Goldilocks' Comments and Global Economic News for September 19th
Goldilocks' Comments and Global Economic News for September 19th
Good afternoon Dinar Recaps,
Congrats, America 🥂We Made it! Government Debt Spikes past $33 Trillion: +$1.6 Trillion since Debt Ceiling, +$2.2 Trillion from Year Ago | Wolf Street Wolfstreet Link
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"The world’s first fractional bond exchange using the latest in distributed ledger technology now has Citi Securities Services as its first digital custodian participant."
Goldilocks' Comments and Global Economic News for September 19th
Good afternoon Dinar Recaps,
Congrats, America 🥂We Made it! Government Debt Spikes past $33 Trillion: +$1.6 Trillion since Debt Ceiling, +$2.2 Trillion from Year Ago | Wolf Street Wolfstreet Link
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"The world’s first fractional bond exchange using the latest in distributed ledger technology now has Citi Securities Services as its first digital custodian participant."
Citibank steps into the digital bond market as a digital custodian. A custodian holds stocks, bonds, or other assets electronically/digitally or in physical form for and on behalf of their customers.
Bond yields give us an indication of how well the stock market is doing. The trade for them, be it domestic or foreign, increases the demand for a nation's currency. And demand creates more value through money velocity.
The most common bond type is the US Treasury Gold Bond. This is issued by the US government, and it is backed by gold held by the US Treasury.
Are you beginning to see why currency resets around the world are about to become inevitable? Basel 3 changes the landscape of everything. It is expected to be completed by the end of the year.
"All roads lead to gold and gold will set us free."
© Goldilocks
Investment News Link
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"The KRX system is an information technology system for managing and operating transactions on the Vietnamese stock market."
The Vietnamese stock market is upgrading their system. They are calling on all of their it professionals to upgrade into the new kRX technological system to be used on their Stock Exchange.
This will enable them to digitally do transactions on the stock market on a global scale. The expectation is for all security companies to be fully integrated by the month of December or answer to their clients for their failures in doing so.
Vietnam is moving along rather nicely. Months ago we read where one of their Banks was fully Basel 3 compliant, and now we find they are about to be capable of utilizing their tokenized assets supported by a gold standard and the movement of their money from one transaction to another.
© Goldilocks
VietnamNews Link1
VietnamNews Link 2
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Crypto Custody Services Expand; CFTC Enforcement Targets DeFi, SEC Targets NFTs; FinCEN Warns of Crypto Scams; Major Hacks Steal $41M and $55M | BakerHostetler - JDSupra
https://www.jdsupra.com/legalnews/crypto-custody-services-expand-cftc-2120214/
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STORY: "She adds this possibility could lead to short term changes to economic indicators making it hard for the Federal Reserve to accurately gauge the health of the U.S. economy in the months to come."
As we have been discussing in this room, we are in process of making adjustments to Capital requirements inside Basel 3 compliant banking mechanisms.
Tokenization of assets backed by real-world Commodities will give them real values.
Therefore, the expectation of volatility on the markets for the rest of this year is certainly going to be a part of what we are going to see any moment.
As the markets and banking system work to find their Goldilocks economy, you will more than likely hear about changes being made to the system to create new synchronistic values that are neither too hot or too cold, but "they are just right." 😉
"The term (Goldilocks) describes an ideal state for an economic system. In this perfect state, there is full employment, economic stability, and stable growth."
© Goldilocks
https://news.yahoo.com/us-market-volatility-could-spike-192859541.html
Investopedia Link
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The Rise of Artificial Intelligence, Big Data, and the Next Generation of International Rules Governing Cross-Border Data Flows and Digital Trade | White & Case LLP
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Overcoming Barriers: Challenges to Implementing Global Regulation of Digital Assets
Finance Feeds Link
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🚨XDC HUGE PROJECT ANNOUNCEMENT🚨XINFIN PRICE & DIGITAL TRADE GOING LIVE
https://youtu.be/xsxEZiZzKtc?feature=shared
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Private banking is an enhanced offering for the high-net-worth individual (HNWI) clients of a financial institution. Private banking consists of personalized financial and investment services and products from a dedicated personal banker.
Investopedia Link
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When I talked with the Head of Silver Eagle Sales for the US Mint back in May he said they had been "allocated" 4 Million more silver blanks for the 2023 US Silver Eagle Program.
With the ramp-up of silver eagle sales over the past 4 months the premiums have fallen substantially.
According to the numbers, unless the allocation of silver blanks was increased further, the US Mint should STOP selling eagles in October instead of December!
What would that do to Silver Eagle Premiums?
ALERT! US Mint to STOP SELLING 2023 Silver Eagles in October?! PREMIUMS TO SOAR AGAIN?! (Bix Weir
https://www.youtube.com/watch?v=QPozCeMSk6I
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HUGE NEWS! Prepare for 5x Gold & 10x Silver. This Is the BIG ONE, Bill Holter
HUGE NEWS! Prepare for 5x Gold & 10x Silver. This Is the BIG ONE, Bill Holter
Finance Log: 9-17-2023
The renowned analyst Bill Holter believes those who possess gold and silver could become their banks in the future.
These precious metals might be the collateral or backing for any potential new currency emerging following a financial crisis.
Holter doubts the success of Central Bank digital currencies (CBDCs), viewing them as similar to traditional fiat currencies and lacking the ability to inspire trust.
Instead, he envisions a scenario where gold and silver maintain their value and play a foundational role in establishing a new currency system supported by tangible assets.
HUGE NEWS! Prepare for 5x Gold & 10x Silver. This Is the BIG ONE, Bill Holter
Finance Log: 9-17-2023
The renowned analyst Bill Holter believes those who possess gold and silver could become their banks in the future.
These precious metals might be the collateral or backing for any potential new currency emerging following a financial crisis.
Holter doubts the success of Central Bank digital currencies (CBDCs), viewing them as similar to traditional fiat currencies and lacking the ability to inspire trust.
Instead, he envisions a scenario where gold and silver maintain their value and play a foundational role in establishing a new currency system supported by tangible assets.
The record streak of central bank gold purchases that began in 2022 has also driven investors to allocate the largest percentage of their portfolios to the precious metal since 2012, according to a newly developed metric unveiled in a recent report from analysts at JPMorgan.
In the first six months of 2023, Central Banks worldwide acquired an unprecedented 387 tonnes of gold, marking the highest H-1 purchase of gold volume since 2000, when the World Gold Council began recording such transactions.
Holter explains that central banks are buying gold because they understand that the U.S. dollar is under pressure, and they hold significant dollar reserves.
As the dollar weakens, it creates a significant liability on their balance sheets, which they seek to hedge by acquiring gold. In this context, gold is a way to protect against currency devaluation.
Economist's "News and Views" for Wednesday 9-13-2023
'No Question' Expansion of BRICS is Leading to a Gold-Backed Currency: Andy Schectman
Commodity Culture: 9-13-2023
Andy Schectman has been pointing to the BRICS alliance as a real threat to the Western hegemony for some time
And although there wasn't any formal announcement of a gold-backed currency at their recent summit, Andy believes the expansion of BRICS is a clear indication that dedollarization is well underway.
00:00 Introduction
01:19 Current Tailwinds for Gold
'No Question' Expansion of BRICS is Leading to a Gold-Backed Currency: Andy Schectman
Commodity Culture: 9-13-2023
Andy Schectman has been pointing to the BRICS alliance as a real threat to the Western hegemony for some time
And although there wasn't any formal announcement of a gold-backed currency at their recent summit, Andy believes the expansion of BRICS is a clear indication that dedollarization is well underway.
00:00 Introduction
01:19 Current Tailwinds for Gold
09:35 BRICS Summit Implications
28:24 Gold and Real Interest Rates
Six Southern European countries shocked the U.S. by signing a Belt and Road cooperation with China!
DeepIn Moments: 9-13-2023
Hello and welcome to Deepin Moments:In 2023, we commemorate the 10th anniversary of the "Belt and Road Initiative." This visionary project, based on principles of consultation, joint construction, and shared benefits, aims to advance the development of the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
Discover how it challenges U.S. hegemony and fosters political trust, economic ties, and cooperation worldwide. As of January 6, 2023, China has signed over 200 cooperation agreements under the Belt and Road Initiative with 151 nations and 32 international organizations.
Explore how Southern European countries, including Italy, Spain, Portugal, Greece, Cyprus, and Malta, engage boldly with China despite U.S. opposition.
These nations occupy strategic positions along the historic Silk Road, facilitating trade between China and Europe, reshaping global politics, and forging a new paradigm for the Belt and Road Initiative.
Warning: China Starts Dumping US Dollars - Financial Crisis Is Coming
The Atlantis Report: 9-13-2023
China is currently concealing an astonishing 3 trillion dollars in foreign currency within shadow reserves. While official reports from China's State Administration of Foreign Exchange confirmed this figure, experts believe the actual reserves might be around 6 trillion dollars.
This lack of transparency in China's financial practices raises significant concerns, creating new and substantial risks to the global economy.
What's even more unsettling is that over time, China's management of its currency and foreign exchange reserves has become increasingly opaque, making it difficult for the rest of the world to gauge their true intentions and strategies.
It's not just about hiding a portion of their wealth; it's about the collateral damage that the world will experience. China's role as an economic giant directly affects the rest of the world, by how they manage their economy, and their currency.
The lack of transparency also makes it extremely challenging to predict their next move, which has now become an even bigger problem.
Economist's "News and Views" Tuesday 9-12-2023
Andy Schectman: Are Gold & Silver Likely To Be Confiscated
Arcadia Economics: 9-12-2023
One of the primary advantages of holding physical gold and silver is that it allows you be outside of the banking system and free from counter-party risk. Almost entirely. Except of course for the possibility of confiscation by the government.
Which is not often an overwhelming concern among gold and silver holders, although one that does exist, and does have some historical precedent.
So in today's show, in addition to checking in on the premium levels of gold and silver, and talking about some of the recent developments in the market,
Andy Schectman of Miles Franklin also talks about the possibility of confiscation, and whether he sees that as likely.
Andy Schectman: Are Gold & Silver Likely To Be Confiscated
Arcadia Economics: 9-12-2023
One of the primary advantages of holding physical gold and silver is that it allows you be outside of the banking system and free from counter-party risk. Almost entirely. Except of course for the possibility of confiscation by the government.
Which is not often an overwhelming concern among gold and silver holders, although one that does exist, and does have some historical precedent.
So in today's show, in addition to checking in on the premium levels of gold and silver, and talking about some of the recent developments in the market,
Andy Schectman of Miles Franklin also talks about the possibility of confiscation, and whether he sees that as likely.
He also talks about which types of gold or silver would be most vulnerable in the event that a confiscation was attempted, as well as some other government mandates regarding gold and silver that precious metals are well served to keep in mind.
Lastly, he answers some user questions that have come in, that touch on some of the various aspects of owning American silver eagles.
So to stay up to date on the latest developments and news, click to watch this video now!
LIVE! NATO To Launch THE LARGEST MILITARY EXERCISE SINCE THE COLD WAR! Important Updates.
Greg Mannarino: 9-12-2023
Saudi Arabia announces that the RMB can replace the dollar for oil purchases!
DeepIn Moments: 9-12-2023
In this video, we dive deep into the recent groundbreaking agreement between Saudi Arabia and China that's shaking up the global financial landscape.
In recent days, Saudi Arabia and China have signed a highly anticipated memorandum of understanding (MOU) with significant strategic implications.
This MOU, signed on September 3, 2023, between the Shanghai Stock Exchange and the Saudi Exchange Group, marks a crucial milestone in their cooperation journey.
Awake-In-3D: Calls for Gold-backed Dollar on the Rise Across USA
Awake-In-3D:
Calls for Gold-backed Dollar on the Rise Across USA
On August 23, 2023 By Awake-In-3D
Our GCR, as an alternative currency system, is gaining public awareness.
Amidst mounting concerns over inflation and the waning influence of the U.S. dollar in international trade, lawmakers on both the federal and state levels are championing gold and precious metals as a remedy.
With growing discussions about the potential loss of the dollar’s status as the global reserve currency, proponents of a gold-backed U.S. dollar are making a compelling case for returning to the economic stability of the past.
Awake-In-3D:
Calls for Gold-backed Dollar on the Rise Across USA
On August 23, 2023 By Awake-In-3D
Our GCR, as an alternative currency system, is gaining public awareness.
Amidst mounting concerns over inflation and the waning influence of the U.S. dollar in international trade, lawmakers on both the federal and state levels are championing gold and precious metals as a remedy.
With growing discussions about the potential loss of the dollar’s status as the global reserve currency, proponents of a gold-backed U.S. dollar are making a compelling case for returning to the economic stability of the past.
Key Takeaways from this Article
Amount of new debt added under the current administration: $5 trillion.
Growing concerns over escalating debt, inflation, and global efforts to displace the dollar.
Fitch’s downgrade of U.S. debt and declining purchasing power underscore need for monetary reform. A weakening U.S. dollar prompt discussions on returning to a gold-backed dollar.
Lawmakers advocate for gold and precious metals to stabilize the economy and protect U.S. interests. The Gold Standard Restoration Act (H.R. 2435) proposes redefining the dollar with fixed gold weight, exchanging paper currency for gold.
Texas Gold Depository promotes intrastate gold trade for economic stability. Increasing states recognize gold and silver as legal tender, facilitating trade and eliminating barriers.
Non-Western central banks buying gold in record quantities.
China and other nations challenge dollar’s dominance, prompting reconsideration of precious metals’ role.
The call for a return to the gold standard is gaining traction through diverse initiatives, ranging from congressional bills advocating for the dollar’s connection to gold to state-level efforts facilitating the use of precious metals in commerce. The implications are far-reaching, and even private-sector players are advocating for a return to the gold standard as protection against looming economic crises.
Lawmakers at both state and federal levels underscored the urgency of reestablishing gold as a foundation for the U.S. dollar. U.S. Rep. Alex Mooney’s (R-W.Va.) Gold Standard Restoration Act (H.R. 2435) is a notable example, proposing a redefinition of the dollar based on a fixed gold weight and mandating the exchange of paper currency for gold. Mooney argues that the U.S.’s staggering $32 trillion debt and unrestrained spending necessitate a return to a tangible standard.
While the path forward remains uncertain, the growing momentum behind the call for a gold-backed dollar is hard to ignore.
Mr. Mooney emphasized, “Returning to the gold standard would bolster domestic and international confidence in the U.S. dollar because its value would be tied to something of actual worth, not just the ‘full faith and credit’ of the U.S. government.” He added that this move would preserve the dollar’s global reserve status.
Texas Representative Mark Dorazio, a Republican, is advocating for intrastate trade in gold through the Texas Gold Depository. Dorazio contends that history’s endurance of gold’s value over millennia positions it as a reliable standard. He stated, “It is the go-to in economic crisis and instability—everyone knows you go to gold.” Dorazio’s proposal not only offers economic stability but also presents an opportunity for the state to generate revenue.
Ron Paul, a prominent advocate for the gold standard and sound money, concurs. Paul highlights the stability and inherent value of gold, which digital currencies lack. He asserts, “Gold and silver became money spontaneously thousands of years ago, and metals have worked well.” Paul’s perspective aligns with a growing number of states that are legally recognizing gold and silver as tender, facilitating trade by eliminating sales taxes and other obstacles.
As the U.S. faces escalating debt, inflation, and global efforts to replace the dollar, interest in precious metals is surging. Fitch’s recent downgrade of U.S. debt and the erosion of purchasing power worldwide underscore the urgency for monetary reform. With China and other countries actively challenging the dollar’s dominance, the return to a gold-backed dollar emerges as a potential solution.
Economists point out that for thousands of years, gold and precious metals have served as reliable mediums of exchange due to their durability, portability, scarcity, and intrinsic value. Until 1971, the U.S. dollar was officially backed by gold. However, policy shifts over the years led to the dollar’s detachment from gold. Now, lawmakers are acknowledging the critical need for a stable foundation in the face of economic and monetary turmoil.
Efforts to return to the gold standard are fueled by concerns over the dollar’s stability, the loss of trust in the government, and the potential displacement of the dollar in international trade. The urgency of legislation like the Gold Standard Restoration Act highlights the catastrophic effects of severing the dollar’s link to gold, including extreme spending and inflation.
Mr. Mooney underscores that restoring the gold standard is not merely an economic necessity but also a safeguard against geopolitical challenges. He emphasizes the vulnerability of the dollar to international competition due to its unstable value resulting from borrowing and money printing.
While the path forward remains uncertain, the growing momentum behind the call for a gold-backed dollar is hard to ignore. As experts and lawmakers reevaluate the role of precious metals in securing economic stability, the idea of returning to a gold standard gains traction as a safeguard against inflation, economic instability, and the potential loss of the dollar’s global reserve status.
Supporting Article: Epoch Times – Efforts to Protect US Intensify Amid Global Shift From Dollar
You might also like:
Florida, Indiana Ban CBDCs: Gold As Money A State’s Right
Florida and Indiana have introduced a ban on the use of central bank digital currency (CBDC) as a form of money within their respective states. The legislation explicitly excludes CBDCs from the definition of money, aiming to protect consumers and businesses from what some perceive as a potential threat to economic freedom and security.
The Importance of the Gold Standard in Economic Freedom
The gold standard plays a crucial role in economic freedom and stability. It serves as a reliable medium of exchange, store of value, and protector of property rights. The abandonment of the gold standard allows for excessive deficit spending and wealth confiscation.
Texas Takes the Lead: A Golden Future for Sovereign Digital Currency
Could Texas (not Reno) be the actual location of the New Republic Sovereign US Treasury? Texas, the Lone Star State, is poised to revolutionize the world of finance with its groundbreaking proposal for a state-run digital currency.
Ai3D Website: Ai3D.blog
Ai3D on Telegram: GCR_RealTimeNews
Ai3D on Twitter: @Real_AwakeIn3D
https://ai3d.blog/calls-for-gold-backed-dollar-on-the-rise-across-usa/
If You Think Gold Is Worth Owning, Wait Until You See Uranium
If You Think Gold Is Worth Owning, Wait Until You See Uranium
Notes From the Field By Simon Black August 21, 2023
Gold has its merits. It has been valuable for thousands of years, and has some industrial applications as well. But holding a kilo of gold in your hand, all you can really do is admire it, and appreciate that it is a great store of wealth.
Holding a kilo of uranium, you have in your hand a resource that has enough energy to supply a day’s power to 30,000 people. That's not just impressive; it's transformative in a world being run by absolute buffoons.
If You Think Gold Is Worth Owning, Wait Until You See Uranium
Notes From the Field By Simon Black August 21, 2023
Gold has its merits. It has been valuable for thousands of years, and has some industrial applications as well. But holding a kilo of gold in your hand, all you can really do is admire it, and appreciate that it is a great store of wealth.
Holding a kilo of uranium, you have in your hand a resource that has enough energy to supply a day’s power to 30,000 people. That's not just impressive; it's transformative in a world being run by absolute buffoons.
Politicians, in their infinite wisdom, continue to plunge the US into deeper debt, racking up trillions in deficits year after year.
And when global credit rating agencies like Fitch sound the alarm on their fiscal irresponsibility, these politicians don't just turn a deaf ear; they outright reject and ridicule the warnings.
They gaslight the public and say: No! There is absolutely nothing wrong with borrowing trillions and trillions and racking up debt worth 120% of GDP. Fitch is the crazy one, not us!
Then they dump all this borrowed money into things like the “Inflation Reduction Act." Shockingly, turns out that had nothing to do with inflation. It was a thinly veiled attempt to appease climate fanatics.
Don't misunderstand me. I'm all for clean air and a pristine environment. But I also believe in making informed decisions. The hard truth is that wind and solar energy are not efficient nor cost-effective.
But fanaticism blinds people to facts and data.
We witnessed this during the pandemic, with decision-makers adopting a "whatever it takes" approach, sidelining critical data in favor of emotional reactions. And emotional decisions are usually bad decisions.
The climate fanatics dream of a world powered solely by wind and solar.
But that’s delusional.
Just consider that the largest solar field in the world requires nearly FOUR HUNDRED square kilometers, and produces about 11,400 GWh of electricity per year.
The Kori nuclear plant in South Korea, on the other hand, has a footprint of just a few dozen acres, yet it produces 4x as much electricity.
Converting the world to solar would require hundreds of thousands of square kilometers full of solar panels and wind farms. Just imagine how expensive that land would be. Or how much cobalt, silicon, lithium, etc. would need to be mined and produced.
To transition fully to wind and solar, the world would need billions and billions of pounds of extra materials that are simply not available.
Or you could use one little rock of uranium to provide the daily energy needs of 30,000 people.
Sure, the up-front capital costs are much higher for nuclear. But over the life cycle of a modern plant, the average cost per kWh of electricity is comparable (or less) than solar.
And finally, after being abandoned and ignored for years, policymakers are starting to turn back to nuclear. This isn’t just wishful thinking. It’s happening… if not in the US, then around the world.
There are around 415 reactors currently supplying nuclear energy to the world. There are 59 new ones under construction, and 111 in early stage development. Another 300+ have been proposed. The vast majority are in Russia, India, and China.
(The US has just one under construction. Germany removed all theirs and now has 0. Sweden has 0. France has 1. The “developed” countries are way, way behind.)
Yet even with just 415 active nuclear plants, uranium is already in short supply.
In 2021, for example, nuclear plants used 73,698 metric tons of uranium to produce electricity. Yet total uranium mine output that year was just 56,377 metric tons.
In other words, mines aren’t producing enough uranium... and they haven’t been for most of the last decade. Nuclear plants have had to draw down on their previous stockpiles.
(My colleague Adam Rozencwajg of Goehring & Rozencwajg recently published some great research on the topic, showing uranium stockpiles to be at their lowest levels in nearly 20 years.)
Think about it— if uranium is already in short supply today, just imagine how undersupplied the market will be in the future when these new reactors come online.
Most likely this would result in a major price surge in uranium.
We’ve talked recently about how gold could double, triple, or even more in price over the coming years.
Uranium essentially has similar upside as gold, but with the additional benefit of being a transformative fuel that can provide a cheap and abundant source of energy.
To your freedom, Simon Black, Founder Sovereign Man
'It's The Death Of The Entire Financial, Monetary And Social System'
'It's The Death Of The Entire Financial, Monetary And Social System'
Jing Pan Fri, August 18, 2023
This Market Expert Warns The U.S. Dollar Is Quickly Losing Its Reserve Status. Here's What She Likes For Protection
For decades, the U.S. dollar has held the esteemed position as the world's primary reserve currency. But according to Lynette Zang, chief market analyst for ITM Trading, this longstanding dominance is on shaky ground. "The days of the dollar being the world reserve currency are fast coming to a close," she said in a recent interview with Stansberry Research.
Zang explained that the shift began back in 2002 when the Federal Reserve "first had to buy" U.S. debt. This act suggested that the world was either "saturated in it" or unwilling to buy "enough of the U.S. debt that we were trying to shove down everybody's throat."
'It's The Death Of The Entire Financial, Monetary And Social System'
Jing Pan Fri, August 18, 2023
This Market Expert Warns The U.S. Dollar Is Quickly Losing Its Reserve Status. Here's What She Likes For Protection
For decades, the U.S. dollar has held the esteemed position as the world's primary reserve currency. But according to Lynette Zang, chief market analyst for ITM Trading, this longstanding dominance is on shaky ground. "The days of the dollar being the world reserve currency are fast coming to a close," she said in a recent interview with Stansberry Research.
Zang explained that the shift began back in 2002 when the Federal Reserve "first had to buy" U.S. debt. This act suggested that the world was either "saturated in it" or unwilling to buy "enough of the U.S. debt that we were trying to shove down everybody's throat."
Many experts have been concerned about America's escalating debt. Fitch Ratings recently downgraded the United States’ long-term foreign-currency issuer default rating from its highest AAA rating to AA+. The credit rating agency pointed to “expected fiscal deterioration over the next three years,” a “high and growing general government debt burden” and an “erosion of governance” as reasons behind the decision.
But the dollar's status isn't Zang's only concern.
‘A House Of Lies'
In March, the collapse of Silicon Valley Bank grabbed major headlines. After the bank sold its Treasury bond portfolio, it incurred a substantial loss, causing depositors to question its liquidity and leading to a bank run. Amid this market upheaval, Silvergate Bank, First Republic Bank and Signature Bank failed as well. Even though bank failures now seem like old news, Zang believes the crisis lingers on.
"This banking crisis is not over," she said. "Maybe they’ve been able to paper over it, and so everybody is calm, and you have consumer confidence going up and all of this other kind of garbage. But it’s built on a house of lies."
Investing in real estate just got a whole lot simpler. With as little as $100, average investors are becoming landlords thanks to this Jeff Bezos-backed startup. Zang then pointed to U.S. Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell. She didn't hold back when discussing these prominent figures: "That’s what Yellen's job is, and that’s what Powell's job is... Their job is to keep the public calm and keep them inside of the system — because it is easier to steal wealth that way."
If you're seeking ways to shield yourself from this turmoil, it's worth noting that Zang has long championed gold as a protective hedge. The gold market hasn't seen any explosive moves lately. When asked what her message was for those on the sidelines, Zang’s response was unequivocal.
"I’m saying you take advantage of it and get everything in place, because we are inside of a major hurricane. There’s no doubt about it," she said. "It isn’t just the death of the dollar. It’s the death of the entire financial, monetary and social system."
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/death-entire-financial-monetary-social-180841464.html
Why We Think Gold Companies Can Go 10X In The Coming Boom...
Why We Think Gold Companies Can Go 10X In The Coming Boom...
Notes From the Field By Simon Black
With a current annual budget deficit of $1.6 TRILLION – set to hit $2 trillion by the time the fiscal year ends in September – the US Federal Government is putting drunken sailors everywhere to shame.
At the end of the 2019 fiscal year (just before Covid-1984 hit), the US national debt was $22.7 trillion. Today, it’s nearly 50% greater: $32.7 trillion. And it keeps growing each year.
Just yesterday, our founder, Simon Black, explained that most of the US national debt was accumulated over the past ~15 years, when interest rates were super low. The Treasury Department got accustomed to being able to borrow for less than 1%.
Why We Think Gold Companies Can Go 10X In The Coming Boom...
Notes From the Field By Simon Black
With a current annual budget deficit of $1.6 TRILLION – set to hit $2 trillion by the time the fiscal year ends in September – the US Federal Government is putting drunken sailors everywhere to shame.
At the end of the 2019 fiscal year (just before Covid-1984 hit), the US national debt was $22.7 trillion. Today, it’s nearly 50% greater: $32.7 trillion. And it keeps growing each year.
Just yesterday, our founder, Simon Black, explained that most of the US national debt was accumulated over the past ~15 years, when interest rates were super low. The Treasury Department got accustomed to being able to borrow for less than 1%.
In fact, as late as August 2021, the average interest rate that the US government was paying on its national debt was just 1.45%.
But now interest rates are MUCH higher. The government is now paying an average interest rate of 2.8%, almost twice as high as just two years ago.
The national debt is so high, though, that even 2.8% is too expensive for the US government.
This fiscal year (which ends on September 30, 2023), the Treasury expects to spend a whopping $864 billion just paying interest on the national debt. Again, that’s with an average rate of just 2.8%.
The real problem for the federal government is that roughly 75% of the debt will mature over the next five years. And as their current debt comes due, they’ll pay it back by issuing NEW debt at a HIGHER interest rate.
This means that the government’s average interest rate that it pays on the national debt could rise to 5% over the next five years.
Including all the new debt they project to accumulate over that period of time, this means that the government would have to spend $2 TRILLION of taxpayer money, each year, just to pay interest.
And frankly, paying an average 5% interest on the national debt is still pretty low given US financial history.
The average rate was 5% as recently as 2007. In 2001 it was nearly 7%. And throughout much of the 1980s, rates were in the double digits. So forecasting a 5% average interest rate on the national debt within five years is totally reasonable.
Remember too that, in addition to paying interest, “mandatory” spending on entitlement programs like Social Security and Medicare will hit $3 trillion in a few years.
This means that Social Security, Medicare, and Interest on National Debt could soon exceed 100% of the US government’s tax revenue.
This looming fiscal crisis will fast become a mainstream issue. And politicians will predictably react by raising your taxes sky high to pay for their incompetence.
Simon anticipates the Federal Reserve to try to bail out the government… by slashing interest rates back to 0% and printing trillions of dollars to buy US Treasury bonds.
The consequence, of course, will likely be more inflation.
Why buying gold – and gaining portfolio exposure to it – makes a lot of sense in 2023
As longtime readers of Sovereign Man will know, all of the above is exceptionally bullish for gold.
Now, gold can be a lot of things. It can be a great asset protection tool. It can be a great speculation. It can be a great way to pass on wealth to your kids.
But gold also has a 5,000 year track record as a reliable hedge against inflation and a range of systemic risks.
Most people suffer to some degree from normalcy bias; this is the belief that tomorrow will be very similar to today. Yet the past few years have shown that the world can become radically different… overnight.
And it is precisely during these kinds of Black Swan events and sudden system shocks that physical gold can be an invaluable asset. This is one of the reasons why gold predictably went through the roof during the pandemic.
Yet now that the dust has settled on the pandemic, few people are thinking about buying gold.
In fact, gold prices have remained pretty flat since 2022. An even better example is that many gold-related businesses (including mining companies) are currently trading at ludicrously cheap levels.
But when you consider the obvious risk of a major financial crisis in the US over the next five years, you don’t need to be a gold bug to appreciate gold’s significant potential upside…
It should also be noted that central banks were extremely active buyers of the metal in 2022, buying at a speed not seen since 1967. (Central banks’ purchasing behaviors are a key driver of gold price increases.)
Karl Bagga, the editor of our investment newsletter The 4th Pillar, (which is focused on real assets) believes that we are in the early stages of a significant bull market for gold.
Simon agrees. In fact, he’s argued a few times why gold could trade at $5,000+ in the coming years, up from around $1,900 per ounce today.
How YOU Can Cash In On The Coming “Gold Rush”...
Many investors who consider investing in gold automatically buy into an ETF (exchange-traded fund). Simon has written before that these gold ETFs carry substantial hidden risk which most investors won’t notice… unless they do what Simon does, and actually read all the legal disclosures.
That’s why, at Sovereign Man, we far prefer owning physical gold over ETFs. But more on that another time.
Rising gold prices also present tremendous upside for mining companies and related businesses, including:
Mining royalty companies
Mining financial services providers
Gold millers and refiners
Mining services companies
As well as technology and service providers for mining and complementary sectors…
These are the exact kinds of companies that regularly feature in the page of The 4th Pillar (4P), our real asset focused investment letter.
For example:
One of the recently featured companies from Karl’s research in The 4th Pillar is a gold-related business that specializes in drilling, site work, and processing.
It’s a “picks and shovels” business rather than a mine itself. So the company makes money from a gold mining boom, but without the same downside risk.
The business has been performing exceptionally well, has very little debt, and is generating record revenue with very strong profitability. And yet, with a price-to-earnings ratio (PE) of just 4.5, the stock is incredibly cheap right now.
Another example from Karl’s research is a gold ore processor; this is a company that purchases raw gold (i.e. rock ore) from small miners, processes it in bulk, then sells the processed gold to a large refiner.
Being an ore processor will position them for enormous gains in the coming gold boom; their business – already very profitable – will likely grow even more dramatically over the next few years, resulting in a big win for investors.
In the meantime, the company is already paying its investors a healthy dividend. Plus, they have zero debt and tons of cash on the balance sheet. Yet it also currently trades at a laughable 5.5x valuation.
The Bottom Line
Gold miners and gold production companies offer excellent opportunities to make serious profits from the coming boom in gold prices. And that opportunity exists right now because, for whatever reason, investors are largely ignoring the entire sector.
That’s probably not going to last.
Good investing,
Simon Black & Sovereign Man Editorial Team
To find out more, click here.
I’m Rooting For Gold To Go To Zero. Too Bad It Won’t
I’m Rooting For Gold To Go To Zero. Too Bad It Won’t
Notes From the Field By Simon Black August 15, 2023
By the time Wang Mang seized the imperial throne of China’s Han dynasty in the year 9 AD, he had already been a long-standing politician and government bureaucrat with decades of experience.
Not that Wang’s experience was especially helpful to the people of China.
As a seasoned politician, Wang’s biggest skills were setting up his opponents, cheating his way to the throne, and coming up with terrible ideas to destroy prosperity.
I’m Rooting For Gold To Go To Zero. Too Bad It Won’t
Notes From the Field By Simon Black August 15, 2023
By the time Wang Mang seized the imperial throne of China’s Han dynasty in the year 9 AD, he had already been a long-standing politician and government bureaucrat with decades of experience.
Not that Wang’s experience was especially helpful to the people of China.
As a seasoned politician, Wang’s biggest skills were setting up his opponents, cheating his way to the throne, and coming up with terrible ideas to destroy prosperity.
China’s Han dynasty had once been the pinnacle of civilization, most likely even surpassing the grandeur and wealth of the Roman Republic and ancient Greece. But Wang was one of the key figures who helped tear it down.
As emperor he was a total disaster. Wang had a thing for social and economic justice… so he imposed a bunch of idiotic land reforms to reduce inequality and form a more egalitarian society.
Instead of the ‘justice’ that he had envisioned, agricultural production plummeted and a lot of people went hungry.
Failing to see his error in judgment, Wang Mang doubled down by nationalizing entire industries, which only stifled investment and entrepreneurship.
Soon the Chinese economy was in the dumps. Prices soared. So the Emperor then (naturally) hatched the genius idea of imposing severe price controls… resulting in even more shortages and economic hardship.
He then tried to fix the shortages by taking over the labor market and essentially try to control what everyone did and where they worked.
But Emperor Wang wasn’t quite finished with his crusade for justice. He tried to pay for his mistakes by severely debasing the currency… which caused even more inflation and social unrest.
Wang Mang’s story is one of how complete and total incompetence results in disastrous consequences for an entire nation. History has witnessed countless other examples… and we’re seeing it play out again in our own time.
Today’s incompetent leadership is just as bad as Wang Mang; as I spelled out in yesterday’s missive, the US government has lost all ability to live within its means. They have spent trillions of dollars on their perverted ‘justice’ programs and environmental crusades.
Spending has gotten so bad that a $2 trillion yearly deficit is NOTHING anymore. Yet the continued accumulation of these deficits has created a gargantuan national debt.
As I mentioned yesterday, MOST of US national debt will mature over the next several years. Since the Treasury Department clearly does not have the money to pay back $25+ trillion in debt, their only option will be to issue NEW debt to pay off the old debt.
The problem, of course, is that the new debt comes with MUCH higher interest rates… and I explained that simply paying interest on the debt could exceed $2 trillion within the next five years.
On top of that, mandatory entitlement spending like Social Security and Medicare will hit $3 trillion. This means that just paying for Social Security/Medicare, and interest on the debt, could exceed 100% of tax revenue.
This scenario is potentially just five years away. At that point, it will be almost impossible for investors to have confidence in US government bonds.
US government bonds have long been considered the safest asset in the world. But if the Treasury Department has to blow $2 trillion just to pay interest, investors will quickly start looking for other safe havens. And one of those will be gold.
Think about it: there’s (currently) $32+ trillion in total US government bonds. This is MUCH larger than the gold market. So if even a small fraction of that US debt were to flow into gold instead, the gold price would go through the roof.
But there’s another scenario to consider, which frankly I think is more likely: the Fed steps in to save the US government.
One of the key reasons why the US government is in trouble (aside from their horrific spending habits) is that interest rates are so much higher than they used to be.
So the Fed can help the government out by slashing interest rates back down to 0%, which will make it affordable for the US government to finance its debt.
But this would come at a consequence; if the Fed slashes rates back down to zero, this would almost certainly result in another nasty bout of inflation… which would also mean higher gold prices.
So either scenario is bullish for gold.
Of course these two scenarios don’t even scratch the surface of all the political, financial, and economic problems in the US.
For example, there are still major risks lurking in the US banking system, including the fact that the Federal Reserve itself is hopelessly insolvent.
Social Security has less than a decade until it needs a bailout to the tune of tens of trillions of dollars.
And there’s also the likely possibility of the US dollar losing its dominance as the global reserve currency, likely this decade.
Gold should perform extremely well in any of these scenarios.
So in what scenario does gold NOT do well?
Well, gold does poorly in the “everything is just fine” scenario.
The war ends. Sensible politicians reign in spending. China plays nice and stops threatening to invade Taiwan. Economic growth goes through the roof. Inflation falls due to high levels of productivity and relative peace. Global trade booms.
As I’ve written before, this scenario is completely achievable, presuming competent leaders were in charge. And I’m really rooting for it.
In this scenario, gold would become a pointless relic… but I would happily welcome that outcome because everything else would be fantastic.
Unfortunately that scenario is unlikely… because the world is being run by a bunch of morons like Wang Mang.
If you feel like the trend in the world is more stupidity, more war, more socialism, more bad leadership, then you really ought to consider owning gold. In my view, a $5,000+ gold price is a pretty conservative estimate of where things go from here.
To your freedom, Simon Black, Founder Sovereign Man
https://www.sovereignman.com/trends/im-rooting-for-gold-to-go-to-zero-too-bad-it-wont-148054/
Economic Thoughts from The Atlantis Report and Heresy Financial 8-4-2023
Will The BRICS Currency Take Down The US Dollar?
Atlantis Report: 8-3-2023
With the dollar making up 58% of the world’s foreign exchange funds and being used in 88% of overseas deals, it is clear that the dollar is the most important currency in the world.
Yet, since Russia invaded Ukraine, de-dollarization, which means lowering an economy’s dependence on the U.S. dollar for foreign trade and banking, has been speeding up.
The BRICS countries have been working on many projects to reduce their dollar reliance. Over the past year, Russia, China, and Brazil have used non-dollar assets like the yuan more often when doing business across borders.
Iraq, Saudi Arabia, and the United Arab Emirates are all looking for ways to avoid using the dollar.
Will The BRICS Currency Take Down The US Dollar?
Atlantis Report: 8-3-2023
With the dollar making up 58% of the world’s foreign exchange funds and being used in 88% of overseas deals, it is clear that the dollar is the most important currency in the world.
Yet, since Russia invaded Ukraine, de-dollarization, which means lowering an economy’s dependence on the U.S. dollar for foreign trade and banking, has been speeding up.
The BRICS countries have been working on many projects to reduce their dollar reliance. Over the past year, Russia, China, and Brazil have used non-dollar assets like the yuan more often when doing business across borders.
Iraq, Saudi Arabia, and the United Arab Emirates are all looking for ways to avoid using the dollar.
And central banks have tried to put more of their savings into gold instead of the dollar.
The End of Japan's Yield Curve Control
Heresy Financial: 8-4-2023
The Bank of Japan shocked markets with a surprise change to its yield curve control. The biggest shock being this is not a standard change to yield curve control where they say, hey, instead of interest rates being capped at half a percent, we'll let them go up to 1%.
In this case, it's a mash-up that leaves investors wondering what the Bank of Japan will do.
TIMECODES
0:00 BOJ Shocked the Markets
0:46 What is QE?
5:36 What is YCC
8:12 Japan's Prior Policy
8:59 Japan's Move to QE
10:38 What This Means for US
BRICS Nations JUST STUNNED Everyone With Massive Gold Buying Spree | Huge Threat To The Dollar
BRICS Nations JUST STUNNED Everyone With Massive Gold Buying Spree | Huge Threat To The Dollar
Tech Revolution: 7-27-2023
In a rapidly changing global economy, a new financial powerhouse emerges, reshaping the dynamics of international trade and monetary policy. The BRICS, an alliance of five major emerging economies - Brazil, Russia, India, China, and South Africa, are paving the way towards a bold economic future.
As the world's leading economies, the BRICS have been making strategic moves to secure their financial sovereignty. Join us as we delve deeper into the rise of the BRICS and their quest to shape a new financial frontier.
BRICS Nations JUST STUNNED Everyone With Massive Gold Buying Spree | Huge Threat To The Dollar
Tech Revolution: 7-27-2023
In a rapidly changing global economy, a new financial powerhouse emerges, reshaping the dynamics of international trade and monetary policy. The BRICS, an alliance of five major emerging economies - Brazil, Russia, India, China, and South Africa, are paving the way towards a bold economic future.
As the world's leading economies, the BRICS have been making strategic moves to secure their financial sovereignty. Join us as we delve deeper into the rise of the BRICS and their quest to shape a new financial frontier.
Russia's been telling them how crucial it is to tie their shiny new currency to gold, which could shake things up for the U.S. dollar. They're aiming to challenge its dominance and global reserve status.
The news is that they're already busy hoarding gold like there's no tomorrow! In just 18 months, these BRICS nations have ramped up their gold buying like nobody's business. And China is leading the bloc, snagging a whopping 102 tonnes! Russia doesn’t fall behind either, with 31.1 tonnes in the past six months, and India finally jumped back on the gold train, adding 2.8 tonnes to their reserves after more than a year.
That's some serious gold-stacking action! So why all this gold fuss? Well, it turns out gold is considered a pretty safe investment, way more reliable than the unpredictable U.S. dollar with all its debt-related risks.
The BRICS are probably thinking, "Why rely on the dollar when we can back our new currency with gold?" Smart move, I'd say! This whole BRICS gold-backed currency situation might just give the U.S. dollar a run for its money.
If more countries jump on board the BRICS train, their currency could become the top choice for international transactions! Imagine that.
So, the BRICS are cooking up something exciting for their August summit in South Africa. Things are getting pretty interesting, don't you think? So with all these happening around Gold, the entire precious metals gang is soaring to new heights like superheroes, with eye-popping gains that are making heads spin.
And guess what? It's just the beginning of these precious metals. As we’ve mentioned, the tensions between some big Western economies and Russia, along with other BRICS countries like Brazil, India, China, and South Africa, are reaching a boiling point.
They've decided to step up and challenge the almighty U.S. dollar's dominance. That's like the cool squad joining forces against the big boss! Now, let's rewind a bit.
Remember those crazy money-printing schemes after the pandemic hit? Well, they caused global inflation to skyrocket and unleashed a cost-of-living crisis like never before. As a result, there's a movement gaining steam called "de-dollarization," where folks are trying to reduce their reliance on the mighty dollar.
These emerging market economies are feeling the pressure, facing rising inflation, weakening currencies, and getting all jittery about U.S. interest rates. So, they're like, "Hey, let's diversify our money game!" And what's their secret weapon? Gold!
Since 2022, central banks worldwide have been on a gold-buying spree like never before. Russia, China, and India, representing the BRICS gang, are leading the charge. They've got plans to stack up a whopping 700 metric tons of gold, worth a staggering $49 billion by the end of the year. Seriously, it's gold fever out there.
In 2022, central banks bought over double the amount of gold compared to the previous year, setting a record high in demand. And guess what? They're about to do it all over again this year! Gold is like their secret weapon against the dollar's domination.
And what about the other metals? So, get this, silver prices have shot up a whopping nine percent this week. Can you believe it? And that's not all. Gold has broken out to six-week highs, oil prices are at a two-month high, and even Palladium joined the party with a six percent breakout. Copper prices are up eight percent, and platinum decided to jump on the bandwagon too with a seven percent breakout.
It's like a Commodities Fiesta. Oil is not missing the party either, rocking at two-month highs with over 5% gain. In the coming days though, we've got a heads-up for you—the FED is going into a blackout period.
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