DINARRECAPS8 6/4/24 DINARRECAPS8 6/4/24

It’s Vital That You Keep These 7 Financial Documents Forever

It’s Vital That You Keep These 7 Financial Documents Forever — Here’s Why

Vawn Himmelsbach Mon, June 3, 2024

Many of us have piles of papers we’re saving "just in case,” probably gathering dust somewhere.

While some of those documents could probably head straight to the shredder, there are others that you should keep forever — and preferably not in a cardboard box in the basement.

But sometimes we just don’t know what we need to keep (and for how long), and what we can safely get rid of.

Here are seven financial documents you shouldn’t get rid of (ever) — and why.

It’s Vital That You Keep These 7 Financial Documents Forever — Here’s Why

Vawn Himmelsbach Mon, June 3, 2024

Many of us have piles of papers we’re saving "just in case,” probably gathering dust somewhere.

While some of those documents could probably head straight to the shredder, there are others that you should keep forever — and preferably not in a cardboard box in the basement.

But sometimes we just don’t know what we need to keep (and for how long), and what we can safely get rid of.

Here are seven financial documents you shouldn’t get rid of (ever) — and why.

7 Documents You Should Never Lose

1. Birth certificate. Your original birth certificate (or adoption papers) is used to prove your age at various life stages, such as obtaining a driver’s license or applying for Social Security benefits. It will also help your family obtain a death certificate when the time comes.

2. Social Security card. You need the nine-digit number on this card to get a job, rent an apartment and collect government benefits, and you may need it to open a bank account or apply for a credit card. The Social Security Administration (SSA) recommends keeping your card in a safe place and only sharing your number when required.

3. Marriage license. Your marriage license affirms that you and your spouse did, indeed, get married. This can come in handy if you want to claim a Social Security spousal benefit in retirement.

4. Divorce records. Your settlement agreement includes the division of marital property and the terms for child and/or spousal support, so you’ll want to hang onto that. Plus, if you were married for 10 years or more (and aren’t remarried), you may be able to claim Social Security benefits based on your ex’s record.

5. Loan payoff statements. This is important if you’ve negotiated a settlement that’s less than the original debt. That’s because if the debt is sold to a debt collector, the new debt collector may not have a copy of the documentation proving that you settled under those terms.

DINARRECAPS8 6/3/24 DINARRECAPS8 6/3/24

Gold Will Soon Displace The US Dollar, And Americans Are Missing Out

Notes From the Field By James Hickman (Simon Black) June 3 2024

Next month will mark 80 years since the US dollar was formally anointed as the world’s reserve currency.

It was July 1944. And with the war in Europe near its denouement, governments were already trying to plan what the postwar world would look like. Most urgently, they needed to figure out how to rebuild their devastated economies.

Just think about the mess they were in: nearly every industrialized country in Europe had been destroyed by war. Manufacturing and farming were both in the dumps, and they had very little savings to invest in economic revival.

They also had a gigantic mess when it came to international trade. Dozens of countries each had their own currencies, so commercial trade meant each government keeping 20-30 currencies in reserve.

France, for example, would have to hold Austrian schillings, British pounds, Spanish pesetas, Italian lira, Dutch guilders, Soviet rubles, etc. in reserve, just to be able to trade.

Gold Will Soon Displace The US Dollar, And Americans Are Missing Out

Notes From the Field By James Hickman (Simon Black) June 3 2024

Next month will mark 80 years since the US dollar was formally anointed as the world’s reserve currency.

They also had a gigantic mess when it came to international trade. Dozens of countries each had their own currencies, so commercial trade meant each government keeping 20-30 currencies in reserve.

France, for example, would have to hold Austrian schillings, British pounds, Spanish pesetas, Italian lira, Dutch guilders, Soviet rubles, etc. in reserve, just to be able to trade.

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A much, much simpler solution was for every country to use the same currency to trade with each other. And there was no question about which currency would be the right choice: the US dollar.

In 1944, the United States still had a strong and powerful economy. It had robust capital markets and a well-developed financial system. It was the only country left standing.

So, representatives from more than 40 nations gathered that summer in picturesque Bretton Woods, New Hampshire and formally agreed to use the US dollar for international trade and commerce.

More specifically, each country fixed its exchange rate to the US dollar, while the US dollar was fixed to gold.

It only lasted about thirty years. By the early 1970s, the original Bretton Woods deal had been completely undone. Currencies floated freely against each other (including the dollar), and the US dollar terminated its link with gold.

And yet (thanks in part to Saudi Arabia agreeing to sell oil in dollars), the US dollar has continued to remain the dominant reserve currency through today.

For the most part that was still a sensible bet; the US has been the world’s #1 economy for the past five decades. But the cracks are obvious.

The US federal debt is a national embarrassment. At $35 trillion, the debt is far larger than the entire US economy… and it gets worse every year.

The US government is also completely dysfunctional. The vitriol and enmity, among the parties and within the parties, is so extreme that virtually nothing productive or beneficial ever takes place. The business of government now is merely two sides screaming that the other is a threat to democracy.

The President barely knows where he is half the time, and the other half he spends shredding the Constitution to engage in some anti-capitalist, inflationary, fanatical woke climate agenda.

Sadly, this isn’t a one-time blip. America’s governance and finances have been deteriorating for most of this century-- starting with the endlessly expensive War on Terror, through the free-spending Obama years, to the pandemic… and now the very real prospect that the next four years could look very similar to the previous four years.

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America is supposed to be a reliable, stabilizing force in the world. But today’s America has lost its grip. And foreign nations have noticed.

Most people alive today don’t remember a world in which the dollar wasn’t #1 and therefore cannot fathom a world in which this is no longer the case. But it’s irrational to assume that something will continue indefinitely, forever, simply because of the status quo today.

It’s not 1944 anymore. Back then there were no other options… and no one who even came close to rivaling the military and economic superiority of the United States.

Today both of those are in decline. It’s not to say the military can no longer fight or that the economy is in complete shambles. But America no longer has the unrivaled position it enjoyed for so long.

More importantly, the trend isn’t looking good. From an economic perspective, the national debt is set to increase by another $20 trillion over the next decade… likely triggering a nasty run of stagflation like the US experienced in the 1970s.

The US military, meanwhile, continues its downward slide. Recruitment is absolutely abysmal. Key weapons systems, fighter jets, tanks, and naval vessels are borderline obsolete.

The US Navy’s fleet of ships and submarines (which would be critical in any conflict against China) is the oldest and smallest it’s been since the end of World War II. Nearly 1,000 military aircraft will be retired from service in the next five years alone, and there is no concrete plan to replace them.

Nor is there any money to do so.

Frankly it is exceedingly difficult to believe that, in light of America’s declining power and prestige, the rest of the world will continue accepting the US dollar as the global reserve currency for much longer.

We’re already seeing signs of this change; plenty of countries are starting to trade with one another in different currencies, including Chinese renminbi and Indian rupee, and this trend will likely accelerate over the next several years.

I think it’s even possible there could be an event of some sort-- perhaps the US government defaults on its debt, or there’s even a shooting war or cyberattack-- which triggers a new Bretton Woods style conference.

The key difference between now and 1944 is that there was only one option back then-- the US. And pretty much everyone had confidence in America.

That’s not the case today. Few rational people have the same level of confidence in the US government. Yet almost no one trusts the Chinese either.

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But just like 1944, there is an obvious solution… and one that everyone already trusts: gold.

Nearly every country already holds gold as a reserve asset, so there would be very little change to the way they currently do business.

I’ve written about this before-- I believe this is why so many central banks around the world have been on a gold-buying spree. In fact, this is THE reason why gold is near its all-time high: central banks have been buying it by the metric ton.

You have to understand that central banks aren’t speculators. They don’t care about price. They buy for strategic reasons… and I believe that the central bank gold purchases that have been occurring over the past few years are a key sign that the global financial regime will be changing.

Individual investors, meanwhile, have been selling gold.

North American investors have sold off more than $4 billion worth of gold ETFs in the first four months of this year, with $2 billion of that just in the month of April. And gold ETF holdings are now at their lowest level in four years.

Central banks are buying. Individual investors are selling. It seems pretty clear that people aren’t paying attention to the warning signs.

Yes, gold is near its all-time high. But that doesn’t mean it can’t go much higher… especially if there’s a catalyst. And there absolutely is.

As a final point, I would point out again that even while gold is near its all-time high, shares of high quality, profitable, dividend-paying gold miners are laughably cheap.

That’s because central banks only buy physical gold bullion (which has pushed up the price of gold). They do not buy gold stocks… hence many of these businesses are available for outrageous bargains.

To your freedom, James Hickman Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/gold-will-soon-displace-the-us-dollar-and-americans-are-missing-out-151007/

DINARRECAPS8 6/1/24 DINARRECAPS8 6/1/24

4 Purchases Financial Experts Regret and What They Wish They Had Spent Money On

Laura Bogart Thu, May 30, 2024

Financial advisors may know a lot of things about wisely spending money, but they don’t know everything. Even the best educated, most experienced and all around savviest financial expert is still, at the end of the day, a human being trying to make the best decisions based on the information they have on hand.

Sometimes, these advisors regret their decisions in hindsight. And sometimes, looking back on the purchases they regret the most will teach the experts in a more intimate way than they’d get in their studies or on the job.

GOBankingRates talked to some financial experts about the purchases they most regret and what they now wish they’d purchased instead.

Investing In a Startup

As the co-founder and CEO of Reliant Insurance Group and Helping Hand Financial, Ben Klesinger is a seasoned financial professional. But that doesn’t mean that he didn’t have to acquire some of his expertise the hard way by making investments he would come to regret.

4 Purchases Financial Experts Regret and What They Wish They Had Spent Money On

Laura Bogart Thu, May 30, 2024

GOBankingRates talked to some financial experts about the purchases they most regret and what they now wish they’d purchased instead.

Investing In a Startup

Early in his career, Klesinger invested heavily in what he called “a promising but unproven fintech startup.” Citing generally high levels of enthusiasm for technology, he put in about $200,000 of his own capital. Though he expected to see quick returns, what he got was a whole lot of headaches.

“The startup struggled with regulatory issues and market competition. In the end, we lost nearly the entire investment,” he said. “I learned the hard way that even if a business idea sounds revolutionary, proper due diligence is indispensable.”

In hindsight, Klesinger wishes he’d applied a more balanced approach, like investing in a diversified portfolio of mutual funds or even tech-focused ETFs, which would have allowed him to get exposure to the tech sector without taking on such a high risk.

A Fancy Car

Like many people who have worked hard and want to show off their success, Klesinger once purchased “an extravagant car” that he also hoped would serve as a solid investment. Unfortunately, that car which cost him $150,000, ultimately proved more trouble than fun by depreciating much faster than he anticipated.

“The maintenance costs also piled up, diminishing the overall value,” he said. “I realized afterward that investing the same amount in rental properties or a mix of dividend-yielding stocks would have generated consistent income and appreciated over time.”

DINARRECAPS8 5/30/24 DINARRECAPS8 5/30/24

Would You Pay €1 For This House?

Notes From the Field by James Hickman (Simon Black) May 29, 2024

In 2007, Giuseppe Ferrarello found himself facing a monumental challenge as the newly-elected mayor of Gangi, Italy — an incredibly picturesque yet dwindling town nestled in the mountains of Sicily.

Like many rural communities across Italy and beyond, the village of Gangi was grappling with depopulation and economic decline. Once home to 15,000 people, its population by 2007 stood at just 7,000. Young people in particular were leaving to seek job opportunities in northern Italy and elsewhere in Europe, leaving behind aging parents and empty houses.

At first glance, the situation seemed hopeless. Gangi’s inland location far from the coast rendered it unattractive to tourists.

Would You Pay €1 For This House?

Notes From the Field by James Hickman (Simon Black) May 29, 2024

At first glance, the situation seemed hopeless. Gangi’s inland location far from the coast rendered it unattractive to tourists.

But Ferrarello refused to give up and adopted a bold strategy to revitalize his town through the “One Euro Houses program” — a pioneering initiative aimed at attracting new residents and rejuvenating abandoned properties.

Under the program, buyers could purchase local derelict houses for a symbolic price of just one euro... but with strings attached. New owners had to commit to restoring the properties within four years.

Ferrarello’s idea was successful in attracting foreign investors. And over the next few years, the little hamlet was recognized as the “Jewel of Italy,” and named one of the “The most beautiful Italian villages.”

New residents and tourists from Europe and beyond arrived, to the delight of the local businesses and artisans.

And over the following years, several towns across Italy, Spain, France, and even the UK launched their own projects offering housing at a ‘symbolic price’.

At face value it seems like a stupendous bargain to buy a house in Europe for just 1 euro. But are these offers really worth the strings attached?

Super cheap real estate deals across various EU countries exist because the properties are worthless to their current owners. These often-dilapidated homes are located in small towns far from major population centers and tourist attractions, and many have been abandoned for generations, requiring extensive renovation.

Property taxes, though modest, make these properties a burden. And buyers typically must commit to spending at least €35,000 to renovate the property within two to three years.

If you fail to meet these obligations, you risk losing a €1,000 to €5,000 insurance deposit held by the municipality, losing the property, or both.

Other costs include €1,500 in legal fees, and roughly €3,500 for mandatory civil engineering and architectural plans.

There’s also no guarantee that €35,000 will be enough to complete renovations; many of these properties are “historic,” meaning you can’t do whatever you want. Plenty of local regulations will govern what you can and cannot do.

Therefore, renovating a small, 100 square meter (1,076 sq.ft.) home can cost between €60,000 and €160,000 to bring it to a livable and rentable condition.

Engaging in such a project could certainly benefit adventurous souls with ample free time.

But there are other challenges as well. You either need to speak Italian and be prepared for the complexities of southern European bureaucracy, or you’ll have to spend even more money on project managers.

Even if you persevere through the purchase and renovation process, consider the most probable outcome — an illiquid property in a tiny village lacking appeal to both Italians and foreigners alike. Because most of these towns aren’t as successful as Gangi at reigniting their tiny economies.

But if owning a beautiful home in Italy is your goal (and part of your Plan B), it probably makes more sense to just look at the wide selection of regular cheap properties available throughout the country.

After all, owning an Italian home does offer the allure of breathtaking scenery, cultural richness, relaxation, outdoor activities, and even an investment potential… all in one picturesque package.

Even for as low as €60,000 to €160,000, you can find a nice Italian property with no strings attached — no hunting for reliable information, no applying for remodeling and construction permits, no actual renovation, and no time wasted.

Properties almost anywhere in Italy remain remarkably cheap, as the country has, so far, missed the real estate boom experienced by its European neighbors.

As of March 2024, the average Italian property price per square meter stood at €1,850, just 6.6% higher than the nationwide low recorded in February 2020.

Property prices in Spain average €2,098 per sq.m., and €2,596 in Portugal.

And 22 provinces (out of 106) across Italy have current province-wide prices below €1,000 per square meter. That’s definitely cheap.

For example, in Gangi, the original “€1 house” village, this 151 sq.m., 3-story house in the town center offers great views, is in livable condition, and is selling for just €35,000.

(Personally, I’d rather pay 35k for the finished home than have paid 1 euro and gone through all the time, money, and work to renovate it.)

And it’s not just the cheaper southern Italy that has these deals.

Genoa — a famous port city just south of Milan, and the birthplace of Christopher Columbus — is still 47% below its 2012 peak, with plenty of options below €1,000 per square meter.

Biella — less than 90 minutes from Milan and situated right at the foot of the Alps, next to lakes, mountains, and ski resorts — offers this spacious and modern 250 sq.m. apartment located right in the town’s historic area, selling for €155,000 — a very inexpensive €620 per square meter

Now, believe it or not, this article isn’t really about buying property in Italy. To some people, Italy may be their idyllic retirement dream. Others couldn’t care less. The larger issue is how to think about a “Plan B”.

Remember, the central idea behind a Plan B is to mitigate risks by taking sensible actions — actions which make sense regardless of what happens (or doesn’t happen) in the future.

For a lot of people, a big part of their Plan B is having a second property overseas. A second home abroad, combined with residency or citizenship, is sort of like an insurance policy: you might not ever need it… but in case you ever do, you’ll be damn glad you have one.

A second residence means that you’ll always have a place to go in case, for whatever reason, you need to leave your home country. This could be enormously valuable to you and your family.

But even if that day never comes (and hopefully it doesn’t), it’s hard to imagine you’ll be worse off for owning a nice property in a place where you really enjoy spending time-- which you were able to purchase on the cheap and generate modest cashflow while you’re not using it.

For some people, Italy ticks that box. For others, it doesn’t. And for others, buying a second home isn’t the right move either. Everyone has unique, individual circumstances.

The key idea is that we can apply this same logic to other elements of a Plan B, including our finances.

For example, we have long argued why inflation will grow and become a major problem for the US dollar in the coming years; it will be extremely difficult to take on $20+ trillion in new debt in the next decade without serious, serious inflation.

Real assets are a major inflation hedge. And right now, many real assets-- including key commodities and the companies which produce them — are historically cheap.

We’re talking about high quality gold or copper miners that generate fantastic profits, have virtually zero debt, and pay 8%+ dividends… yet their shares trade at laughably low valuations.

If our inflation thesis plays out as expected, these types of companies will do extremely well, and shareholders could be richly rewarded.

But even if inflation never materializes (which is highly doubtful), it still makes sense to consider owning a strong, profitable business that pays a great dividend.

James Hickman Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/would-you-pay-e1-for-this-house-150891/

DINARRECAPS8 5/29/24 DINARRECAPS8 5/29/24

6 Tools That Can Help You Become Debt Free

J. Arky Tue, May 28, 2024

Close your eyes and just imagine it: Being debt free. For many people working today, that feels like an impossible dream to realize. Between having to take out loans for your education, getting a mortgage on a house and putting expenses on a credit card, debt can feel never ending.

Thankfully, there are some modern tools that can help you become debt free. This doesn’t mean you won’t slip into debt here and there along the way — it’s almost inevitable these days — but these methods can aid you in getting yourself out, managing any future debt and staying in the black going forward.

Here are the six tools that can help you become debt free.

6 Tools That Can Help You Become Debt Free

J. Arky Tue, May 28, 2024

Here are the six tools that can help you become debt free.

Budgeting Apps

Our lives are connected to our smart devices. One of the reasons they are so adept and useful is that you can download apps to help you with anything, such as budget and expense tracking.

“Apps like Mint and YNAB (You Need A Budget) are great for tracking expenses and creating budgets. They help you see where your money goes and identify areas to cut back,” said Rhett Stubbendeck, the CEO and founder of Leverage.

“YNAB teaches you to prioritize every dollar you earn, a fundamental shift that can drastically reduce debt,” added Ben Klesinger, the co-founder and CEO of Reliant Insurance Group. “Mint helps you manage your budget, keep tabs on your bills and track your investments all in one place.”

Debt Snowball vs. Debt Avalanche

Two popular strategies for debt repayment are the snowball and avalanche.

“The debt snowball method involves paying off your smallest debts first, which can provide quick wins and momentum,” Klesinger said. “The debt avalanche method, on the other hand, focuses on paying off debts with the highest interest rates first, saving you more money in the long run.”

Automated Savings Plans

“Services like Digit and Qapital automatically save small amounts of money from your checking account to a savings account based on your spending habits,” Klesinger said. “This incremental approach helps build an emergency fund, which is crucial for avoiding new debt.”

DINARRECAPS8 5/28/24 DINARRECAPS8 5/28/24

Where The Price Of Oil Is Just $15/Barrel

Notes From the Field By James Hickman (Simon Black) Tues May 28 2024

In the year 1712, an English ironworker and part-time Baptist preacher named Thomas Newcomen finally put the finishing touches on a new invention that had been more than a century in the making.

Newcomen called it the ‘atmospheric engine’, and it was essentially a very crude, rudimentary steam engine that he used to pump water.

The idea had existed since the early 1600s, and a number of inventors had attempted to create something similar. But Newcomen was the first to develop a functioning engine, and his key breakthrough was including a fuel source (wood) to heat up water and create steam.

It’s remarkable that, even to this day, most automobile engines, generators, and electrical power plants still rely on Newcomen’s basic concept: burn a fuel to create heat, then harness that heat energy to generate motion and mechanical work.

Where The Price Of Oil Is Just $15/Barrel

Notes From the Field By James Hickman (Simon Black) Tues May 28 2024

In the year 1712, an English ironworker and part-time Baptist preacher named Thomas Newcomen finally put the finishing touches on a new invention that had been more than a century in the making.

Newcomen called it the ‘atmospheric engine’, and it was essentially a very crude, rudimentary steam engine that he used to pump water.

Obviously, the design has been much improved since then; James Watt perfected Newcomen’s invention decades later with the first commercially viable steam engines (which ultimately kicked off the Industrial Revolution).

Inventors also discovered far more efficient fuel sources.

Coal, for example, was found to have more than twice as much heat energy per pound than wood… which is a key reason why coal became the most important commodity of the 1800s. But other commodities like oil and gas were later discovered to be even more fuel efficient than coal.

Today all three are still used in vast quantities. In fact, coal-fired power plants still produce over 2,300 gigawatts of electricity worldwide, which constitutes about 30% of global electricity production capacity.

Natural gas is also responsible for nearly 2,000 gigawatts (in addition to its widespread use in heating). And oil is clearly the most dominant fuel source for internal combustion engines which power global transportation.

Now, at the end of the day, all three commodities serve essentially the same purpose, i.e. they are fuel sources whose heat energy is harnessed to perform work. And because of this, their heat energy should be priced more or less the same.

For example, a barrel of oil contains the equivalent of 5.6 million British Thermal Units (BTUs) of heat energy. So, at a price of roughly $80 per barrel of oil, this is the equivalent of about $14.28 per million BTUs of heat energy.

Oil prices do vary from place to place. But the differences are fairly minor; the West Texas Intermediate price (used primarily in the US) is slightly lower than the Brent oil price (used primarily in the North Sea), but they are within a few percent of each other.

But natural gas is a totally different story.

In Europe, for example, natural gas prices are significantly higher than they are in the US and currently trade for roughly $9.12 per million BTUs. And only a few months ago, natural gas prices in Europe were nearly $14 per million BTUs, i.e. almost equivalent to oil price when measured in dollars (or euros) per million BTUs.

But natural gas prices in the US are dramatically lower than they are in Europe… and it’s easy to understand why: the US has some of the biggest natural gas reserves in the world, while Europe has almost nothing by comparison. (This is why Europe is so reliant on Russian gas).

And since Joe Biden has banned the exporting of LNG (liquefied natural gas) from the US, there’s basically nowhere for all that excess US natural gas to go.

This is why prices in the US are less than $3, versus more than $9 in Europe. If US producers were free to export, prices in the US would rise, prices in Europe would fall, the global natural gas prices would be more or less the same, just like global oil prices.

But, at least for now, LNG exports are banned… and that keeps prices incredibly cheap in the US. How cheap exactly?

Well remember that $80 oil is the equivalent of $14.28 per million BTUs of heat energy. US natural gas prices are $2.77 per million BTUs of heat energy. So, based on the price per million BTUs, natural gas is about 80% cheaper than oil in the United States.

Another way to say it is that US natural gas is priced at the equivalent of $15 for a barrel of oil… which makes US natural gas the most underpriced conventional energy commodity in the world.

Now, I say “conventional” because there is another option that blows natural gas away-- and that’s nuclear.

The energy released in a nuclear reaction from just a single cubic foot of uranium is literally FIFTY BILLION times greater than the energy released from burning an equivalent amount of natural gas. So, nuclear is, by far, the cheapest and most efficient energy… which is why China, India, Russia, etc. are all feverishly building nuclear power plants.

The West, by comparison, is shutting their nuclear plants down. It is the dumbest policy imaginable.

So, at least for now, natural gas is America’s cheapest energy source. But it probably won’t stay that way for long.

First, large tech companies, which are building massive, energy-hungry AI data centers, are also looking at putting in their own power plants… which will most likely be powered by natural gas.

This increased demand will certainly have a big impact on price.

The second catalyst is that the export ban probably won’t last. There are lawsuits, legislation, and an upcoming election, any one of which could reverse the ban and start up LNG exports once again. When this happens, US natural gas prices could quickly rise

In either case, natural gas producers stand to benefit substantially from higher prices. And it just so happens that shares of many of the best quality producers right now are laughably cheap, with low multiples relative to earnings, book value, and Free Cash Flow.

We’ll talk about this more in the future, but our core view is that it makes a lot of sense to own ‘real assets’, i.e. scarce, high quality, productive assets that the world truly needs (and cannot be conjured out of thin air by central banks.)

Energy commodities like natural gas, and their highest quality producers, definitely fit that description, with the added benefit that they’re dirt cheap right now.

To your freedom, James Hickman Co-Founder, Schiff Sovereign LLC

P.S. If you’re interested in more analysis on this theme, including our best research on some of the most deeply undervalued real asset producers in the world, consider giving The 4th Pillar, our real-asset focused investment newsletter, a try.

https://www.schiffsovereign.com/trends/where-the-price-of-oil-is-just-15-barrel-150883/

DINARRECAPS8 5/25/24 DINARRECAPS8 5/25/24

Banking Habits You Should Change in Retirement

Jordan Rosenfeld Sat, May 25, 2024

While retirement is often a time when you finally get to stop thinking so hard about many of the little details in life, there are some you want to stay on top of, like your banking habits.

Some of your pre-retirement banking habits may not be as useful, protective or financially savvy after retirement.

Experts explain some banking habits you might still be doing that you’ll want to change in retirement.

Wealthy people know the best money secrets. Learn how to copy them.

Not Saving More Than Before

Retirees should consider having more money in a bank account than they did while they were working and earning an income, according to Chris Urban, CFP, a retirement planner and founder of Discovery Wealth Planning.

Experts: Banking Habits You Should Change in Retirement

Jordan Rosenfeld Sat, May 25, 2024

While retirement is often a time when you finally get to stop thinking so hard about many of the little details in life, there are some you want to stay on top of, like your banking habits.

Some of your pre-retirement banking habits may not be as useful, protective or financially savvy after retirement.

Experts explain some banking habits you might still be doing that you’ll want to change in retirement.

Wealthy people know the best money secrets. Learn how to copy them.

Not Saving More Than Before

“These days, high-yield savings accounts are a good place to earn a reasonable amount of interest while also having access to your cash. These accounts are a great way to insulate your household from the ups and downs of the financial markets, where your other retirement and investment accounts may be invested,” Urban said.

Learn More: 7 Bills You Never Have To Pay When You Retire

Not Keeping Cash Liquid

Consider taking your spending money from this high-yield savings account and replenishing it in a tax-efficient way from your retirement and/or investment accounts in years when they have performed well, Urban explained.

“Sure, you might have what is referred to as ‘cash drag’ by holding too much in cash; however, in my opinion, retirement is much more about optimizing your overall happiness and life than it is about optimizing for investment performance,” he said.

Holding On to High-Fee Accounts

Retirees should steer clear of accounts with high fees, including maintenance fees, overdraft fees and ATM fees, according to Taylor Kovar, CFP, founder and CEO of 11 Financial.

“These fees can eat into retirement savings over time. Instead, consider switching to fee-free or low-fee accounts to minimize expenses and maximize savings,” he said.

Do your research and shop around different banks and credit unions to find accounts with low or no fees, added Lyle D. Solomon, Esq., an attorney who specializes in personal finance issues such as debt relief, taxes and estate planning at Oak View Law Group. “Don’t hesitate to switch if you find a much better deal elsewhere,” he said.

Using Non-Bank ATMs

Retirees should also be mindful of using non-bank ATMs, which often charge hefty fees for withdrawals, Kovar said.

DINARRECAPS8 5/23/24 DINARRECAPS8 5/23/24

Goldilocks' Comments and Global Economic News Thursday Evening 5-23-24

Good Evening Dinar Recaps,

What Is a Private Wealth Manager?

A bank's ledger balance is a record of all transactions that have been processed and approved at the end of a business day, including deposits, withdrawals, interest income, and bill payments.

That being said, is it really a stretch to anyone's imagination that we are moving into a digital processing center on a Global scale, and the banking system is just simply one section interfaced onto a Quantum Technological Systematic set of protocols designed to run numbers on equations until a balance between two parties are cleared?

Yes, we are finding that many positions in the banking system and around the world can be automated. Still, the need for a personal touch remains.

This would account for why Personal Wealth Manager positions are on the rise and Banks are currently making these changes to meet the needs of a new society.

Goldilocks' Comments and Global Economic News Thursday Evening 5-23-24

Good Evening Dinar Recaps,

What Is a Private Wealth Manager?

A bank's ledger balance is a record of all transactions that have been processed and approved at the end of a business day, including deposits, withdrawals, interest income, and bill payments.

That being said, is it really a stretch to anyone's imagination that we are moving into a digital processing center on a Global scale, and the banking system is just simply one section interfaced onto a Quantum Technological Systematic set of protocols designed to run numbers on equations until a balance between two parties are cleared?

Yes, we are finding that many positions in the banking system and around the world can be automated. Still, the need for a personal touch remains. This would account for why Personal Wealth Manager positions are on the rise and Banks are currently making these changes to meet the needs of a new society.

The synchronization of human behavior and technological advances are currently being held at a balance. Where we go from here will be determined by the choices both AI and Human Nature co-create in this new world.

There will always be pros and cons to each choice we make going forward, but the integration of the Techno-Human Race is forging a new path. It is an experimentation beyond everything we have encountered so far in history.

Movement forward is both scary and filled with opportunity. Yet, inside each of us is an explorer of space and time. We are walking into new frontiers and decisions will have to be made by each of us how far we are willing to go.

The transition into digital money and sudden wealth is a much larger step than many realize. We will cross over into a dimension of life few have seen in this lifetime.

We are at a crossroads, and movement into a new digital world that moves our money and the choices we make is rapidly approaching.

True freedom will not be the result of sudden wealth. Freedom comes from a much deeper place. The more that is given to us, the more is required for us to reach into those places hands can no longer touch. Here, we ask for wisdom and guidance from a place of creativity. Our creative nature knows how to walk beside the presence of our Creator forming a relationship that always has, is, and will be with us to the end.

The time to evolve is right in front of us now, and the choice to become creative entrepreneurs exploring New Frontiers is calling on us to resonate with new vibrations capable of moving our attention into higher ground. | CFA Institute

© Goldilocks

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"XRP Price Nears Major Converging Point: Analyst Predicts 3,600% Jump To $20" | Trading View

When you take a look at some of the technical analysis on the price of XRP, it currently has a Relative Strength Index potential of moving into a bull run.

"An RSI is a technical tool used to measure the speed and change of price movements in a cryptocurrency. It is also used to determine the short-term momentum of a cryptocurrency’s market."

Twenty dollars would be just a beginning point of reference to obtain on its way to integrating its full demand over time at much higher levels.

Remember, Ripple is the liquidity coin that allows the movement of our money to take place in the digital economy. Ripple uses its cryptocurrency, XRP, as a liquidity bridge for cross-border payments. Financial institutions can convert fiat currency into XRP, send it across the XRP Ledger blockchain, and then convert it back to the destination currency.

It is necessary for Ripple to have a much higher price range than it is currently displaying to bring in a catalyst for its movement.

Ripple is moving from a speculative investment to one that is based on demand. This shift in its purpose and its role in the new economy will raise it to much higher levels to meet these new demands inside the new digital asset-based economy.

From a trading perspective, the movement of Ripple in its price and demand will pull us into the next economy.

Watch Ripple.

© Goldilocks

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Central banking: embracing change | BIS

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ABCs of Banking - Banks and Our Economy | CT Department of Banking

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Imaging a better climate future in China: Greenpeace-hosted climate change forum - Greenpeace East Asia

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Lawmakers Push to Make IRS Direct File Program Permanent After Successful Pilot - Franklin County Free Press

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US Debt Clock: Elon Musk’s Revolutionary Vision! Transforming the American Economy with Blockchain and AI, the New US Treasury Dollar, and Precious Metals Backing Currency! - American Media Group

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#Ripple’s $XRP is a military operation. | Twitter

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IMPORTANT IMF Report on Iraq's Economy GDP Prediction Good News | Youtube

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Text - H.R.4763 - 118th Congress (2023-2024): Financial Innovation and Technology for the 21st Century Act | Congress.gov | Library of Congress

👆Now, we can move forward.

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LIVE | FOMC Meeting Minutes Data Release - LIVE | 5/22/2024 | Youtube

👆 Goldilocks pointed to this article

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(ZiG/USD) IMF Calls Zimbabwe Switch to Gold-Backed ZiG an ‘Important’ Step - Bloomberg

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DINARRECAPS8 5/23/24 DINARRECAPS8 5/23/24

9 Ways To Become Rich If You Were Born Poor

Cindy Lamothe Fri, May 17, 2024,

Growing up with wealth is a privilege that lends financial stability and provides greater opportunities for future success. But what if you weren’t born with a silver spoon in your mouth? It’s hard to fathom going from poor to wealthy in a single lifetime, but according to experts, it’s not some distant fantasy. It isn’t easy either.

“Wealth building for individuals starting from a disadvantaged economic position requires a multifaceted approach, focusing on education, smart financial decisions and leveraging available opportunities creatively,” said Dennis Shirshikov, head of growth at Summer.

“Education, both formal and informal, is a cornerstone. It’s not just about earning degrees but acquiring financial literacy,” he added.

Overall, though, some experts disagree on how best to build wealth — especially when starting from a place of financial insecurity. Some say to invest in education, while others suggest skipping the fancy schools altogether.

9 Ways To Become Rich If You Were Born Poor

Cindy Lamothe Fri, May 17, 2024,

“Education, both formal and informal, is a cornerstone. It’s not just about earning degrees but acquiring financial literacy,” he added.

Below are some ways to become rich if you’re starting out with limited resources, according to the experts.

Capitalize on High Demand Skills or Industries

One strategy, according to Shirshikov, is to capitalize on high-demand skills or industries.

“Whether it’s learning a trade, tech skills or entering emerging markets, aligning one’s skillset with market demands can provide a substantial economic uplift.”

Start a Business

Entrepreneurship also plays a crucial role, Shirshikov continued. “It involves higher risks but offers greater control and higher rewards.

“I’ve observed several cases where individuals from modest backgrounds have started their own businesses in fields as varied as cleaning services to tech consultancies, scaling these ventures into substantial wealth over time.”

The key, he says, lies in starting small, minimizing initial costs and gradually expanding as the business generates revenue.

Focus on Getting a Good Education

“The key to building wealth for people starting from scratch is to focus on getting a good education and developing valuable skills,” said Joe Chappius, financial planning and tax expert at TaxClimate.com.

“This builds you a solid foundation that will open doors to better job opportunities and higher income for you later on.”

Melanie Musson, finance expert with Clearsurance, agrees.

“Take a class and read some books. When you don’t grow up rich, you miss out on the lifestyle learning you get just by living in a wealthy household. So, to make up for that, you have to take the initiative to educate yourself.”

DINARRECAPS8 5/22/24 DINARRECAPS8 5/22/24

The Fed Is Already Insolvent. Here’s How We Think This Plays Out

Notes From The Field By James Hickman ( Simon Black ) 5-22-24

On Tuesday, September 15, 1992, the two most powerful financial officials in the British government held an urgent meeting that night to review their plan for when the markets opened the next morning.

The tone of the meeting must have felt frantic… even desperate… because the value of the British pound had been falling for weeks.

Investors and speculators were rapidly losing confidence in the UK government, mostly due to the ridiculous “Exchange Rate Mechanism” (ERM) which essentially pegged most European currencies to the German Deutschemark.

Rational investors viewed the ERM as an almost comical impossibility.

Germany’s economy was light years ahead of everyone else. Germany had vastly higher productivity, far greater savings, low inflation, high growth, and much more responsible monetary policy.

The Fed Is Already Insolvent. Here’s How We Think This Plays Out

Notes From The Field By James Hickman ( Simon Black ) 5-22-24

The tone of the meeting must have felt frantic… even desperate… because the value of the British pound had been falling for weeks.

Rational investors viewed the ERM as an almost comical impossibility.

Germany’s economy was light years ahead of everyone else. Germany had vastly higher productivity, far greater savings, low inflation, high growth, and much more responsible monetary policy.

So, to even pretend that a country like Italy or even Britain could fix its exchange rate to the Deutschemark, i.e. to essentially mirror Germany’s economic performance-- was a total joke.

Britain joined the Exchange Rate Mechanism in October 1990. Prime Minister Margaret Thatcher had spent years trying to keep Britain out of the ERM, viewing it as giving up national sovereignty.

But Thatcher was about to retire. And the new batch of leaders insisted that pegging Britain’s economy to Germany was the way forward.

Their experiment didn’t even last two years. By the summer of 1992, inflation in Britain was more than 3x Germany’s. Plus, Britain had a major budget deficit.

Financial speculators correctly recognized, given the massive disconnect between the British and German economies, that Britain would not be able to maintain its fixed exchange rate with the Deutschemark.

So, traders began short selling the British pound, i.e. betting that the value of the pound would fall because the British government would devalue its currency.

The sell-off reached a crisis on September 15th, when the head of Germany’s central bank suggested to the Wall Street Journal that weaker countries (like Britain) would have to devalue their currencies.

That’s what led the British Chancellor of the Exchequer and head of the Bank of England-- the two most powerful policymakers in British government finance-- to meet that evening.

They knew that the German central bank’s comments would encourage even more traders to dump the British pound. So, the two men pledged to do ‘whatever it takes’ to defend the pound and defeat the speculators.

It didn’t work.

The following morning on September 16th, the Bank of England did everything it could. They raised interest rates, they bought back pounds, they bought government bonds, they made all sorts of outlandish promises.

But speculators didn’t believe any of it. They could see the numbers, and they knew that the Bank of England simply didn’t have the financial resources to maintain such an unrealistic exchange rate.

One of those speculators was George Soros, who famously bet $10 billion against the British pound… far exceeding the Bank of England’s financial resources

By the end of that day, the British central bank had exhausted its capital and was essentially bankrupt. The British government had to bail them out to the tune of 3 billion pounds, and then announce that they were formally leaving the ERM-- proving the speculators right.

This is an important story to understand, because it’s likely that something similar may happen to the Federal Reserve and US dollar over the next several years.

The Federal Reserve is already insolvent.

According to its most recent annual financial statements, the Fed has just $51 billion in equity, versus a whopping $948 billion in mark-to-market losses. This means the Fed is insolvent by roughly $900 billion.

This is a big problem. Remember that the Fed is still a bank, i.e. it has financial obligations, liabilities, and depositors that it needs to pay.

For example, commercial banks like JP Morgan and Bank of America have deposited a total of $3.4 trillion of their customers’ money, i.e. YOUR money, with the Fed. And the Treasury Department holds another $700 billion deposit at the Fed.

The Fed owes money to foreign governments. They owe trillions of dollars from repurchase agreements to banks and businesses across the global financial system.

So, yeah, the insolvency of the Federal Reserve is a pretty big deal. Yet, at least for now, no one is saying a word about it.

But just like the Bank of England in 1992, sooner or later, someone is finally going to say something… and do something… about the Fed’s insolvency.

There’s a good chance that means betting against the dollar… just like speculators bet against the pound three decades ago. And that would ultimately reduce the value of the dollar, increase inflation, and trigger a new ‘Bretton Woods’ agreement in which the US dollar is no longer the world’s reserve currency.

George Soros became known as “The Man Who Broke the Bank of England”. (Though given his malign proclivity to fund progressive activists, he is known by several other names in my household, none of them reverent).

Within the next several years there could be some Chinese or Russian financier who becomes known as “The Man Who Broke the Fed”.

This isn’t sensational. The Fed is already insolvent by $900+ billion, according to its own financial statements. Social Security is insolvent. The US government is insolvent by tens of trillions… and they further anticipate the national debt to grow by $20 trillion over the next decade.

These are facts, not fantasies.

And this is why it makes so much sense to hedge these risks by owning real assets which are scarce, valuable, and uncorrelated to the US dollar.

Gold is a great example. And as we’ve argued before, even though it’s already near its all-time high, we believe it can go much higher from here.

Here’s Why I Regret Being So Extreme Saving Money

I’m a Super Saver: Here’s Why I Regret Being So Extreme Saving Money

G. Brian Davis Sat, May 18, 2024

Most people spend too much and save too little of their paycheck. But it’s possible to go too far in the opposite direction.

While saving more money helps you build wealth and passive income streams, and possibly reach financial independence at a younger age, extreme savings and frugality come with a cost. Before budgeting for a high savings rate, beware of the following pitfalls.

Missed Experiences with Loved Ones

Life is meant to be shared. Sometimes that means spending money to share experiences with your family and friends.

“In their relentless pursuit of savings, I’ve seen many people sacrifice cherished experiences, personal growth opportunities, and meaningful connections with loved ones,” said Abid Salahi, co-founder of FinlyWealth. “One particular client of mine, driven by an insatiable desire to save every penny, missed out on attending important family events and cultivating hobbies.”

I’m a Super Saver: Here’s Why I Regret Being So Extreme Saving Money

G. Brian Davis Sat, May 18, 2024

Most people spend too much and save too little of their paycheck. But it’s possible to go too far in the opposite direction.

Missed Experiences with Loved Ones

Life is meant to be shared. Sometimes that means spending money to share experiences with your family and friends.

Instead of being exclusively focused on saving, he advised, “Prioritize quality time with loved ones, engage in hobbies and activities that bring you joy, and cultivate a mindset of abundance rather than scarcity.”

Tolls on Personal Relationships

Missing out on shared experiences aside, hardline stances can impact your personal relationships.

Carl Rodriguez of NX Auto Transport has seen it firsthand. “One lesser-known downside to extreme frugality is the potential impact on relationships. Saving aggressively can sometimes lead to conflicts with friends or family members who have different spending habits or expectations.”

That proves especially true for your romantic relationships, where your finances intertwine with another person’s. “It’s important to find a balance and communicate openly about financial goals to avoid strain on relationships.”

Lack of Investment in Your Children

The better experiences and education you provide your children, the more likely they are to grow into successful, balanced, intellectually curious adults. But don’t let your desire to save money interfere with being present for your kids.

Mado Eldemrdash from Tireonway.com weighs his own regrets about investments in his children. “I worry it has affected my children, the quality of schools and clubs we’ve sent them to. All these financial behaviors can impact our quality of life and may affect my children’s professional futures.”

Neglected Personal Development