On Tuesday, July 16th, I stated in the blog that I expected another smackdown of gold & silver. It has arrived. With all the talk of tapering, the Federal Reserve needed to project the illusion (via gold price) that all is well. Has anything improved? Not at all, it has only gotten worse.
True U.S. unemployment remains at 23% according to www.shadowstats.com
Poland wiped out 50% of the value of pension funds by “nationalizing” them.
It is now being reported that Larry Summers will be Obama’s pick to replace Bernanke. Summers was one of the architects who facilitated the current “casino” environment. His net worth now looks mighty nice, by the way.
Oil price remains stubbornly high. Inflation is showing up everywhere among the average consumers. $2.19 for IHOP coffee? Remember when $3.55 per gallon of gasoline was major news?
China and India are huge buyers of gold, causing short supply.
FDIC announced foreign branch deposits of American banks are not insured. ($25 Billion fund covering $19.2 Trillion in deposits… Oh well!)
Healthcare cost are going to skyrocket… even more (unless you are a member of Congress).
Average European business activity is down 10-50%: “Greek unemployment rises to record 27.9 percent in June”
State, county, and local governments are being fiscally challenged to stay afloat with the burden of pensions.
U.S. Housing activity has not recovered: “U.S. Mortgage Applications Down 13.5% in Latest Week – MBA”
The Federal Reserve recently purchased 103% of Treasury Bonds during a month. Others are unloading their positions.
Treasury Bond rates are going up causing losses to existing bondholders.
It is tough to make everyone believe that “all is well”. The Kings of the East are taking the Western central planners to task. The house of cards cannot sustain the illusion much longer. Only Our Heavenly Father knows the day of reckoning. Continue to focus on your relationship with HIM. HE is the only one who knows how to navigate us through the coming economic minefield. Fear not, there is a sure path to the other side. In the meantime, both gold & silver prices are supporting further accumulation by those who believe they are a true store of wealth.