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Dateline: May 24, 2013
Here’s an indication of how burdensome student loans have become: About one-third of millennials say they would have been better off working, instead of going to college and paying tuition… Where? Denney’s ain’t hiring dishwashers and KFC is closing stores all over the country, in order to not have to fund ObamaDoesn’t Care… (Read Full Story)
IRS Scandal: The inexplicable raid nearly two years ago on a guitar maker for using allegedly illegal wood that its competitors also used was another targeting by this … Gibson’s chief executive, Henry Juszkiewicz, contributed to Republican politicians. (Read Full Story)
Copper: Part I The New Currency.
December 2010 – I don’t know if you have noticed what I have, but lately it appears that people are using Copper as a poor mans currency. I started to notice during the crash of 2008, that copper was being sold in a .999 pure bullion. The photo attached is for a single troy oz of “Fine Copper”. The list price for this copper, as is, was 12 dollars. Think about that for a moment.
Copper sells for about $4 per pound in the futures market. The contract size is for 25,000 pounds, and it costs $250 dollars per penny when quoting copper, the December (2010) forward month is currently quoted at 400.60 pennies, for a total cash cost of $100,150 per contract.
I don’t know about you, but I would love to have a business where my future cost of inventory was 27 cents per oz, and after some remarketing costs, I am able to charge $10 to $12 per oz. › Continue reading
After The Dollar: What Comes Next?
~ THE DOLLAR’S TERRIBLE FATE ~
Our readers are familiar with the forecast that the US dollar is in terminal decline. America is tragically bankrupt, unable to pay its lenders without printing the dollars to do so, and enmeshed in an economic depression. The clock is ticking until the dollar faces a crisis of confidence like every other bubble before it. The key difference between this collapse and, say, the bursting of the housing bubble is that the US dollar is the backbone of the global economy. Its conflagration will leave a vacuum that needs to be filled.
Mainstream commentators often discuss three main contenders for the role: the euro, the yen, or China’s RMB (known colloquially as the “yuan”). These other currencies, however, each suffer from a critical flaw that makes them unready to carry the reserve currency role in time for the dollar’s collapse. When it comes to fiat alternatives, it appears the world would be going out of the frying pan and into the fire. › Continue reading
Dateline: May 21, 2013
The impact of the Marketplace Fairness Act (the so-called Internet Sales Tax Bill) which passed the Senate on May 6 received limited coverage in a May 10 Numismaster column. However, it deserves a much more detailed discussion. The negative effect it will have on numismatic and precious metals transactions will be dwarfed by the potentially disastrous economic fallout throughout the U.S. economy. (Read Full Story)
In the Age of Obama, a president who has never met a government program not worthy of expanding (think of his ending the work requirement in the 1996 welfare reform law), America is being “fundamentally transformed” into a dependency nation, and the disability program is just the latest tool the president and his Big Government allies are using to fleece taxpayers and buy more voters. (Read Full Story)
We have tried to balance supply and demand figures in the gold market to answer a 15 year old question – “where is the supply of gold coming from?” In 1998, Frank Veneroso first suggested that it was the Western Central Banks that were supplying the market and we’ve been looking for a smoking gun ever since. (Read Full Story)
We are all victims of the inept, morally irresponsible actions of one Congress after another for decades, yet, we keep reelecting them expecting different results. If you don’t think allowing the federal government to take over the only thing you will have when you finally retire is a good idea, now is the time to let those who represent you in Congress know how you feel. Before they scoop up your life’s savings backed by an… (Read Full Story)
Not a day passes without the financial media denouncing gold as an investment option and hailing the bureaucrats heading the world’s monopolist monetary central planning agencies as superheroes. It began prior to gold’s recent breakdown, with widely cited bearish reports on gold published by Credit Suisse and Goldman Sachs, among others. Never mind that most of their arguments were easily unmasked as spurious. (Read Full Story)
Despite White House attempts to brush the IRS scandal aside as “irrelevant” or the work of rogue miscreants, huge questions remain about who ordered IRS agents to harass Tea Party groups, and why. Every day, in fact, raises new and more disturbing questions that congressional … (Read Full Story)
2nd Amendment – Right to Bear Arms
1 AVDP oz. .999 Fine Copper
As one of today’s predominant and passionate political debates, many Americans believe their right to bear arms is being threatened. That’s why Flying Eagle Gold carries Second Amendment Right to Bear Arms Copper Rounds.
Composed of 1 AVDP oz. of .999 Fine Copper, these brand new rounds make a great gift for the gun owner in your family. Multiples of 20 arrive in protective plastic tubes.
The obverse of each round is inscribed with the words “CONSTITUTIONAL RIGHT TO BEAR ARMS,” along with the patriotic image of a forefather holding a rifle. The American flag is waving behind him.
Near the outer rim of the reverse of each round is the inscription “NO MAN SHALL EVER BE DEBARRED THE USE OF ARMS,” THOMAS JEFFERSON.
Along with its weight and purity, the center of each 1 oz. Copper Round is inscribed with the following excerpt from the Second Amendment:
“A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed.”
Flying Eagle Gold is dedicated to providing the public with precious and semi-precious metal rounds that reflect long-held American values and ideals.
Proclaim your right to bear arms! Invest in copper with Second Amendment 1 oz. Copper Rounds, which make thoughtful gifts for the gun-lover in your life. (Stake YOUR Claim)
Dateline: May 15, 2013
Gold expert Nick Barisheff says the plunge in the gold price is sparking demand. Barisheff contends, “Usually when there is a big drop in price of paper, there is also a drop in demand on physical gold. This is the first time I can remember that it has gone the opposite way. People are perceiving the drop in price as a gigantic buying opportunity. It’s on sale at a lower price.” (Read Full Story)
We are prompted to wonder whether this is this the first of a series of governmental assaults on the exchanges… (Read Full Story)
A representative for Dwolla told Betabeat that the company is “not party” to this matter and encourages those with questions to reach out to Mt. Gox or the DHS. (Read Full Story)
Internal cost estimates from 17 of the nation’s largest insurance companies indicate that health insurance premiums will grow an average of 100 percent under Obamacare, and that some will soar more than 400 percent, crushing the administration’s goal of affordability. (Read Full Story)
Greenspan said on any number of occasions that his model was that a ‘fiat currency’ works when it emulates the rigor of the gold standard. (Read Full Story)
There are many signs of gangster state America. One is the collusion between federal authorities and banksters in a criminal conspiracy to rig the markets for gold and silver. (Read Full Story)
The global demand for coins and bars that followed the fall in gold’s price caught even the most astute industry observer by surprise and there is no sign of the demand abating. (Read Full Story)
Some days one can’t help but look at the headlines and think of Ayn Rand. With all the destructive measures by desperate governments from Cyprus to Argentina, it seems sometimes like we’re reading from the pages of her seminal work, Atlas Shrugged. But what we’re seeing now seems to have… (Read Full Story)
The impact of the Marketplace Fairness Act (the so-called Internet Sales Tax Bill) which passed the Senate on May 6 received limited coverage in a May 10 Numismaster column. However, it deserves a much more detailed discussion. The negative effect it will have on numismatic and precious metals transactions will be dwarfed by the potentially disastrous economic fallout throughout the U.S. economy. (Read Full Story)
Bitcoin Should Get Ready For an Attack
It’s not all gloom-and-doom, but as with anything with worth or value, he warns that care should be taken when proceeding with the likes of Bitcoin, as the government vultures are circling.
Bitcoin – poorly understood and frequently talked about ignorantly – is a wonderful new financial tool… and a very timely one. But because of its virtues, it is about to be attacked.
But before I explain how, why, and my recommended responses, let me get everyone up to speed on what this stuff really is: › Continue reading
Gold: The Obituaries Are Premature
Gold collapsed over 14 percent in two days in the sharpest tumble since 1983 raising fears that the twelve year bull market is over. Some blame the collapse on the fear that Cyprus and other weaker European countries would have to dump their gold reserves. Wrong. Under an earlier agreement (CBGA3), all Eurozone countries must seek permission and the sales of gold were limited to 400 tonnes. Others blame the fear of a slowdown in China. China’s growth remains in excess of 7.5 percent and its state-owned companies are leading the way. The People’s Daily recently noted 54 state-owned companies now rank on the Fortune 500 list of the biggest companies in the world. Only two decades ago, the total revenues of the top Chinese companies were less than that of General Motors. However none of these reasons seem plausible to explain the magnitude and breadth of the decline.
In our view the main reason was an estimated 400 tonnes of gold futures dumped in two tranches on the NYMEX Comex. The sales were worth about $20 billion equivalent to about 15 percent of the entire world’s mine production. In fact two years ago, the European central banks took one year to sell that amount of gold. Comex is a market where gold and silver are traded daily as well as stored in warehouses. In one week alone more than a million contracts equivalent to 3,000 tonnes traded on Comex, easily surpassing the annual mine production of 2,600 tonnes. And the volume was unprecedented, exceeding 700,000 lots or 4 times the 30 day average. Comex subsequently raised the margin requirements to 19 percent, making the trade more expensive for both buyers and sellers. Billions of paper derivative contracts are backed by the physical metal (100 to 1) held in the Comex warehouses. Trading of future contracts are leveraged (10 to 1) allowing a buyer to control a fraction of its total value and if only 10 percent of the buyers opted to take delivery, there would not be enough gold to cover the claims. As such, the market is fraught with counterparty risk similar to the AIG or Bear Stearns debacle which showed us that the derivative market is based on not only leverage but confidence in counterparties’ promise to pay. › Continue reading
Dateline: May 9, 2013
Big Banks Push Back Against Tighter Rules
The nation’s biggest banks are going on the offensive to fend off growing efforts in Washington to rein them in. The banks have hired longtime, influential Washington hands to deflect regulatory and political pressure to strengthen their finances and to sell assets. (Read Full Story)
A bipartisan coalition won a 69-to-27 vote to require online retailers to collect sales taxes for state and local governments. But antitax forces hope the House will kill the measure. (Read Full Story)
These past few weeks it seems like paper gold is out and physical gold is in. The fall in the price of gold has triggered a new run on physical gold that… (Read Full Story)
It’s easy to spot a Fed-sponsored housing bubble if you look in the right places. The best place to start is an analysis of price inflation as measured by the BLS as compared to a CPI-variant that takes actual housing prices into consideration instead of rent. (Read Full Story)
House Republicans say they will slow the Internet tax bill that comfortably passed the Senate on Monday. If they want to retain any anti-tax credibility, they … (Read Full Story)
The following is a ‘to be forewarned is to be forearmed’ commentary. Should those with bank deposits in the…European Union be concerned about the possibility of a ‘Cyprus event’ coming ‘soon to their neighbourhood’?…What about bank deposit confiscation in Canada?…[T]his is something to…consider and ‘think about’. (Read Full Story)
The legal claims on physical gold far exceed the amount of physical gold that the banks actually have by a very, very wide margin. And right now the bankers are scared out of their wits because their warehouses are being drained of physical gold at a frightening rate. So what happens when their physical gold is gone but they still have lots and lots of people with legal claims to gold? (Read Full Story)
Remember the physical gold shortage of 2008? Spot prices were down, driven by leveraged futures traders, but people trying to get their hands on physical at anywhere near spot prices were out of luck. (Read Full Story)
There are a dozen significant economic indicators that are warning that the U.S. economy is heading into a recession. The Dow may have soared past the 15,000 mark, but the economic fundamentals are telling an entirely different story. If historical patterns hold up, the economy is heading for a very rocky stretch. (Read Full Story)
Every morning in Africa, a Gazelle wakes up knowing it must outrun the fastest lion, or it will be killed and eaten. Every morning a lion wakes up knowing it must outrun the slowest Gazelle, or it will starve to death. It does not matter if you are a lion or a Gazelle…when the sun comes up each morning, you’d better be running. – African Proverb (Read Full Story)
This is going to end horribly for tens of millions of Americans and none of them see it coming. (Read Full Story)
