RSSCategory: Category: Economy

Collapse Is In Hindsight – It Is A Matter Of Time

| September 18, 2013 | Category: Economy
Collapse Is In Hindsight – It Is A Matter Of Time

The U.S. stock market is near all-time highs, while politicians and economists are blathering about recovery, low inflation, and good timess. To the extent we rely upon the fantasies of ever-increasing debt, money printing, and credit bubbles, we are vulnerable to financial collapses. Perhaps a collapse is not imminent, but it would be foolish to ignore the possibility.

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Fed’s Potential QE3-Tapering Impact On Precious Metals Prices

| September 14, 2013 | Category: Economy
Fed’s Potential QE3-Tapering Impact On Precious Metals Prices

The focus on this imminent FOMC meeting is so hyper-intense that its impact should be considerable no matter what the Fed decides. The QE3 taper (or lack thereof), its size, and what the FOMC implies for future tapering will almost certainly spark sharp price reactions in the bond markets, currency markets, stock markets, and precious metals. All have moved violently this year on mere QE3-taper anticipation.

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David Stockman: Collapse Could Lead To Reconstruction Of The System

| September 8, 2013 | Category: Economy
David Stockman: Collapse Could Lead To Reconstruction Of The System

I think the political realities of the situation make the most likely scenario one in which there will be some kind of real financial collapse and disorder that will require a total reconstruction of the system. It’s impossible to say how that will be done, and this may be the chance to go back to a gold standard or to a very sharply circumscribed remit for central banks.

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The Upward Momentum in Gold Prices Looks set to Continue

| September 3, 2013 | Category: Economy
The Upward Momentum in Gold Prices Looks set to Continue

Gold prices climbed back above the $1,400 an ounce on Tuesday after Interfax reported that Russia detected a missile launch. A Russian Defence Ministry spokesman quoted by the Interfax news agency said the launch was picked up by an early warning radar station at Armavir, near the Black Sea, which is designed to detect missiles from Europe and Iran. The momentum in gold prices continues to trade with an upward bias and look set to soon re-test $1450 an ounce.

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Jim Rogers Sees Higher Gold And Energy Prices, Declining Stock Markets

Jim Rogers Sees Higher Gold And Energy Prices, Declining Stock Markets

Strange things happen during a war. There are always unintended consequences. However, throughout history, during war time, food prices have gone up a lot, energy prices have gone up a lot, copper and other metals all go up in price.

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Eric Sprott – 5 Great Questions About The Debt Crisis And Metals

Eric Sprott – 5 Great Questions About The Debt Crisis And Metals

In the latest Ask The Expert interview, Eric Sprott was invited and talked about the economic challenges related to the debt crisis, as well as some specific evolutions related to the precious metals. We have extracted 5 great questions from the interview.

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Gold’s Outlook In The Coming Era Of Bank Bail-ins

Gold’s Outlook In The Coming Era Of Bank Bail-ins

I do expect a full-blown currency crisis at some point and I expect gold to be the beneficiary. The global spotlight has been on Europe, and spotlights are typically a sign that problems will strike elsewhere. Japan is a crisis-in-waiting, and the emerging markets are taking a beating now. I have been in a very tiny minority who likes gold while simultaneously suggesting the US dollar would not collapse.

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Total Public Debt Now Eclipses GDP In The US

Total Public Debt Now Eclipses GDP In The US

As one can see in the chart, total public debt in the United States recently crossed the proverbial Rubicon and now equals 104.95% of GDP. Though some would argue that a healthy dose of debt is necessary to foster economic growth, the US’s unsustainable public debt exceeds the same debt measures of crisis-stricken Cyprus and fragile Spain, where public debt as a percentage of GDP have been most recently estimated at 85.8% and 84.2%, respectively.

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Is The Wealth Effect In The US Already Tapering?

Is The Wealth Effect In The US Already Tapering?

This week’s data show that the wealth effect is working in reverse already. Peter Schiff compares it with a “house of cards recovery” which is already collapsing before the real taper starts. The remarkable thing is that the Fed has only been talking about a slight easing of their asset purchases. Moreover, the failure of the latest bond auction should result in less interest in the dollar. That is what shapes the prospects for gold and explains recent price action.

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Why To Protect Your Financial Future?

Why To Protect Your Financial Future?

It’s really no top secret that the global economies depend on an unsustainable amount of debt. Think one step further: there will be a day that these programs must end, or at least must come back to “more realistic” levels. What will happen then? How will it affect you, your family, your employer or your clients? The harsh reality is that this debt addicted global economy can only be fixed with a planned reset or a reset that will rise up from the ashes of an economic disaster.

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Gold falls below $1300 on the Back of a Slew of Economic Data

| August 7, 2013 | Category: Economy
Gold falls below $1300 on the Back of a Slew of Economic Data

One must consider the high debt burden of the US government. Any increase in yield will translate into higher servicing costs, and thus the US government has trapped itself in a situation where it finances itself by selling treasuries, but cannot afford increasing the interest rate. How much longer can the Fed continue to buy bonds in order to keep rates low? And, when they stop, what will happen? Owning gold is essential. Trading for a profit is not the same as owning a valuable asset. Physical gold is about ownership and not about price and profit.

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We Are Closer To Communism Than One Might Think

We Are Closer To Communism Than One Might Think

So why should we be concerned with communism or Marx? Aren’t we all living in a free and capitalistic society? No. On the contrary! Not only do we see elements of this plan implemented, but we see them carried out by those very countries claiming to be far from communism. European countries and the United States, all advanced self proclaimed capitalist economies, are in fact significantly close to Marx’s dream of socialism as this article will show. Though they might call it ‘welfare state’ the resemblance to socialism is cunning.

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This Is The Biggest Debt Bubble In History

This Is The Biggest Debt Bubble In History

Excessive monetary stimulus and low interest rates create financial bubbles. This is the biggest debt bubble in history. It is a potent deflationary force and central banks are forced into deploying increasingly aggressive offsetting inflationary forces.

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Market Moves Ahead Should be Good for Gold, Bad for US Dollar

| July 11, 2013 | Category: Economy
Market Moves Ahead Should be Good for Gold, Bad for US Dollar

Gold and silver will not only continue to serve in their timeless role as a store of wealth while fiat currencies flail and ultimately fail—right now, market conditions are ripe for a once-in-a-lifetime profit opportunity to take shape. The current gloom in the mining-stock sector has stock prices at astounding lows… but those who know which companies are best positioned to ride out this temporary collapse and have the fortitude to invest in them now can make a fortune. This isn’t exaggeration—this scenario has played out before in the US.

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