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How to Subvert Public Resistance Against Elimination of Cash - IMF Tells Governments

The IMF has published a Working Paper on “de-cashing”. It advises governments who want to abolish cash against the will of their citizenry. Move slowly, start with harmless seeming measures, is part of that advice. The de-cashing process could build on the initial & largely uncontested steps, such as the phasing out of large denomination bills, ceilings on cash transactions, etc.

The Next Subprime Crisis - The US Auto Industry Is Here

Auto loans made to consumers with subprime credit have been accounting for an increasingly larger percentage of the market. Eventually a lot of those loans are going to start to go bad, and that is precisely what is happening now. Auto sales have begun to fall & used car prices have started to crash. Here are 12 signs that a day of reckoning has arrived for the U.S. auto industry.

Trump & the Monumental Magnitude of the US Debt Trap

What lies directly ahead, therefore, is another bumbling attempt by the White House and Congressional Republicans to hammer out an FY 2018 budget resolution and what amounts to a 10-year fiscal plan. So there flat-out must be big-time deficit offsets or there will not be close to 218 votes for what would otherwise be upwards of $15 trillion in added public debt over the coming decade.

What Role May Trumps' Policies Play in Creating Inflation

Among the main drivers of higher inflation expectations, one is the idea that a larger fiscal deficit will inevitably lead to higher inflation. The Trump program calls for higher defense expenditures and increased infrastructure spending. The perception in the financial markets is that fiscal spending and tax cuts add up to higher deficits, which would almost certainly imply higher inflation.

Read America's Credit Card Statement (No Password Required)

You might not be aware of it, but America’s credit card–our national debt–comes with its own disclosure statement. You know those disclosures on your credit card statements? That it will take 27 years to pay off your balance if you only make the minimum payment each month, and so on? What will replace the current system after it self-destructs? That’s the question.

Why is the Gold Market Sanguine about Rising US Interest Rates?

Why is the gold market being sanguine about rising U.S. interest rates? Rising U.S. inflation and a peak in U.S. dollar strength may mean that the traditional impact of a U.S. monetary tightening cycle may be less than usual. What the gold market is currently signalling is that while U.S. interest rate rises are still a bit of a headwind, they may not be enough to offset some compelling tailwinds.

The Return of the US Government’s Statutory Debt Ceiling

The budgetary bottleneck arrives again next month, when the latest suspension of the limit expires on March 15. Back in October 2015, Congress decided to punt on the issue by suspending the debt ceiling—with a hard end date. The US Treasury Department has been actively working to keep the nation’s total public debt outstanding from rising any faster than possible since late Nov 2016.

A Mega Sell-Off in U.S. Government Debt is Underway... 1 more Reason to Buy Gold

Foreign creditors are selling U.S. government debt like never before. Last year, China alone sold $188 billion worth of U.S. Treasurys while Japan sold about $21 billion worth of U.S. debt in December. Japan & China are America’s biggest creditors. But they’re not the only ones pulling out either. Saudi Arabia, Belgium & Switzerland have recently become net sellers, too.

American Consumer Debt Over $4.1 Trillion - Last Debt Bubble Peak was at $2.5 Tn

Americans are now borrowing & spending at record levels. Consumer debt being over $4.1 trillion is troubling when student debt, auto loans & credit cards are leading the way forward. Apparently we like repeating history & people may like to forget that at the root of the Great Recession was a giant credit bubble. Even at the peak of the last debt bubble, consumer debt totaled roughly $2.5 trillion.

A Gold Standard would've Prevented U.S. from this Extreme Indebtedness

Even Greenspan admits this is the case with debt: “We would never have reached this position of extreme indebtedness were we on the gold standard, because the gold standard is a way of ensuring that fiscal policy never gets out of line.” Certainly, debt loads have taken off since Nixon closed the gold window in 1971, breaking the last link with gold.

The Safe Way to Play Emerging Market Stocks

There’s a lot to like about emerging market stocks. But like any investment, there are risks you have to consider. Today, we look at the biggest threat to emerging markets. But don’t worry. There’s a way to get around this risk. A strong dollar makes it hard for many emerging market companies to pay off their debts. Invest in countries with low levels of external debt like Russia, Brazil & India.

Why It’s High Time to Consider Emerging Market Stocks

According to the International Monetary Fund (IMF), emerging markets grew 4.1% last year. For perspective, the U.S. economy grew 1.6%. For 2018 the EMs will grow 4.8%, compared to 2% U.S. economy growth. Commodity prices have taken off. Higher commodity prices could be the catalyst that emerging market stocks have been waiting for.

The Real US Economy - A Full-Fledged Credit Crisis Is Inevitable

Americans are filing bankruptcy at the fastest rate in years… A growing number of U.S. businesses are going bust… The value of U.S. auto loans topped $1 trillion for the first time ever. Outstanding credit card debt has also surged to record highs. The value of student loans has doubled since 2009. All this wouldn’t be such a big problem if the economy were doing well… But it’s not.

Is Trump Bad News for Gold? The Prospects for Gold under President Trump

Trump or not, the fundamental problems remain deep seeded in the US economy. “Draining the swamp” and “making America great again”, are easier said than done. This is why a serious investment into gold is for the long haul. Look beyond the short-term speculations & projections. Its clear that conditions will not be favorable either way & things appear increasingly dismal.

Gold Price Holds While US Treasuries Dumped In Record Volumes

Central bankers the world over are beginning to shed treasuries & refrain from debt market participation because they are not convinced that the rhetoric supporting the viability of the fiat currency regime now underlying the world monetary system is sustainable. And if you’re one of the throwback gold enthusiasts, you’re likely enjoying the apparent strength in the gold price currently evident.

What Are Gold Prices and Bond Yields Telling Us?

A positive relationship between gold and the dollar has reemerged over the last few trading sessions & needs to be watched carefully. That is doubly true right now, while bonds are rising and bond yields are falling. If bonds continue to rise with gold and the dollar, it would indicate that investors are becoming more risk-averse and seeking so-called “safety assets.”

Cash Is No Longer King: The Phasing Out of Physical Money Begins

The stage for inevitable demise of paper money is set. The cash that allows free transactions without tax burdens or state scrutiny won’t be around much longer. There will be many rationalizations for a cashless society in the years to come, but without fixing this broken financial system first, this will only ensure that despotism gains an even sturdier foothold.

Global Economy Poised on a Knife-Edge Between Inflation & Deflation

The global economy is poised on a knife-edge between inflation and deflation. The inflationary vector could dominate quickly, based on a combination of Trump deficits & Fed accommodation. Conversely, the deflationary vector could dominate based on fundamental factors such as a strong dollar, deleveraging, demographics & technology combined with premature Fed tightening.

When the Bond-fire has finally run its course, Gold and Silver will Emerge Victorious

Today’s rising interest rates & trillion-dollar losses in global bond markets are prelude to what is to come,- Rising inflation with higher interest rates ending in the bursting of global government bond bubble & long awaited breakout in gold. The battle between capital & free markets is almost over; & when the bondfire has finally run its course, gold and silver will be victors.

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