In this episode of Thoughts from Maharrey Head, Tenth Amendment Center national communications director Mike Maharrey talks about state action to undermine the Federal Reserve and the government’s monopoly on money.
In a recent interview with Business Insider CEO Henry Blodget on “The Bottom Line,” investor and market analysts Jim Rogers said we should expect a market crash in the next few years that will rival anything we’ve seen in our lifetime.
Some stocks in America are turning into a bubble. The bubble’s gonna come. Then it’s going to collapse, and you should be very worried.”
Analysts at the World Gold Council say they believe a new tax plan set to go into effect in India will ultimately boost demand for gold in the world’s second-largest market for the yellow metal.
On July 1, India’s current labyrinth of taxes will be replaced by a nationwide Goods & Services Tax (GST). The World Gold Council called it the “biggest fiscal reform since India’s liberalization in the early 1990s.”
While gold consumers will face a slightly higher tax rate, and the industry will go through a period of adjustment, we see the net impact on the gold industry as being positive. The gold supply chain should become more transparent and efficient, and the tax reform can boost economic growth, which we see as supporting gold demand.”
Germany continues to bring its gold home.
In early 2013, the Bundesbank announced a plan to repatriate massive amounts of its physical gold reserves back into Germany. The goal is to have half of its gold back within the country’s borders by 2020. At nearly 3,400 tons, Germany’s gold reserves currently rank as the second-largest in the world.
The quest for gold can drive people to great extremes.
Ennio Morricone’s musical composition entitled “The Ecstasy of Gold” captures the passion aroused by gold in musical form.
If you have ever seen a Metallica concert, you are familiar with the song. The band has been using it to open its concerts for years.
Billionaire investor Paul Singer says the financial system is no more sound than it was in 2008. In fact, he contends that in many cases, it is more leveraged than it was leading up to the 2008 crash.
During an interview at the Bloomberg Invest New York summit, he pinned the blame squarely on what he calls extreme central bank monetary policy and growth suppressing government actions. And he warned it’s going to create a “ruckus” when the bubble pops.
Earlier this week, the Louisiana House gave final approval to a bill that would exempt precious metals from state sales and use taxes. This would remove one barrier from buying gold, silver and platinum. It would also help encourage their use and take the first step toward breaking the Federal Reserve’s monopoly on money.
The debt time bomb continues to tick. There is growing evidence that we’re getting close to an explosion.
And what do we have to show for trillions in borrowing?
Not a whole lot.
A Bloomberg article published this week proclaimed America has a debt hangover resulting from a half decade of “binging on credit.” The percentage of overdue debt has risen two straight quarters and consumer companies say customers are under stress. On top of that, bankruptcies are rising.
Today is the 139th day that the Republican Congress has not repealed nor replaced Obamacare.
In fact, Congress hasn’t moved forward in any substantive way on any of Pres. Trump’s ambitious economic agenda. There is no sign of tax reform. No sign of significant regulatory reform. No infrastructure spending bill. And of course, we still have Obamacare.
This raises an important question: can Trump deliver on his economic promises?
Most observers expect the Federal Reserve to nudge rates higher this month. Stock markets continue to push upward. Analysts continue to talk up the economy. Conventional wisdom holds this should all be bad for gold. And yet the price of the yellow metal hit its highest level since November yesterday, peaking midday at $1,296.15 per ounce.
It’s easy to get caught up in the moment, but the most recent rally makes up part of a broader trend. Gold is around 13% higher on the year, and as we reported last week, gold was up for fifth straight month in May, the longest “win streak” since 2010. A recent Bloomberg survey signaled more gains on the horizon.
So what gives? Why are investors buying gold?
In a word – uncertainty.