Swiss America Blog Archive

5.19.16 - Fed Should "Pick One Lie and Stick With It"

Gold last traded at $1,254 an ounce. Silver at $16.49 an ounce.

NEWS SUMMARY: U.S. stocks fell again Thursday after the Fed signaled the possibility of a June interest rate hike. Meanwhile, precious metal prices eased back on a firmer U.S. dollar based on Fed rate hike expectations.

The Fed keeps Wall Street guessing on rate hike -NY Post
"The Federal Reserve needs to pick one lie and stick with it. The Fed upset the financial markets on Wednesday when it released the minutes of an April 26-27 policy meeting that showed an interest rate hike is still very much on the table for June. But wait just one New York minute. After that April meeting, the Fed strongly indicated something 180 degrees different - like a hike in June was very unlikely....So which is it, Yellen?....With Wednesday’s minutes, Wall Street is confused. So am I. If you think all that’s confusing, it’s going to get worse. Right now, it looks as if the economy in the second quarter is growing at a 2.4% annual rate and inflation is picking up, largely because Wall Street speculators are driving up the price of oil....The Fed’s next policy meeting will be June 14-15. Hold onto your hats before that one."

The Shift To A Cashless Society Is Snowballing -Valuewalk
"Love it or hate it, cash is playing an increasingly less important role in society. The rise of mobile and electronic payments means faster, convenient, and more efficient purchases in most instances. New technologies are being built and improved to facilitate these transactions, and improving security is also a priority for many payment providers."


"However, there is also a darker side in the shift to a cashless society. Governments and central banks have a different rationale behind the elimination of cash transactions, and as a result, the so-called 'war on cash' is on....Our view is that going digital should be an individual consumer choice that can be based on personal benefits and drawbacks. People should have the voluntary choice of going plastic or using apps for payment, but they shouldn’t be pushed into either option unwillingly. Forced banishment of cash is a completely different thing, and we should be increasingly wary and suspicious of the real rationale behind such a scheme."

Get the full story about the government's Secret War on Cash.

Global Elite Making Preparations for Post-Dollar World -USAWatchdog
"Macroeconomic analyst Rob Kirby says his rich clients around the planet are bracing for an inevitable economic calamity. Kirby explains, 'The people I know, that I would say are at the higher level of the food chain in the global world of finance, are hunkered down and making very serious preparations. What I see on a macro level is people acting like squirrels preparing for winter. They are burying nuts and gathering as much physical precious metals as they can. They are making preparations for a post-dollar world in terms of world reserve currency.'....Kirby says, 'The dollar is going to be kicked off its perch. That is a guarantee. It’s only a matter of time.' So, what are Kirby’s clients doing now? Kirby says, 'The universal message is people are trying to get, for the most part, as much of their assets into physical precious metals as they can. Precious metal is getting increasingly hard to buy.'"

To understand the stiff competition the dollar now faces to maintain its "exorbitant privilege" as world's reserve currency, read our new 2016 World Money Report.

American Eagle sales double in 2016 -Coinworld
"Cumulative sales by the U.S. Mint of American Eagle gold bullion coins are well ahead of 2015 levels, with 1-ounce coin sales totals more than double over the same time last year. According to the U.S. Mint's sales figures through May 16, the Mint recorded sales of 381,500 ounces of gold American Eagles....The Mint sold a record 47 million silver American Eagles in calendar year 2015, a number that could have been much higher if the Mint could have secured more planchets for production and sales were not cut off in mid-December so production could shift to 2016-dated coins."

Gold is a pure asset which you can own outright without any counter-party risk or liability. Discover why gold coins are the best asset of the year in our 2016 Gold Report - World Edition.

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5.18.16 -June Rate Hike Chatter Sinks Market

Gold last traded at $1,274 an ounce. Silver at $17.13 an ounce.

NEWS SUMMARY: U.S. stocks failed to stay in positive territory Wednesday after the Fed minutes revealed a June rate hike is still being considered. Meanwhile, the Fed's statement boosted the buck and pressured precious metal prices.

Fed Hawks make a stand, but doves still rule -CNBC
"Prior to Wednesday's release of the April Federal Open Market Committee minutes, the Street was skeptical that some of the recent tough talk would lead to action. The prevailing sentiment was that all of the Fed jawboning was likely just that - talk, trying to make sure the market doesn't get too complacent about the possibility of tightening at some point this year, according to multiple experts on the Street who believe the likelihood of a June move remains low. 'They're just trying to say, Listen guys, we're serious. We're going to raise rates twice this year,' said John Canally, chief economic strategist at LPL Financial. 'A lot of it is nudging. The Fed doesn't want to surprise the market.'....The probability for a June hike stood at 17 percent by midday but popped to 30 percent after being at just 1 percent a month ago."

Gold's Bigger Picture Revealed -SATC
Swiss America CEO Dean Heskin says the gold market is now reflecting the inescapable consequences of many years of bad government and central bank economic policies. "Between 2011 and 2015 we witnessed a flushing out of short-term gold speculators. In 2016, the economic tide changed - swelling gold prices by 20% and offering a valuable entry point for those who felt they had missed the 21st century gold rush," says Heskin. Gold price dips have offered wise buyers nine major gold buying opportunities since 2006 (see chart below). The average price rebound following major price dips over the last decade is 36%!

"2016 is yet another golden opportunity to add the safest asset on earth to your portfolio. I would not be surprised to see gold prices rise above $1,400 an ounce this year," said author and Swiss America Chairman Craig R. Smith. Full story

gold chart

Seize this golden opportunity today! Protect and grow your assets with precious metals. Call or register online now for a TIMELESS TRUTH ABOUT GOLD & SILVER kit.

Negative interest rates a stealth tax -Marketwatch
"Central banks have slashed interest rates to nothing. They have printed money on a vast scale. Where that has not quite worked, and if we are being honest that is most places, they now have a new tool. Negative interest rates. Across a third of the global economy, money you put in the bank does not only generate nothing in the way of a return. You actually get charged for keeping it there. That is already producing strange, Alice-in-Wonderland economics, where nothing is quite what it seems. Governments want you to delay paying taxes as long as possible, the mortgage company pays you to stay in the house, and cash becomes so sought after there is even talk of abolishing it....As a fascinating new paper from the St. Louis Fed argues, they are in fact a form of tax. They impose a levy on the banking system that has to be paid by someone - and that someone is probably us. That may explain why central banks and governments are so keen on them."

Soros dumps US stocks, buys gold - RT
"Billionaire George Soros has cut investment in US stocks by one-third and acquired a $264 million stake in the world’s biggest bullion producer, Barrick Gold, Bloomberg reports, quoting the investor’s fund data....'Gold is always a safe haven at times when risks for investors are escalating. It’s better to sit out turbulence with gold,' economist Natalya Volchkova told the Ridus news agency. 'Soros is killing two birds with one stone. He leaves to gold, when it is cheaper so that he could profitably get rid of it in future. At the same time, he leaves the more volatile dollar for a more stable asset,' she added....Many proponents of gold in the US are suggesting that the dollar should be backed by gold again."

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5.17.16 - Low-Tech Gold Outperforms High-Tech Apple

Gold last traded at $1,276 an ounce. Silver at $17.23 an ounce.

NEWS SUMMARY: U.S. stocks fell sharply Tuesday as rising consumer inflation data boosted the odds of a Fed interest rate hike this year. Meanwhile, precious metal prices rose on momentum buying and a weaker dollar.

Gold No Longer a Luxury, a Necessity -Holmes/Valuewalk
"Uncertainty over the world economy, not to mention central bank policy, continues to act as a major catalyst for demand, heating up the Fear Trade. With many countries currently locked in a global race to see who can devalue their currencies the fastest, investors are seeking better, more reliable stores of value, and gold is happy to oblige....This was the message shared by Wayne Allyn Root, the 'Capitalist Evangelist,' whose presentation I had the pleasure to see at the MoneyShow earlier this week in Las Vegas....At the MoneyShow, he packed the room with 1,400 people. Whole crowds turned out to hear him sermonize on entrepreneurship, individual rights and the importance of owning tangible assets such as precious metals and rare coins as a hedge against inflation and today’s uncertain financial markets. Owning gold, he said, is no longer a luxury, but a necessity."

Truer words have never been spoken. Why? "Gold is money, everything else is credit," said JP Morgan over a century ago. Over time paper currencies always return to their intrinsic value; zero. So stop thinking of gold as a luxury and start thinking of it as a necessary hedge of protection. Get all the facts, read our 2016 Gold Report - World Edition

gold vs apple Why Gold is a more valuable asset than Apple -Forbes
"Which is better, Apple Inc. or cold hard gold? Both have a place, it would seem. Both investments prompt emotions. But when it comes down to it, which one is a better bet? According to Adam Johnson, founder of Bullseye Brief newsletter, 'I will take gold, thank you very much.' Why? Apple stock is now an "Ishowme" value stock which is boring for now, until it begins to show some growth, says Mr. Johnson. 'But gold has withstood the test of time,' says Mr. Johnson. 'Gold is an asset class that has been around thousands of years and people ascribe value to it, for whatever reason.'"

It is ironic; the lowest tech asset on earth (gold) is now outperforming the highest-tech asset (Apple stock). Discover THE TIMELESS TRUTH ABOUT GOLD & SILVER.

Central banks debt dump deepens in 2016 -CNN Money
"China, Russia and Brazil sold off U.S. Treasury bonds as they tried to soften the blow of the global economic slowdown. They each sold off at least $1 billion in U.S. Treasury bonds in March. It's the fastest pace for a U.S. debt selloff by global central banks since at least 1978, according to Treasury Department data published Monday afternoon....'It's more of global fear than anything,' says Ihab Salib, head of international fixed income at Federated Investors. 'There's still this fear of everything is going to fall apart.'"

Craig R. Smith comment: "At this pace we can expect the Fed to create new debt to fill the hole, unless the government slows or stops its borrowing. With the U.S. still running a deficit, lawmakers will be pressed to look for other sources for revenue in order to continue spending money they do not have."

Banks to sue Feds to deny consumers their right to sue -LA Times
"Banks keep saying over and over that arbitration proceedings, as opposed to class-action lawsuits, are the best way for consumers to handle disputes. Yet faced with the prospect of no longer being able to deny consumers the right to sue them, the banking industry is expected to take the deliciously ironic step of suing the federal government....At issue is a proposed rule from the Consumer Financial Protection Bureau that would prohibit financial-services firms from placing clauses in contracts stipulating that customers can only arbitrate disagreements. 'Signing up for a credit card or opening a bank account can often mean signing away your right to take the company to court if things go wrong,' said Richard Cordray, director of the federal agency."

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5.16.16 - Bullion Bears backpedal as Banks Embrace Gold

Gold last traded at $1,274 an ounce. Silver at $17.17 an ounce.

Bullion Bears backpedal as Banks Embrace Gold

NEWS SUMMARY: U.S. stocks advanced 1% Monday as surging oil prices lifted energy and materials shares. Meanwhile, precious metal prices rose on bargain hunting and a weaker dollar.

Gold Rush: Central Bankers’ Wisdom Faulted -Bloomberg
"The great gold rush of 2016 is gathering pace. Holdings in exchange-traded funds have now surged by a quarter, with investors taking advantage of lower prices over the past two weeks to enlarge stakes on rising concern about central bank policy making worldwide. Gold is the best-performing major metal this year after silver amid rising concern over negative rates in Europe and Japan and whether the Federal Reserve will be able to tighten further. Demand jumped to the second-highest level ever in the first quarter, according to the World Gold Council, and billionaire hedge fund manager Paul Singer has said gold’s rally may just be beginning....Stan Druckenmiller, the billionaire investor, said this month while the bull market in stocks is exhausted, gold is his largest currency allocation....While central bank policies may have contributed to gold’s gains this year, some countries’ banks -- notably in China, Russia and Kazakhstan -- have also been substantial and consistent buyers."

Find out what big money knows about gold that you likely don't know by reading our 2016 Gold Report - World Edition

GoldvSilver Gold, Deflation, and the Panic of 1893 -Liberty Street Economics
"In the late 1800s, a surge in silver production made a shift toward a monetary standard based on gold and silver rather than gold alone increasingly attractive to debtors seeking relief through higher prices....The Sherman Silver Purchase Act of 1890, which required the government to buy an additional 4.5 million ounces of silver each month....The stock market crashed less than two weeks after the Treasury’s announcement...The aftermath was severe, with an estimated unemployment rate above 11 percent from 1894 to 1898....The Wizard of Oz, the 1900 book by Frank Baum, can be read as an allegory for the gold versus bimetal battle. Dorothy lives on a farm, impoverished by falling prices. The cyclone is the free silver movement carrying Dorothy to the East, where she follows a yellow brick road (the gold standard) to meet the all powerful Oz (ounce of gold). The Wicked Witch of the East (Cleveland) dies, leaving only magical silver slippers. Along the way to the Emerald City (Washington, D.C.), Dorothy meets the Scarecrow, representing the western farmer, who thinks he needs a brain but is actually smart enough to understand the debate over silver. The Tin Man is the working man, whose unemployment has caused him to lose his heart and to have rusted. The Cowardly Lion is Bryan himself, who roared at the convention with his Cross of Gold Speech, only to reverse and downplay silver in the 1900 campaign."

A century ago the biggest political debate was whether we should have both a gold and silver standard backing up our currency. Today we have nothing except misplaced confidence in government backing up our currency. Take the first step in putting yourself back on a gold and silver standard to protect your wealth by reading THE TIMELESS TRUTH ABOUT GOLD & SILVER.

Negative rates spark talk of bank confiscation -The Economist
"Charles Goodhart gave a talk in London on May 10th, at a lunch organized by Sushil Wadhwani, the economist and fund manager. Mr Goodhart, best known for his law that economic measures tend to misbehave once targeted, was tackling the issue of why repeated monetary stimulus by central banks had failed to stimulate credit creation. Mr Goodhart thinks that QE is a 'busted flush' - it worked in 2009 when it reduced the risk premium but has had little effect since. Negative rates have been tried but 'there is no sign that this move towards negative official rates has done anything to stimulate domestic economies, apart from the exchange rate effect.'....Negative rates might work, Mr Goodhart says, if governments announced outright that their aim was to reduce the nominal value of retail savings; this would give commercial banks the cover to introduce negative rates on deposits. But such a policy would be electoral suicide, alienating millions of bank customers and sparking talk of confiscation. Thus we have what might be deemed a new variant on Goodhart's law: 'The only way of making negative rates effective is politically impossible.'"

Negative interest rates and the growing international “War Against Cash” are happening now because cash has become intolerably dangerous to the giant economic illusion built upon debt. Get the full story by reading our Special Report The Secret War on Cash.

Chinese Bank to Buy Giant London Gold Vault -Wall Street Journal
"ICBC Standard Bank PLC said on Monday it is buying Barclays PLC's precious-metals vault, in the latest move by the Chinese bank to increase its role in the market’s infrastructure. The move makes parent ICBC, the world’s biggest bank, the first Chinese lender to own a vault in London and extends its influence in precious metals from pricing to storage....The vault, one of the largest in Europe, stores gold, silver, platinum and palladium. 'This is an exciting acquisition for the Bank,' said Mark Buncombe, head of commodities at ICBC. 'This enables us to better execute on our strategy to become one of the largest Chinese banks in the precious metals market.'"

Biggest Monetary Experiment in History = Biggest Collapse In History -Zero Hedge
"After making over $1 billion in one day last August, and warning that 'the markets are overvalued to the tune of 50%,' Mark Spitznagel knows a thing or two about managing tail risk. The outspoken practitioner of Austrian economic philosophy tells The FT, 'Markets don't have a purpose any more - they just reflect whatever central planners want them to,' confirming his fund-management partner, Nassim Taleb's perspective that 'being protected from fragility in the financial system is a necessity rather than an option. This is the greatest monetary experiment in history. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable.'"

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5.13.16 - Equity Exodus, Dollar Demise Fueling Gold Rush

Gold last traded at $1,272 an ounce. Silver at $17.08 an ounce.

NEWS SUMMARY: U.S. stocks fell sharply Friday as a decline in oil prices added pressure after gloomy retail earnings. Meanwhile, precious metal prices rose nearly 1% on safe haven buying despite a firmer dollar.

Equity exodus intensifying -Marketwatch
"As Wall Street analysts beat their heads against a wall trying to figure out the stock market’s direction, investors are cutting loose of equities and jumping into the perceived safety of gold and bonds. Equity outflows totaled $7.4 billion, the fifth straight week of losses, in the five weeks ended May 11, according to Bank of America Merrill Lynch’s Flow Show, released Friday. A breakdown of that shows $4.8 billion flowed out of mutual funds and $2.7 billion from exchange-traded funds. Selling also hit a record. Over the past five weeks, $44 billion has flowed out of equity funds, the largest redemption period since August 2011, when global stock markets fell sharply after Standard & Poor’s downgraded the U.S.’s credit rating."

U.S. Dollar Collapse 2016 -AMTV
In today's video, Christopher Greene of AMTV reports on the U.S. Dollar Collapse 2016. In this SPECIAL Report, we cover why it is so VALUABLE to have an asset allocation in the most important bucket; Gold. With uncertainty in our Stock Market and the average business cycle only lasting 5-8 years - we are now in year 7 - it is only a matter of time before there is a REVERSION to the mean. Unfortunately, unlimited Money Creation at the Fed and the THREAT of Negative Interest Rates poses great challenges ahead… What should we do to prepare? Christopher breaks it down, hard-hitting and in your face as usual. Watch

Global monetary elites buying gold -Rickards/Business Insider
"The gold debate is usually conducted between global monetary elites who disparage gold and so-called 'gold bugs' who stack coins in their basements awaiting the end of the world. Both sides go too far. But what happens when a bona fide member of the elite endorses gold? That's an earthquake, and it just happened! Kenneth Rogoff, Harvard professor, chess grandmaster and author of the widely acclaimed book This Time Is Different, just sent shock waves through the global elite by recommending that emerging-market central banks buy gold to diversify their portfolios away from dollar holdings. And JP Morgan's Private Bank is also recommending its clients 'position for a new and very long bull market for gold.' When elites say dump dollars and buy gold, what are you waiting for?"

Vietnamese bank hit by cyber heist -Financial Times
"Experts said on Friday that a Vietnamese bank was recently robbed by cyber criminals, using similar methods to this year's record digital theft at the Bangladesh central bank and a 2014 data breach at Sony....The researcher said the hacker's techniques mirrored those used to steal vast amounts of client data from Sony, the Japanese entertainment group, an attack initially blamed on North Korea. The Brussels-based company warned of a 'wider and highly adaptive campaign targeting banks'....The transfers totalled $951m but the thieves made off with only $81m - making it one of the world's top 10 bank thefts. The money was sent in four batches to accounts in the Philippines."

Question of the day: Do you know where your money is right now? I bet you thought it was safely deposited in your local bank. Not so. Over 98% of your savings exists only in a bank's computer system, which is hackable, trackable and taxable. In fact, "the bank we trust to safeguard our money now may be one of the riskiest places to put it," says author Craig R. Smith.

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5.12.16 - The Ultimate Global Uncertainty Hedge

Gold last traded at $1,263 an ounce. Silver at $16.95 an ounce.

NEWS SUMMARY: U.S. stocks traded mixed Thursday after Apple fell to a two-year low and healthcare stocks tumbled. Meanwhile, precious metal prices consolidated recent gains as the dollar rebounded slightly.

Ryan and Trump's golden opportunity -NY Sun
"When Speaker Ryan and Donald Trump meet in Washington, they should seek to reconcile dueling agendas. One goal they both embrace is the need for stronger economic growth and more job creation....America is the only country in a position to exercise the global leadership needed to begin constructing a stable international monetary system. Mr. Trump advocates taking on our major trading partners one-by-one, calling them out as monetary manipulators, and his strategy resonates with displaced workers. But we are fast approaching a critical moment for the future of free trade. It’s time to think bigger and more strategically. Governor Pence of Indiana may have proposed the beginning of a solution. Speaking before the Detroit Economic Club in 2010, he linked sound monetary policy with the restoration of free market principles. Noting that 'a debate is starting anew over an anchor for the global monetary system,' Mr. Pence stated that he agreed with those who 'encouraged that we re-think the international currency system, including the role of gold.' For Messrs. Ryan and Trump, it's a golden opportunity."

Both Trump and Ryan are open to dealing with the root issue of free trade and currency manipulation; the need for morality in our money system. Gold is the original 'moral money' which could become the economic savior of the world, as Craig Smith explains; "Gold is returning to the forefront of universal value, enduring appeal, and timeless safe haven protection."

Gold Demand for gold on the rise amid uncertainty in global markets -Hindu Business
"The charm in the yellow metal seems to be increasing as gold prices have risen by more than 20 per cent in the international as well as the domestic market in 2016, clearly indicating the rising investment appetite for the metal. Besides, a fall in global equities, inflows into bullion funds, buyers’ interest in dips for the yellow metal, concerns over financial instability, and economic growth, have all been important factors for the recent rise in gold prices. Investment demand for gold has seen bright prospects in 2016. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, has seen inflows this year as investors change their appetite to the safe haven metal."

All roads are leading to gold this year. Begin putting yourself on a personal gold standard NOW - before the stampede pushes the price out of reach. Call 800-289-2646 and request THE TIMELESS TRUTH ABOUT GOLD & SILVER Special Report.

War on Cash: Larry Summers now wants to kill $50 bill -Economic Collapse News
"Writing in an op-ed in the Financial Times over the weekend, Summers lauded the European monetary authority for getting rid of the high-denomination banknote. He argued that since the 500-euro banknotes do not provide any 'legitimate' use then it was a wise move by the ECB, one that should be considered by central banks around the world....The former Obama economic advisor says the ECB has 'taken the lead on a significant security issue,' and that the rest of the world should do the same. Therefore, he wants Switzerland to stop issuing 1,000 franc notes and the U.S. to stop producing notes with values greater than $50. Indeed, this isn’t the first time that Summers has perpetuated the war on cash. Earlier this year, he called for the end of the $100 bill. Much like in the FT op-ed, he averred that it would stop illegal activities and protect ordinary people....Cash is king for a reason. Cash prevents an invasion of privacy, cash ensures anonymity in your transactions and cash stops the government from tracking and monitoring your every move."

The trend is clear; first the 500 Euro note is banned, next comes the $100 U.S. bill, and now even the $50 bill is under attack. Where will it stop? Find out by reading our free report The Secret War on Cash.

Weak consumers may be the 'black swan' for the economy -CNBC
"We are in the midst of a deceleration in the economy, and the chain of dominoes leading to a recession has started to fall. First, it was a weak global economy. Then, multinationals and business-to-business companies were hit by the resulting decline in global trade and commodity prices. Now, consumers are starting to feel the repercussions as they draw down their growth in spending on discretionary goods and services, which we saw reflected in the first-quarter GDP report. This is the foreshadowing of a recession. We saw similar indicators prior to recessions in 2001 and 2008. Although there is potential for economic indicators to flip, the current momentum and indicators suggest that the U.S. economy will get worse before it gets better. But we now we have a sense of what the black swan will be for the economy: the weak consumer."

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5.11.16 - It's Official: Gold Enters a Bull Market

Gold last traded at $1,275 an ounce. Silver at $17.31 an ounce.

NEWS SUMMARY: U.S. stocks fell Wednesday as disappointing earnings reports from Macy's, Disney and other retailers sparked declines. Meanwhile, precious metal prices rose on a sharply weaker U.S. dollar.

Gold has entered a new bull market: JPMorgan -CNBC
"Gold prices are surging this year, and that has one of Wall Street's largest banks flocking to the yellow metal.'We're recommending our clients to position for a new and very long bull market for gold,' JPMorgan Private Bank's Solita Marcelli said Tuesday on CNBC's 'Futures Now.' After seeing three back-to-back years of losses, the precious metal has rallied 20 percent in 2016. And that's just the start of the next leg higher, according to Marcelli. '$1,400 is very much in the cards this year.'....The firm's global head of fixed income, currencies and commodities reasoned that, with so many negative interest rate policies around the world, gold will continue to be bought as an alternative currency....'Gold is looking more and more attractive every single day,' concluded Marcelli."

It's nice to hear prestigious banking professionals confirm the obvious on CNBC. The forces driving precious metal prices up this year are so pervasive that even bankers can no longer ignore them. Swiss America has outlined all of these major forces driving metals higher this year in one comprehensive report, 2016 Gold Report - World Edition.

The War On Paper Currency Officially Begins -Zero Hedge
"Following the denial in February that this action is in any way about reducing cash, The ECB has made its decision on the EUR500 Bill: *ECB ENDS PRODUCTION AND ISSUANCE OF €500 BANKNOTE ...*ECB SAYS ISSUANCE OF EU500 NOTE TO STOP AROUND THE END OF 2018....Former Standard Chartered CEO Peter Sands who just last week said the U.S. should ban the $100 note as it would 'deter tax evasion, financial crime, terrorism and corruption.' Who really needs the Benjamins, right? Well, here's the thing: As the chart below shows, $100 bills account for for $1.08 trillion of the $1.38 trillion total in circulation. So should the Fed react to the ECB's 'scrapping' of the €500 bill, which accounts for 30% of the value of currency in circulation, then the Fed would respond in kind, by eliminating 78% of all paper currency in circulation by value. Not a bad way to launch a global ban on paper currency ahead of a global NIRP regime, and all, of course, in the name of fighting 'tax evasion, financial crime, terrorism and corruption.'"


Did you know the total currency in the U.S. financial system is $1.38 Trillion? Even more amazing; that's less than 1% of the total "money" in the financial system. So removing $100 bills would cut the the percentage of circulating cash by almost 80%. The “War Against Cash” is happening because cash has become intolerably dangerous to the giant economic illusion built upon debt. Get the full story by reading our Special Report The Secret War on Cash.

Gold Rally Just Beginning -Bloomberg
"Billionaire hedge fund manager Paul Singer said that gold’s best quarter in 30 years is probably just the beginning of a rebound as global investors -- including Stan Druckenmiller -- weigh the ramifications of unprecedented monetary easing on inflation. 'It makes a great deal of sense to own gold. Other investors may be finally starting to agree,' Singer wrote in an April 28 letter to clients. 'Investors have increasingly started processing the fact that the world’s central bankers are completely focused on debasing their currencies.'.... If investors’ confidence in central bankers’ 'judgment continues to weaken, the effect on gold could be very powerful,' Singer wrote in the letter. 'We believe the March quarter’s price action could represent something closer to the beginning of such a move than to the end.'"

Trump’s economic plan promotes growth -USA Today
"Nearly every poll shows that by a more than 2-to-1 ratio, Americans think the country is headed in the wrong direction. It’s no mystery why. Obamanomics has given us the weakest economic recovery in 75 years. Wages are flat or falling for all but those in the top 10%. And our national debt has risen by almost $8 trillion in seven years. What we are doing now isn’t working for the middle class....Trump will cut our business tax from the highest in the world down to 15%, making our rate one of the lowest. This will bring businesses that have been stampeding out of America....Small businesses, the backbone of our economy, will see their tax rate fall from close to 40% to 25%."

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5.10.16 - Gold More Productive Than Cash?

Gold last traded at $1,264 an ounce. Silver at $17.09 an ounce.

NEWS SUMMARY: U.S. stocks traded 1% higher Tuesday, helped by weakness in the yen against the dollar and gains in oil prices. Meanwhile, precious metal prices exhibited strength by rebounding despite profit-taking and a firmer dollar.

Gold has every reason to rise -Marketwatch
"Hedge fund manager Stan Druckenmiller was wildly bullish on gold and bearish on the stock market. He also was concerned about corporate debt and the Fed's endless easy-money policies. While I question the timing of a stock market crash, all signs do point toward a higher price for gold, both in the near term and my lifetime, during which I expect a five- to 10-fold increase in price. Negative interest rates, more of the Fed’s quantitative easing (QE) and a race to devalue every major currency in the world are quite bullish for gold....Whether it's Trump, Clinton or anybody else in the White House, these trillions of dollars of economic movement and debt and financial engineering from governments and corporations and wars and starvation and natural disasters and the risk of our Internet/electrical/defense networks failing and so on ... the fundamentals can't be undone now."

gold Gold More Productive Than Cash?! -Merk Investments
"As we have pointed out many times in the past, it's not gold that's good or bad. Gold doesn't change - it's the world around it that does. We believe an investment in gold should be looked at in the context of an overall portfolio construction. There, one should look at the expected risk and expected return of any asset one considers including in a portfolio....Before we settle the discussion on gold being 'unproductive,' let's clarify that cash isn't productive either: the twenty-dollar bill in your pocket won't earn you any interest either. To make cash productive, you need to put it at risk, if only to deposit it at a bank....When real rates of return on cash are negative, it may be appropriate to say gold is more productive than cash."

The old argument which claims gold is a non-productive asset - often espoused by Warren Buffet, Dave Ramsey and countless other "friends of paper money" - no longer holds water in today's negative interest rate world. Furthermore, the primary purpose of owning gold is not for a return at all, but rather as insurance against failed returns on other assets in your portfolio. Gold is a pure asset which you can own outright without any counter-party risk or liability. Discover why gold is the best asset of the year in our 2016 Gold Report - World Edition.

Dollar Competition Makes Financial System Stronger? -Wall Street Journal
"Federal Reserve Bank of New York President William Dudley said Tuesday he would welcome more currencies achieving reserve status, noting the more countries that meet the requirements, the more insulated the financial system could be from destabilizing capital flights. 'Will more reserve currencies strengthen the international monetary system? My answer can be summed up in one word: yes,' said Mr. Dudley in remarks prepared for the High-Level Conference on the International Monetary System in Zurich. 'As I see it, a successful reserve currency needs to satisfy a number of conditions.…I think that the U.S. dollar satisfies these general criteria,' he said."

With all due respect, Mr. Dudley is sadly mistaken. Ever since the golden anchor was cut by Nixon in 1971, the U.S. dollar has been adrift. Today's buck fails the ultimate test of a sound money system; to maintain a store of value. To understand the stiff competition the dollar now faces to maintain its "exorbitant privilege" as world's reserve currency, read our new 2016 World Money Report.

Triggers for a new financial crisis -Independent
"There are a number of potential triggers to a new crisis. The first potential trigger may be equity prices....The second potential trigger may be debt markets....A third possible trigger may be problems in the banking system fed by falling asset prices and non-performing loans....A fourth potential trigger may be changes in liquidity conditions exacerbate stress....A fifth potential trigger will be currency volatility and the currency wars....A sixth potential trigger may be weakness in global economic activity....A seventh potential trigger may be a loss of faith in policy makers....A final trigger is political stress."

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5.9.16 - Did Slow Job Growth Kill the Fed Rate Hike?

Gold last traded at $1,266 an ounce. Silver at $17.09 an ounce.

NEWS SUMMARY: U.S. stocks struggled for gains Monday as falling oil prices hurt energy, materials shares. Meanwhile, precious metal prices back pedaled on technical selling and a firmer U.S. dollar.

Central Banks Scramble For Gold -Rickards/Telegraph
"For a century, elites have worked to eliminate monetary gold, both physically and ideologically....After decades as net sellers of gold, central banks became net buyers in 2010. A scramble for gold has begun. What drives gold’s new allure? In some cases, central banks are constructing a hedge against US dollar inflation....The Chinese yuan and Russia ruble are not true reserve currencies. The only feasible benchmarks for a new system are the IMF’s world money, called special drawing rights, and gold. Critics claim there is not enough gold to support the financial system. That’s nonsense. There is always enough gold, it’s just a matter of price. Based on the M1 money supplies of China, the eurozone, and the US, and with 40% gold backing, the implied non-deflationary price of gold is $10,000 per ounce."

If you have yet to buy gold, NOW is the time - before the madness sets in. This price correction may be the most forgiving opportunity for procrastinators in history. Get all the facts in our 2016 Gold Report - World Edition.

CAT Job growth could kill Fed rate hike -Crudele/NY Post
"Job growth fell hard in April as the government’s employment numbers confirmed the disappointing reality already self-evident on nearly every Main Street across the US. The economy was a loser this spring, and the statistical proof of this is catching up with reality....I have been predicting a June rate hike, and that has been the consensus in the financial markets. The April jobs report makes such a move much more difficult. Maybe even impossible."

The Fed is now trapped in a zero-interest world of their own creation. This comes as no surprise to our regular readers. We have explained in recent books that zero interest equals zero economic growth; or stagnation. Add rising inflation into the mix and you have the worst of both worlds - stagflation - which is discussed in a recent featured commentary by Jim Carrillo.

Falling Dollar a Risky Premise for Rally in Other Assets -Wall Street Journal
"The powerful rallies that have lifted stocks, crude oil and emerging markets for the past three months have one important thing in common - the falling dollar - and investors are growing anxious that it could prove to be the weak link. While the dollar is down 4.5% this year and near a one-year low against a basket of currencies, other investments have surged. U.S. crude prices are up 69% from their February lows. Gold was up 16.5% in the first quarter, its best in three decades....'Currency is the most influential factor for markets this year,' said Graham Secker, head of European equity strategy at Morgan Stanley. 'If the dollar starts moving higher, global risk appetite will fall.' On Friday, Labor Department figures showing that U.S. job growth slowed in April kept alive the bet on riskier markets. The data gave the Federal Reserve little reason to raise interest rates soon, economists said."

Repeal Dodd-Frank!
"Thanks to the media, many Americans believe that the financial crisis was a result of banking deregulation. A new study delivers a thorough debunking of that idea. A group of respected think tanks - the Heritage Foundation, the American Enterprise Institute, the Cato Institute and the Mercatus Center - has issued a 208-page book titled 'The Case Against Dodd-Frank: How The "Consumer Protection" Law Endangers Americans.' It’s a devastating indictment of the law....To fix the damage, the study suggests three reforms: Close Fannie Mae and Freddie Mac...Stop Fed bailouts...Kill the Consumer Financial Protection Bureau. In large part due to Dodd-Frank, the U.S. economy has fallen from 3% growth before Obama, to a pathetic 2% growth now. The first step to restoring our lost economic mojo is to kill Dodd-Frank once and for all."

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5.6.16 - Hiring Hits 7-Month Low - Rate Hike in Doubt

Gold last traded at $1,288 an ounce. Silver at $17.47 an ounce.

NEWS SUMMARY: U.S. stocks eked out modest gains Friday despite disappointing jobs data. Meanwhile, precious metal prices rose over 1% as the U.S. dollar resumed its downward trend.

Why Gold Is Hot Again -Bloomberg
"Gold broke the $1,300-an-ounce barrier this week for the first time since January 2015. Why do people want it? Typically seen as a barometer for skepticism about the modern financial system, bullion is notoriously hard to value...Gold's gains this year have come as a surprise. The Federal Reserve's inflation-fighting interest rate increase in December, the first in nearly a decade, looked to be the final nail in gold's coffin, yet real yields in the U.S. have declined in the wake of the central bank's move. That lowers the opportunity cost of holding gold (which has a nominal yield of zero) relative to Treasuries, making the metal more attractive to investors. Negative yields on sovereign debt in some parts of Europe, as well as in Japan, further bolster the case for gold as an alternative safe haven asset."

Wise citizens of virtually every country on earth are embracing gold because they intuitively know it is a trustworthy form of alternative money. As JP Morgan said, "Gold is money. Everything else is credit." When governments and central banks fail to create public confidence, gold shines brighter - because gold creates confidence, rather than relying upon confidence. For those seeking further evidence, please read 2016 Gold Report - World Edition

Pat The Unreported Truth Behind Today's Jobs Report -HedgeEye
"Despite financial media headlines trumpeting 'Everything You Need To Know' about today's jobs report, the Old Wall media missed the most obvious story of all. Digging a tiny bit deeper reveals the real story. Job growth peaked in February 2015. It's been all downhill ever since. Sure, we all know job growth slowed to 160,000, well below the 200,000 number Wall Street economists were predicting. Blah, blah, blah..."

Payrolls Miss Huge: April Jobs Rose Only 160K -Zero Hedge
"It appears that the Fed is now officially 'one and done' because the only indicator that until recently 'confirmed' a 'strong recovery', non-farm payrolls, just had a major stumble....Looking at the job quality, while part-time jobs declined by 21K, it was the full-time jobs that saw a major drop of 253K in April, confirming that the US simply can not sustain normal, 'full-time' job growth."

The Political War on Cash -Wall Street Journal
"The real reason the war on cash is gearing up now is political: Politicians and central bankers fear that holders of currency could undermine their brave new monetary world of negative interest rates. Negative rates are a tax on deposits with banks, with the goal of prodding depositors to remove their cash and spend it to increase economic demand. But that goal will be undermined if citizens hoard cash....By all means people should be able to go cashless if they like. But it's hard to avoid the conclusion that the politicians want to bar cash as one more infringement on economic liberty. They may go after the big bills now, but does anyone think they'd stop there? Why wouldn't they eventually ban all cash transactions much as they banned gold and silver as mediums of exchange? Beware politicians trying to limit the ways you can conduct private economic business. It never turns out well."

Yes, physical cash has become the great Achilles’ Heel of the financial system because 99% of today's money exists only in computers! Get the full story by reading The Secret War on Cash.

New Rule Would Make It Easier For Consumers To Sue Banks -NPR
"Many credit card and loan agreements these days have in the small type what's called a 'mandatory arbitration clause.' Most people don't even know what that means. But by signing, customers agree not to sue the financial firm in a class action lawsuit. Instead, they agree to work out any problem with an arbitrator hired by the bank. 'The company can sidestep the legal system, avoid accountability, and continue to pursue profitable practices even if they may violate the law and harm thousands or even millions of consumers,' says Richard Cordray, the director of the Consumer Financial Protection Bureau. The CFPB on Thursday proposed a rule that would ban a range of financial firms from using this tactic to avoid lawsuits."

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5.5.16 - Gold Trumps Global Economic News

Gold last traded at $1,272 an ounce. Silver at $17.32 an ounce.

NEWS SUMMARY: U.S. stocks struggled to hold gains Thursday as oil prices came off highs and investors await key jobs data due Friday. Meanwhile, precious metal prices were steady despite a modest dollar rebound from 16-month lows.

Get out of the stock market, own gold -CNBC
"Legendary billionaire investor Stanley Druckenmiller told Sohn Investment Conference attendees to sell their equity holdings Wednesday....'The conference wants a specific recommendation from me. I guess "Get out of the stock market" isn't clear enough,' said Druckenmiller from the conference stage in New York. Gold 'remains our largest currency allocation.'....'The Fed has borrowed from future consumption more than ever before. It is the least data dependent Fed in history. This is is the longest deviation from historical norms in terms of Fed dovishness than I have ever seen in my career,' Druckenmiller said. He believes U.S. corporations have not used debt in productive investments, but instead relied on financial engineering with over $2 trillion in acquisitions and stock buybacks in the last year."

Mr. Druckenmiller is spot on in his analysis of our deviated Federal Reserve and deceptive stock market - which have created a perfect storm and golden opportunity in 2016. Learn more about the Gold Rush of 2016, read our 2016 Gold Report - World Edition.

Trump Gold Investors – and Donald Trump – are loving gold -The Guardian
"Two phenomena that pundits said would almost certainly never happen have taken place this week: Donald Trump clinched the Republican presidential nomination, and the price of gold capped a 15-month rally by soaring above $1,300 an ounce. Coincidence? Logic would suggest so. But then, this is anything but a logical market environment or presidential electoral cycle. And there are, in fact, several ways in which gold is the ultimate Trumpian investment....The prospect of a Trump presidency might cause gold to glitter a little more brightly. There’s the fact that the presumptive Republican candidate has hinted that he kind of likes the idea of the gold standard. 'We used to have a very nice country because it was based on a gold standard and we do not have that any more,' Trump said. Many Republicans love the idea of returning to the gold standard, making this possibly one of a tiny handful of areas in which Trump can find common ground with the rest of the party that he will lead into the November election."

Love him or hate him, Trump is an equal opportunity offender. Will he upturn the status quo apple cart in Washington and on Wall Street? Will he end the Fed’s war on cash, savers and retirees? Stay tuned. And what would a Clinton presidency mean for gold? Bigger government, more taxpayer handouts and more economic uncertainty. Gold wins either way. Be a financial winner next November by electing to make a wise decision now to hedge against the vote's economic impact. Read our White Paper, Hedging the Election

Why China is loading up on gold -Business Insider
"If China is buying gold, what should you do? China recently launched a new yuan-based benchmark price for gold bullion. The Shanghai-based gold benchmark will compete with London, where the world’s daily gold price has been set for years. As the world’s largest gold miner and importer, China wants to have more influence over the price of the precious metal....For some reason, the People’s Bank of China (PBoC) is secretive about how much gold it owns...A popular theory is that the PBoC is hoarding gold as part of a plan to convert the yuan to the gold standard and supplant the dollar as the default global currency....Under the gold standard, the value of a country’s currency is directly linked to, or 'backed' by gold. (The U.S. dollar was on the gold standard as recently as 1971.) If backed by gold, paper money can, in theory, be exchanged for a fixed amount of gold. For example, China could set the price of gold at US$1,000 an ounce and make the value of a yuan equal to 1/1000 of an ounce of gold. You could then walk into a bank with 1000-yuan worth of bank notes, and leave with a one-ounce piece of gold."

China hopes to make an end run around the U.S. dollar and usurp the buck's status as the world's reserve currency. We discuss the details of this plan in our 2016 World Money Report.

Islamic 'Shariah Gold Standard' Could Send Price Soaring -Gulf Times
"So far, Islamic investors have been reluctant to invest in gold because to do so, they would need the metal in physical form as an underlying asset, which is rarely the case in conventional gold trade. Because of that, broadly traded gold futures do not qualify as a Shariah-compliant investment....London-headquartered World Gold Council (WGC), together with Kuala Lumpur-based Amanie Advisors, an independent advisory firm on Shariah investments and the Accounting and Auditing Organization for Islamic Financial Institutions in Bahrain, now have been developing a 'Shariah Standard on Gold' which aims at 'providing guidance from the Shariah perspective on the usage of gold in financial and investment transactions for Islamic financial institutions and participants,' as WGC head Natalie Dempster puts it. The draft for the gold standard tries to compromise on the conflict over whether gold is a commodity or a currency and says it is both....If the standard goes through, it could definitely shake the gold market as Islamic financial institutions around the world, which hold around $2tn in assets and are expected to double that asset base up to 2020, would certainly unleash large funds to participate in the Shariah-compliant gold trade and represent a tremendously bullish force for the metal’s price with demand coming from investment funds, wealth managers, retail banks, liquidity managers, treasurers and takaful institutions."

Did you catch that? $2 Trillion in assets in the Muslim world could shift into gold. It should be clear that the world is systematically moving toward a gold standard. All roads are leading to gold. So why wait? Begin putting yourself on a personal gold standard NOW - before the stampede pushes the price out of reach. Please take action now, call 800-289-2646 and request THE TIMELESS TRUTH ABOUT GOLD & SILVER Special Report.

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5.4.16 - Slowing Growth Puts Banks & Dollar At Risk

Gold last traded at $1,274 an ounce. Silver at $17.30 an ounce.

NEWS SUMMARY: U.S. stocks continued to wade into the red Wednesday in the wake of weak economic reports. Meanwhile, precious metal prices slipped as the dollar firmed on Fed rate increase hawkishness.

The Central Bank War On Savers -Zero Hedge
"The central bank war on savers is rooted in a monumental case of the Big Lie. Here is what a retired worker who managed to save $5,000 per year over a 40 year's lifetime of toil and sweat in a steel factory now earns in daily interest on a bank CD. To wit, a single cup of cappuccino. Yet the central bankers claim they have absolutely nothing to do with this flaming economic injustice. That’s right. A return that amounts to one Starbucks’ cappuccino per day on a $200,000 nest egg is purportedly not the result of massive central bank intrusion in financial markets and pegging interest rates at the zero bound; it’s owing to a global 'savings glut' and low economic growth....Ironically, these baleful conditions were caused by central bankers. Now they want to punish savers for the consequences of their epic errors."

Speaking of punishing savers. Today you may be suspected of a crime simply by depositing or withdrawing your own cash! As we discuss in our free report The Secret War on Cash... "Your bank is under threat of regulatory punishment if it does not spy on you for the government. The government, so far as we know, gives only vague guidelines, not exacting standards, as to what in your finances might be unusual or suspicious."

growth Precarious Global Growth -Hedgeye
"The evidence is obvious to even casual observers by now. U.S. GDP continues its slow slide toward zero, Europe is struggling to beat back deflation, Japan is desperately flailing just to stay afloat, while the Chinese politburo releases phony, albeit still declining, growth numbers. As a result... global equity markets are getting hammered. Hedgeye CEO Keith McCullough in a note sent to subscribers this morning: 'Buckle in Europe and Japan, that is… most European stock markets signaling immediate-term oversold but Euro not obeying overlord Draghi up at $1.149 this am; European Equities remain in crash mode from last year’s Global Equity Bubble highs; Spain now -26.3% since this time last year w/ an election (for socialism) pending June 26.'"

"We are in the midst of the slowest and most lackluster economic recovery since the end of World War II, and it appears to be weakening", writes Swiss America CEO Dean Heskin. "As investor concerns mount at home and abroad, US stock prices have gotten wilder and more unpredictable. There is not only a loss of confidence in the markets, there is fear ... and in such a state selling begets more selling."

Greek central bank cyber attack, others warned -CNBC
"Greece's central bank became the target of a cyber attack by activist hacking group Anonymous on Tuesday which disrupted service of its web site, a Bank of Greece official said on Wednesday....'Olympus will fall. A few days ago we declared the revival of operation Icarus. Today we have continuously taken down the website of the Bank of Greece,' the group says in a video on You Tube. 'This marks the start of a 30-day campaign against central bank sites across the world.'"

Will hackers successfully bring down a major central bank? Don't be too surprised. Cyber attacks are just one of the 20 major banking risks covered in a FREE executive summary of our 2014 bestselling book by Craig Smith and Lowell Ponte DON'T BANK ON IT!.

US dollar plunges as world plays dangerous game -Evans-Pritchard/Telegraph
"The US dollar has plunged to a 16-month low in the latest wild move for the global financial system, tightening the currency noose on the eurozone and Japan as they struggle to break out of a debt-deflation trap....The latest data from the US Commodity Futures Trading Commission shows that speculative traders have switched to a net 'short' position on the dollar....The dollar index has plunged as markets call the Fed's bluff....'Central banks have reached the limits of what they can do with monetary policy to influence their exchange rates, and this is putting their entire models at risk,' said Hans Redeker, currency chief at Morgan Stanley....The fate of the dollar now hinges on the Fed."

The US dollar is the best of the worst among the world's 180 paper currencies. But that's not saying much. Currency values are changing fast in 2016. China, Russia and other powerful nations are now in a race to dethrone the U.S. dollar. Get up to speed fast by reading our 2016 World Money Report, which says, "As world currency shifts after almost 100 years, it is incumbent on each of us to take essential wealth preservation measures that include portfolio diversification, asset allocation, and retirement planning that embraces the timelessness and global store of value of physical gold."

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5.3.16 - Gold Gleams Amid Global Economic Gloom

Gold last traded at $1,291 an ounce. Silver at $17.49 an ounce.

NEWS SUMMARY: U.S. Stocks sank Tuesday amid growing global growth fears and falling oil prices. Meanwhile, precious metal prices settled on mild profit-taking after rushing to 15-month highs Monday.

The Silver Window of 2016 -Special Report
It’s an exciting time for SILVER - which in on track to become the best performing asset of the year! WHY SILVER … WHY NOW? Silver provides critical portfolio diversification, helps protect your money from geopolitical risks and has both technological and investment demand. Silver prices have a long way to go to reclaim 2011 highs. Take Advantage of THE SILVER WINDOW of 2016! The 2016 Silver Report - The Global Metal is FREE!

Fox Business What if Puerto Rico goes belly up? -Fox Business
Coast to Coast with Neil Cavuto - Craig Smith on Puerto Rico's current debt dilemma. Allowing free market principles to run their course in the commonwealth would save the taxpayers. But if Congress gets involved and provides a bailout; it's likely only the fat cat investors would be saved and at the taxpayer's expense. Watch

"Investors urgently need to rethink buying bonds," writes Craig Smith and Lowell Ponte in a news release yesterday. What's ahead for Puerto Rico? "The welfare takers stay. The makers leave. Underfunded public services get worse. Government employees and union cronies keep their fat piece of a shrinking pie. Bond buyers and investors are disappearing. The island economy sinks faster and faster in what Smith and Ponte quote the island's governor as calling a financial 'death spiral.'" ABC News reports, "Treasury Secretary Jacob Lew wrote a letter to Congress urging action. Without a plan to restructure the debt, Lew wrote, 'bondholders will experience a lengthy, disorderly, and chaotic unwinding, with non-payment for many a real possibility. The people of Puerto Rico will be forced to endure additional suffering.'"

Five factors to watch for gold -Financial Times
"Gold has enjoyed its best start to a year in three decades, climbing more than 20 per cent....As gold trades around $1,300 a troy ounce, here are five things to watch for curious investors and gold bugs alike: The Fed - According to James Luke, a fund manager at Schroders, 'Even if you have a situation where the Fed does raise rates two or three times but inflation has already taken root real rates can remain low or even negative so there’s no reason that gold can.t move higher.'... The dollar - Jim Rickards, author of The New Case for Gold, says 'As you begin to lose confidence in central bank money, that leads to increased interest in gold.'....Investor demand - 'The key price determinant for gold is whether the growth in investor interest thus far in 2016 will continue and, perhaps more importantly, if it is resilient,' analysts at Standard Chartered say."

The other two factors mentioned are China/India and Brexit - both of which remain wild cards that could also send gold prices soaring this year. Add it all up and you have a perfect storm for precious metal prices to rise dramatically in 2016, as we detail in our 2016 Gold Report - World Edition.

Puerto Rico: Only Two Ways Out -New Yorker
"Puerto Rico and its various government entities (like the Development Bank) owe, collectively, debts totaling seventy-two billion dollars, a burden that has almost doubled since 2003. It also has forty-four billion dollars in unfunded pension obligations. The island’s economy has been in recession for almost a decade, its poverty rate is above forty per cent, and it has been steadily losing population to the mainland....There are really only two ways out. The first is for Congress to agree to pay off Puerto Rico’s debts—something that isn’t going to, and shouldn’t, happen. The second is for Puerto Rico to do what any business in its situation would do: declare bankruptcy, so that its debts can be restructured. The problem is that Puerto Rico can’t legally do this, because the U.S. has no mechanism for handling a default by a state or commonwealth. (Puerto Rican cities can’t declare bankruptcy, either.) The territory can still default - even though there’s no legal mechanism for handling defaults by national governments, they do it all the time....If Congress wants to avoid a real bailout, with taxpayer money going to bondholders, it needs to stop dragging its feet and let Puerto Rico begin to write down its debt."

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5.2.16 - Puerto Rico's Debt Spiral, Who's Next?

Gold last traded at $1,295 an ounce. Silver at $17.68 an ounce.

NEWS SUMMARY: U.S. stocks rose Monday despite economic data showing slowing growth; key jobs data due Friday. Meanwhile, precious metal prices consolidated recent gains amid an increasingly weak U.S. dollar.

Puerto Rico defaults on bank debt -USA Today
"The confrontation between debt-swamped Puerto Rico and its creditors is intensifying as the U.S. territory will default on payments due Monday, deepening the island's financial crisis and placing additional pressure on Congress to intervene....Debate is swirling in Congress over how to aide Puerto Rico, which has some $71 billion in bond debt and an estimated $44 billion unfunded pension shortfall, according to U.S. Treasury Department estimates. About 45% of Puerto Ricans live in poverty, compared with a national average of 16%, according to the Treasury Department. Some 1,500 residents of Puerto Rico are leaving the island every week, further diminishing the tax base."

Monetary expert Craig R. Smith and veteran think tank futurist Lowell Ponte warned of severe Puerto Rican bond debt problems in their 2013 book The Great Withdrawal. In their latest of six books, We Have Seen The Future and It Looks Like Baltimore- (Free Summary), Smith and Ponte explain what has gone wrong in Puerto Rico, which could become America's 51st State. Puerto Rico, they write, has been turned into a cash-short poor port by U.S. economic manipulation along with welfare and government pension politics...."In the past, Washington's tinkering with this island's economy created an artificial prosperity based on tax breaks, then created very real addiction and dependence that got many hooked on a costly welfare state," say Smith and Ponte. "Before Congress rushes in to keep bad policies in place, we need to help Puerto Rico move towards free enterprise, small government, and self-sufficiency," they say. "And investors need to recognize Puerto Rico as the first of many dominos that could soon fall and potentially bring down our wildly-over-indebted U.S. cities, states and overall economy." Full story

Gold tops $1300, hits 15-month high -CNN
"Gold's glittering year keeps getting brighter. The precious metal hit a new milestone on Monday, climbing above $1,300 an ounce for the first time since January 2015. Gold is now up 22% this year, crushing stocks, bonds and most other major asset classes. The recent gold strength shows how the 2016 rally has really been fueled by two distinct stages. The first was a flight to safety as turmoil erupted on Wall Street and around the world, highlighted by the U.S. stock market's worst start to a year ever....So what's fueling this latest rally? This time it's the U.S. dollar. A weak dollar is good for gold because it makes the metal less expensive for foreign buyers and reinforces gold's role as a good store of long-term value."

Gold is the best-news story of 2016. Find out why all of the technicals and fundamentals are now lined up to send gold prices higher in our 2016 Gold Report - World Edition.

Buffett issues fresh derivatives 'timebomb' warning -Telegraph
"The Sage of Omaha told the annual meeting of his company Berkshire Hathaway that while he still believes in holding shares in financial firms such as Bank of America, the sector continues to build derivatives that could create 'dangerous' jolts in value that would exacerbate a major shock....Emphasizing a warning he gave last summer, when he described derivatives as 'weapons of mass destruction,' Mr Buffett said a major event such as a cyber attack that shut down the financial markets would trigger 'enormous gaps in things you thought might be protected by collateral'."

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