Swiss America Trading Corporation

The Next Greek Tragedy: Asset Seizure

Gold last traded at $1,253 an ounce. Silver at $17.11 an ounce.

NEWS SUMMARY: Precious metal prices rose Wednesday after Fed minutes revealed uncertainty about a June interest rate hike. U.S. stocks cheered the Fed's proposed gradual plan to trim balance sheet.


$1,300 gold if the political situation in US worsens -ForexLive
"Safe haven buying has provided strong support to gold prices over the past six months. However rising geopolitical risks in the US and elsewhere are likely to propel prices even higher, despite the specter of a rate hike in the US next month. We see gold holding above USD1250/oz in the short term, and an increasingly possibility of it breaking through USD1300/oz this year if the political situation in the US worsens. Even without the support of safe haven buying, we still see an environment conducive to higher gold prices. Much has been debated about the impact of rising US interest rates on gold. However, we don't see this as a hindrance over the next 12 months. In fact, over the past seven rate hikes cycles (going back to the 1970s), gold has pushed higher in all but one case. Moreover, gold has outperformed in the cycles where interest rates were increasing relatively slowly. We are also seeing signs of an improvement in the physical market. While coming from a low base, physical demand in India and China have rebounded sharply in recent months."


oil The Secret Saudi-Dollar Connection -Smith/Ponte/SATC
President Donald Trump was greeted and treated like a wise and welcome world leader and ally in Saudi Arabia. But the media said almost nothing of the secret connections that for 46 years have kept our two nations linked in a special, mutually-dependent relationship....After printing billions to fight the Vietnam War, he announced in August 1971 that the U.S. would no longer redeem dollars for gold. Without its gold anchor, the dollar tried to float but its value promptly sank by a third....Nixon then 'negotiated an agreement with Saudi Arabia that the Muslim nation would sell its oil only in exchange for U.S. Dollars,' as we explain in our latest book, Money, Morality, & the Machine. 'This shored up the dollar's status as the global reserve currency, a tremendous boon to us because we exclusively manufacture legal U.S. Dollars,' we write. Our global economic dominance - with at least 40 percent of world trade in dollars - was made possible by the Saudi special relationship....This 'petrodollar' symbiosis has made Saudi Arabia the biggest purchaser of our weapons and one of the biggest buyers of our ever-growing debt. This was again on display during President Trump's visit as American corporate leaders were on hand along with weapon sales of at least $110 Billion and total sales from U.S. companies that could top $350 Billion over the next ten years as the Saudis diversify away from oil. Full story


Greek Authorities To Launch Mass Confiscation Of Safe Deposit Boxes, Securities, Homes In Tax-Evasion Crackdown -Zero Hedge
"Last week, the Greek parliament once again approved more austerity to unlock withheld Greek bailout funds in Brussels: a symbolic move, which has little impact without any actual follow through, like for example, actually imposing austerity. And while Greeks have been very good in the former (i.e. promises), they have been severely lacking in the latter (i.e. delivery). That may be changing. According to Kathimerini, Greek Finance Ministry inspectors are about to start seeking out the owners of all local undeclared properties, while the law will be amended to allow for financial products and the content of safe deposit boxes to be confiscated electronically. The plan for the identification of taxpayers who have 'forgotten' to declare their properties to the tax authorities is expected to be ready by year-end, according to the timetable of the Independent Authority for Public Revenue. What follows then will be a wholesale confiscation by the government of any asset whose source, origins and funding can not be explained....Once the necessary regulations are in place for the operation of an automatic system to collect debts, the tax authorities will be able to issue online confiscation notices and immediately get their hands on the contents of safe deposit boxes, confiscating cash, precious stones, jewelry and so on."


Trump has officially become a negative for the US dollar -CNBC
"Boosted by the Trump trade, the dollar had soared after his election on the prospect that lower taxes, fiscal stimulus, and deregulation would boost the U.S. economy. But that trade has reversed, and the dollar index is now down 6.6 percent from its post-election high and down 0.9 percent since the election. 'The Trump premium in the dollar has become a Trump discount. Global capital just doesn't feel safe coming to the U.S.,' said Robert Sinche, chief global strategist at Amherst Pierpont....Alan Ruskin, head of G-10 currency strategy at Deutsche Bank, said investors who are shorting the dollar do not appear to be concerned about the potential for a Fed rate hike in June to send the currency higher."


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