internet tracks our interests, beliefs, purchases, and social life. Order your groceries online, and someone knows what you’re having for dinner. Get the latest bestseller from Amazon, and your reading habits are an open book. And that’s just the beginning. Our liberties have shrunken to the point of no return.

When we think of liberty, we think of the power of choice. Yet, our choices are being limited in ways few kings and despots have dared in the past.

Do you rejoice in having a job? What you have are employers snooping through your computer and company cell phone. In some cases, your political views can get you fired, even if they have nothing to do with your job. Recently, a woman was fired for having a gun permit (not a gun). Freedom of speech has translated into “hate speech” by anyone who may disagree with your thoughts. If you thought you had the freedom to think, think again.

Many employers today are hiring part-time workers, who lack the freedom to partake of benefits to which they might otherwise be entitled.

The health of our seniors was at one time sacrosanct. Now, Medicare is limiting benefits, treatments, and access to life-saving medicine. There’s a proven and powerful correlation between education and longevity. The more you know about taking care of yourself, the longer you will probably live. Yet, the cost of a basic four-year college education is being priced beyond the capabilities of more and more Americans. Good health is shifting into the realm of privilege instead of right. The days of Dr. Marcus Welby are long gone. You no longer have the right to make decisions about your health. The government and insurance companies have happily relieved you of that burden.

…click on the above link to read the rest of the article…

The Central Bank Bubble: It Will Be Ugly

March 21, 2018

The Central Bank Bubble: It Will Be Ugly

21
Mar

The global economy has been living through a period of central bank insanity, thanks to a little-understood expansion strategy known as quantitative easing, which has destroyed main-street and benefitted wall street.

Central Banks over the last decade simply created credit out of thin air. Snap a finger, and credit magically appears. Only central banks can perform this type of credit magic. It’s called printing money and they have gone on the record saying they are magic people. 

Increasing the money supply lowers interest rates, which makes it easier for banks to offer loans. Easy loans allow businesses to expand and provides consumers with more credit to buy goods and increase their debt. As a country’s debt increases, its currency eventually debases, and the world is currently at historic global debt levels. 

Simply put, the world’s central banks are playing a game of monopoly.

With securities being bought by a currency that is backed by debt rather than actual value, we have recently seen $9.7 trillion in bonds with a negative yield. At maturity, the bond holders will actually lose money, thanks to the global central banks’ strategies. The Federal Reserve has already hinted that negative interest rates will be coming in the next recession.

These massive bond purchases have kept volatility relatively stable, but that can change quickly. High inflation is becoming a real possibility. China, which is planning to dethrone the dollar by backing the Yuan with gold, may survive the coming central banking bubble. Many other countries will be left scrambling. Some central banks are attempting to turn the current expansion policies around. Both the Federal Reserve, the Bank of Canada, and the Bank of England have plans to hike interest rates. The European Central Bank is planning to reduce its purchases of bonds. Is this too little, too late?

…click on the above link to read the rest of the article…

 

The Demise of the Dollar: The Rush to Gold is Here

March 19, 2018

The Demise of the Dollar: The Rush to Gold is Here

The US dollar has been dominant as the global reserve currency for a century. It was backed by gold, and the phrase, “good as gold,” had a literal meaning. Each dollar bill was worth its equivalent in physical gold. This made the dollar the world’s most respected and accepted currency.

These days, the dollar is joined by the euro and the yen as accepted currencies. No longer dominant, the dollar is losing its global position. Can it survive?

Early in the 20th century, the US was the most powerful nation on earth, and the dollar reflected that power. Our gold reserves were larger than those of any other country, thus setting the standard worldwide. The US dollar was, indeed, good as gold.

By the late 1940’s, the Federal Reserve started to print money that wasn’t back by gold. Rising inflation only encouraged the government to print more money without the gold reserves to back it. Gold prices rose to such new heights, all US currency stopped being back by any gold. The powerful US dollar began to turn into monopoly money. Gold price tripled as the dollar continued to lose value.

That’s how the Petrodollar was born, a political move more than a smart currency move. With the US importing more oil than anyone else from Saudi Arabia, then Secretary of State Kissinger arranged to have the price of oil based on the US dollar. All countries were to pay for oil with dollars.

…click on the above link to read the rest of the article…

 

Peak Gold Has Arrived

March 15, 2018

Peak Gold Has Arrived

Following the recent market crash, investors lost $5.2 trillion worldwide before the market managed to recover most of the losses. There are hints that certain bubbles are ready to burst as the worlds biggest hedge fund positions accordingly.

In addition to the stock market, the global gold supply is weakening, leaving investors anticipating higher prices. In 2017, the gold supply plummeted the most since any year since 2008. If the supply of gold is really plateauing, experts are predicting a “peak gold” period.

China, the world larger miner of gold, produced 453 tons of the metal in 2016. In 2017, China’s production fell by 9 percent. If production of gold continues to fall, a rise in global demand is a certainty. The demand will come from investors and centrals banks unwilling to rely on the dubious strength of the US dollar.

Chinese is enjoying a boon economy, and the newly rich who can afford it are looking to buy physical gold in an effort to protect their wealth. China supplies its gold only domestically and does not export the metal. If China’s domestic gold supply is depleting, it will certain seek to buy gold elsewhere. Part of Chinese economic plan is to potentially reduce the global dominance of the dollar with the yuan.

The US dollar has dominated the global currency market for over 40 years. China, and Russia are actively increasing their gold reserves, which could lead to both economic and political uncertainties as more countries begin to dump US Treasuries. Both Russia and China are planning to use gold-backed currency as payment when trading with each other. This makes gold a critical commodity for both countries.

China might import gold to meet its own demand. But the available supply of gold is finite. During the past 15 years, global gold deposits have become depleted, and replacement deposits are becoming rarer each year.

…click on the above link to read the rest of the article…

The $233 Trillion Dollar Dark Cloud of Global Debt

March 11, 2018

The $233 Trillion Dollar Dark Cloud of Global Debt

Global debt has reached record heights without any signs of relief. While central bankers try to explain away the phenomenon of these out-of-control numbers, it’s not much of a mystery. Immediate consumption with the promise of repayment sometime in the future has consequences. Global debt is staggering to the point most of it will never be repaid. Certainly not in our generation. Perhaps by our grandchildren, but as global debt keeps mounting, the picture is doubtful.

The per capita global debt is $30,000. Who, exactly, will be making repayments?

Economists insist that the 2007 financial crisis could not have been predicted. Yet, all the signs of out-of-control credit where there. Today, economists are repeating the same mantra, despite the spiraling world debt. The question is not if the next bubble will strike. It’s a matter of when.

The math is fairly simple. The more a country increases its debt to simply stay afloat, the more like the increasing debt will cause a tightening of credit. The next step in the equation is a burst bubble and economic crisis. This is what happened in 1929, happened again in 2007, and it’s happening now. Past behavior is the best predictor of future behavior.

Out-of-control credit will undoubtedly slow down the US’s current economic growth. It probably won’t cause an outright crisis. Other countries may not be as fortunate.

Countries such as China, Belgium, South Korea, Australia, and Canada are experiencing an unprecedented credit bubble, with few systems in place to control it. The resulted inflation or simply write-offs of debts could result in a global financial disaster we have not seen before. The current economic upswing is unlikely to continue.

…click on the above link to read the rest of the article…

Calm Before The Inflationary Storm

February 21, 2018

Calm Before The Inflationary Storm

The economy has been showing great gains, and that positive trend is fueling fears of a surge in inflation. The Consumer Price Index, the key predictor of inflationary trends, rose .05 percent in January, which greatly exceeded the anticipated rise of 0.2 percent. The market reacted as expected as stocks fell, and government bond yield rose.

The Fed is keeping a close eye on these developments, and that could fuel the inflation fears. The fear of rising prices includes most economic sectors, from gasoline, housing, food, healthcare, to clothing.

Predictably, the market reacted immediately to the CPI rise with a 100-point loss after opening, even though the decline was quickly reversed. Investors are anticipating that the Federal Reserve could raise their interest rates three or more times by year-end.

As the economy continues to grow, unemployment has fallen to a record low and the sale of tangible goods is up. Economists are anticipating the economic upswing to continue as the GDP is expected to grow by 3 percent, faster than anticipated. Since 2009, the GDP has only risen by an annual average of 2.2 percent. As a result, prices for consumer goods have risen predictably and steadily. The Federal Reserve is setting policy with a 2 percent inflation in mind. A higher-than-anticipated inflation rate could raise interest rates, making it more difficult for companies to borrow needed funds. Following the passage of a $300 billion spending package, market-watchers are now convinced of a 62 percent chance that the Feds will raise interest rates three times by December. Rate hikes in March and June are almost a certainty, with the third hike a high possibility. A fourth hike is not out of the question and becoming more likely. This is seen by many as the real problem.

…click on the above link to read the rest of the article…

Post navigation

Newer posts →

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress