Tag Archives: inflation

DID WE HEAR THE WORD INFLATION YESTERDAY? AMERICANS GO FOR THE GOLD NOT ONLY IN SOUTH KOREA

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They were scrambling like bees assaulted with a can of RAID. We are talking about the big monetary spenders who believe that the best way to spur the economy was to print, print and print more. The word out yesterday on the inflation front was hard to swallow; inflation up a half percent for the month – 6% at a yearly rate. Mortgage rates jumping higher than Sean White on the halfpipe as he grabbed the gold. This is symbolism at its finest, winners don’t receive a tin medal, no zinc metal, no copper metal; gold is what they are after. Finally, the pump is catching up with them, with inflation on the rise, the Fed will be forced to turn on the screws.

Consumer prices jump much more than forecast, sparking inflation fears

  • The Consumer Price Index, a key indicator of inflation trends, jumped 0.5 percent in January, well above market expectations.
  • Markets reacted sharply to the news, with stocks sliding and government bond yields rising.
  • The Fed is watching inflation closely, so the report could add fuel to interest rate hikes.

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REPEAT OF SEPTEMBER 2015 BLOG – HYPERINFLATION IN THE WINGS – IN GOLD WE TRUST

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GO FOR THE GOLD

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Gold is once again on the rise. The pundits can’t nor are they willing to understand the attraction to gold;  steadfast has it been in an island of global turmoil. Uncertain on what will happen have caused many to insure themselves with the metal.

What have the naysayers missed? One wonders why they even mention gold at all. And the volcanic rise of Trump, Sanders and Carson, not to mention Carly Fiorina who would have thought. The pundits failed to miss their rise too. Americans are fed up with the Boehners, McConnells, Reids, Pelosis, Clintons and Bushes of the world. They are plain old ready for a revolution. teapartylogoredThe boxes of tea in our logo have names on them, Democrats, The Fed, Public Unions, Big Government and entitlements. Yes, Americans are FED UP with do good politicians who only care about getting reelected.

We tell you what, America and the world is in turmoil. The socialists thugs running the paper printing scam are now worried about the next three years, we would not be surprised if some of them commit suicide. They are desperate to find a solution when none except gold exists. They have dug their own grave and now will reap the benefit of disastrous monetary policies over the past 45 years.

February Blog Entry:

PAPER TIGERS – IN GOLD WE TRUST –

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During the past six months we have tried to educate the sceptics that the United States dollar is not worth the paper it is printed on.  The likes of Goldman-Sachs (with a name like Goldman, why would they be bearish on Gold – very confusing to us) forecast a $1000 ounce of gold, others saw an implosion to $500, not so fast says the market. When Goldman speaks people listen or do they? Today gold mounted a robust rally closing over $50 higher as it continues to close in on $1250 per ounce. In the last 30 days gold was as good as gold rising over $150.

To the naysayers out there, look what is happening in the world; in one word it is defined as TURMOIL. Globally people have lost confidence in their leaders – why do you thing Trump is doing so well and on the other side, Hillary the Liar, her momentum stopped dead in New Hampshire. Oh don’t worry she says, we are going South and the FBI, me worry. A little kick-ass by that Sanders fellow in the Palmetto State may be in the cards. Talking about the cards, Hillary then heads for Nevada – Ok Harry Reid is going to be shoveling the manure for Hillary, but what good will that do. Sanders may have a trick or two up his sleeve.

Anyway you look at it, oil tanking, zero interest rates and in some cases negative rates, one would think boom times are here. The average family is saving at least $1000 a year on gas, plus oil and natural gas to heat the abode. Doesn’t seem they are too anxious to spend the savings though. Europe on edge, suicide bombers perfecting their craft, Syria going down in flames. Latin America’s bargain with the devil is not working out so well; just ask the people in Venezuela. And we forgot to mention the dictator in North Korea, shooting his mouth off again. Guess he figures that do to his lack of manhood he would shoot off a missile. Lot of good that did.

Keep your hopes up, things can only get better.  The higher gold goes the worse it will be for the status quo. Remember, the Central Banks were set up by politicians to print money ostensibly to feed their minions, this became the loop for reelection; it continues today. Once the printing stops, the true revolution begins, the free-loaders will no longer be in control, but the men/women of conscience and integrity will once again rule. Work will be rewarded not the other way around.

BANK RUN

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They lined up, but the doors were closed. Citizens, honest tax paying citizens, the salt of the earth type were told that their money was not there. Scammed by bankers the vault was empty. The depression was in full force, the economy imploding, bankruptcy for many inevitable.

EXECUTIVE ORDER 6102, issued by US president Franklin Delano Roosevelt 80 years ago, on April 5th 1933, banned private gold ownership in the United States, forcing gold owners to take their bullion to a bank and exchange it for Dollars at the prevailing rate.

Think about it, the Federal Government of the United States, in broad daylight confiscated the wealth of its citizens. This enabled the government to transfer power to the Federal Reserve, they then began the printing of fiat money with abandon. Why? To perpetuate the lying and the deceit of their hidden agenda. What is that agenda: to retain their political power above all else. However, the day has come to stop the charade.

One look at the price of gold, in the mid $1100 per ounce is a tell tale sign of what is to come. Prognosticators predicted, that’s what they do, that gold would be selling for $300 today. Inflation is zero, the economy is in intensive care, (very serious- negative interest rates are in the discussion) interest rates are zero; the question is then why is gold selling where it is?

The answer, the world is in turmoil and the government, our government, every government around the world cannot be trusted. Printing money is not the answer, it is the problem. Your politicians are not there to help you, they are there to deceive you.

The day is close at hand where the United States will no longer be able to sell their fiat paper and then the window will close once again, gold will skyrocket, maybe to $20,000 or more. No one knows what will happen, but be sure to protect yourself from the criminals in Washington D.C. Insurance is what you need.

An added note, those people in Illinois who have winning lottery tickets worth more than $600 can’t cash them in, given IOU’s. Read about the story here. Think about it, that is what our $$$’s are IOU’s.

THE UNITED KINGDOM AT ONE TIME THE SUN NEVER SET

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Once upon a time the United Kingdom ruled, like the Roman legions, its arms extended across the globe. Their currency, the pound sterling, was worth its weight, well in silver. One pound equaled a pound of silver. Down through the centuries the pound was devalued to its present value of $1.53.

At the turn of WWII the pound was valued at $4.86 a year later it was devalued to $4.03 then in 1949 it took a steep drop to $2.80 falling all the way to $2.40 in 1967.  However, the pound was ready to take its deepest dive yet due to the recession that occurred in the 1980’s falling to its lowest point in 1985 to $1.03.

We bring you this information as a back drop to where the almighty dollar is headed; there will be no sanctuary when the tide turns; and as history provides an anecdote for sure, the GREEN BACK will not have anything to back stop it in the coming free fall.

To measure its descent we advise the uninitiated to keep a keen eye on the price of gold visa vi the price of the dollar. Because when the flight from Eagle begins there will be no stopping its descent; just ask Hugo down in Venezuela, may he rest in peace, what has happened lately to the peso.

The difficulty of catching a falling knife usually leads to more blood letting. But for now times are a bit sanguine, however looking across the pond gives one a clue on things to come, storm clouds are gathering on the horizon. China, Russia and the Mid-East are viable threats to the American legions that ruled after WWII. Pause for a moment to survey the ever changing landscape and you will see the harbinger that awaits a dollar collapse. baldeagletalons

In 1931 the dollar was worth 1/20 of an ounce of gold (today that is $60), two years later on June 5, 1933 , theUnited States with a stroke of of FDR’s pen, the dollar was debased to where it is today; not worth the paper it is printed on. $20 Gaudens Double Eagles

 

THE ECONOMIC MELTDOWN CONTINUES – DOES GOLD OFFER A SOLUTION

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There is no stopping Big Government from their sins. They continue to print and borrow at warp speed; like a speeding bullet, ready, willing and able to separate the citizenry from their wealth. If they can’t do it by inflation, they do it by theft, eminent domain or regulation. The current situation is perilous; all governments are broke, dead broke.  There is no savior except the gold standard. This will prevent the largesse – that is why the politicians hate it. FDR confiscated American’s gold and RMN closed the gold window once and for all.

The stated reason for FDR’s order was that hard times had caused “hoarding” of gold, stalling economic growthnyontherunway and making the depression worse. The main rationale behind the order was to remove the constraint on the Federal Reserve which prevented it from increasing the money supply during the depression; the Federal Reserve Act required 40% gold backing of Federal Reserve Notes issued.

The long  forgotten story of the great depression was how the stock price of gold miners reacted to FDR’s action. History provides a picture of the the implosion of the stock market and the price of miners during the 1929 crash going forward.  The Crash saw the Dow Jones Industrial Average dive from the upper $300 range to $41 in four short years. A financial catastrophe if there was ever one. But one standout were the gold stocks. Taken from www.goldeneagle.com. It is meaningful to note that in late 1929 the value of Homestake Mining was about $80 per share. Moreover, during the next six years Homestake Mining paid out a total of $128 in cash dividends. In fact the 1935 dividend alone reached $56 per share. That’s almost a 70% dividend yield payout (basis 1929) in only one year! Indeed, hard asset investments (gold mining shares) were islands of economic refuge during the grueling years of the Great Depression. From the market high in 1973 to its low in 1974 the DJIA and the S&P 500 lost almost half their value – while the previously high-flying technology stocks plummeted more than 60%. Enough to cause heart-failure to the credulous believers of this time it’s different. Even the relatively “safe” utilities were decimated – as they dropped more than 50% from their 1973 high to their nadir in 1974. H-O-W-E-V-E-R, students of financial history took profitable refuge in gold metal stocks.

The Gold Mining Index, composed of ASA, Campbell Red Lake and Dome Mining, appreciated more than 260% from its 1973 low (40) to its 1974 high (147). This merits being redundant. During the severe 1973/74 bear market, stocks lost half their value – while gold mining companies almost quadrupled. If this is the case why did my gold mining shares sell off the last week while gold was moving higher. This is due to index ETF and mutual fund sales by retail holders. The gold index comprises a large portion of the TSX index so when a redemption hits, the individual components must be sold. Once all the index holders have liquidated we should see a sharp and violent move higher on most gold mining shares to reflect higher gold prices.

So what does all this mean? Today we stand at the precipice of a great depression, one worse than anything seen before. The reason being we have more than the ones that came before to lose. Rome was sunk by inflation, Germany played the same tune at Weimar and today Chavistas are in the same boat. There are no safe harbors, governments are broke with no alternative but to inflate the money supply; not doing so will unleash the public protest where they are sure to salivate their animal instincts. This is not a good thing for politicians. They will be the first in the line of fire.

Many of the top economists fail to see the darkness in the light nor the forest from the trees. QE has been tried over and over again; from Japan – 30 years and still going – to the Greek meltdown, to the EU, to Argentina, to Brazil, to Venezuela, to Russia and the elephant in the room, the United States. And where are we, a fugari bird without sight, traveling the road into darkness brings unwanted consequences. But what are those consequences? Very few see them, and few acknowledge them because of the devastation that lies ahead, financial and physical destruction. The dead end has been reached, a GIS can’t help at this point; paper will no longer be the savior to Big Government.

Most if not all countries are dead broke, a socialist delight; Greece has scraped the bottom of the barrel, bailed out for a few years by its gullible neighbors. How stupid were they, throwing good money after bad – Germany was the sucker on this one. Most are one step away from the restructuring that has brought many others to their knees. When people are scared, frightened, nervous about the future they begin to question their government. Words from the President will not suffice to quell the uneasy feeling. The odds that a financial pandemic will occur are great this time around; paper will not be worth the paper it is printed on. One shining light is Switzerland which will be voting November 30th on a referendum requiring the Swiss to have 20% of their currency backed by gold. Does Switzerland no something? We shall soon find out.