Swiss America Trading Corporation

Mixed Political Signals on China Trade

Gold last traded at $1,293 an ounce. Silver at $16.47 an ounce.

NEWS SUMMARY: Precious metal prices traded mixed despite dollar strength ahead of Fed minutes. U.S. stocks fell on renewed China trade worries while awaiting the Fed's latest inflation outlook.

Cryptocurrencies Likely To Evolve Into Useful Money -Rahn/Washington Times
"Money is most often defined as something that serves as a unit of account, a store of value and medium of exchange. Traditionally, a medium of exchange was such things as coins, paper notes and checks....Most transactions now are electronic - bank transfers, cards, cell phone apps, etc. Physical cash has held on because of perverse government anti-money laundering regulations, which make it almost impossible for many to obtain bank and other financial accounts, and for people to maintain some degree of financial privacy. Cryptocurrencies, such as bitcoin, can serve as a unit of account and a medium of exchange, but not as a store of value - as long as there is nothing more than an algorithm to anchor them....Cryptocurrencies are likely to evolve into more useful money substitutes as issuers began to back them with real assets....What is likely to happen is that a number of entrepreneurs will start issuing cryptocurrencies with real backing (experiments are under way) - precious metals, like gold and silver; industrial commodities, like aluminum; and various baskets of commodities, which may even include services. Eventually, one or several will become global standards...Governments will, of course, fight to maintain their money monopolies, but they are likely to lose because they will be offering an inferior product. A world without government monopoly money will be more free and less costly, with more prosperity."

We agree with Mr. Rahn; the primary problem with cyrptos is the missing 'store of value' component of true money - which in the future could be solved by backing them with physical precious metals. Meanwhile, we think owning physical gold is the best protection from both asset and monetary inflation. Get the facts so you can come up with your own conclusions in our FREE 2018 Real Money Perspectives newsletter, The Future of Money.

Fox Business Mixed Signals on China Trade -Fox Business
Author and Swiss America Chairman Craig R. Smith, VP of Vision 4 Fund Distributors Heather Zumarrago, and Layfield Report CEO John Layfield discuss the recent perceived improvements in the U.S.-China trade negotiations prior to the June 12th U.S.-North Korean summit.

U.S.-China Trade Truce May Not Last as Differences Remain -Bloomberg
"The U.S. and China declared a truce in their trade dispute over the weekend, but that will prove temporary if the world's two largest economies fail to deliver on their vague commitments to re-balance trade. 'We're putting the trade war on hold,' Treasury Secretary Steven Mnuchin said Sunday after the two sides released a joint statement a day earlier. 'Right now, we have agreed to put the tariffs on hold while we execute the framework.' For now, Mnuchin's cease-fire declaration will soothe the nerves of investors worried that the world's two biggest economies were on the verge of an all-out trade conflict. President Donald Trump had threatened to slap tariffs on up to $150 billion in Chinese imports, and Beijing vowed to respond in kind."

"Eight More Years!" -Pontification Blog
"Democracy is supposed to be a peaceful form of change that transfers power from one leader or lawmaker to another not by war, revolution, or assassination, but by society's mutual agreement....But since Mr. Trump's overwhelming victory - 304 Electoral Votes to only 227 for Clinton - she and her media comrades and other unelected members of the Deep State have claimed that Ms. Clinton won, or should have been declared the true winner of, the 2016 election. This has turned into more than a rant against President Trump. It has become a relentless attempt to delegitimize his presidency and remove him from office. It has, as many have observed, become on ongoing coup d'etat, a 'taking down' of our democracy. Media create a social contagion of violence, showing children they can gain fame by shooting others, and glorifying celebrities who advocate ways to assassinate President Trump. If the Left cannot get power with ballots, it will use bullets....Special Counsel Robert Mueller is not investigating a crime, as our legal system requires, but pursuing President Trump in hopes of finding a crime, any crime. The techniques of Mueller's team of mostly-Democratic partisan donors and operatives are those of England's Star Chamber and of Tower of London threats of torture to elicit political confessions against the President. This, too, is not how democracy, or justice, are supposed to work. If and when these anti-democratic leftist furies fail in their effort to undo the 2016 election, voters will rightly ask for justice. How can they reclaim their chosen President's two stolen years of governing?" Full story

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2018RMP THE FUTURE OF MONEY, Swiss America's 36th Anniversary issue of REAL MONEY PERSPECTIVES discusses the biggest wildcards to prepare for in 2018, cryptocurrency mania and why gold and silver are the safest forms of wealth insurance.

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