Last month, the Federal Reserve Bank of St. Louis published an essay that supposedly debunks the idea that a monetary gold standard can stabilize and improve economies. The piece is blatant propaganda that returns to the same excuse central bankers always use to discredit the gold standard. Namely, that tying a currency to gold prevents a government and its central bank from quickly responding to economic problems by manipulating the money supply. This is the same argument used to defeat the “Save Our Swiss Gold” campaign back in November, which would have forced the Swiss National Bank to significantly increase its gold reserves.
Peter Schiff explains the sharply lower GDP growth in the fourth quarter of 2014 and shares his predictions for 2015. Peter asks the ultimate question that everybody seems to be ignoring – How can analysts expect the United States to experience better GDP growth in 2015 when they also expect the Federal Reserve to raise interest rates and refrain from further stimulus? It’s the Fed’s monetary policies that stimulated this phony recovery in the first place.
German Central Bank Continues Gold Repatriation
Bundesbank – Germany’s central bank, the Bundesbank, increased its transfer of foreign gold reserves back into Germany in 2014, bringing 120 metric tons to Frankfurt. 85 of those tons came from the New York Federal Reserve. This repatriation process began in January 2013, when the Bundesbank announced a plan to store half of its gold reserves at home by 2020. To achieve this goal, Germany will have to repatriate 300 tons from New York and 374 tons from Paris. It has now transferred 23% of that total 674 tons.
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Tom Woods interviewed Peter Schiff this week. Woods is a senior fellow at the Mises Institute, a New York Times bestselling author, and a well-respected voice of Austrian Economics. He and Peter had a friendly conversation about the broader economic problems facing the world and what investors can do to prepare.
The Chinese yuan became one of the top five payment currencies in the world in November, according to the latest data from SWIFT, one of the largest international interbank transaction companies. The yuan jumped from seventh to fifth place, overtaking the Australian and Canadian dollars. With the yuan accounting for 2.17% of global payments, it is not far behind the Japanese yen, which has a 2.69% share.
As Wim Raymaekers, Head of Banking Markets at SWIFT, puts it:
The RMB breaking into the top five world payments currencies is an important milestone. It is a great testimony to the internationalisation of the RMB and confirms its transition from an ’emerging’ to a ‘business as usual’ payment currency. The rise of various offshore RMB clearing centers around the world, including eight new agreements signed with the People’s Bank of China in 2014, was an important driver fueling this growth.”
Canadian television network BNN spoke with Peter Schiff about the US economy and the potential for gold in Canadian dollars in 2015.
Gold has started 2015 with a bang. The physical price is soaring in currencies around the world. Even the rising dollar hasn’t hampered gold, which is a very bullish signal. Gold stocks are also exploding. The largest gold ETF is up nearly 10% already. Yahoo! Finance interviewed Peter Schiff to see what he predicts for gold in the rest of 2015.
Casey Research published an article by Russian coin dealer Dmitriy Balkovskiy that provides fascinating insight into the lives of average Russians suffering from the crash of their ruble currency. He reveals that while the Russian central bank has been adding literally tons of gold to its reserves, the Russian people are not so enthusiastic about the yellow metal. In fact, Russians are very similar to Americans in their complete disregard to owning gold, which he considers a vital part of “personal fiscal hygiene.”
Peter Schiff appeared on Fox Business yesterday to discuss whether or not the Federal Reserve is going to start quantitative easing again in 2015. Anchor David Asman gave Peter credit for predicting that the economy is too weak for the Fed to rase interest rates, which Morgan Stanley now believes as well. On top of that, Asman credited Peter for predicting poor UPS earnings in the fourth quarter. Peter and Asman still wrangled over whether or not the US is falling into another recession.
Greg Hunter of USAWatchdog spoke with Michael Pento, author of The Coming Bond Market Collapse. Pento agrees with Peter Schiff on the fundamental problems with the global economy. Central banks and irresponsible politicians have loaded governments with unsustainable levels of sovereign debt. The endgame is an inevitable financial crisis of epic proportions. Pento’s analysis is brutally honest and harshly critical of the financial media. What is his advice for the average investor? “Run for gold.”
We actually believe that small group of… plutocrats can decide better than the free market where commodity prices should be, where currencies should be, where equity prices should be, where bond yields should be. [Central bankers] haven’t just tinkered in that regard. They’ve dominated, usurped, vanquished the entire market. The free market is gone… We put it all in the hands of these few people, and they have screwed things up royally.”
