My name is Shawn Ozbun, and our goal is to keep you up to date with what’s going on in the world of Gold and Silver by providing you with current news and precious metals pricing.
The Silvertowne Vault Cast is brought to you by www.Silvertowne.com
It’s Thursday and thank you for joining me for another episode of the SilverTowne Vault Cast. Today our conversation is going to be mostly about the state of our economy, our inflation and surviving it using gold and silver.
Peter Schiff say’s we are going to win the currency war and then implode, and I also have an article that states this bubble is going to burst and destroy the middle class.
Before I get into all this I want to remind you that you can subscribe to the SilverTowne Vault Cast and never miss an episode. You can do that through YouTube and in the iTunes store. This show is also posted on all of SilverTowne’s social media sites including Facebook, Twitter, LinkedIn, Pinterest, Google Plus and Tumblr. If you can spare a few minutes to leave a comment or give some feedback that would be much appreciated.
Now let’s take a look at today's precious metals pricing.
Gold - $1580.74 down $6.71
Silver - $28.67 down $.22
Platinum - $1578.00 down $7.00
Palladium - $757.98 down $11.37
Surviving Inflation with Silver & Gold Bullion
They just can’t help themselves. Governments and their central banks around the world just can’t stop creating and printing new money at a pace that far exceeds their country’s production of new goods and services. This is an open invitation to severe inflation, and it’s coming soon to a country near you — like the one you’re in now.
In America, a mushrooming entitlement state, a gargantuan debt that is rising exponentially, and a complicit Federal Reserve Bank are the culprits. But similar practices are doing their damage in countries all around the world. In Argentina, more advanced versions of America’s policies have have led to a currency inflation that is now raging at over 26% per year. America may only be a few years behind Argentina.
This is serious stuff — really. The world needs stable currencies because it is only money that makes it possible for human beings to deal with one another peacefully and voluntarily for mutual benefit. Without it, the world would revert to coarse barter, theft, violence, chaos, and anarchy — followed swiftly by dictatorships.
So what can citizens around the world do about irresponsible money supply expansion? Complain? Sign petitions? Demand that new-money creation cease? Demand that the money supply be rolled back?
Good luck. In Big Governments everywhere, virtually all the incentives favor still more new-money creation, faster and faster, seemingly without limit. After all, newly created money can pay off (“monetize”) government debts, buy votes with expanded social services, and reward cronies with contracts for everything from paper clips to aircraft carriers.
So what’s the harm in all this?
The systemic harm is inflation. We all know that prices for gasoline, electricity, eggs, meat, bread, and other necessities have been rising, despite Big Government’s manipulation of the Consumer Price Index in a vain attempt to hide it. For seniors, the purchasing power of a lifetime’s worth of retirement savings is bleeding away, slowly at present, but much faster in the future. Read More...
Schiff: U.S. Will Win Currency War, Then "Implode"
Investors should take immediate steps to protect themselves, as a global currency war is about to create a massive economic "implosion" far worse than 2008.
That's according to Peter Schiff, the best-selling author and CEO of Euro Pacific Capital, who delivered his harsh warning to investors at a recent ETF conference.
"There is a currency war going on," Schiff told the investors according to CNBC. "The irony of a currency war, which makes it different from other wars, is the object is to kill itself. Unfortunately, I think the U.S. is going to win the currency war."
In a currency war global central banks purposely devalue their currency in a so-called "race to the bottom." They hope cheaper money will spur economic growth by boosting corporate earnings from exports.
But many economists have argued that currency devaluation can have severe consequences, most notably out-of-control inflation.
While the U.S. government claims current inflation is under control, Schiff strongly disagrees. He says the official numbers are a "total fraud."
"Anybody who believes there is no inflation isn't shopping," he said.
We're broke, Schiff added. "We owe trillions. Look at our budget deficit, look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out."
Schiff points out that the market gains experienced recently, with the Dow topping 14,000, are distorting reality and giving investors a false sense of security.
"It's not that the stock market is gaining value... it's that our money is losing value. And so if you have a debased currency... a devalued currency, the price of everything goes up. Stocks are no exception," he said.
"The Fed knows that the U.S. economy is not recovering," he noted. It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode." Read More...
Fed's Bubbles to Slaughter Middle Class
When central bankers dedicate their existence to re-inflating asset bubbles, it shouldn't at all be a surprise to investors that they eventually achieve success. Ben Bernanke has aggressively attempted to prop up the real estate and equity markets since 2008. His efforts to increase the broader money supply and create inflation have finally supported home prices, sent the Dow Jones Industrial average to a record nominal high and propelled the bond bubble to dizzying heights.
The price of any commodity is highly influential towards its consumption. This concept is no different when applied to money and its borrowing costs. Therefore, one of the most important factors in determining money supply growth is the level of interest rates. The Federal Reserve artificially pushed the cost of money down to 1% during the time frame of June 2003 thru June 2004. It is vitally important to note that these low interest rates were not due to a savings glut; but were rather created by central bank purchases of assets. This low cost of borrowed funds affected consumers' behavior towards debt and was the primary reason for the massive real estate bubble.
The ramifications for investors and the economy will be profound. Not only will the economy move gradually toward a pronounced condition of stagflation, but, more importantly, the bubbles being created by the Fed will be far greater and more devastating than any other in history. Equity and real estate prices are already stretched far beyond what their underlying fundamentals can support. But they are nothing compared with the distorted valuations being applied to U.S. sovereign debt. The bursting of the bond bubble will be exponential worse than the deflation brought on by the NASDAQ and real estate debacles. It is sad to conclude that the middle class is set up to get slaughtered even worse than they did when the previous two bubbles burst. Read More...
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[Disclaimer] Shawn Ozbun is not a licensed financial adviser, there is risk associated with all investment including gold and silver. You should seek advise from a licensed financial expert before making a purchase.
