Ross Hansen heads up the largest privately owned mint in North America.
Last year business was down, but he’s unconcerned and undeterred. While most of the populace buys into the meme that prosperity is just around the corner, Ross looks at hard data like the labor participation rate and sees another story, a country in decline.
In the end, a debased currency means gold is the place to be. And you take that to the mint!
Bill Holter of Miles Franklin was fortunate to be at the New Orleans Money Show where he got to hear the Maestro former Fed Chief Alan Greenspan speak.
Of course the economic crisis that we find ourselves in now wasn’t his fault at all. Blame Congress, Fannie and Freddie, but not Alan. He also reported on a debate between GATA’s Chris Powell and Doug Casey about precious metals manipulation. Doug believes there isn’t any.
The Ebola circus continues, and the Obama Administration officials look like clowns. Let’s just take a look at a few of the headlines. “Health System Not Prepared for Ebola” is a headline from the AP, and that is in stark contrast to what we have been told. “Small clusters could overwhelm the system” is what the article says. So, this begs the question of why no quarantine? Some governors in places like New Jersey, New York and Illinois think quarantine is the way to go. It is scientific technique on how to contain infectious disease, but that is not what the Obama Administration thinks. Some in the MSM think the same thing. This opinion piece says the decision by these governors is “hasty” and “adds to the Ebola problem.” Really? Well, that is not what the Pentagon thinks because it is “isolating troops back from Africa for 21 days.” Some of the talking points are downright bogus. They say things like we should treat these returning health care workers like “conquering heroes.” Who is going to think these folks are “heroes” if they come back and infect people? Africa’s best chance of beating this is if America stays strong and uninfected. If America is consumed by Ebola, or even the fear of Ebola, West Africa hasn’t got a chance.
The Federal Reserve supposedly ended its QE program this week. That is where they printed money to buy bonds to hold interest rates down. So, what’s going to hold interest rates down now? Are they just going to put all this Federal debt out for bids and let the market set the interest rates? Can the Federal government, home buyers, car buyers, credit card holders and the overall economy afford higher rates? You’ve got to be kidding.
Other stories reflect an enduring interest in the questions, what is a living wage? and what is a middle-class income? These questions express the anxiety that naturally arises from the sense that we’re sliding downhill in terms of our purchasing power–a reality that is confirmed by this chart:
In an illuminating discussion with Charles Nenner of Charles Nenner Research Center formerly of Goldman Sachs, reveals that risk / reward in US equities is nil, as the market reflect more somber domestic economic conditions, the next few years could produce as little as 5% gains in the wake of the amazing 5 year bull run. He’s identified a war cycle that has occurred regularly for over 3000 years. Each 100 years, the second decade includes a major global conflict; where will the next flashpoint take place? The most likely candidates, e.g. the Middle East / Ukraine are not at the top of his list; China and Japan are both building huge arsenals in advance of a possible showdown over island territory. Should such a tragic event unfold, billions of dollars will flow from Japan’s $3 trillion pension reservoir directly into the precious metals sector, in search of a safe haven. Gold and silver represent a rare opportunity to profit from the commodities bear market; his cycles work indicates a likely bottom in the precious metals sector with a target price of $2,100 for gold. Charles instructs gold aficionados to reexamine the inflation hypothesis; history is replete with numerous examples of golden opportunities during deflationary times. Expect a massive stock market correction between 2018-2020, much worse than 2008 due in part to greater speculation / valuations than six years ago.
Today London metals trader Andrew Maguire told King World News that there is currently stunning amounts of euro gold physical buying taking place in London. Maguire also spoke about the staggering demand for physical gold elsewhere around the world. Below is what Maguire had to say in Part I of a series of interviews.
Maguire: “There is solid evidence of continued investment bar demand coming out of China, large Indian demand related to Diwali last week, and fully unreported, off-the-scale large euro gold buying that you don’t see reported anywhere. But it’s absolutely evident in the wholesale markets….
The story of the destruction of the German mark during the hyper-inflation of Weimar Germany from 1919 to its horrific peak in November 1923 is usually dismissed as a bizarre anomaly in the economic history of the twentieth century. But no episode better illustrates the dire consequences of unsound money or makes a more devastating, real-life case against fiat-currency: where there is no restraint, monetary death will follow.
“It matters little that the causes of the Weimar inflation are in many ways unrepeatable; that political conditions are different, or that it is almost inconceivable that financial chaos would ever again be allowed to develop so far,” wrote British historian and MP Adam Fergusson in his 1975 classic, When Money Dies. “The question to be asked — the danger to be recognized — is how inflation, however caused, affects a nation.”
The United States is doing better than it has in years. Jobs growth is up, unemployment is down, our manufacturing sector carries the rest of the world on its shoulders like a wounded soldier and the World Economic Forum named the U.S. the third-most competitive nation, our highest ranking since before the recession.
As heretical as it sounds, there’s a downside to America’s success, and that’s a stronger dollar. Although our currency has softened recently, it has put pressure on two commodities that we consider our lifeblood at U.S. Global Investors: gold and oil.
It’s worth noting that we’ve been here before. In October 2011, a similar correction occurred in energy, commodities and resources stocks based on European and Chinese growth fears.
This is a work of fiction with a few similarities to the reality we all know and trust, or … the reality that we think we know.
City A in a Paper World:
A financial genius had a plan! He and his offspring implemented the plan over several hundred years.
1. Charter a bank.
2. The government authorizes this bank to create and print paper money, backed by gold or silver. (It took surprisingly little in bribes to convince the government leaders that this Bank was a wonderful idea.)
When it comes to Ebola, the story that the government is telling us just keeps on changing. At first, government officials were claiming that it was very difficult to spread the Ebola virus. Some of them were even comparing it to HIV. We were given the impression that we had to have “direct contact” with someone else’s body fluids in order to have any chance of catching the virus. But of course that is not true at all. Now authorities are admitting that Ebola is “aerostable”, that it can be “spread through droplets”, and that it can remain on surfaces for up to 50 days. That is far different information than we have been getting up until this point. So that means when they were so confidently declaring that they know exactly how Ebola spreads they were lying to us.
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