Blog Archives

50 Years Ago The Coinage Act Debases US Coinage, Replaces Silver With Clad

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When Lyndon B Johnson told the American people that the US government would replace the currently circulated silver coinage with clad coins, most people didn’t think anything of it. After all, in his speech, Lyndon B. Johnson had assured nobody would hoard the coins and that there was still plenty of silver, just not enough coins. So, on July 23, 1965, the US Coinage Act passed as law of the land, and the silver from the dimes and quarter dollars were stripped totally. (more…)

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Andrew Hoffman: Greece Will Be In The Same Situation Within A Year Or Sooner

In a recent interview with precious metals for Bitcoin retailer GoldSilverBitcoin, precious metals dealer Miles Franklin analyst Andrew Hoffman predicted a dire future for Greece and the whole of southern Europe. Hoffman, once an oil analyst, sees global debt balance sheets ultimately giving way to grave economic dislocations in the future.

“Europe is, cumulatively, the world’s largest economy,” Hoffman said.  “Greece gets all the attention, but the finances of and economic activity in many of the other nations – from PIIGS like Portugal, Italy and Spain to supposedly ‘strong’ nations like France, aren’t much better.” In the news, Puerto Rico received coverage behind Greece’s and China’s current economic woes. In Hoffman’s mind, Puerto Rico is a distraction. (more…)

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Bail-Ins Coming To Greece and Indebted Western Nations – Question Is When?

Bail-Ins Coming To Greece and Indebted Western Nations – Question Is When?

- Governments move toward ever greater financial repression
- Repression includes suppression of rates, capital controls, outlawing of cash and bail-ins
- Finance ministers discuss cashless society, giving banks total control over public’s money
- Bail-in legislation is at advanced stage internationally
- Bail-ins coming to indebted western nations – question is when …
- Legislation is devised to protect larger banks
- Ramifications of bail-ins have not been thought through
- Bail-ins will be destructive and may contribute to deflationary collapse
- Diversification both in asset classes and geographical diversification essential

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Goldcore’s Director of Research Mark O’ Byrne joined Gordon T Long of Financial Repression Authority for an in depth discussion on the deepening financial repression in the world today, with particular focus on bail-ins. (more…)

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Growth of Chinese Margin Accounts Drove Bubble – Now Drives the Crash

Growth of Chinese Margin Accounts Drove Bubble – Now Drives the Crash

- Restrictions on borrowing to speculate were eased in 2010
- Middle class savers gradually saturated the market trading on leverage
- Market crash began as government tried to reign in leverage in overheated markets
- Leverage amplified gains on the up-leg, amplifies losses on down-leg forcing further sell offs
- Policy u-turns could not halt crash

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Chinese markets bounced last night following drastic intervention by the state when it banned large players from selling their shares in listed companies – arresting the over 30% decline of the past four weeks. (more…)

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Faber: “Wake Up, People Of The World! Greece Will Come To You …Very Soon”

Faber: “Wake Up, People of the World! Greece will Come to You …Very Soon”

- World is “over-indebted”, Mark Faber tells Bloomberg
- “Defaults will follow or they will have to create very high inflation rates”
- Greece will leave EU or Troika will take 50% “haircut”
- Leaving EU may be Greece’s best option
- Anti-Austerity groups in other countries will be bolstered by Greek defiance – may have negative impact on bonds
- Recent stock market weakness due to weak global economy rather than Greece
- Chinese economy weak, markets could fall further
- Central banks to use Greece and China as excuse to maintain loose policy
- Faber is long-time advocate of holding physical gold

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“Wake up, people of the world and investors! Greece will come to your neighbourhood very soon, maybe not this year but next year or whenever…because the world is over-indebted and defaults will follow or they’ll have to create very high inflation rates”. (more…)

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Global Debt Time Bomb Ticks – Puerto Rico Is Next

Global Debt Time Bomb Ticks – Puerto Rico Is Next

- Puerto Rico Governor says island cannot pay its $72 billion debt
- Puerto Rico debt 15 times per capita median debt of the 50 U.S. states
- Complicated arrangements misled bond investors to believe their funds were secure
- Share price of bond insurer exposed to Puerto Rican debt plummeting, possibly on inside information

Puerto Rican Governor Alejandro García Padilla addressed the island's people about $73 billion debt

With all eyes on Greece it would seem another crisis relating to unpayable debt is brewing in the Caribbean. The governor of Puerto Rico, Alejandro García Padilla, has warned that the island is unable to pay its debts of $72 billion. (more…)

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Greece Shows Importance of Gold as Europeans Buy Coins and Bars

Greece Shows Importance of Gold as Europeans Buy Coins and Bars

- Demand for physical gold from Europeans surges
- Greek ATMs limit withdrawals to €60 per day
- Greeks panic buy food, fuel and medicine
- European elites threaten Greece with expulsion
- Gold not subject to capital controls or “bail-ins”

British Gold Sovereign Gold Coin

Demand for gold coins and bars from European investors has increased significantly in the past month as the Greek crisis enters a new phase. (more…)

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Grexit?, BIS Warning, Chinese Market Crash & Systemic Risk Shake the Global Economy

Grexit?, BIS Warning, Chinese Market Crash & Systemic Risk Shake the Global Economy

- Persistent low rates leave central banks with no ammunition to fight next crisis
- BIS says short-sighted central banks and governments contributed to current weaknesses
- Lack of policy options have forced some central banks to stretch “boundaries of the unthinkable”
- Bust in developed economies the main risk facing global economy
- Greece prepares to default
- China markets routed overnight
- Gold will be last man standing when currencies collapse

Greeks line up to an ATM in a run on Greek banks

Greece embarked on capital controls as talks over the weekend between Tsipras’ leftist government and foreign lenders fell apart. (more…)

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Not Owning Gold Bullion Shows “Ignorance of Monetary History”

Not Owning Gold Bullion Shows “Ignorance of Monetary History”

- “Gold remains in secular bull market”
- System is addicted to unsustainable debt
- Persistent deflationary forces threaten system 
- Monetary authorities to take increasingly risky measures to engender inflation
- Debt based monetary system is crux of problem
- “All available means” deployed to prevent global government bond bubble from bursting
- Aversion to owning any gold whatsoever displays “ignorance of monetary history”
- Gold’s qualities as store of value and medium of exchange to be “rediscovered” 
- Have “gold price target of USD 2,300” in three years


The bull market in gold remains intact and may soon reassert itself according to Asset Managers Incremental in their must read yearly “In Gold We Trust” report.

“We are firmly convinced that gold remains in a secular bull market that is close to making a comeback” the report states. (more…)

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“They Can’t Print Money Forever” – Ron Paul

“They Can’t Print Money Forever” – Ron Paul

- Former U.S. Congressman blasts Fed’s role in markets
- Gives scathing analysis of modern economics and markets
- Highlights complete disregard of economic fundamentals in investment decisions today
- As will be the case with Greece, U.S. will eventually be forced to liquidate debt
- Attempts to forecast day of reckoning are futile as it is a function of psychology
- “They can’t print money forever”
- Gold and silver will weather and thrive in currency devaluation

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Ron Paul, former congressman for Texas, laid plain the absurdity of central policy towards the markets in a recent interview with Amanda Diaz on CNBC. He believes a day of reckoning is in the cards because the central banks “can’t print money forever.”

Dr. Paul blasted the role of the Federal Reserve in markets where superficial pronouncements herd speculators to and fro: “I am utterly amazed at how these Federal Reserve Chairman reports can play havoc with the market: one word – what they say and what they don’t say and who’s going to interpret it,” he said. (more…)

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“Being Fed Rubbish Re Gold” and “Complacency Rules… For Now”

“Being Fed Rubbish Re Gold” and “Complacency Rules… For Now”

- GoldCore interview with Kerry Lutz on the Financial Survival Network
- Gradual realisation that central bank “masters of the universe”
-“We all know that bad stuff is going to happen, we just don’t know when it is going to happen”
-“The penny is beginning to drop that … we are coming very close to the end of the road”
- Prevailing wisdom that can print currencies with reckless abandon not being questioned
- We need a free market in currencies, not bail-ins and a war on cash and gold
- People blindly trust “experts” so welcome that some of them giving prudent advice re diversification
- Currencies of creditor nations – Norway, Switzerland, Singapore, Hong Kong will outperform in long term
- Mr Spreadbury of Fidelity “helped a lot of people in the mainstream who would never consider gold and silver”
- Avoid speculation, focus on diversification and owning quality assets for long term

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Interview Transcript (more…)

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Doubts Over City of London’s “Fintech” in Age of Cyber War

Doubts Over City of London’s “Fintech” in Age of Cyber War

- Doubts over City of London’s “fintech” in age of cyber war
- Thousands left in “financial limbo” after tech “error”
- 600,000 RBS customer payments go “missing” in “system failure”
- Glitch comes after bank was fined £56 million in November for 2012 tech fiasco
- Failure is “the latest of many in the industry” – Treasury Committee
- Banks “ageing tech systems” ill-equipped to deal with cyber-terrorism, cyber-war
- Gold coins, bars held outside tech dependent banking system not vulnerable to cyber-attacks

Banks’ “archaic technology systems” are unable to cope with the demands of modern online banking according to the Financial Times. The claim was made over the weekend in an FT article discussing the latest fintech glitch suffered by Royal Bank of Scotland last Tuesday in which payments of 600,000 customers “went missing.”

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It would follow that these same “archaic” systems would not stand up very well in the face of a concerted cyber-attack from hostile terrorists or indeed nation-states.

The latest fintech failure affected RBS customers and customers of ITS , Coutts and Ulster Bank in Ireland.

Customers were left without cash for three days after a computer “glitch” led to 600,000 payments – including wage packets, benefits and tax credits – going “missing.” (more…)

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