Gold Standard News Daily - Real Money Blog
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3.2.15 - Wake up and smell the danger!
Gold last traded at $1,208 an ounce. Silver at $16.41 an ounce.
STOCKS: U.S. stocks rallied Monday as the Nasdaq index hit 5,000 for first time in 15 years. But many market analysts believe the U.S. stock market is at its most overvalued level in history. Smarter Analyst reports, "The notion that the stock market is cheap certainly makes no sense. The opposite is actually the case, and the wide dispersion of overvaluation makes the market potentially even more dangerous than it was during previous asset bubbles."
FED: "A Financial System Still Dangerously Vulnerable to a Panic," reports WSJ. The authors argue, "The Federal Reserve’s powers need to strengthened." Like most progressive economic advisors, they envision a Fed unfettered by the Legislative Branch - empowered to help save the economy with more and more money creation. They view the Fed as the 4th Branch of Government. This WSJ article fails to mention the central bankers and the Wilsonian Progressives who created the Fed have slowly but surely shrunken the value of the U.S. dollar (and our labor) by 97% in the last century.
BANKS: "Banker bashing wins votes but real culprits go unpunished," reports Telegraph. As former New York Attorney General Eliot Spitzer once said, "Bankers make the guys on Wall Street look good." Meanwhile, CNBC reports, "Ultra-easy central bank monetary policies are about to come back to bite the global economy," says bond guru Bill Gross. "The financial repression that goes along with easy-money policies is doing harm and the financial system has become increasingly vulnerable only six years after its last collapse in 2009," said Gross. DON'T BANK ON IT! authors Craig Smith and Lowell Ponte have been sounding this message for years. Are you prepared when the Fed policies "bite"?
WASH. DC: Israeli Prime Minister Benjamin Netanyahu is expected tell Congress Tuesday that the agreement taking shape with Iran will leave them with the ability to pursue the development of nuclear weapons. NBC reports, "Prime Minister Benjamin Netanyahu of Israel said Monday that he meant no disrespect to President Barack Obama by accepting an invitation to speak to Congress." Legendary entertainer, and Swiss America spokesperson, Pat Boone will attending Mr. Netanyahu's speech to Congress Tuesday at 11am ET.
GOLD: Precious metal prices dipped Monday amid technical selling and a firmer U.S. dollar. Don't wait another day to buy gold at bargain prices.
2.27.15 - Zero Interest Stunting U.S. Growth
Gold last traded at $1,213 an ounce. Silver at $16.58 an ounce.
ECONOMY: The Commerce Department said Friday that U.S. gross domestic product expanded at a 2.2% annual rate in the fourth quarter, adjusted downward from 2.6%. This is very near stall speed, which has the Fed cornered between the risks of continuing with zero interest and the risks of raising interest. Central banks have slashed monetary policy rates in 2015 in at least 17 countries - in some cases pushing interest rates negative. On Wednesday, for the first time in history, Germany began selling 5-year bonds at a negative yield.
STOCKS: U.S. stock indexes fell on Friday as downbeat GDP and manufacturing data provided little insight to investors. In February, the Dow rose 6.1%, the S&P 500 advanced 5.8% and the Nasdaq rose 7.6% in the same period. All three indexes were down in January. But, authors Craig Smith and Lowell Ponte caution readers in their latest White Paper saying, "It is a shared hypnotically-induced mass illusion that stocks now have more value than they really do. As Forbes columnist Charles Biderman put it, what the Fed is doing to achieve this levitation of the stock market through conjured money would be a crime if anyone other than the Fed did this."
DOLLAR: The U.S. dollar held on to gains on Thursday after hitting levels not seen since 2003. But what have we seen to justify the stronger dollar? Is the US economy hitting on all cylinders? Hardly. The reality is the US national debt is soaring above $18 trillion and the federal government continues to rack up huge budget deficits every fiscal year. Nothing has changed. The US dollar just happens to be the "healthiest horse in the glue factory" during today's global currency war.
OIL: Brent crude had its biggest monthly gain in nearly six years, rising 1.6% in February. "Oil’s Big Swings Are the New Normal," reports WSJ. Volatility is discouraging longer-term investors. "Benchmark oil prices rose by 60% from June through January, followed by a jump of more than 30% in the first two weeks of this month."
GOLD: Gold prices rebounded Friday after dipping 6% in February which followed an 8% rise in January. Analysts see higher prices ahead after gold held firm above key psychological support at $1,200 an ounce. Gold is set to benefit as central banks worldwide are panicking in their fight against stagnant economic growth and deflation with currency creation schemes such as Quantitative Easing. Currency devaluation underscores the safe-haven value of gold as a wealth insurance.
2.26.15 - Economic Freedoms Assaulted
Gold last traded at $1,210 an ounce. Silver at $16.62 an ounce.
INTERNET: The FCC ends 20-years of Internet Freedom. AP reports, "Internet service providers like Comcast, Verizon, AT&T, Sprint and T-Mobile now must act in the 'public interest' when providing a mobile connection to your home or phone, under rules approved Thursday by a divided Federal Communications Commission. The 3-2 vote was expected to trigger industry lawsuits that could take several years to resolve." It appears the courts will rule the Internet from now on. The FCC has become the new the "Department of Internet." Internet transparency and freedom will soon become merely a memory.
ECONOMY: The U.S. Inflation rate goes negative for first time since 2009, largely because of cheaper gasoline, as the CPI in January sunk by 0.7%. Meanwhile, the so-called economic recovery is not helping job seekers much as jobless claims surged 31,000 to 313,000.
STOCKS: U.S. stocks drift lower Thursday on weak fundamentals and disappointing job data. "Stock-market gains are making us dangerously complacent," reports Marketwatch. Diversify now, before the next economic surprise happens suddenly.
WEALTH ASSAULT: Both our President and Vice President are from the government, and they're here to "help" you. President Obama wants to limit retirement options for the Middle Class by protecting helpless consumers against the free market, while Vice-President Biden wants to "emancipate" private wealth.
"A lot of wealthy white and black people aren't bad, but they control 1 percent of the economy and this cannot stand," said Vice President Joe Biden during a February 23 speech about Black History Month. "It's not fair because the business experts are saying that concentration of wealth is stunting growth. So let's do something that's worthy of emancipation."
Lowell Ponte responds: "Vice President Biden speaks the Obama Administration's usual Progressive class warfare 'envynomics' of polarizing divide-and-conquer political rhetoric that depicts the rich as enemies of the rest of us." Lowell's conclusion: "Free market wealth is earned voluntarily. Government wealth has been taken by force."
GOLD: Gold prices rose again Thursday, despite a sharply higher U.S. dollar and sharply lower crude oil prices. This illustrates a new trend in precious metals that we cover in detail in our 2015 Real Money Perspectives newsletter: Gold is no longer merely a commodity (like oil) nor an investment (like the dollar). If Gold were a commodity its price would have fallen in half, like oil prices have. If gold were an investment, its price would not have remained stable during the 2014 stock market and dollar rally. Gold is the ultimate form of money, get some today before prices take off again. As Alan Greenspan once said, "Gold and economic freedom are inseparable."
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