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May 01 2019

moneymetals

A Look Inside the Scheme to Eliminate Cash, Impose Negative Interest

Central bankers and politicians love inflation, but they need “bag holders” to have faith in the value of the fiat currency IOUs they hold. The trick is to avoid suddenly destroying the ephemeral confidence in currencies by printing too much too fast.

Inflated dollar

Central bankers may also need to limit the options inflation wary citizens have for escaping.

They are both shifty and innovative when it comes to making sure the ill effects of perpetually devaluing currency are primarily borne by the citizenry.

Lying and trying to hide what they are doing to the currency has been tradition with politicians since Roman times. Nero began quietly reducing the silver content of the Denarius around 60 A.D.

Today central bankers and governments don’t have to bother with altering physical coins. Every currency can be quietly devalued electronically.

The financial central planners try to calm the herd with rigged inflation statistics designed to show the money losing purchasing power far more slowly than it actually is.

They use “hedonic adjustments,” “geometric weighting,” and many other ploys to arrive at a politically palatable inflation rate. Or, even more clever, they convince investors the best way to evaluate the strength of the money is simply to compare it with other fiat currencies.

That is how the U.S. dollar has earned its reputation for “strength” in recent years.

Headlines in the financial press broadcast the DXY index is rising. The dollar buys more euros and yen, which matters to practically no one except tourists. Meanwhile it buys far less of stuff that does matter -- food, housing, and most everything people need to live.

Another trick is for politicians and central bankers to simply print money under the guise of economic imperative.

Full article: https://bit.ly/2ISxi2Q

September 11 2017

moneymetals
moneymetals

THE U.S. PETRO DOLLAR BREAKDOWN CONTINUES: Big Moves In Gold & Silver Ahead

The four-decade long monopoly of the U.S. Petro-Dollar as the world’s reserve currency is coming to an end. Unfortunately, most Americans have no clue that when the Dollar loses its reserve currency status, life will get a lot tougher living in the U.S. of A. Let’s say, Americans will finally receive “Precious metals religion.”

The U.S. Dollar Index fell considerably yesterday and is now down below a key support level. In early morning trading yesterday, the U.S. Dollar Index fell to 91.46, down 73 basis points:

U.S. dollar index (index: $dxy) chart

According to technical analyst, Clive Maund, in his recent article, DOLLAR update as LOSS OF RESERVE CURRENCY STATUS LOOMS..., he stated the following:

The dollar is on course to lose its reserve currency status. This is not something that will happen overnight, it will be a process, but at some point there is likely to be a “sea change” in perception, as the world grasps that this is what is happening, which will trigger a cascade of selling leading to its collapse, whereupon gold and silver will rocket higher.

In that article, Clive posted the following chart on the U.S. Dollar Index (USD index) and its key support level:

U.S. dollar index - cash settle (eod) ice chart | august 25, 2017

As we can see, traders are looking closely to the Key support area at 92.5 for the USD index. With the USD index now below that key support area, it could spell real trouble for the Dollar if it closes below that level at the end of the week. After the markets opened today, the Dollar fell to a low of 91.08. So, it looks like the Dollar will close this week well below the key support area.

Now, part of the reason for the selloff in the Dollar may have been due to the disaster that took place in the 10-year U.S. Treasury Repo market today. According to Zerohedge’s article “We’ve Never Seen Anything Like This”: Repo Market Snaps As 10Y Suffers “Epic Fail”:

10 year note repo rate chart

The dollar is on course to lose its reserve currency status. This is not something that will happen overnight, it will be a process, but at some point there is likely to be a “sea change” in perception, as the world grasps that this is what is happening, which will trigger a cascade of selling leading to its collapse, whereupon gold and silver will rocket higher.

The pressure on the U.S. Treasury 10-year repo market is likely a reaction to what came out of the annual BRICS summit in China yesterday, According to the article, Escobar Exposes Real BRICS Bombshell: Putin’s “Fair Multipolar World” Where Oil Trade Bypasses The Dollar:

“To overcome the excessive domination of the limited number of reserve currencies” is the politest way of stating what the BRICS have been discussing for years now; how to bypass the US dollar, as well as the petrodollar.

Beijing is ready to step up the game. Soon China will launch a crude oil futures contract priced in yuan and convertible into gold.

This means that Russia – as well as Iran, the other key node of Eurasia integration – may bypass US sanctions by trading energy in their own currencies, or in yuan.

This announcement by Putin that oil trade should by-pass the Dollar came a few days after China announced that they plan to start trading oil on their Shanghai Exchange in Yuan, which will be backed by gold. While we have heard for years that China was going to back their currency or trade with gold, we now see actual plans to start implementing it sometime this year.

By China backing its new oil trading benchmark in Yuan with gold, it provides countries with a great deal of confidence in trading oil in another fiat currency besides the U.S. Dollar. Thus, countries that acquire a lot of Chinese Yuan by trading oil don’t have to worry about devaluation as they can convert Yuan into gold. 

Continue to read the full article. (Article Source)

September 07 2017

moneymetals

Debt Ceiling Capitulation Spells Trouble Ahead for the Dollar

“Frustration” no longer adequately describes what reformers in Congress – along with millions of investors and taxpayers who voted for reform – are feeling. For many, hopelessness is beginning to set in on the prospects for tax, budgetary, and monetary reform following Wednesday’s GOP capitulation on the debt ceiling.

Democrats shamelessly exploited the Hurricane Harvey disaster to couple the $7.85 billion disaster aid package with demands on unrelated issues in the budget. Congress didn’t pay for the bill with offsetting spending cuts, as the Club for Growth and other fiscal conservatives had urged.

U.S. dollar chart - september 6, 2017

Instead, this emergency spending (and more to come) will simply be added to the national credit card.

If there’s any fiscal upshot, it could be for those holding contra-dollar investments such as precious metals. The U.S. Dollar Index has been in a downtrend all year. It may now have impetus to fall further.

Months of legislative failure and inaction have caught up with Republicans. A recent Fox News poll shows that only 15% of voters approve of the job Congress is doing. Now – faced with a disaster in Texas and another one on the way in Florida that could inflict hundreds of billions of dollars more in damage – Republicans are being pushed by circumstances beyond their control.

Their president has all but given up on them. He is, understandably, beyond frustrated with feckless Republican leadership on Capitol Hill.

House Speaker Paul Ryan and Senate spoiler vote John McCain have seemingly devoted more effort to publicly criticizing President Donald Trump’s choices of words than passing GOP legislation.

This week, President Trump foisted the “DACA” immigration issue upon a Congress that doesn’t want to have to deal with it on top of everything else now on their capitulation schedule for the rest of the year.

Trump’s abrupt move left Americans confused as to what he wants Congress to do with President Obama’s illegal DACA amnesty directive. Trump had campaigned against it. Now apparently he wants DACA “legalized” in some form.

Trump Joins with Democrats on Debt Ceiling Extension

Perhaps Trump now sees reaching out to Democrats as his only viable political path forward. On Wednesday, according to Politico, Trump “turned on Republican leaders in Congress when he caved to Democrats’ demands to raise the debt limit and fund the government for three months, setting up a brutal year-end fiscal cliff.”

The three-month extension could give conservatives another shot at attaching reforms to the next funding bill. But so far Republicans have been outmaneuvered at every turn by Democrats and the forces of more spending and more debt.

President Trump’s decisions on Federal Reserve appointments in the months ahead will be critical. They will majorly help determine the outlook for interest rates and the value of the Federal Reserve Note, commonly thought of as the U.S. dollar. 

Continue to the full article: (Original Source)

August 31 2017

moneymetals

DEATH OF THE U.S. DOLLAR RESERVE CURRENCY... Picking Up Speed

The Death of the U.S. Dollar as the world’s reserve currency will have a profoundly negative impact on the lives of most Americans. Unfortunately, 99% of the population has no clue. The only reason 1% of U.S. citizens understand what is going on, is because the Mainstream media and financial networks have distorted the truth and the reality of our present situation.

What happened in the markets today was a perfect example. Zerohedge published an article today titled, ‘Traders’ Panic-Buy Stocks, Shrug Off Nuclear Armaggedon, Debt Ceiling, & Biblical Flood Fears, and stating the following:

Crazy markets

For a few brief hours overnight – until the bell rang at 0930ET on the NYSE – investors were anxious about North Korea’s most provocative yet missile launch, the terrible flooding disaster in Texas, and lest we forget, the looming debt ceiling debacle. But all of that was instantly forgotten as the machines took control and lifted stocks higher practically all day on a sea of USDJPY-ignited momentum.

Looking at the chart above, we can see that when fear came into the markets during the North Korea missile incident and then the opening of the European markets (shown in the two red boxes), the Dow Jones Index fell as well as the USDJPY, while gold and the U.S. Treasurys increased.

However, after the U.S. markets opened, MAGICALLY everything reversed because the nuclear threat with N. Korea, Biblical flooding in Texas and the upcoming debt ceiling issue no longer mattered. Those of us in the Alternative Media find this quite hilarious that nothing negatively impacts the financial markets anymore. Some have laughed while saying, “If a nuclear bomb had taken out New York City, the stock market would probably go up.” While I doubt that would happen, it is becoming a real joke to watch the financial markets today.

I wrote about the insanity in the markets today and how it has negatively impacted the value of the precious metals in my recent article, The Reason Why Gold & Silver Have Frustrated Investors Since 2011. In the article I posted the chart below, by a Deutsche Bank analyst Aleksandar Kocic, on why the Markets Broke In 2012:

Figure 12: economic policy uncertainty index and vix

The description of the indicator above may be a bit difficult to understand so that I will simplify it. The BLUE LINE represents the “Economic Uncertainty Policy” (EPU index) shown by the frequency of articles in ten leading US newspapers that contain three of the target terms: economy, uncertainty; and one or more of Congress, deficit, Federal Reserve, legislation, regulation or White House in the mainstream media. The BLACK LINE is the VIX index, the volatility index (S&P 500). Economic uncertainty printed in articles in the Mainstream Media should correspond with the volatility indicator of the markets (the VIX). 


Continue to the full article (Original Source

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