Gold Standard News Daily - Real Money Blog
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8.4.15 - IS ZERO GROWTH THE NEW NORMAL?
Gold last traded at $1,090 an ounce. Silver at $14.56 an ounce.
NEWS SUMMARY: U.S. stocks drifted lower Tuesday weighed down by a bearish outlook for Apple stock and downbeat economic reports ahead of jobs data later this week. Meanwhile, precious metals prices steadied on bargain hunting despite a firmer U.S. dollar.
US Recession Imminent As Factory Orders Plunge -ZeroHedge
"For the 8th month in a row, US factory orders fell YoY. Down 6.2% in June, this is the longest streak of declining factory orders outside of a recession in history. MoM, factory orders rose 1.8% - as expected - the most since May 2014, but historical orders and shipments were revised lower. Inventories continue to rise leaving inventories-to-shipments ratios at cycle highs."
Welcome to the New Normal: Zero Growth - SwissAmerica
"In this, the weakest economic recovery since World War II, government claims of 200,000 jobs per month ring hollow – especially when the bulk of these are low-wage, hamburger flipper jobs with static wages that are killing America’s Middle Class. Dying, too, in today’s stagnant economy is the traditional American Dream of home ownership. This is especially true for those 34 years of age or younger who cannot buy a first home or new car with their low credit, average $27,000 in college loan debt to repay, and low incomes. A large proportion of Millennials have postponed starting a family, and for the first time in history America’s fertility rate has fallen below the needed 2.1 babies per couple replacement rate. At 1.84 babies per couple, we have now joined the downward death spiral to demographic doom seen in Western Europe and Japan."
Greeks lose their love of cash -Telegraph
"Greece’s banking crisis is having at least one positive outcome, and it’s made of plastic. In a country where cash is king and undeclared transactions still make up about a quarter of the economy, about one million debit cards have been issued by banks since the government closed lenders for three weeks and imposed controls on euro bills." THE GREEK SHOWDOWN explains why capital controls, such as Greek citizens have faced may soon become the new normal worldwide.
Uber Represents a New Kind of Capitalism -NewsMax
"A popular new kind of capitalism, 'the sharing economy,' is emerging in America, and those on the left are fighting among themselves over whether to embrace or attack it. Sharing economy services must compete without having government monopolies and therefore are more responsive and reliable than the taxis and hotels of government crony businesses that take customers for granted....This is the choice: Incentives so we work voluntarily, or threats, coercion and involuntary servitude. As Nobel laureate economist Milton Friedman said, 'There ain't no such thing as a free lunch.' Somebody - free market capitalist or unmotivated socialist slave - must produce the goods we want and need. The new capitalism produces more goods and more freedom."
Cybersecurity bill could 'sweep away' internet privacy -The Guardian
"The Department of Homeland Security (DHS) on Monday said a controversial new surveillance bill could sweep away 'important privacy protections', a move that bodes ill for the measure’s return to the floor of the Senate this week. The latest in a series of failed attempts to reform cybersecurity, the Cybersecurity Information Sharing Act (Cisa) grants broad latitude to tech companies, data brokers and anyone with a web-based data collection to mine user information and then share it with 'appropriate Federal entities', which themselves then have permission to share it throughout the government." In THE SECRET WAR, discover why, under threat of regulatory punishment, banks must now spy on you for the government.
8.3.15 - THE OBAMA ECONOMY FLAT-LINING
Gold last traded at $1,089 an ounce. Silver at $14.52 an ounce.
NEWS SUMMARY: U.S. stocks tumbled Monday after data showed manufacturing and construction spending slumped to fresh lows. Meanwhile, the U.S. dollar rose sending oil and commodity prices lower.
Fed may spark dreaded stock correction -CNBC
"The stock market could be poised for a 10 percent decline as the Federal Reserve gets ready to hike interest rates for the first time in nine years, BlackRock Global Investment Strategist Russ Koesterich told CNBC on Monday. 'I think there's going to be a better opportunity to buy this market over the next two to three months,' he said....Another economic hurdle comes on Friday, when the U.S. government releases the July employment report, which could sway this self-proclaimed, data-driven Fed. " As covered in The Biggest Bank Heist in History, the Fed's zero interest rate policy has successfully painted the U.S. economy and stock market into a near-zero growth corner.
Greek shares plunge as market reopens -BBC
"The main Athens stock index, the Athex, ended the day down by 16.23% as trading resumed after a five-week closure. The nation's top four lenders - Piraeus Bank, National Bank, Alpha Bank and Eurobank - fell the most, all down 30%, the maximum allowed. Banks make up about a fifth of the index. The bourse was shut just before Athens imposed capital controls at the height of the debt crisis." THE GREEK SHOWDOWN explains why this Greek tragedy is still far from over.
THE OBAMA ECONOMY IS FLAT-LINING...AND SOON MIGHT SPIRAL INTO RECESSION -PRBuzz
Forget the American Dream. Welcome to Progressivism’s American Nightmare - By Craig R. Smith and Lowell Ponte - "Our economy’s growth from 2011 through 2014 has grown by an unlucky 13% less than claimed – averaging a miserably weak 2.0% growth. This embarrassingly-low growth, remember, happened in an era when the U.S. Treasury and Federal Reserve were injecting perhaps $6 Trillion of stimulus into the economy – and this astronomically large expenditure, much of which must be repaid by our children and grandchildren, produced only 2% growth. We might have done better by simply sending a check for more than $20,000 to every American. In several of our books, including our latest, DON'T BANK ON IT!, we expanded our prediction and analysis of why all this Keynesian stimulus would in reality become an 'anti-stimulus'....Our economy is supposedly growing by 2.3% but is being eaten up by 1.8% inflation not fully factored into the government’s books. This might mean that our real annual 'growth' could be 0.5%. Welcome to the New Normal."
Kansas $25 ATM withdrawal limit for welfare recipients -Kansas.com
"Kansas plans to keep a controversial $25 limit on ATM withdrawals by welfare recipients, despite the possibility that the restriction might violate federal law. Legislation was passed earlier this year to raise the limit, or do away with it entirely, but a newly revised version of Kansas’ welfare plan does not permit withdrawals of more than $25 per transaction per day. Out-of-state purchases also will be blocked."
Centennial Monetary Commission Act Advances -NY Sun
"The decision of Congressman Jeb Hensarling and the House Financial Services Committee to move the Centennial Monetary Commission Act to the floor marks an important moment in the dollar crisis. The measure would set up a commission to review the performance of the Federal Reserve as it begins its second century. What we like about this bill is that it lays this question where it belongs: the Congress of the United States. No central bank can be expected to examine its own performance. The universities did not create the Fed. The question of the Federal Reserve belongs in the body to which the Constitution grants the enumerated monetary powers. The Congress is the body that created the Fed, and it is the only body that can revise its mandates."
7.31.15 - Why The War On Cash?
Gold last traded at $1,094 an ounce. Silver at $14.74 an ounce.
NEWS SUMMARY: U.S. stocks traded mixed Friday after disappointing earnings from Exxon and Chevron and weak U.S. wage growth data. The U.S. dollar fell which, together with month-end bargain hunting, helped to propel precious metal prices higher.
Fed's trillions haven't helped worker paychecks -CNBC
"The central bank printed $4.5 trillion and all we got was a lousy 0.2 percent wage increase. After years of easing never seen before in global central banking history, the Federal Reserve's efforts have amounted to little when it comes to stimulating 'good' inflation, particularly in terms of wage increases....Taken together, the numbers seem less an indication of the rip-roaring economy Fed stimulus was supposed to generate and more an indicator of the same old, same old: Outsized benefits to stock market investors and debt-heavy corporations, with little feeding back into the real economy." If all of this sounds familiar, it is because this is what our books and White Papers, such as The Biggest Bank Heist in History, have been warning about.
The War On Cash: Why Now? -Mises Institute
"What exactly does a 'war on cash' mean? It means governments are limiting the use of cash and a variety of official-mouthpiece economists are calling for the outright abolition of cash. Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash....Why Now?....Cash in hand cannot be chipped away by negative interest rates or fees....eliminating physical cash also eliminates the possibility of bank runs, as there will be no form of cash that isn't controlled by banks."
Who's Behind The War On Cash? - Research Report
The U.S. Government and Federal Reserve are fighting against cash on many fronts. Banks must now report cash withdrawal or deposit of $10,000 or more. Banks must also report to the government any financial behavior on your part it deems 'suspicious' or 'unusual.' In THE SECRET WAR, discover why...
* Under threat of regulatory punishment, banks must now spy on you for the government.
* Our government has made it risky to carry cash due to tougher asset forfeiture laws.
* 'Operation Choke Point' targets 30 types of businesses labeled as 'high-risk'.
Who needs the Fed? The rate hike cometh on its own -Reuters
"As traders, market pundits and economists jaw over whether the Federal Reserve this year will lift its benchmark lending rate for the first time in almost a decade, several corners of the U.S. bond market are not waiting around....Banks, money market mutual funds and other investors do not want to be stuck with low-yielding debt when the U.S. central bank finally does begin raising interest rates, something it last did in June 2006....The interest rate on three-month T-bills that mature on Sept. 17, when the Fed releases its next policy meeting statement, rose to almost 7 basis points on Thursday, the most in nearly 14 months."
About That Asterisk on Your Social Security Statement -National Review
"At first glance, the statement did not appear menacing. I was told I could expect to receive a benefit of 'about $2,136 a month' upon reaching age 70 - which certainly seems like good news. But immediately I thought of a parallel of President Obama’s infamous Obamacare promise: 'If you like your Social Security, you can keep your Social Security.' Then, as if on cue, I saw an asterisk with the following message: The law governing benefit amounts may change because, by 2033, the payroll taxes collected will be enough to pay only about 77 percent of scheduled benefits. I could not believe I was seeing the equivalent of what I was just thinking, but with a new twist, 'If I like my Social Security, I can keep 77 percent of it.'"
7.30.15 - Data Confirms Government & Fed Policy Failure
The Worst Expansion Since World War II Was Even Weaker -Wall Street Journal
"The economic expansion - already the worst on record since World War II - is weaker than previously thought, according to newly revised data. From 2012 through 2014, the economy grew at an all-too-familiar rate of 2% annually....While there have been highs and lows in individual quarters, overall the economy has failed to break out of its roughly 2% pattern for six years."
Is 1.5% Economic Growth in 2015 Enough? -FOX Business
Fox Business host Neil Cavuto asks Swiss America Chairman Craig R. Smith if he's encouraged or worried by recent economic numbers? According to Mr. Smith this is the slowest recovery since WWII. What concerns Smith most is that neither the Obama administration nor the Fed's fiscal policy is working. Today there is so much malinvestment - as a result of zero interest rate policy - and we are about to see those chickens come home to roost. Fed policy is creating massive distortions in the market. Smith's concern is that if we continue at the pathetic 2% growth rate (based on part-time work and record low participation), businesses will not have the confidence to invest and grow the economy. We need to get our fiscal house in order. Even former Fed Chair Alan Greenspan is worried by the growth of social spending from 15.5% in 2005 to 19.2% in 2014 ... and growing. To read the full story, request Mr. Smith's FREE Research Report The Biggest Bank Heist in History
Low rates are the problem, not the solution -Bill Gross, CNBC
"'Money for nothing' interest rate policies have failed, bond guru Bill Gross said in a broadside Thursday against global central banks. High-risk companies have been able to borrow on the cheap and stock markets have soared, but there's been little in the way of true investment to show for all the years of low rates, the Janus Capital fund manager said....In the fallout, Gross wondered what would happen to the 'zombie' companies issuing junk bonds, as well as those firms that have spent trillions on stock buybacks to boost share prices."
Tips for Catastrophe Protection -Miller on the Money
"Parenting never ends. My granddaughter bought her first car and asked me about insurance. She had two quotes: one with a $100 deductible and a second for $500 deductible. She was leaning toward the $100 deductible because 'it was only $10 more per month'. So why not take that option? I explained the higher premium policy buys an additional $400 in coverage and costs $120/year more. In a little less than 3.5 years and she would pay $400 in additional premium to the insurance company. Unless she planned to start wrecking a car every 3.5 years, it wasn’t a good investment. The lesson was simple, you self-insure for the small stuff, and buy insurance for the catastrophe." To discover the importance of "wealth insurance" against financial catastrophes read The Timeless Truth About Gold & Silver
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