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7.1.15 - Gold: Safety From Uncertainty
Gold last traded at $1,169 an ounce. Silver at $15.57 an ounce.
NEWS SUMMARY: U.S. stocks rose Wednesday as investors digested mixed economic data amid renewed hopes of a Greece debt deal. Meanwhile, the U.S. dollar rose, pushing commodities and precious metal prices lower temporarily.
Greek crisis deepens - USA Today
"Greece's midnight deadline passed Tuesday for repaying $1.8 billion to the International Monetary Fund and other international creditors, deepening a financial crisis that threatens the Mediterranean nation's membership in the European Union. After the deadline passed (at 6 pm ET), Greece joined Zimbabwe, Sudan and Somalia in being in arrears to the IMF. Fitch Ratings has downgraded Greece's government debt further into junk territory. But should there be a so-called Grexit - or Greek exit from the European financial community - President Barack Obama said "it is important for us that we plan for any contingency, that we work with the ECB and other international institutions to ensure that some of the bumps that occur in the financial markets are smoothed out." Read THE GREEK SHOWDOWN, a new Research Paper available FREE by calling 800-289-2646.
Heartbreaking Scene Unfolds At Greek Banks - ZeroHedge
"1,000 Greek bank branches chanced a stampede in order to open their doors to the country's retirees on Wednesday. The scene was somewhat chaotic as pensioners formed long lines and the country’s elderly attempted to squeeze through the doors in order to access pension payments....A retired mariner who asked not to be named, told AFP he had no cash to buy crucial medicine for his sick wife. 'I worked for 50 years on the sea and now I am the beggar for 120 euros,' he said. 'I took out 120 euros - but I have no money for medication for my wife, who had an operation and is ill,' he added." Read THE SECRET WAR, a new Research Paper by Craig R. Smith & Lowell Ponte
With Greek Uncertainty, Investors Seek Safety in Gold - WSJ
"European demand for the age-old safe haven of gold coins has risen in recent weeks, as has the relatively new concept of investments in digital bitcoins, market participants say....Retail investors who buy coins and bullion have been influenced, Mr. Hanlon said, by the images of bank lines in Athens far more than by concerns about monetary policy in the U.S. over the past few years."
Many ask why the dollar price of gold has not risen more this year, given all the economic uncertainty? Truth is, gold prices started the year at about $1,200 an ounce and have clung near that level all year long - demonstrating the stability of gold in the face of an artificially stronger U.S. dollar and stock market. It is never too late to get started converting some cash into hard money for liquidity, safety and wealth preservation. In fact, a top performing asset over the past 15 years is now presenting gold buyers with an opportunity not seen since 2007. We are now buying them aggressively. We firmly suggest you at least grab a few of these, at minimum, while they are available. SEE details and performance chart
Greece Can Teach The World A Needed Lesson - Steve Forbes
"Former US Presidential candidate and publisher of Forbes Magazine, Steve Forbes, used the platform of his magazine to pen an open letter to the prime minister and finance minister of Greece, Alexis Tsipras and Yanis Varoufakis. Here’s how you can put away your beggar’s cup for good.... Adopt your own 10% flat tax....Privatization....Stop trashing former Greek residents or those of Greek descent who want to help out by investing in Greece....Change labor laws that kill job creation....Don’t even think of abandoning the euro....And, for goodness’ sake, don’t pull a Cyprus and confiscate bank deposits."
The Surprising Power of Cash - Wired
"There’s a scene in It’s a Wonderful Life you might remember. The citizens of Bedford Falls descend on the Savings and Loan, demanding cash in hand. A beleaguered George Bailey explains that the money’s not actually in the bank; it’s tied up in various investments. Eventually, he talks most of them down. In the 21st century, though, and in Greece this week in particular, there is no George Bailey. In fact, in Greece this week there are no open banks. There are just ATMs. As economies crumble, so does the viability of the digital infrastructure that so much of the world has come to take for granted as the way money moves. The harder an economy is hit, the more valuable cash becomes. But as Greek citizens coming away from ATMs empty-handed can attest, it turns out that money and currency aren’t the same thing."
Excerpt from DON'T BANK ON IT!, “It’s a Wonderful Life”, page 195-196 ...
One theme of the 1946 Frank Capra movie “It’s a Wonderful Life” was Bailey being shown what his community would have been like if he and his little bank had never existed.
We are now beginning to see that alternative future in our own world, and what it portends is not pretty.
As our banks become mere middlemen for government money, how long will it be until government simply eliminates these middlemen and itself becomes America’s bank?
6.30.15 - Who will be the Next Greece?
Gold last traded at $1,171 an ounce. Silver at $15.58 an ounce.
NEWS SUMMARY: U.S. stocks traded higher Tuesday, recovering from the worst trading day of the year, as next Monday's deadline for Greece loan repayment approaches. Precious metals prices dip.
Greek Banks Closed, Capital Controls Imposed, reports WSJ.
"Greece shut down its banking system, ordering lenders to stay closed for six days starting Monday, and its central bank moved to impose controls to prevent money from flooding out of the country. The steps, a fateful climax to five years of debt crisis, put Greece closer than it ever has been to an exit from the euro and pushes the common currency itself into uncharted waters....'How can something like this happen without prior warning?' asked Angeliki Psarianou, a 67-year-old retired public servant, who stood in the drizzle after arriving too late at one empty ATM in the Greek capital." As Craig Smith and Lowell Ponte cover in DON'T BANK ON IT!, capital controls limiting bank withdrawals are coming worldwide, due to new international agreements put in place last year. Don't be left standing in line, instead plan a sound financial strategy now.
Greece give Fed another excuse to do nothing, reports CNBC.
"The spiraling Greek debt crisis might just be the cover the U.S. central bank, led by Janet Yellen, has been looking for to put off increasing interest rates, former Fed Gov. Larry Lindsey said Tuesday. 'They are going to use this as another reason to delay,' argued Lindsey, also director of the National Economic Council for President George W. Bush. 'The problem is all the [rate hike] delays haven't solved anything.'" As covered in The Biggest Bank Heist in History authors Craig Smith and Lowell Ponte do not expect the Fed will be in a position to raise interest rates in 2015 at all.
Next Greece may be one of these places in the U.S. reports Marketwatch.
"When Chicago Public Schools announced on June 24 that it would borrow $1 billion to make a $600 million-plus pension payment due June 30 an eerie feeling spread across bond investors and taxpayers alike. It was the same feeling that gripped investors when Moody’s Investors Service downgraded Chicago’s credit rating to junk based almost entirely on the city’s pension problems. In some places, like Puerto Rico, Illinois, New Jersey and Chicago, entire balance sheets of cities or states hang in the balance. Detroit, as well as three Californian cities - Vallejo, Stockton and San Bernardino - had to declare bankruptcy because of their overwhelming pension costs." Greece is not the only nation or state hopelessly deep in DEBT - nearly all of the major world powers are in the SAME boat - including the U.S., according to THE GREEK SHOWDOWN, a new White Paper available FREE by calling 800-289-2646
Debt Woes Hit Puerto Rico Streets, reports MiamiHerald.
"The signs of a struggling economy can be seen in the shuttered restaurants and bars in previously thriving Old San Juan. 'Were not going up or down; we're stuck,' said Rosa Arias, a spunky 70-year-old who stopped earning an income three years ago as a babysitter when the parents of those children lost their own jobs. 'I manage to eat and sleep, but that’s it. I live day to day.' Arias’ existence is part of the 'harsh reality' outlined Monday night by Gov. Alejandro García Padilla, who said the U.S. territory can’t pay back some $72 billion in public debt and called on Puerto Ricans to share in making sacrifices."
6.29.15 - Greek Chaos Hits Global Markets
Gold last traded at $1,179 an ounce. Silver at $15.69 an ounce.
NEWS SUMMARY: U.S. stocks, as well as stock exchanges worldwide, fell sharply Monday after Greek banks and stock markets were closed to stop money from exiting the country. News of the Greek crisis sent both the euro and U.S. dollar lower, while boosting precious metal prices.
Greek Banks And Stock Exchange In Shutdown, reports SkyNews.
"Banks in Greece and the country's stock exchange will be shut all week in a sign of the deepening financial crisis. The drastic move comes after people rushed to withdraw their cash amid panic ahead of the referendum on bailout terms. Speaking in a televised address on Sunday, Prime Minister Alexis Tsipras urged calm and insisted bank deposits were safe."
THE GREEK SHOWDOWN: A New White Paper by Craig Smith and Lowell Ponte asks ...
Are we witnessing “E-Day,” the day the Euro began to die?
After a fearful weekend that emptied the cash from almost half their nation’s ATM machines, Greeks on Monday morning found their stock exchange and banks closed and their accounts inaccessible (except for 60 euros per day ATM withdrawal starting Tuesday).
The Greek government has imposed emergency capital controls to prevent a full-blown bank run from bankrupting and destroying its financial institutions.
Greece may have just reached the breaking point to which we are headed in the United States – a once-free market nation where banks are now required to report you to the government for making any unusual withdrawal; where banks may now refuse to let you withdraw your account in cash; where former House Speaker Denny Hastert was arrested for failing to tell FBI agents what he had done with his own withdrawn money; and where carrying more than a small amount of cash might lead to government confiscation of your money via asset forfeiture laws.
In our new free White Paper THE GREEK SHOWDOWN, we explain how the events now underway in Greece and elsewhere are an ominous glimpse of our own possible future. We also share how individuals can protect their assets against the global avalanche that could be starting now in Greece. Full story
Greece could face social unrest soon, reports CNBC.
"Once there's social unrest, which there will be before too long if this thing continues, no tourist is going to want to go to [Greece]," billionaire Wilbur Ross told CNBC's "Squawk Box" on Monday. "If they vote 'no,' then the kind of chaos we've seen today will compound," Robert Hormats, former Goldman Sachs international vice chairman, said Monday in a separate CNBC interview. Ross said it's ironic that "Greece bought us democracy centuries ago, and now they're about to bring us chaos."
World defenseless against the next financial crisis, reports Telegraph.
"Monetary policymakers have run out of room to fight the next crisis with interest rates unable to go lower, the BIS warns. The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned. Claudio Borio, head of the organization’s monetary and economic department, said: 'Persistent exceptionally low rates reflect the central banks’ and market participants’ response to the unusually weak post-crisis recovery as they fumble in the dark in search of new certainties.' The BIS said that the current turmoil in Greece typified the kind of 'toxic mix' of private and public debt being used as a solution to economic problems, rather than making the proper commitment 'to badly needed' structural reforms. "
Investors Across the Globe run for Safety, reports Bloomberg.
"With a Greek exit from the euro zone suddenly a real possibility yet again, investors woke up Monday morning looking for a place to hide. Investors piled into debt from the U.S. and German governments as the traditional safe haven assets of financial markets proved their worth again.European stocks had their biggest plunge in almost four years, leading equity markets lower globally, on the hit to growth continued European turmoil could cause."
6.26.15 - Economy Continues to Teeter as Americans Worry
Gold last traded at $1,173 an ounce. Silver at $15.76 an ounce.
NEWS SUMMARY: U.S. stocks traded mixed on Friday amid worry over Greece's debt/default deadline next Tuesday. Precious metal prices rose on rising economic uncertainty, despite a firmer U.S. dollar.
French taxi drivers smash cars, protest Uber, reports Fox News.
Thursday French protests by taxi drivers against free market competition from Uber was in the news headlines. We also see Greeks protesting the proposed debt deal, which citizens fear will take away government handouts. Fox News host Neil Cavuto asked Swiss America Chairman Craig R. Smith what he makes of it. According to Mr. Smith, "What's going on in Europe is very predicable because the population has been raised on BIG government handouts and socialism. What we are seeing in France and Greece is coming to America!" Regarding the Supreme Court decision in favor of Obamacare, Smith sees this as 'crony capitalism' payoffs to big health insurers and warns the impact upon free market enterprise will be great. "I hope America does not go the way of socialism. As Frederic Bastiat said, 'Government is the great fiction, through which everybody endeavors to live at the expense of everybody else. We forget that government lives at the expense of all of us'."
Recession time bomb ticking faster, louder, reports Marketwatch.
"Yes, the clock’s ticking louder, louder, warns the Economist, 'only a matter of time before the next recession strikes.' Unfortunately, the 'rich world is not ready.' America’s not prepared. You are not ready. Get it? America’s 95 million investors are at huge risk. Remember the $10 trillion losses in the crash and recession of 2007-2009? The $8 trillion lost after the dot-com technology crash and recession of 2000-2003? This is the third big recession of the century. Yes, America will lose trillions again. Why is America so vulnerable when the next recession hits? Simple: The Fed’s cheap-money giveaway is killing America." We agree, the Fed has done incredible damage to the free market and the U.S. economic recovery with artificially low interest rates, as Craig Smith and Lowell Ponte explain in The Biggest Bank Heist in History.
Poll: 72% fear economic crash, concern 'highest ever', reports Washington Examiner.
"Concern over the economy is the highest I've ever seen," top GOP pollster Ed Goeas told the moderate Republican Ripon Society. He said 72 percent are worried about an economic downturn. "Republicans need to get into the game on better turf and that means talking in specifics about how we will bring the economy back and help create the jobs that go with real recovery," added pollster David Winston. Meanwhile, NY Times reports a "survey, conducted for the American Institute of Certified Public Accountants, found that the proportion of people delaying big decisions like buying a home or getting married had risen to 51 percent, from 31 percent in a similar survey in 2007, before the start of the financial downturn."
Chinese Gold Standard Could Create 'Fireworks', reports TheStreet.
"Could gold, the world's longest running currency be used to create a new order in global currencies? The Chinese central bank is said to be considering backing its yuan with the yellow metal. This move, says Ken Hoffman, global head of metals and mining research for Bloomberg Intelligence, would be a 'game changer.' Why would China consider such a move? Hoffman explains that Chinese policy makers are already trying to establish the yuan as a reserve currency, and backing it with gold would help attract foreign capital." In The Timeless Truth About Gold & Silver we explain why the best strategy for individuals to protect wealth is to put themselves on a personal gold standard now - before the 'fireworks' begin and prices rise.
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