U.S. to Spend More on Debt Than Defense
Gold last traded at $1,210 an ounce. Silver at $14.08 an ounce.
NEWS SUMMARY: Precious metal prices steadied Wednesday on a flat dollar. U.S. stocks traded lower as shares of Apple rolled over and a decline in bank shares pressured the broader market.
The End of a Supercycle -Gold Switzerland
"In a world based on fake paper and fake electronic money as well as fake asset values, the real significance of gold has got lost. With endless credit expansion and money printing, all asset prices have exploded and investors have made fake profits that seem real. But the imminent secular downturn of debt and asset markets as well as the world economy will reveal how unreal these profits were as 90% or more of all the paper wealth in the world will go up in smoke. So investors should now prepare for the biggest wealth destruction in history and also the biggest wealth transfer....As wealth preservation investors we are not really concerned that the market takes its time to reveal the real truth. We know it will come. So we can afford to wait patiently. But it now looks like our patience will soon be rewarded. The gold market correction bottomed between 2013 and 2015 depending on which currency you measure it in. Since then it has spent a long time gathering the energy for the next leg up in this long term bull market. Technically it now looks like that the waiting is finally over and the explosive phase of this market is about to start. If this analysis is correct, we will soon see a quick move to $1,350 and then straight on to above $1,650....Whether markets start a major secular bear market in the next few weeks or months, it is irrelevant. What is clear is that we are at the end of a supercycle of several hundred years. Once it turns, the down cycle is likely to last for decades and be devastating for the world."
Understanding The Global Recession Of 2019 -Charles Hugh Smith/Zero Hedge
"2019 is shaping up to be the year in which all the policies that worked in the past will no longer work. As we all know, the Global Financial Meltdown / recession of 2008-09 was halted by the coordinated policies of the major central banks, which lowered interest rates to near-zero, bought trillions of dollars of bonds and iffy assets such as mortgage-backed securities, and issued unlimited lines of credit to insolvent banks, i.e. unlimited liquidity....The success of these policies has created a dangerous confidence that they'll work in the next global recession, currently scheduled for 2019....Unprecedented asset purchases, low rates of interest and unlimited liquidity have inflated gargantuan credit / asset bubbles around the world, the so-called everything bubble....So how do central banks normalize their unprecedented policies without popping the asset bubbles they've created? The short answer is: they can't....Now that central banks have inflated assets into the stratosphere, there's $300 trillion in global financial assets sloshing around seeking higher yields and capital gains. How much of this $300 trillion can central banks buy before they destabilize currencies?"
U.S. on a Course to Spend More on Debt Than Defense -Wall Street Journal
"In the past decade, U.S. debt held by the public has risen to $15.9 trillion from $5.1 trillion, but financing all of that debt hasn't been a problem. Low inflation and strong global demand for safe U.S. Treasury bonds held the government's interest costs down. That's in the process of changing....In 2017, interest costs on federal debt of $263 billion accounted for 6.6% of all government spending and 1.4% of gross domestic product, well below averages of the previous 50 years. The Congressional Budget Office estimates interest spending will rise to $915 billion by 2028, or 13% of all outlays and 3.1% of gross domestic product....Debt as a share of gross domestic product is projected to climb over the next decade, from 78% at the end of this year - the highest it has been since the end of World War II - to 96.2% in 2028, according to CBO projections. At the same time, the Federal Reserve is in the process of gradually raising short-term interest rates."
How Worldpay Is Winning In The War On Cash -Forbes
"The Economic Times of India reported in August that Berkshire Hathaway was in talks to invest $286 million to $357 million in One97 Communications. That's the company behind India's largest mobile-payment platform. This is potentially the Oracle of Omaha's first direct investment in India. And it's a wake-up call for investors...There is a war on cash. Winners are emerging. One 97 Communications is the parent to Paytm, a high-flying Indian startup. It rose to prominence two years ago when the Indian government pulled 86% of its cash from circulation in an effort to thwart tax cheats. Digital wallets were the logical beneficiaries. You don't need a degree in rocket science to see what is happening: Eliminating cash makes financial transactions less opaque. It makes them trackable by corporations and governments. Worldpay Inc. is at the center of this assault on cash. The Ohio company provides card-processing machines, integrated point-of-sale and virtual terminals, accounting integration software and ATM services."
For the latest developments in the ongoing war by governments worldwide upon your freedom, your privacy and your cash; request a FREE copy of our 2018 White Paper, THE SECRET WAR, PART II: Weapons of Cash Destruction.
RealMoneyBlog - Free daily/weekly email
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.
Other features include: * a 2018 economic outook * Bitcoin's future * When you should file for Social Security benefits * Eight axioms to understand the fake economy and more... Request a FREE copy HERE
Latest Feature Commentary
2019: What Could Go Wrong?
By Craig R. Smith
- If you thought the U.S. stock market correction of 5% to 9% in October was bad, 'you ain't seen nothing yet'; according to a growing choir of leading economic voices. Five trillion dollars was erased globally from stocks and bonds in just one week during the October market sell-off. "October's Market Rout Leaves Investors With No Place to Hide," reported The Wall Street Journal.