Gold News Daily
7.17.19 - Congress is Coming for Your IRA
Gold last traded at $1,423 an ounce. Silver at $15.97 an ounce.
NEWS SUMMARY: Precious metal prices rose over 1% Wednesday on safe-haven buying and a weaker dollar. U.S. stocks drifted lower as the corporate earnings season began with mixed results and included downbeat growth projections.
Gold Is In a New Bull Market - and It's Heading a Lot Higher -Barrons
"It's gold's time to shine. The price of gold has gained 9.6% to $1404.30 an ounce this year, and my work projects the precious metal will move substantially higher from current levels as it starts a new bull market. The fundamentals and technicals are aligned for gold to maintain its upward trend in the coming months. Let's start with the fundamentals. Federal Reserve policy continues to be accommodative....And then there's the U.S. dollar, which is on the verge of declining. While the U.S. Dollar Index is down less than 2% from its high, my work confirmed a sell signal....Pausing at initial $1425-$1435 trendline resistance, the next resistance is $1485. Long-term, my work projects a $1600 objective....Bullish for gold also is the recent action in gold mining stocks...Gold stocks lead bullion higher during bull markets in gold."
The Fed Could Use a Golden Rule -Grant/Wall Street Journal
"Though money can't talk, people can't stop talking about it. With the nomination of Judy Shelton to the Federal Reserve Board, the discussion has tilted to gold. Gold is money, or a legacy form of money, Ms. Shelton contends, and the gold standard is a reputable, even superior, form of monetary organization. The economists can hardly believe their ears. The central bankers roll their eyes. How can this obviously intelligent woman be so ignorant? Let us see about that. America was on one metallic standard or another from the Founding until President Richard Nixon announced the suspension of the Treasury's standing offer to foreign governments to exchange dollars for gold, or vice versa, at the unvarying rate of $35 an ounce. The date was Aug. 15, 1971. Ever since, the dollar has been undefined in law....The advance of computer technology has made possible a world-wide monetary system based on the scientifically informed discretion of Ph.D. economists. The Fed alone employs 700 of them....Gold-standard central banking concerned itself with the present. Millennial central bankers dare to take a view of the future. The moderns forecast, or attempt to forecast, economic growth, inflation, employment....The ideology of the gold standard was laissez-faire; that of the Ph.D. standard (let's call it) is statism. Gold-standard central bankers bought few, if any, government securities. Today's central bankers stuff their balance sheets with them....In today's monetary regime, some $13 trillion of debt securities world-wide are priced to deliver a yield of less than zero. There's been nothing like it in 4,000 years of recorded interest-rate history. And if gold could once be brushed aside as an anachronistic form of money, that time is no more, with private companies competing to bring digital gold to the blockchain. In 1989, Ms. Shelton published 'The Coming Soviet Crash,' a brilliant and courageous analysis of the weakness of an overrated collectivist economy. She could be just the woman to remind the Fed's doctors of economics how monetary capitalism works."
Congress Is Coming for Your IRA -Wall Street Journal
"Like grave robbers opening King Tut's tomb, Congress can't wait to get its hands on America's retirement-account assets. The House passed the Setting Every Community Up for Retirement Enhancement Act, known by the acronym Secure, in May. The vote was 417-3. The Secure Act is widely expected to pass the Senate by unanimous consent. While ostensibly helping Americans save for retirement, the bill would actually reduce the value of all retirement savings plans: individual retirement accounts, 401(k)s, Roth IRAs, the works. The main problem with the Secure Act is that it eliminates the stretch IRA, the fixed star in the financial-planning firmament since 1999. The stretch IRA lets savers leave their retirement accounts to children, grandchildren or other beneficiaries...Congress wants to kill this. The Secure Act gives nonspouse beneficiaries 10 years to pull out all the money in an IRA. The effect would be to make more of an IRA subject to higher taxes sooner, as distributions are made in supersize chunks. As much as one-third more of an inherited IRA would get gobbled up by taxes than under current rules. When the Tax Cuts and Jobs Act expires in 2025, taxes will rise across the board. If President Trump signs the Secure Act into law, the stage will be set for a taxpocalypse sometime in the next decade....The insurance industry loves the Secure Act's mandate that annuities be offered as a payout option in all retirement plans. Insurance companies sold more than $230 billion worth of annuities in 2018, and they would like to push that figure higher. The mandatory offer of an annuity is a first step that could lead to the mandatory annuitization of all retirement accounts. This would shoehorn the distributions into higher brackets, accelerate the collection of tax revenue, and eliminate the 'problem' of the inherited IRA. Best of all, politicians would get to accomplish all this without voting to raise taxes."
Recession fears rise for middle-class families -CNBC
"Middle-class Americans are less optimistic about their economic prospects than they were just six months ago, according to a new report from CUNA Mutual Group...They graded their chances of achieving the American dream as a 'C,' down from a 'B-minus' in the fall, the insurance provider found. Close to half were increasingly concerned about an upcoming recession. A separate report by Allianz Life found that 48% said they fear a major recession, up from 46% in the first quarter of 2019 and 44% one year ago. 'Americans keep hearing that this is the longest economic expansion in history,' said Steven Rick, CUNA Mutual's chief economist. 'People's expectations are that we are due' for a recession....'This should be a wake-up call to families to start shoring up their finances now, whether that takes the form of cutting spending, reassessing their savings to avoid having to cut into their retirement to stay afloat or even refinancing a mortgage if that'll put them in a better position,' Rick said."
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Latest Feature Commentary
Gold: An Unchangeable Asset For A Changing World
From Craig R. Smith
, Swiss America Chairman
A lot has changed in the world of politics and economics in the 21st century. Who could have imagined that a sitting U.S. president would suggest that our nation start manipulating our currency to stay competitive with the other nations the world?