AuthorTopic: Gold & Silver News  (Read 391130 times)

Offline Golden Oxen

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Re: Gold & Silver News
« Reply #2205 on: May 23, 2018, 07:49:58 AM »
True Surly, Both are powerful mixtures to fuel inflation, as is the rise in the minimum wage and recent explosions in grain prices.

I really feel for poor folks and those poor  elderly on a fixed income. Inflation is bad stuff, and very unfair, it hits those who can least afford it the most. It's a cruel world, but cruelest to the poor and elderly with little dough.


                                           

Offline Golden Oxen

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Dear Readers, fellow Gold Bugs, please don't under estimate the importance of this article to our philosophy. Thanks and Regards,  GO    :icon_study: :icon_study: :icon_study: :icon_study:

                                 
Commercial banks are putting gold into Turkey's central bank to help deal with rapid inflation






Good as gold: Turkey uses bullion to stabilise its economy
Simon Constable


Turkey’s central bank has accumulated an additional 400 metric tonnes of gold since 2011 (Reuters)

Turkey’s economy has been in a tailspin with an inflationary currency, but the country is using something rare to help stabilise itself: gold.

In late 2011, Turkey started to allow commercial banks to use gold instead of the Turkish lira for their required deposits at the central bank. These deposits are known as reserve requirements and help ensure that the banks are capitalised.

Over the past six-or-so years, Turkey’s central bank has accumulated an additional 400 metric tonnes of gold. That’s a lot of yellow bricks – more than what Britain has - and the sizeable stash has the possibility to take the edge off the crisis.

To put the Turkish gold haul in perspective, there are 10 million ounces of gold – roughly 311 tonnes - at the Bank of England, according to the New York-based financial consulting firm CPM Group.

The burgeoning balance of bullion comes as the result of a change in banking rules made earlier this decade.

    I thought the Turkish thing was pure genius

    - Jeff Christian, CPM Group


“I thought the Turkish thing was pure genius,” says Jeff Christian, founder of CPM Group. “It was using gold in the way that you should use it.”

In the simplest terms, the tweak to the rules allows gold to be used as a financial asset by the banks. In addition, the new regulation helped flush out a lot of gold that was previously held privately.

“This change allowed the government to get hold of the under-the-mattress gold to help stabilise the banks and the underlying economy,” says Ivo Pezzuto, professor of global economics, entrepreneurship, and disruptive innovation at the International School of Management, Paris, France.

The result of the policy change has been that Turkey’s central bank has seen a huge jump in its apparent gold holdings.

There are now more than 18 million troy ounces of bullion deposited at Turkey’s central bank, up from less than four million before the rule change was introduced in 2011, according to the latest data from CPM Group. There are 32,150.7 troy ounces in a metric tonne.
Private gold deposits into Turkey's central bank

Almost all of the increase came from commercial bank deposits of the metal at the central bank, rather than government purchases to bolster national reserves.

The Turkish gold, which previously would have languished under the proverbial mattresses, or in private safety deposit boxes, now serves a more useful economic purpose in allowing the banks to make more lira-based loans.

It also helps the banks during times of high inflation.

With inflation running at a 40 percent annualised rate, the value of the gold grows as well when measured in terms of lira. In short, the commercial banks' deposits of gold become worth more and more in terms of the local currency as inflation rages onward and upwards.

Although the purchasing power of the local currency dwindles with each passing day of double-digit inflation, the gold’s value does not. For instance, while one dollar fetched 4.10 lira a month ago, it will now buy 4.53 lira, meaning the lira has fallen in value. Whereas, gold prices in dollars have remained roughly static versus the beginning of the same period.

So what does this all mean? It means that managers at commercial banks don’t have to worry as much about continually sending more deposits to the central bank to maintain the required reserves.

The value of the gold naturally adjusts upwards, meaning if the bank is growing its loan book, it doesn't need to worry as much about stashing more cash with the central bank. Put another way, it automatically can help stabilise the banks' finances - at least in theory.

However, it is also worth remembering that the government does not own these additional gold reserves. They are the assets of the commercial banks and/or those of the investors who deposited their bullion with the financial institution.

That in turn means that private investors have the choice to get their gold returned to them. It’s basically the same as someone taking cash out of a deposit account. It is also true that everyone taking their cash out would likely cripple a bank.

Similarly, although not identical, it is true with the gold that the investors deposited. If everyone took out their gold then the banks would need to immediately send a slew of Turkish lira to the central bank, which is theoretically possible.
Turkey's economic problems

However, Turkey’s implementation of gold deposits may not offset its economic problems in the long run.

Turkey has a credit problem, which Middle East Eye reported last September. The economy grew too rapidly and sparked high inflation.

Ballooning inflation has led to the dwindling value of the lira. One dollar would fetch 4.48 Turkish lira recently versus 3.52 lira on 1 June 2017, according to data from Bloomberg.

While the official rate of inflation was an annualised 10.85 percent in April, which seems relatively measured for the economy, it may not reflect reality.


about:reader?url=http%3A%2F%2Fwww.middleeasteye.net%2Fnews%2Fgood-gold-turkey-uses-bullion-stabilise-its-economy-742509608   :icon_study: :icon_study: :icon_study: :icon_study:

                                       

                                                Turkish Gold Karush Coin

Offline Golden Oxen

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Again Dear Readers, as mentioned earlier by me in the Italy thread. My instincts tell me something is very amiss of late. The Fed making this sort of statement is Highly Irregular, Most Unusual and cause for  grave concern.  :icon_scratch:

                                     

wsj.com
Deutsche Bank’s U.S. Operations Deemed Troubled by Fed
Jenny Strasburg and Ryan Tracy
8-10 minutes

The Federal Reserve has designated Deutsche Bank AG’s sprawling U.S. business as being in a “troubled condition,” a rare censure for a major financial institution that has contributed to constraints on its operations, according to people familiar with the matter.

The Fed’s downgrade, which took place about a year ago, is secret and hadn’t previously been made public. The “troubled condition” status—one of the lowest designations employed by the Fed—has influenced the bank’s moves to reduce risk-taking in areas including trading and lending to customers.

It also means the bank has had to clear decisions about hiring and firing senior U.S. managers with Fed overseers. Even reassigning job duties and making severance payments for certain employees require Fed approval, the people said.

The punitive action by the Fed, the bank’s primary U.S. regulator, has rippled through Deutsche Bank’s relationships with other regulators, including the Federal Deposit Insurance Corp., which has pressured the lender to improve controls and oversight, people familiar with those relationships said.

Deutsche Bank shares fell as much as 8% Thursday on Germany’s Xetra exchange, to €9.07 ($10.61). That was their lowest intraday price since September 2016, when they were trading at the lowest levels in decades.

 :-\

The cost to insure €10 million ($11.7 million) in Deutsche Bank bonds for five years rose roughly 19% Thursday to about €190,000 annually, according to data from IHS Markit. That is up from €73,000 at the start of the year.

Meantime, the price of the bank’s dollar-denominated bonds due 2032 fell 1.7% Thursday to about 85 cents on the dollar, according to data from MarketAxess. They traded for 99 cents on the dollar at the start of the year.

Early Friday, Standard & Poor’s Ratings Services downgraded Deutsche Bank’s long-term credit rating one notch to BBB , from A-, citing “execution risks” in a “deeper restructuring of the business model than we previously expected.” S&P said the outlook is stable.

“We appreciate S&P’s statement that ‘management is taking tough actions to cut the cost base and refocus the business in order to address the bank’s currently weak profitability,’” the bank said in response.

The U.S. system for rating banks is called “Camels,” which stands for capital adequacy, asset quality, management, earnings, liquidity and sensitivity to market risk. A bank’s top-line rating, from 1 to 5, takes into account all those categories. The best rating is “1.” Troubled banks are rated either “4” or “5.” Scores aren’t made public.

A downgrade by the Fed has also landed the bank’s FDIC-insured subsidiary, Deutsche Bank Trust Company Americas, on the FDIC’s “Problem Banks” list of at-risk institutions, according to people familiar with the matter. The FDIC doesn’t detail the membership of the list but does say how many banks are on it and the combined value of their assets. The list’s asset total rose $42.5 billion in the first quarter; Deutsche Bank Trust Company Americas, the bank’s well-capitalized American deposit-taking unit, had $42.1 billion in assets as of March 31, according to regulatory filings.

Banks are added to the list after they receive a “4” or “5” overall rating from their primary regulator.

How those banks fare later shows how they do sometimes recover from harsh ratings.

Of the 1,783 institutions designated “problem banks” between January 2008 and March 2017, 854 recovered and shed the label, 523 failed, 294 merged and 112 remained in problem status, the agency said in its history of the financial crisis.

A Fed spokesman declined to comment, as did an FDIC spokesman.

A Deutsche Bank spokeswoman said the bank doesn’t discuss “specific regulatory feedback.” She said that Deutsche Bank AG, the German parent company, “is very well capitalized and has significant liquidity reserves.” The relevant U.S. subsidiaries, she said, are “DB USA Corp, Deutsche Bank Trust Corporation, and Deutsche Bank Trust Company Americas, our principal U.S. banking subsidiary, which has a very robust balance sheet as disclosed in our annual and quarterly regulatory filings.”

The bank spokeswoman added: “We have previously indicated that our regulators have identified various areas for improvement relating to our control environment and infrastructure. We are highly focused on addressing identified weaknesses in our U.S. operations.”

The problems that spurred the downgrade, and the complexity it injected into daily decision making and long-term planning, help frame one of Deutsche Bank’s biggest challenges. The bank is struggling to curtail costs and risks in the huge American market where, according to the bank’s executives, it must be present to maintain its global reach.

But obstacles to making money in the U.S. have become tougher as Deutsche Bank has piled up legal settlements and raced to improve outdated technology. The added scrutiny that comes with the Fed’s “troubled” label brings headaches that most other banks don’t have to contend with.

For Deutsche Bank, the effects of disappointing the Fed continue to reverberate in recent decisions under new Chief Executive Christian Sewing to pull back from certain kinds of lending and trading activities, some people close to the bank said.

Mr. Sewing was named CEO in early April with the ouster of John Cryan after three consecutive full-year losses. The new boss said last week Deutsche Bank will cut thousands of jobs and reiterated plans to reduce the lender’s global equities business and other investment-banking activities.

Groundwork for the risk pullback was laid last year as Deutsche Bank’s performance lagged. Fed supervisors grew exasperated with its shortcomings in systems and controls and the slow pace of improvements, people familiar with internal discussions said.

Deutsche Bank’s U.S. operations have drawn regulatory ire for years. They received a rebuke from the Federal Reserve Bank of New York in 2014 about repeated financial-reporting failures and lack of follow-through on promised fixes.

Deutsche Bank U.S. operations failed the Fed’s stress tests in 2015 and 2016 and in 2017 were the subject of multiple Fed enforcement actions for perceived lax controls tied to currency trading, money laundering and Volcker-rule trading restrictions. Deutsche Bank has also paid billions of dollars to settle allegations stemming from U.S. Justice Department investigations.

Last year, the Fed repeatedly cited concerns privately to the bank about its controls around measuring financial exposure to clients and valuing collateral that backed loans, according to people close to the bank.

Portions of the Fed’s criticisms suggested to Deutsche Bank executives they needed to pull back on so-called repo financing—short-term lending typically based on securities-repurchase agreements—to hedge-fund clients and other banks. Within the investment bank last year, some executives privately complained that repo exposures were less risky than the Fed depicted them, spurring debate over how much to dial back, some of the people with knowledge of internal discussions said.

The Fed also reupped its criticism of Deutsche Bank’s financial documentation. Examiners expressed frustration at what they described as the bank’s inability to calculate, at the end of any given day, its exposures to what banks and other clients it had in specific jurisdictions, and over what duration, some of the people said.

—Matt Wirz


contributed to this article.

Write to Jenny Strasburg at jenny.strasburg@wsj.com and Ryan Tracy at ryan.tracy@wsj.com

Appeared in the June 1, 2018, print edition as 'Deutsche Bank Is Hit With Rare Rebuke From Fed.'

https://www.wsj.com/articles/deutsche-banks-u-s-operations-deemed-troubled-by-fed-1527768310 :icon_study: :icon_study: :icon_study: :icon_study:


                                       
           

Offline Golden Oxen

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Trump Opens Pandora’s Box. Global Trade War Very Positive for Gold
« Reply #2208 on: June 06, 2018, 03:16:19 PM »

Trump opens Pandora’s box. Global trade war very positive for gold.
– lawrieongold


Article first published on Sharps Pixley website

Well we’ll soon see if President Trump’s imposition of steel and aluminium tariffs on the EU, Canada and Mexico is for real – or just another negotiating tactic.  He is very much a believer in promising the worst as a tactic for generating concessions in his business dealings, but will this work in global geopolitics?  Tit for tat tariffs are already being promised by those affected – they can play at that game too! – and if they all come about they could cost far more in American jobs than any possible regeneration that might be seen in the U.S. steel and aluminium sectors.  Those are too far down the line of closures and write-offs to see any kind of short term recovery.  And U.S. manufacturers currently relying on imported aluminium and steel for their products will see costs rise which, no doubt, will see them having to increase prices for their goods making them less competitive in both domestic and global markets.

And, of course, such a trade tariff war could easily escalate dragging in more products and countries.  A global trade war does nobody any good as noted by top economist Martin Murenbeeld (www.murenbeeld.com) in his latest weekly Gold Monitor newsletter for his subscribers.

Martin is renowned for his comprehensive, but conservative, analyses of the gold market.  As we have noted before he is mildly bullish, but circumspect, on his stated outlook for precious metals.  He is not a predictor of a rapid rise to a $5,000 or $10,000 metal price but, in our view is a much more realistic observer of metal price trends in looking for steadily rising medium to long term price levels in line with a perhaps weakening dollar index.

As he states: “a global trade war would be catastrophic for the world economy – and would be a big issue for the gold market! A global trade war would seriously alter central bank policies – more loosening/less tightening – which is a plus for gold! And the dollar’s reserve-currency role would be damaged, and accelerate the move to a multiple reserve-currency world (with the dollar playing a much-reduced role).   Central bank gold reserves around the world would likely rise accordingly.”  If he is correct in his analysis and President Trump does not reverse course, the global economy could be in for some very uncomfortable years as /a tariff war stutters and possibly escalates.

What is puzzling about the Trump tariffs so far is the countries which have been targeted – all supposedly allies of the U.S. – while China, which most see as the biggest culprit in terms of what are seen as unfair trade practices, seems to be attracting less immediate attention, although talks with the Chinese are ongoing.  However, one suspects that China, and some other Asian nations will become targets too and again tit-for-tat  tariff increases will result with damaging results for the sectors so chosen.  While President Trump has described the tariff increases as a national security issue given steel and aluminium are used in weapons manufacture, others see the moves as pure protectionism of the worst kind.  Such trading issues usually end up as economically disadvantageous to all parties – hence the likely benefits to the gold market as investors look to so-called safe havens.

  https://lawrieongold.com/2018/06/05/trump-opens-pandoras-box-global-trade-war-very-positive-for-gold/ :icon_study:

Offline azozeo

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Gold & Silver News-It Begins, Tx Open's its Bullion Depository Doors B@@M
« Reply #2209 on: June 10, 2018, 01:23:18 PM »
The Texas Bullion Depository Opens for business. Creating currency competition with the federal reserve the problem for them is Federal reserve notes are no competition for gold and silver. The important part is this is the first establishment of this kind and a path to the new gold standard and fall of the federal reserve.



<a href="http://www.youtube.com/v/8BZWGKrG5rU&fs=1" target="_blank" class="new_win">http://www.youtube.com/v/8BZWGKrG5rU&fs=1</a>
I know exactly what you mean. Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world.
You don’t know what it is but its there, like a splinter in your mind

Offline Surly1

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The Texas Bullion Depository Opens for business. Creating currency competition with the federal reserve the problem for them is Federal reserve notes are no competition for gold and silver. The important part is this is the first establishment of this kind and a path to the new gold standard and fall of the federal reserve.

<a href="http://www.youtube.com/v/8BZWGKrG5rU&fs=1" target="_blank" class="new_win">http://www.youtube.com/v/8BZWGKrG5rU&fs=1</a>

This is interesting AF to me. Got more? Links? GO, you know about this?
"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

Offline Golden Oxen

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The Texas Bullion Depository Opens for business. Creating currency competition with the federal reserve the problem for them is Federal reserve notes are no competition for gold and silver. The important part is this is the first establishment of this kind and a path to the new gold standard and fall of the federal reserve.

<a href="http://www.youtube.com/v/8BZWGKrG5rU&fs=1" target="_blank" class="new_win">http://www.youtube.com/v/8BZWGKrG5rU&fs=1</a>

This is interesting AF to me. Got more? Links? GO, you know about this?

Yes Surly, actually it's been in the works for quite a while and I posted about it way back on the Diner.

A very encouraging prospect for Gold bugs.

My understanding the guiding force behind it is Kyle Bass, one of the prominent members of my Gold community and a gent who holds a vast amount of bullion. He desired a safe place to store it away from the banksters is my understanding, and like me does not trust the ETF's.

He has been out of the limelight of late having been wrong about the markets for a while. Nothing will make an ass hole out of a genius like the markets, they excel in the task.

Whatever he is Super Bearish on China, looking for a vicious credit and financial bust there and has lost his credibility for being wrong for a few years. You only as smart as  your last good trade on Wall Street.

Whatever it is a great place to store bullion if you are a law abiding citizen and believe the rule of law will continue for a while at least.

As to Mr Bass, my view is it is extremely unlikely he appears foolish much longer.  :dontknow:

                                 

Offline Golden Oxen

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Re: Gold & Silver News - America Goes Full Imbecile
« Reply #2212 on: June 12, 2018, 05:29:11 AM »
 
   

 
America Goes Full Imbecile | Economic Prism

                             


Credit has a wicked way of magnifying a person’s defects.  Even the most cautious man, with unlimited credit, can make mistakes that in retrospect seem absurd.  But an average man, with unlimited credit, is preeminently disposed to going full imbecile.

Several weeks ago we came across a woeful tale of Mike Meru.  Somehow, this special fellow, while of apparent sound mine and worthy intent, racked up over $1 million dollars in student loan debt – all to become an orthodontist.

Surely, with several good text books, and a disciplined self-study program, Meru could’ve learned everything there was to possibly know about adjusting malpositioned teeth for roughly $200 bucks.  Instead, with the full backing of Uncle Sam’s loan program, he went full imbecile.

Yet Meru isn’t alone.  According to the Department of Education, there are 101 people in the U.S. who are a million dollars or more in federal student loan debt.  What’s more, there are 2.5 million people who owe at least $100,000.  What could they have possibly learned that could be so doggone valuable?

Did they discover how to turn nickels into dimes?  Did they solve the geometry of a four-sided triangle?  Did they learn the secrets of the universe?  Did they get an insider’s peek at something more than what happens under the sun?
Delusions of Grandeur

Only at rare moments are people capable of understanding the full implications of the catastrophes of their making.  These rare moments, often just before dawn, are the precise instants when they gain full clarity to the hopeless fact that they’ve gone full imbecile. That every decision they’ve ever made has led them to this exact place – where they find themselves to be completely and utterly screwed.

Nations, like the people who compose them, have also demonstrated they’re unqualified to responsibly function in a world of unlimited credit.  Here in The United States of Debt, federal debt has exceeded $21 trillion, corporate debt has topped $6 trillion, and total household debt has reached a record high of over $13 trillion.  In other words, the country, as a whole, has gone full imbecile.

These debt figures represent the early lightening of the oncoming storm.  These same debt figures are currently being ignored by practically everyone.  The nation’s leaders, in particular, are ignoring the early lightening of the oncoming storm.  After an 80 year run of near uninterrupted prosperity, who wants to think the unthinkable?

People would rather be flattered with delusions of grandeur than have cold buckets of ice watery truth dumped on their head.  They want to believe that they’re exceptional and that everyone – especially them – can live at the expense of their neighbors.  They want to believe they can get more out of their retirement than they put in.

People hold onto the myth that America’s a free market economy.  Yet, somehow, miss the contradiction of the mammoth bureaucracy that’s been erected to oversee it.  Free trade’s fine in theory, they rationalize.  But, in practice, protectionist measures are required to make trade fair.  And on and on the delusions go…
America Goes Full Imbecile

At the same time, large segments of the American populace – many involuntarily – have been reduced to abject debt servitude.  On the flipside, the entire structure of Social Security and Medicare entitlement programs are on the brink of collapse.  These signature social achievements of FDR and LBJ, and the tens of millions of dependents that have put their faith and trust in them, stand to be wiped out faster than you can say lickety-split.

This week the Social Security and Medicare Boards of Trustees released their 2018 Annual Report.  Inside they revealed that the Medicare trust fund will be depleted in 2026 and the Social Security trust funds – both for old-age benefits and disability insurance – would likely be depleted in 2034.

So what happens when these milestones are reached?  Will entitlement dependents find themselves up the creek without a paddle?

Not exactly.  Most likely, the Treasury, in concert with the Federal Reserve, will go full imbecile.  They’ll create money from nothing to make good on their obligations.  But in the process, they’ll destroy the currency.

Make no bones about it, America’s in the midst of going full imbecile.  Massive amounts of debt, made possible through a debt based fake money system, have brought today’s many unique possibilities for destruction into existence much sooner than would’ve otherwise been possible.  What’s more, the government’s solution, which requires destroying the dollar, is as sensible as cutting off ones head to cure a headache.

Of course, faith in the government’s ability to cure all of society’s ailments is what got us into this mess in the first place.  For the many unfortunate souls who experience the insidious injustice of having their lifesavings vaporized through state sponsored currency debasement, such a misplaced faith in government will never return.

Sincerely,

MN Gordon
for Economic Prism

https://economicprism.com/america-goes-full-imbecile/ :icon_study: :icon_study:

                             
« Last Edit: June 12, 2018, 05:35:02 AM by Golden Oxen »

Offline azozeo

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Re: Gold & Silver News
« Reply #2213 on: June 12, 2018, 12:42:16 PM »
Thanks for posting Oxie....

Ya' gotta' luv these millennials. Nothing like re-inventing the wheel. They're so dupe-able.

Million dollar educations, that goes along with 800 sq. ft. ranch homes in No. Cali. for 2 mill....

Good thing it's not real money or we'd all be fucked.  :icon_mrgreen:
I know exactly what you mean. Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world.
You don’t know what it is but its there, like a splinter in your mind

Offline Golden Oxen

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Re: Gold & Silver News
« Reply #2214 on: June 12, 2018, 04:31:54 PM »
Thanks for posting Oxie....

Ya' gotta' luv these millennials. Nothing like re-inventing the wheel. They're so dupe-able.

Million dollar educations, that goes along with 800 sq. ft. ranch homes in No. Cali. for 2 mill....

Good thing it's not real money or we'd all be fucked.  :icon_mrgreen:

It certainly isn't real money AZ.

Unfortunately the Dim don't realize it, but they will when their fantasy abruptly ends into reality,

“Water, water, everywhere,
And all the boards did shrink;
Water, water, everywhere,
Nor any drop to drink.”


                           

― Samuel Taylor Coleridge, The Rime of the Ancient Mariner



                                       

Offline Golden Oxen

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Re: Gold & Silver News
« Reply #2215 on: June 13, 2018, 08:31:45 AM »
Prices on the move again Dear Readers, Trust me, GO watches them most intently.

Just back from the Super and it was scary. Brocolli 1.99 a lb and not crown cuts, Beef moving again, fresh fruit sky high.

Only reasonable prices in the veggie category were Bok Choy at 99cts a lb and cauliflower 1.99 a head and they were huge, almost the size of a basketball and from California. Looking forward to blueberry and plum season. Chicken and pork still reasonable and stable.

                               

                                   

Offline Eddie

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Re: Gold & Silver News
« Reply #2216 on: June 13, 2018, 08:51:21 AM »
Prices on the move again Dear Readers, Trust me, GO watches them most intently.

Just back from the Super and it was scary. Brocolli 1.99 a lb and not crown cuts, Beef moving again, fresh fruit sky high.

Only reasonable prices in the veggie category were Bok Choy at 99cts a lb and cauliflower 1.99 a head and they were huge, almost the size of a basketball and from California. Looking forward to blueberry and plum season. Chicken and pork still reasonable and stable.

                               

                                 

My gut says its the best time to buy gold since 2001 or so. Maybe the best time of our lifetime. I wish I could afford to add here. Both gold and silver.
What makes the desert beautiful is that somewhere it hides a well.

Offline Golden Oxen

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Re: Gold & Silver News
« Reply #2217 on: June 13, 2018, 09:38:14 AM »
Prices on the move again Dear Readers, Trust me, GO watches them most intently.

Just back from the Super and it was scary. Brocolli 1.99 a lb and not crown cuts, Beef moving again, fresh fruit sky high.

Only reasonable prices in the veggie category were Bok Choy at 99cts a lb and cauliflower 1.99 a head and they were huge, almost the size of a basketball and from California. Looking forward to blueberry and plum season. Chicken and pork still reasonable and stable.

                               

                                 

My gut says its the best time to buy gold since 2001 or so. Maybe the best time of our lifetime. I wish I could afford to add here. Both gold and silver.

In  total agreement Eddie, especially a mixture of the two.

Silver in my opinion is taking on a whole new demand dimension with advances in technology, the world wide explosion in solar and an endless array of new applications. The bacteria resistance of silver is also a fascinating subject.

Besides being "Poor Man's Gold" it has a lot going for it.

Let us not forget however that it is the wrong color, tarnishes, is much less scarce, and will never be as noble as the precious yellow.

                                           

                                           


                   China Year of the Ox Commemorative Coin-12oz Gold

Offline Golden Oxen

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The Texas Bullion Depository Officially Opened For Business This Week
Mike Maharrey via The 10th Amendment Center
06/15/2018

The Texas Bullion Depository officially opened for business this week. The creation of the facility represents a power-shift away from the federal government, and sets the foundation to undermine the Federal Reserve’s monopoly on money.

In June 2015, Gov. Greg Abbot signed legislation creating the state gold bullion and precious metal depository. The facility will not only provide a secure place for individuals, business, cities, counties, government agencies and even other countries to store gold and other precious metals, the law also creates a mechanism to facilitate the everyday use of gold and silver in transactions. In short, a person will eventually be able to deposit gold or silver – and pay other people through electronic means or checks – in sound money.

The facility began accepting deposits of precious metals on Wednesday, June 6. Texas Comptroller Glenn Hegar became the first depositor. He praised the depository as a secure place to store gold and silver.

    “Once you’ve made that deposit, it is going to be there tomorrow and in the future, until you make a decision to withdraw it or you want to sell it,” he told the Texas Tribune.

Rep. Giovanni Capriglione sponsored the legislation creating the depository. He also deposited gold on Wednesday. He said he thinks the Texas facility could be the first of many across the U.S.

    “I can’t think of any place else in the world that could create a bullion depository this way, and I’ve heard from legislators across the country who want to do what we are doing, from Tennessee to Utah,” he said in a statement. “We will see a lot of financial interest in this depository, with gold, silver and other commodities coming here.”

Austin-based Lone Star Tangible Assets runs the depository for the state. It currently operates it out of its existing facility in Austin, but plans to open a new building for the depository in Leander sometime in 2019.

You don’t have to be a Texas resident to use the depository. Any U.S. citizen can set up an account online and then ship or personally deliver metal to the facility. The Texas Bullion Depository will accept gold, silver, platinum, rhodium and palladium.

The depository does not currently have a system in place to facilitate everyday transactions with gold and silver, but that remains part of the long-term plan.

According to an article in the Star-Telegram, state officials want a facility “with an e-commerce component that also provides for secure physical storage for Bullion.” While in the development phase, officials said plans for a depository will include online services that would let customers accept, transfer and withdraw bullion deposits and related fees.

Ultimately, depositors will be able to use a bullion-funded debit card that seamlessly converts gold and silver to fiat currency in the background. This will enable them to make instant purchases wherever credit and debit cards are accepted.

By making gold and silver available for regular, daily transactions by the general public, the new depository has the potential for wide-reaching effect. Professor William Greene is an expert on constitutional tender and said in a paper for the Mises Institute that when people in multiple states actually start using gold and silver instead of Federal Reserve notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.

    “Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a ‘reverse Gresham’s Law’ effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes).

    “As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”

Gresham’s Law holds that “bad money drives out good.”  For example, when the U.S. government replaced silver quarters and dimes with coins made primarily of less valuable copper, the cheap coins drove the silver out of circulation. People hoarded the more valuable silver coins and spent the less valuable copper money. So, how do you reverse Gresham?

The key is in making it easier to use gold and silver in everyday transactions. The reason bad money drives out good is that governments put up barriers to using sound money in day-to-day life. That makes it more costly to spend gold and silver and incentivizes hoarding. When you remove barriers, you level the playing field and allow gold and silver to compete head-to-head with Federal Reserve notes. On an even playing field, gold and silver beat fiat money every time.

The Texas Bullion Depository also creates an avenue toward financial independence. Countries around the world, including China, Russia and Turkey, have been buying gold to limit their dependence on the U.S. dollar. University of Houston political science professor Brandon Rottinghaus said a state depository can serve a similar function for Texas.

    “This is another in a long line of ways to make Texas more self-reliant and less tethered to the federal government. The financial impact is small but the political impact is telling, Many conservatives are interested in returning to the gold standard and circumvent the Federal reserve in whatever small way they can.”

The Texas Bullion Depository creates a mechanism to challenge the federal government’s monopoly on money and provides a blueprint for other states to follow. If the majority of states controlled their own supply of gold, and people began using precious metals in daily transactions, it could conceivably make the Federal Reserve completely irrelevant.


http://tenthamendmentcenter.com/2018/06/07/texas-bullion-depository-open-for-business/ :icon_study: :icon_study: :icon_study:

                                               
                                                         Official Texas Bullion Gold Coin


                                                           

Offline Eddie

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Re: Gold & Silver News
« Reply #2219 on: June 16, 2018, 11:01:42 AM »
The reason bad money drives out good is that governments put up barriers to using sound money in day-to-day life. That makes it more costly to spend gold and silver and incentivizes hoarding. When you remove barriers, you level the playing field and allow gold and silver to compete head-to-head with Federal Reserve notes.



Whoever wrote this does not understand Gresham's Law very well, imho.

This is spin, somebody's wishful thinking, or (more likely) something dreamed up by the guys in marketing.

Not sure how this will play out over time. GoldMoney has been doing this transactional account stuff with ecommerce for a while.  They are based in the Channel Islands, which is a good place to set such a thing up.

People hoard gold for one reason. They don't trust the government. The government of Texas has given me absolutely no reason to trust them more than I do the feds. The State of Texas fucks me out of my pay every day. It's run by greedy no-nothings financed by Charles Koch and others like him. We have our own homegrown version of commons-looting libertarians.

Putting all the gold in one place makes confiscation effortless. That's one obvious fly in the ointment. The second fly is that any deposits will become a public record. In order to use the depository you have to declare what you're holding, which then becomes public information. It's akin to gun registration.

That allows for capital gains on gold to be heavily taxed, which is all it takes to for the state to conduct the kind of financial repression they use to inflate away their debts.

I see the depository as a place for elites to hoard gold, not some kind of alternative gold based monetary system. They never spend their hoards, so it could conceivably contribute to deflation in the regular currency.

There are about five things governments can do to exercise financial repression, and they are all in play already, except for one. That one is gold confiscation.

My take on why they haven't done that?  They don't need to.

The big money, the pension funds and that level of account has been forced into paper gold already. Not enough citizens hold gold to make confiscation amount to much. At this point it would amount to too much work for a tiny return, to go after preppers and others with small personal gold stashes.

I see the Bullion Depository primarily as a play by the super rich to make it possible for the less trusting among them to hold large quantities of bullion instead of shares in ETF's. It does little to protect us small fry.

And as the feds get more laws passed to allow then to track gold sales by dealers, it won't matter whether gold is deposited or buried in a mayonnaise jar in the yard. They will know you have it, and tax you if you sell it.

Now is the best time to buy gold. Price is good, and no government paper trail is in place right now. They tried to get that changed, btw, but it failed in the congress. That will change though, especially if the general public starts to buy gold they way they did back in 1979. I think that will happen, but not right away. I'm looking ahead to 2021-2025 for that to occur.

RE might even get his chance to buy gold REALLY cheap one more time, when we get the REAL crash in bonds and equities, and the margin calls start to drive down all assets due to waterfall selling. I know however, that this window, if it occurs ,will be brief, and hardly anyone will consider it a good time to be buying anything. That's human nature.

If you don't know exactly what financial repression is, I recommend this really important article I've linked below, by my friend Dan. He wrote this several years back, and it influences my strategies a lot. If there is anyone else at all who gets this the way Dan does, I have never run across their writing.

The five tools of financial repression are:

Inflation.

Negative real interest rates

Funding by financial institutions (requiring banks to hold government debt)

Capital controls

Precious metals controls (and taxation works just as well as confiscation, if that can be accomplished).

http://danielamerman.com/va/Repression.html




« Last Edit: June 16, 2018, 11:39:52 AM by Eddie »
What makes the desert beautiful is that somewhere it hides a well.

 

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