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Shutdown, Debt Ceiling, and Prospects of Gold

Shutdown, Debt Ceiling, and Prospects of Gold

The news that the government will be hitting the debt ceiling by Oct. 17 is something that can have serious repercussions on the economy. Most analysts believe that if the shutdown is stretched for around two weeks, and then the government is also not able to make a way out of the debt ceiling quagmire, the investor confidence in the US economy will go down. Gold proponents are of the view that a deadlock over a decision on increasing the debt ceiling might create a gold rally in the market.

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Ronald Stoeferle: Gold Bubble or Bargain?

Ronald Stoeferle: Gold Bubble or Bargain?

The big bubble is not in gold; it is in bonds. The structural debt figures are most known by the debt to GDP ratios of sovereign countries. Besides that, however, Stoeferle gets some worrisome data by looking into the US forecasts of the CBO. Based on the damage on the chart and the length of the correction, Stoeferle expects gold to revisit $1,900 in two years, i.e. 2015.

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Collapse Is In Hindsight – It Is A Matter Of Time (Part III)

| October 2, 2013 | Category: Economy
Collapse Is In Hindsight – It Is A Matter Of Time (Part III)

We live in a world of exploding debt, unsustainable deficit spending, Quantitative Easing, corrupt politicians, and “forever” wars that benefit the political and financial elite. We will need help to survive the collapse of failing economic and political systems.

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Marc Faber: 7 Key Insights About Today’s Debt Bubble

Marc Faber: 7 Key Insights About Today’s Debt Bubble

A dollar of additional credit in the system created significant economic growth, but these days an additional dollar has very little impact. That is a sign that we have reached the end of monetary policy. When the US government has to issue treasuries to pay the interest on its maturing debt. That will be the end game – then you are dealing with a collapse in the currency. I recommend an asset allocation of about 25% in equities; 25% in fixed income, securities and cash; 25% in real estate; and 25% in precious metals—gold, silver. I think I have around 25% in gold whereby I don’t value my gold.

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Collapse Is In Hindsight – It Is A Matter Of Time (Part II)

| September 25, 2013 | Category: Economy
Collapse Is In Hindsight – It Is A Matter Of Time (Part II)

The U.S. economy is being overwhelmed by a loss of faith and trust in politicians, government, and bankers, excessive debts, artificially low interest rates, unsustainable deficit spending, expensive wars, QE (money printing) to infinity, “Inflate or Die” monetary policy, potential derivatives implosion, Obamacare and so much more. A slow-motion collapse is occurring and most of us do not see it.

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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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