Tag: debt

Elephant in the Room: Why Nobody Talks About Ballooning Federal Deficits

| December 3, 2019 | Category: Economy
Elephant in the Room: Why Nobody Talks About Ballooning Federal Deficits

The presidential race will mesmerize Americans over the next 11 months. The country hasn’t been this polarized since the Civil War. Voters on the left desperately want a story which undermines support for President Trump. They are also searching for a candidate who can actually win. Many Republicans are outraged about the Deep State and corporate media campaign obsession with unseating a duly elected president – and they worry an avowed socialist could win the Democratic primary and, just possibly, the general election. Plenty about the year ahead is unpredictable. Massive federal budget deficits and unrestrained borrowing, however, are a certainty. The federal government is not going to voluntarily shrink […]

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Jp Cortez: Sound Money Movement Gains Momentum in the States

Jp Cortez: Sound Money Movement Gains Momentum in the States

Mike Gleason: It is my privilege, now, to welcome in Jp Cortez, with the Sound Money Defense League, a non-partisan national public policy organization working to restore sound money on the state and federal level. Jp is a proponent of, and has studied in the Austrian School of Economics, and his role at SMDL as policy director, has him regularly testifying at legislative hearings and speaking at various events throughout the country. His articles and analysis have appeared in many national news publications, including The Washington Examiner, Huffington Post, Mises Institute, Foundation for Economic Education, and more, and he’s a frequent guest on various podcasts and national radio shows to […]

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Trump Then and Now on Deficits: What a Difference 3 Years Make!

Trump Then and Now on Deficits:  What a Difference 3 Years Make!

As investors look ahead to a likely rate cut next week by the Federal Reserve, gold and silver markets have been consolidating their recent gains. A big move in metals markets could come after the Fed’s policy meeting next Wednesday. Of course, the magnitude and direction of the move will depend on what Chairman Jerome Powell and company do and say. Central bankers are under immense political pressure to lower interest rates and resume purchases of government bonds. A recent downturn in manufacturing and home sales data may well give them cover to roll out new stimulus even as the stock market sits near a record high. It remains to […]

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Preparing to Barter and Trade Is NOT a Loony Idea

Preparing to Barter and Trade Is NOT a Loony Idea

Let’s start with this fact; fiat (paper) currencies die – often spectacularly. That is why precious metals may someday be needed for barter and trade. Anyone who thinks it is silly to worry about such a thing is putting blind faith in Federal Reserve Notes. The U.S. dollar is having a great run, no question. It will soon be 50 years since Nixon closed the gold window, thereby converting the dollar to a purely fiat currency. Five decades is longer than most purely fiat currencies survive. Humans carry a normalcy bias. That helps explain why so many assume the unbacked Federal Reserve Note, which has served so long as our […]

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Michael Pento Warns of Exploding Debt, Inverted Yield Curve, and Then “Economic Armageddon”

Michael Pento Warns of Exploding Debt, Inverted Yield Curve, and Then “Economic Armageddon”

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: Michael, how are you today? Welcome back. Michael Pento:  I’m doing fine, Mike. Thanks for having me back. Mike Gleason:  When we had you on last you commented that you believed the market was pricing in President Trump getting virtually all of his policy agenda pushed through Congress, the tax cuts, repealing Obamacare, and so forth. To say Trump has encountered some resistance in Washington would be a major understatement. The establishment of the right doesn’t seem to like him. The left and the mainstream media of course hate him. So, Michael before we get into the […]

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Trump World: What Happens to Your Investments Now?

Trump World: What Happens to Your Investments Now?

Donald Trump’s victory came as the first surprise for many around the world. The reaction in the markets was the second surprise. Investors got what they expected for a few hours overnight as the ballot results came in; stocks were crushed and metals spiked higher. By mid-morning on Wednesday, however, stocks were surging and metals rolled over. Now, a few days post-election, commentators and “experts” have written stories to explain the action in markets. Some of these stories may even prove true. But at this early stage, investors should recognize that markets mostly reflect hopes, fears, and high frequency trading shenanigans. Reality tends to arrive later. All eyes are focused […]

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Greenspan, Gold, and the Banality of Evil

Greenspan, Gold, and the Banality of Evil

By Stefan Gleason, Originally Published on Money Metals Exchange Under certain circumstances, seemingly decent human beings are capable of horrific things. So it is with Former Federal Reserve Chairman Alan Greenspan, who parlayed his sound money bona fides into the top post at America’s private banking cartel and current issuer of our un-backed currency. In betrayal of his own stated free-market principles, Greenspan spent his tenure at the Fed pumping up financial markets with easy money and enabling runaway government spending commitments. Today, however, the “maestro” of central banking is playing a very different tune. He’s warning against an inevitable crisis resulting from the very policies he helped implement. Perhaps […]

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My New Year’s Resolution: Don’t Confuse Debt with Wealth

My New Year’s Resolution: Don’t Confuse Debt with Wealth

If you don’t have a magical crystal ball to see the future, then a good history book will do the job. Understanding the past offers a full color panorama to the dangers and opportunities facing you in 2016. Unpayable debt is becoming the Big Story of the 21st Century across the globe. Life-altering disruptions will be the norm, with little that mankind has not seen before. In early November, Congress recklessly increased American spending and debt by another $1.14 trillion. Lawmakers long ago erased all limits to printing money and creating debt backed by nothing. The total world debt is unknown and uncountable. Pick any figure in the hundreds of […]

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What Is The Gold vs Debt Correlation Suggesting?

What Is The Gold vs Debt Correlation Suggesting?

Gold’s rate of change has been more dramatic than U.S. debt, as suggested by the second chart. As the price of gold is in the process to make a lower low currently, it’s rate of change is close to coincide with the one of U.S. debt. The chart suggests that the gold price correction after 2011 was to be expected, given that the yellow metal had risen too much, too fast. Our opinion is that the correction in precious metals is not over, but that the downside is limited.

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Insights from ‘The Richest Man in Babylon’ Applied To Gold Investing

| July 23, 2015 | Category: Investing
Insights from ‘The Richest Man in Babylon’ Applied To Gold Investing

No currency in the world has been backed by precious metals since the U.S. government “closed the gold window” in the 1970’s. But the gold, silver, and copper used and saved thousands of years ago. As insurance against the unforeseen… As a vehicle for creating a storehouse of enduring value…. As a way to pay yourself first.

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Four Horsemen of the Apocalypse or the New Dawn

| November 19, 2014 | Category: Economy
Four Horsemen of the Apocalypse  or the New Dawn

Figuratively speaking, the Four Horsemen are trashing our world. In opposition to the Four Horsemen are the Four Rays of the New Dawn. Gold and silver will continue to be hated and denigrated by western central banks and governments. Asian governments, central banks and individuals will continue to love and accumulate gold and silver. Ask yourself why Asians want gold and Wall Street wants paper.

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Gold or Crushing Paper Debt

Gold or Crushing Paper Debt

Our financial world seems more unstable and more dangerous than usual. Which has been safer under difficult economic and political conditions during the past 3,000 years – gold or debt based paper?

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What Has Recent History Shown About Inflation, Debt, Prosperity?

| October 8, 2014 | Category: Economy
What Has Recent History Shown About Inflation, Debt, Prosperity?

Wars will continue but may not be decisively won or lost. Debt and currency in circulation will rise exponentially. Consumer prices will continue increasing.
Gold, silver, crude oil, gasoline and food will become much more expensive. Voters will continue voting for politicians and wars even though both cause prices to rise. The number of Americans on food stamps (SNAP) will continue rising. Unemployment statistics will fall in election years but the actual number of Americans working full-time jobs will decline.

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Gold Price vs U.S. Debt Ratio In 2014: A Major Disconnect

Gold Price vs U.S. Debt Ratio In 2014: A Major Disconnect

Gold has tracked the expansion in US debt pretty handily. The correlation between the two is +0.86. In 2011, the rise in the gold price became overextended relative to the rise in US debt. Then it decoupled and went in the opposite direction. This is a similar trend to what occurred in the early 1980s. And if one expects that relationship to resume, then gold looks anomalously cheap relative to the rising level of US debt.

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