Tag: debt crisis

Gold, Silver and Greek Referendum – Expect Fireworks

| June 29, 2015 | Category: Economy
Gold, Silver and Greek Referendum – Expect Fireworks

I got a friendly invitation from TheDailyCoin.org to speak about Greece (the coming referendum but also the root of the ongoing problems), as well as the precious metals market.

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How Is Gold Impacted By Runaway Debt?

How Is Gold Impacted By Runaway Debt?

So how would any of this debt ever be settled were it called in tomorrow? The U.S. currently holds “only” 8,133.5 tonnes of gold in its reserves, a significant decline from the all-time high of over 20,000 tonnes in the 1950s. This amount calculates to about $340 billion—nothing to sneeze at, but a far cry from the current U.S. debt level. It’s unlikely that gold will ever reach $33,900 per ounce but the fact that supply has not kept up with debt levels suggests that prices might very well rise.

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When Will US Debt Hit the Wall?

When Will US Debt Hit the Wall?

Assuming that revenue increases 4.6% per year, public debt increases 14% per year, and that a maximum of 1/3 of revenue can be used for paying interest, the blended interest rate in 2030 cannot exceed 2%. This tiny exercise tells me that western economies are accelerating toward a wall, there are only a few years or perhaps a decade or two remaining before a major reset must occur, and that the time for delusional thinking is nearly gone. What have you done to prepare for when one or many western economies “hit the wall?” Gold and silver might be better answers than devaluing currencies, overpriced bonds, or levitated stocks.

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First Strike Capability: Gold or War

First Strike Capability:  Gold or War

When the inevitable correction/crash occurs, the exits will be crowded, the herd will fall over the cliff, a few financial “dead bodies” will float to the surface, and banks will need bail-ins from depositors, so the “war on cash” is designed to force more assets into banks in anticipation of coming bail-ins.

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Gold versus the Status Quo

Gold versus the Status Quo

The status quo is heavily slanted in favor of fiat currencies, against gold, and maintaining their power and wealth. The anti-gold sentiment is quite strong. It reminds me of two thoughts. If everyone is thinking the same thing, no one is thinking. If everyone is leaning over the same side of the boat, watch out.

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Debt and the Tinderbox

Debt and the Tinderbox

We know that the Federal Reserve cranked up their digital printing presses and created over $16 Trillion in new currency, swaps, loans, bailouts, gifts, etc. in response to the 2008 financial crisis. If you invested in stocks and bonds, the various QE – “money printing” programs were probably successful for you. Examine the following chart and note the impact of QE on the S&P 500 Index.

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An Insane Financial World

An Insane Financial World

A few words come to mind: anger, anguish, bankruptcy, betrayal, depression, recession, repression, riots, stagflation, and trauma. In a saner world, we will depend far less on fiat currencies that are devalued easily and inevitably. Instead we will trust gold and silver more and paper much less. My advice: Create your own financial sanity!

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JPMorgan Chase Cracks Down on Cash. Is Your Bank Next?

JPMorgan Chase Cracks Down on Cash. Is Your Bank Next?

JPMorgan Chase very recently began test driving new rules in Cleveland as well as other markets.The bank will no longer accept cash from customers who want to use it to make mortgage payments, pay credit card balances or to cover their automobile loan. More and more people will be looking for ways to make it stop. This is where things promise to get interesting for gold and silver investors.

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How The Financial World Resets

| April 21, 2015 | Category: Economy
How The Financial World Resets

A reset in the financial system seems inevitable. We survived other resets, such as the depression of the 1930s, WWII, 1971 separation of the dollar from gold, 1970s inflation, year 2000 stock crashes, and the 2008 financial crash. The world will survive the next reset. Excess debt, fiat currencies, and “printing currency” are the center of global economic problems. Those problems will not be resolved with more debt and “printing currency.” If central banks and politicians choose hyperinflation, all bets are off regarding how high gold and silver will climb, and how crazy our Twilight Zone world will become.

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Debt Bubble: Twilight Zone Economics

Debt Bubble: Twilight Zone Economics

When debt is rolled over and never repaid, how much is the debt truly worth? Would you lend money to someone who assured you he could only repay the debt by borrowing a larger amount from another person? Clearly not, but this is normal in modern “twilight zone” finance. Gold and silver are real. All paper currencies and fiat debt are less real, less solid, and less reliable. Worse, these are becomes increasingly less real and more unreliable every year as governments devalue their currencies.

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Silver and Gold Will Thrive Beyond Exponential Growth of Debt

Silver and Gold Will Thrive Beyond  Exponential Growth of Debt

Systems will reset and change when exponential growth at current or reduced rates becomes impossible. The transition is likely to be difficult, dangerous, and the ensuing trauma will not fade quietly into the night. Exponentially increasing debt supported by nothing more than exponentially increasing promises will end in national and/or global disaster. When the reset comes, and it may be years away, would you rather hold assets that are based on debt, trust in a possibly insolvent counter-party, and denominated in the currency of an increasingly insolvent government and central bank . . . . or physical gold and silver?

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The Titanic Sinks At Dawn

The Titanic Sinks At Dawn

Lives were lost, paper stock certificates were gone, bonds did not survive, dollar bills were destroyed, but gold and silver endured the sinking of the Titanic over a century ago.

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Global Insanity Prevails, But Precious Metals Remain Directionless

| February 28, 2015 | Category: Economy
Global Insanity Prevails, But Precious Metals Remain Directionless

The timing for any collapse of the banking system and the mistaken belief it will foster a new gold-backed system keeps getting pushed back for as long as smaller governments like Greece, actually all the PIIGS, can be kept subservient to the 1%’s bidding, for as long as the US war machine can keep all the other smaller countries in fear while the US mounts a false flag attack on Russia via the US-induced coup in Ukraine, gold and silver will remain as pawns in these dirty wars. One thing is certain, having physical gold and silver will provide a store of value for those who hold either or both.

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Gold and Debt: Astonishing Comparisons

Gold and Debt:  Astonishing Comparisons

Gold is rare and much too inexpensive compared to the $ trillions of debt created each year. Gold prices will rise or the amount of debt in the world will seriously contract. Bet on rising gold prices.

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