There’s a video going around on Facebook blaming Trump because tax refund amounts are lower this year. I’m telling you, this video takes dumb to a whole new level!
The mainstream pundits and economists keep telling us inflation is “tame.” But is it really? Or are they just not looking in the right place? In this episode of the Friday Gold Wrap, host Mike Maharrey talks about inflation and how it factors into the bubble economy. He also covers the week’s activity in the gold market and gives you your daily dose of dumb.
Month after month, the Trump administration runs multi-billion dollar deficits. The national debt has ballooned to over $22 trillion. According to the most recent Treasury Report, the US has a net worth of negative $21.5 trillion. And this understates the problem.
As Wolf Richter of WolfStreet puts it, the US government has “debt out the wazoo.”
Is this sustainable?
The Reserve Bank of India has jumped on the gold bandwagon.
Since December 2017, the Indian central bank has added 50.4 tons of gold to its reserves.
India bought 8.2 tons of gold in January and February of this year and analysts project that pace to pick up. Economist Howie Lee told Bloomberg he expects the RSB to add as much as 1.5 million ounces of gold to its reserves in 2019. That comes to about 46.7 tons.
During the New Orleans Investment Conference, Peter Schiff participated in a panel discussion with Ben Hunt and Mike Larson. They talked about bubbles, booms and busts.
This has become a monthly feature here a SchiffGold News – Russia buys more gold.
The Central Bank of Russia added another 18.7 tons of gold to its stash in March according to a press release last week. This boosts the country’s gold reserves to 2, 167.9 tons or 69,700,000 ounces. Gold now makes up about 18% of the Russian central bank’s reserves.
The silver-gold ratio currently stands at about 85-to-1. As one commentator put it, that’s “way out of whack.”
But what does this really mean?
In simplest terms, this is silver on sale!
Last year, the Social Security and Medicare trustees warned that the programs are going broke. A year later — they’re still going broke.
Social Security will dip begin dipping into reserves in order to pay out benefits next year and those reserves will run dry in 2035, according to the annual Social Security and Medicare trustees report that was released Monday.
When reserves dry up, the system will no longer be able to pay full benefits.
When the Federal Reserve artificially manipulates interest rates, it’s messing with our minds by distorting important signals that prices provide in a free market. As investment guru Jim Grant put it in a recent article in Barron’s, central bank interest rates are nothing but crude price controls.
Like all price controls, the Fed’s interest rate mechanizations create some winners and some losers. But in the long run, the distortions caused by the central bank’s interventionist monetary policy makes us all losers.