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
Before I get into all that, lets have a look at this mornings precious metals pricing.
Gold - $1304.01 Down $3.05
Silver - $21.96 Up $0.06
Platinum - $1390.00 Up $3.50
Palladium - $712.00 UP $5.00
12 Very Ominous Warnings About What A U.S. Debt Default Would Mean For The Global Economy
A U.S. debt default that lasts for more than a couple of days could potentially cause a financial crash unlike anything that the world has ever seen before. If the U.S. government purposely wanted to damage the global financial system, the best way that they could do that would be to default on U.S. debt obligations. A U.S. debt default would cause stocks to crash, would cause bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch, and would cause a derivatives panic that would be absolutely unprecedented. And that would just be for starters. But don't just take my word for it. These are the things that top financial experts all over the planet are saying will happen if there is an extended U.S. debt default.
#1 Gerald Epstein, a professor of economics at the University of Massachusetts Amherst: "If the US does default, that will make the Lehman Brothers bankruptcy look like a cakewalk"
#2 Tim Bitsberger, a former Treasury official under President George W. Bush: "If we miss an interest payment, that would blow Lehman out of the water"
#3 Peter Tchir, founder of New York-based TF Market Advisors: "Once the system starts to break down related to settlement and payments, then liquidity disappears, as we saw after Lehman"
#4 Bill Isaac, chairman of Cincinnati-based Fifth Third Bancorp: "We can’t even imagine all the things that might happen, just like Henry Paulson couldn’t imagine all the bad things that might happen if he let Lehman go down"
#5 Jim Grant, founder of Grant’s Interest Rate Observer: "Financial markets are all confidence-based. If that confidence is shaken, you have disaster." Read More...
U.S. Adds Two Times More Debt than Economic Output in Last 2 Years
"Today it stands at $16,699 billion, which was reached when Treasury started using extraordinary measures in May of this year. That's a $2,405 billion increase in 2 years.
"Meanwhile, the economy, as measured by GDP only increased by $1,199 billion between the second quarter of 2011 and the second quarter of this year.
"So the debt increased twice as much as the economy over the last two years, the very definition of unsustainable. The growth of a nation’s debt cannot for long exceed the growth of its economy – which is precisely what is happening now." Read More....
$12 Trillion U.S. Default Risk – Dollar Decline, Gold To Rise As History Repeats
Gold climbed $11.80 or 0.9% yesterday, closing at $1,322.40/oz. Silver soared $0.65 or 3% closing at $22.33. Platinum climbed $15.89 or 1.2% to $1,396.49/oz, while palladium rose $2.47 or 0.4% to $699.47/oz.
Gold is being supported as the U.S. government shutdown that continues with no end in sight and the deadline to raise the national debt ceiling looms, burnishing gold’s safe haven appeal.
Prices also found support from China, which reopened after a week-long National Day holiday.
The October 17 deadline to raise the $16.7 trillion debt limit is approaching fast and concerns about an unprecedented default have been expressed by well known and politically connected investors including Warren Buffett.
A default would be a global financial disaster of a scale even bigger than that of the Lehman Brothers collapse and subsequent financial and economic crises.
The $12 trillion of outstanding government debt is 23 times the $517 billion Lehman owed when it filed for bankruptcy on September 15, 2008.
Some fear that it would be an economic calamity like none the world has ever seen and the likes of Buffett have warned that going over the edge would be catastrophic. Read More....
Peter Schiff laughed at for claiming the fed would not taper. 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.
