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Posts Tagged ‘Social Security’

Revealing the Real Rate of Inflation Would Crash the System

The grim reality is that real rate of inflation is 7+% per year, and this reality must be hidden behind bogus official calculations of inflation as this reality would collapse the entire status quo. Who’s being destroyed by 7+% real inflation? Everyone whose income has stagnated and everyone who depends on wages rather than assets to get by–in other words, the bottom 95%.

National Debt: US Economy Priced in Gold - Cause For Alarm

National debt has increased exponentially for the past 50 years. The 35-year graph shows on average the national debt has increased rapidly, even when priced in gold. Debt is increasing far too rapidly & gold is underpriced. The current national debt is equal to about 100 times the total value, at current gold prices, of the gold “officially” stored in Fort Knox. This should be cause for alarm.

Physical Gold, the Misery Index and Monetary Insanity

The official national debt of $19 trillion, measured in gold, is about 15 billion ounces – around 100 times the quantity of gold supposedly stored in Fort Knox. Given the insanity of endless borrow & spend programs, ever increasing debt, overpriced stocks & bonds, desperation & delusions, and more … have you stacked physical gold in preparation for the inevitable consequences?

Here’s What Happens When Central Banks Run Out of Ammo

Governments and central banks are arrogant to think they can solve any problem by printing and borrowing money. Their arrogance will eventually cause “the biggest banking crisis in world history.” The next downturn could further expand Fed bond holdings, but with the central banks balance sheet already exceeding $4 trillion, there are limits to how much more the Fed can buy.

Recovery? No Jobs for the Young, No Retirement for the Old

The Fed’s Zero Interest Rate Policy has destroyed low-risk yields on retirement funds, greatly reducing the yield on retirement savings. As a a direct result of Fed policy (designed to recapitalize banks at the expense of savers & retirees), those hoping to retire have been forced to put their savings at risk or working longer because the low-risk yield on retirement savings are now meager.

What's the Real Unemployment Rate in the U.S.?

The unemployment rate of 5.6% reflects nearly full employment, as 3% to 4% of the work force is in the process of quitting/being laid off & finding another job. By my reckoning, roughly 60% of the civilian work force is fully employed & 40% are marginally employed or unemployed. What qualifies as a job? Should we count someone who earns $1,000 a year as employed?

Gold And Silver Prices: End Of Month Chart Analysis

Silver is trading at a loose support level in that it has not moved under the Dec low. That is where the last low occurred in Feb 2010 before the rally up to the $50 level. Given Thursday’s assault to push price lower, silver responded well. Fact that silver prices rallied off the low shows buyers offering some degree of support.

U.S. Government Is Borrowing About 8 Trillion Dollars A Year

A lot of money on interest payments is saved by borrowing over shorter time frames. This strategy has indeed saved the US federal government hundreds of billions of dollars in interest payments, but it has also created a situation where the federal government must borrow about 8 trillion dollars a year – JUST to keep up with the game.

Silver and Gold - Debt and Taxes

National debt is increasing rapidly, population is increasing slowly & gold to population adjusted debt ratio seems likely to increase substantially. Hence gold prices will rally much higher, thanks to massive increases in debt, “money printing,” investor demand, higher energy prices, various worries, wars & Asian demand.

U.S. Retirement Asset Bubble vs Physical Gold Investment

The values of Retirement Assets are based on the Fed & US Treasury propping up the stock & bond markets since 2008. Once the U.S. Dollar-Treasury-Stock Market Dam finally bursts, it will take down the values of all these so-called paper assets. However, the opposite will occur with the value of physical gold investment.

We're Relying on Phantom Wealth to Fund Our Retirement

That Social Security, Medicare & pension funds invested in stocks & bonds can fund the retirement of 65 million people is a misleading fantasy. Phantom wealth cannot possibly fund unprecedented retirement & healthcare promises. Only real wealth can do that; central bank liquidity & asset bubbles it inflates are not real wealth.

The Ongoing Rot in the Economy

However hard the Central Planners try, they will soon realize that no amount of money printing can cleanse the rot of the US economy. Here we investigate the U.S. consumer & show that for a large portion of the population, things are not anywhere close to being better, in fact they are worse than before the recession.

Why the U.S. Recovery is Such a Disappointment

We have had a disappointingly slow recovery, and our consistent expectations for a pickup in growth have been dashed over a number of years. This has been the most agonizing post-recession recovery since The Great Depression, in spite of record stimulus efforts including zero bound interest rates.

Gold – Fertile Ground for Sarcastic Analysis

Sarcastic Analysis: Gold prices must go down for all the reasons given herein. Things are good, actually improving, and gold is headed down to about $400 per ounce. Gasoline & food prices have been steadily increasing for the last 15 years, (actually for 100 years), but they are almost certain to go back down next month.

Gold, the National Debt and the Debt Limit - are Co-Related

Gold, national debt & the debt limit have tracked each other fairly well since the year 2000 & have followed each other, more or less, over six decades. Is there any reason to expect this pattern to change? We can depend upon congress to borrow & spend, and gold prices will rise to reflect that reality.

US now Spending 26% of available Tax Revenue just to pay Interest

In Fiscal Year 2013, the US collected $2.49 trillion in tax revenue & after deducting payroll tax of $891 billion (tied directly to funding Social Security & Medicare), had $1.599 trillion available to pay for its operations & total US interest payments were a whopping $415 billion – That’s Approximately 26%

What Needs to Happen Before We See a Big Recovery in Economy?

Will real economy mend before excessive financial risk-taking kills the patient? What needs to happen before we get a robust recovery: 1) Households need to borrow at the pace we normally see in economic expansions. 2) Household income needs to grow strongly – More of the second & less of first.

The Four Pillars of Poverty - Marc Faber

The increase in poverty rests on four pillars: Cultural & social factors, educational issues, excessive debt & government handouts, which encourage people not to work. Other factors: International competition – keeps wages down; Monetary policies – create bubbles & impoverish the majority.

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