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Thursday, May 5, 2016

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Iconic Fund Manager Bill Gross Warns: “The System Could Suffer an Implosion”

Posted: 05 May 2016 12:00 PM PDT

What's so remarkable about the following clip from a Bloomberg interview with iconic bond fund manager Bill Gross isn't so much that he warned about a looming systemic implosion…    From Michael Krieger: but how much he struggled to actually say it out loud despite clearly wanting to. Pretty telling.

The post Iconic Fund Manager Bill Gross Warns: "The System Could Suffer an Implosion" appeared first on Silver Doctors.

Gold: Sweat of the Sun!

Posted: 05 May 2016 11:00 AM PDT

Should new investors buy physical gold coins and bars, or miners? Do junior resource companies offer the greatest leverage to increased demand and a rising gold price?   Submitted by Richard Mills: As a general rule, the most successful man in life is the man who has the best information Gold miners, because the number of […]

The post Gold: Sweat of the Sun! appeared first on Silver Doctors.

Silver Miners Strong in Grim Q4

Posted: 05 May 2016 10:00 AM PDT

Since silver's overwhelmingly-dominant driver is gold, the white metal followed the yellow metal lower.  Just several days before gold's secular low in mid-December, silver dropped to a dismal 6.4-year secular low of its own.  Q4'15's average silver price of $14.77 was the worst since Q3'09's $14.72.  Silver was perfectly fulfilling its traditional role of acting […]

The post Silver Miners Strong in Grim Q4 appeared first on Silver Doctors.

Inaccurate Analysis On the Silver Market From ZH- Fund Manager

Posted: 05 May 2016 09:30 AM PDT

Commentary was posted on Zerohedge today about the silver market that needs to be swatted out of the air:   Buy 2016 Silver Maples Lowest Price Ever!   Submitted by Fund Manager Dave Kranzler:  Some investment advisor who for some reason gets air-time on Zerohedge posted an analysis which asserted that commercial hedgers hit their […]

The post Inaccurate Analysis On the Silver Market From ZH- Fund Manager appeared first on Silver Doctors.

Gold & Silver Sounding Major Alarm Call For All Paper Assets!

Posted: 05 May 2016 09:00 AM PDT

Those who [unwisely] choose to own paper assets of any kind, especially in the stock market and digital currency held in banks, are being given a clarion alarm call by gold and silver that your time has reached its expiration date:   Perhaps the most successful Ponzi scheme of all has been the Rothschild-led takeover […]

The post Gold & Silver Sounding Major Alarm Call For All Paper Assets! appeared first on Silver Doctors.

Sluggish Growth in Eurozone and Gold

Posted: 05 May 2016 08:19 AM PDT

SunshineProfits

Puerto Rico Bonds – Is this Only the First Bomb to Drop?

Posted: 05 May 2016 08:10 AM PDT

Puerto Rico Bonds - Is this Only the First Bomb to Drop?

Puerto Rico Bonds - Is it the first bomb to drop in the Bond Bubble Collapse Michael Pento predicted in an earlier interview here on >www.preciousmetalsinvesting.com. Michael Predicted this in his book "The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market."
In this interview Ted Sudol talks with Paul Mladjenovic, author of Stock Investing for Dummies about the big story in the news - the Puerto Rico Bond Default. We have been hearing rumblings about the possible debt default in Puerto Rico but we have also been hearing about other posible defaults. Atlantic City, New Jersey is almost out of cash and near default. When the casinos first came into Atlantic City and cash was flowing in to government coffers it was spent lavishly. When the economics turned down the government expenditures continued to outstrip the money coming in. The formula for a default is all to common and easily recognized. Spending that outstrips revenue coming in. Since politicians like spending money and telling all of their constituents they can have everything the die is cast. Politicians keep kicking the can down the road for someone else to solve the problem and meanwhile the debt keeps growing.

Puerto Rico Bond Default - Is it the first bomb to drop in the Bond Bubble Collapse Michael Pento predicted in an earlier interview here on http://www.preciousmetalsinvesting.com. Michael Predicted this in his book "The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market."
In this interview Ted Sudol talks with Paul Mladjenovic, author of Stock Investing for Dummies about the big story in the news - the Puerto Rico Debt Default. We have been hearing rumblings about the possible debt default in Puerto Rico but we have also been hearing about other posible defaults. Atlantic City, New Jersey is almost out of cash and near default. When the casinos first came into Atlantic City and cash was flowing in to government coffers it was spent lavishly. When the economics turned down the government expenditures continued to outstrip the money coming in. The formula for a default is all to common and easily recognized. Spending that outstrips revenue coming in. Since politicians like spending money and telling all of their constituents they can have everything the die is cast. Politicians keep kicking the can down the road for someone else to solve the problem and meanwhile the debt keeps growing. We learn of lots of other potential defaults in the news. Atlantic City, New Jersey is running out of cash and facing default. What happened here? When tha casinos first came in the money was flowing in to government coffers. Did they save any for a cushion. No like most politicians they spent like drunken sailors and when the bill due they kicked the can down the road for others to clean up their mess. Does this sound like a familiar story? Unfortunately yes! When the debt burden becomes too much to bear the inevitable almost always occurs - default.
We hear that Greece may be facing a default this summer, Detroit may face bankruptcy and the list goes on. I read a story by a noted independent think tank. They did an analysis and came with a list of 20 countries whose debt was unsustainable and they would never be able to pay back.

The precious Metals Investing podcast is available at Apple iTunes for people who use the ipad and other Apple mobile devices. Precious Metals Investing podcast on iTunes

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The post Puerto Rico Bonds – Is this Only the First Bomb to Drop? appeared first on PreciousMetalsInvesting.com.

This Gorgeous Penthouse in the Nicest Part of Town Sold For $200,000

Posted: 05 May 2016 08:00 AM PDT

It boasts five bedrooms, a library, game room, office, two large terraces, and exceptional views of the entire city. Plus it's located in the nicest part of town, just a short walk from all the best restaurants and nightlife. You couldn't even build a place like that for so cheap! The catch?… Buy 2016 Silver […]

The post This Gorgeous Penthouse in the Nicest Part of Town Sold For $200,000 appeared first on Silver Doctors.

All Things Considered

Posted: 05 May 2016 07:33 AM PDT

Given that gold surged over $60 last week, that price is only down $7 from Friday's close is actually quite a significant victory. But this week isn't over yet and tomorrow's BLSBS will be the determining factor as to whether we can paint another green candle on the weekly chart.

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This Precious Metals Ratio Signals A Big Move Ahead: “We Will Ultimately See Triple Digit Silver Prices”

Posted: 05 May 2016 07:15 AM PDT

As gold goes higher over the next couple years, the ratio is going to collapse on a percentage basis… and that's why I think we will ultimately see triple-digit silver…   2 oz Kraken Ultra High Relief Silver Round Collect the Entire Privateer Collection at SD Bullion! Submitted by Mac Slavo, SHTFPlan: Earlier this year, […]

The post This Precious Metals Ratio Signals A Big Move Ahead: "We Will Ultimately See Triple Digit Silver Prices" appeared first on Silver Doctors.

Apple Reports Massive Revenue Decline As iPhone Sales Plummet Dramatically

Posted: 05 May 2016 07:00 AM PDT

Apple SHOCKED the financial world Tuesday by reporting a $7.4 BILLION revenue plunge in Q1 as the economic crisis begins to take hold…   Buy Silver Coins at SDBullion Submitted by Michael Snyder:  Corporate revenues in the United States have been falling for quite some time, but now some of the biggest companies in the […]

The post Apple Reports Massive Revenue Decline As iPhone Sales Plummet Dramatically appeared first on Silver Doctors.

Sharia Gold Standard – $2 Trillion In Assets “Could Send Price Soaring”

Posted: 05 May 2016 06:48 AM PDT

The coming 'sharia gold standard' or shariah compliant gold could lead to a very significant source of  new demand for physical gold coins and bars in the Islamic world. It is believed that this will contribute to much higher gold prices and gold "soaring" as some of the $2 trillion in assets held in Islamic financial institutions are […]

The post Sharia Gold Standard – $2 Trillion In Assets "Could Send Price Soaring" appeared first on Silver Doctors.

The Plaza Accord, The Shanghai Accord, and Gold’s Future

Posted: 05 May 2016 06:00 AM PDT

The year was 1985 and the global economy was only 14 years into the new monetary regime of free floating currencies (even contrary to the hundreds of centuries littered with failures of never working in longer terms). After abandoning the gold standard in 1971, the U.S. endured a destructive decade of stagflation (high inflation coupled with high […]

Gold and Silver Companies with the Potential to Move the Needle

Posted: 05 May 2016 01:00 AM PDT

The two times mining companies add the most value are upon first discovery and when they are nearing development and production. Joe Reagor of ROTH Capital Partners focuses on the latter group, and...

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“Gold is Superior Asset in Present Part of Cycle” Steen Jakobsen

Posted: 04 May 2016 11:55 PM PDT

Global Economic Analysis

Physical Silver “Once the Last Ounce Is Sold, Price Goes From $15 to $5,000”

Posted: 04 May 2016 08:00 PM PDT

With silver looking like it may have finally shaken off the shackles of a brutal 5 year beat down by the cartel, Bix Weir joins ‘V’ The Gorilla Economist for an EXPLOSIVE interview: “Once the last ounce is sold that’s when the price goes from $15 to $5,000 because as the price rises – and […]

The post Physical Silver “Once the Last Ounce Is Sold, Price Goes From $15 to $5,000” appeared first on Silver Doctors.

Rail Traffic Depression: 292 Union Pacific Engines Are Sitting In The Arizona Desert Doing Nothing

Posted: 04 May 2016 07:35 PM PDT

Union Pacific Engines - Google EarthWe continue to get more evidence that the U.S. economy has entered a major downturn.  Just last week, I wrote about how U.S. GDP growth numbers have been declining for three quarters in a row, and previously I wrote about how corporate defaults have surged to their highest level since the last financial crisis.  Well, now we are getting some very depressing numbers from the rail industry.  As you will see below, U.S. rail traffic was down more than 11 percent from a year ago in April.  That is an absolutely catastrophic number, and the U.S. rail industry is feeling an enormous amount of pain right now.  This also tells us that “the real economy” is really slowing down, because less stuff is being shipped by rail all over the nation.

One of the economic commentators that I have really come to respect is Wolf Richter of WolfStreet.com.  He has a really sharp eye for what is really going on in the economy and in the financial world, and I find myself quoting him more and more as time goes by.  If you have not checked out his site yet, I very much encourage you to do so.

On Wednesday, he posted a very alarming article about what is happening to our rail industry.  The kinds of numbers that we have been seeing recently are the kinds of numbers that we would expect if an economic depression was starting.  The following is an excerpt from that article

Total US rail traffic in April plunged 11.8% from a year ago, the Association of American Railroads reported today. Carloads of bulk commodities such as coal, oil, grains, and chemicals plummeted 16.1% to 944,339 units.

The coal industry is in a horrible condition and cannot compete with US natural gas at current prices. Coal-fired power plants are being retired. Demand for steam coal is plunging. Major US coal miners – even the largest one – are now bankrupt. So in April, carloads of coal plummeted 40% from the already beaten-down levels a year ago.

Because rail traffic is down so dramatically, many operators have large numbers of engines that are just sitting around collecting dust.  In his article, Wolf Richter shared photographs from Google Earth that show some of the 292 Union Pacific engines that are sitting in the middle of the Arizona desert doing absolutely nothing.  The following is one of those photographs…

Union Pacific Engines - Google Earth

As Wolf Richter pointed out, it costs a lot of money for these engines to just sit there doing nothing…

These engines are expensive pieces of equipment. When they just sit there, not pulling trains, they become "overcapacity," and they get very expensive. Then there are engineers and other personnel who suddenly become unproductive. Some of them have already been laid off or are getting laid off.

All over the world, similar numbers are coming in.  For example, the Baltic Dry Index fell 30 more points on Wednesday after falling 21 on Tuesday.  Global trade is really, really slowing down during the early portion of 2016.  What this means on a practical level is that a lot less stuff is being bought, sold and shipped around the planet.

It is becoming increasingly difficult for authorities to deny that a new global recession has begun, and at this moment we are only in the very early chapters of this new crisis.

Another thing that I watch very closely is the velocity of money.  When an economy is healthy, people feel pretty good about things and money tends to circulate fairly rapidly.  For example, I may buy something from you, then you may buy something from someone else, etc.

But when times get tough, people tend to hold on to their money more tightly, and that is why the velocity of money goes down when recessions hit.  In the chart below, the shaded areas represent recessions, and you can see that the velocity of money has declined during every single recession in the post-World War II era…

M2 Velocity Of Money

During the last recession, the velocity of money declined precipitously, and that makes perfect sense.  But then a funny thing happened.  There was a slight bump up once the recession was over, but then it turned down again and it has kept going down ever since.

In fact, the velocity of money has now dropped to an all-time low.  The velocity of M2 just recently dipped below 1.5 for the first time ever.

This is not a sign of an “economic recovery”.  What this tells us is that our economy is very, very sick.

And we can see evidence of this sickness all around us.  For instance, the Los Angeles Times is reporting that homelessness in Los Angeles increased by 11 percent last year, and this marked the fourth year in a row that homelessness in the city has increased…

Homelessness rose 11% in the city of Los Angeles and 5.7% in the county last year despite an intensive federal push that slashed the county ranks of homeless veterans by nearly a third, according to a report released Wednesday.

The increase marks the fourth consecutive year of rising homelessness in L.A., as local officials struggle to identify funding for billion-dollar plans they approved to solve the nation's most intractable homeless problem.

Let us also not forget that about half the country is basically flat broke at this point.

Just recently, the Federal Reserve found that 47 percent of all Americans could not pay an unexpected $400 emergency room bill without selling something or borrowing the money from somewhere.

With numbers such as these being reported, how in the world can anyone possibly claim that the U.S. economy is in good shape?

It boggles the mind, and yet there are people out there that would actually have you believe that everything is just fine.

The current occupant of the White House is one of them.

With each passing month, the real economy is getting even worse.  We may not have slipped into a full-blown economic depression just yet, but it is coming.

For now, let us be thankful for whatever remains of our debt-fueled prosperity, because we don’t deserve the massively inflated standard of living that we have been enjoying.

We have been consuming far more than we produce for decades, but it won’t last for much longer.  And when those days are gone for good, we will mourn them bitterly.

Breaking News And Best Of The Web — May 5

Posted: 04 May 2016 06:34 PM PDT

The global economy is “at stall speed.” The US labor market takes a turn for the worse. Money is pouring out of hedge funds — and into gold and silver ETFs. Japan and China keep reporting bad numbers. Europe slows down. Italy and Japan lobby for bigger deficits. Gold and silver get their correction. Cruz […]

Why Sweden’s central banker was beheaded [1719 AD] Scandinavian copper money

Posted: 04 May 2016 04:00 PM PDT

Bullion Vault

Podcast: Easy Money From China, Japan and Europe Has Failed. What’s Next?

Posted: 04 May 2016 12:33 PM PDT

China’s most recent borrowing binge didn’t work. Japanese and European negative interest rates resulted in their currencies going up rather than down. Global growth is slowing. Inflation is nonexistent and debt keeps rising. Only gold and silver are looking strong. Calls are being heard for bigger deficits. The world’s governments are about to panic.

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