We had a drastic week all around the financial world. Gold hit record highs not seen in years, to include gold ETFs like IAU (iShares Gold Trust), GLD (SPDR Gold Shares), and many others. Virtually all gold and silver exchange traded funds followed the same bullish pattern, while the U.S. dollar rose against the Chinese Yuan.
Gold shot up 1.5% on Monday in dollar terms, hitting a 6 year high. The metal increased to $1,469 before some sellers took profit, thus stalling the rally.
Moreover, it was in the value of other currencies where gold hit all time record highs. These include the British Pound, the Japanese Yen, the Indian Rubi, the Canadian dollar, the Australian dollar, and the South African Rant.
The yellow metal rose 3.5% in Yuan and 1.2% in Euros. All this came about because the Trump administration plans to levy a 10% tariff on imports from China starting September 1st, 2019. This will tariff the remaining 300 billion dollars worth of goods and products coming in to the United States.
Though president Trump accused China of being a currency manipulator, the International Monetary Fund (IMF) came out with a report today debunking that “Twitter” conspiracy by the president.
Peter Schiff, CEO of Europacific Capital, went on FOX Business recently to speak the truth of what’s really happening: investors are trending toward moving out of the U.S. dollar and into gold. SchiffGold’s Gold Wrap podcast, a weekly roundup each Friday hosted by Mike Maharrey, outlines the startling truths of what is really happening.
Maharrey sees Trump’s actions of implementing tariffs on China as a “calculated move,” of which I concur. The president wants the Federal Reserve to keep interest rates artificially low to help stimulate this struggling economy. He wants the Fed to keep cutting rates at a continuous cycle from now until his second election, despite his constant self-praise of how good the economy is under his presidency.
Can you image why? It’s simply because Trump knows that if the economy tanks under his watch the Democrats will blame him for this sickened economy, which he actually inherited. The left will ridicule capitalism (once again) and call upon all-mighty socialism as the answer to American’s woes and worries; democratic-socialists will claim to take care of people—but in exchange for letting government have more control over their lives.
The true state of the U.S. economy
The United States economy is a disaster waiting to happen. Amid all the hype by Trump, his supporters, Federal Reserve leaders, and CNBC talking heads that jobs are at record highs and production is increasing—it’s a phony economic growth that is fueled by DEBT. Consumers are using credit cards at record highs, and the federal government is using its credit card to pay for its massive programs. The central bank creates money out of thin air, which it then uses to buy U.S. Treasury bonds, in exchange for interest paid back to them by the federal government.
These facts are products of a fundamental economic problem this is being ignored by almost everyone in Washington D.C. and the mainstream media. This game of keeping interest rates artificially low is a necessity in order to keep the borrowing going as long as possible, otherwise both Trump and Fed Chair Jerome Powell will get blamed.
During the dot-com bubble of 2000 when U.S. companies crashed the following year, Federal Reserve interest rates were upwards of 6 percent—a big difference compared to today’s rates hovering around 2 percent. This chart tracks the central bank’s interest rates from 1987 to 2009.
The Left’s desire to end free market economy as we know it
This insidious proposition is the actual intention of radical leftists. Seizing more authoritarian control over the means of production by making citizens less free is the narcissistic charge they receive. In fact, they relish the idea of having authority over the destiny of people’s lives. It sounds drastic to say, but the truth is they operate under the guise of “taking care of people” who can’t take care of themselves.
Perhaps these politicians actually believe their own claims. Maybe they feel morally justified. Nevertheless, their motives are rooted in a psychological need for greater control and self- aggrandizement. Such are the traits of narcissistic personality disorder (NPD).
Many of today’s Democrats—as well as Republicans to some degree—have tendencies to strip people of their personal sovereignty. Government regulation and taxes on business and personal income, are all measures that wee
The United States was founded on hard work and self-reliance
The United States was built on a “can-do” spirit of entrepreneurship, hard work, determination, and adherence to values and ideologies of personal liberty. This libertarian doctrine is not only rooted in the founding of our nation but is traced back to the European Enlightenment, ancient Greece, and even the Bible. However, many of the 2020 presidential frontrunners such as Bernie Sanders, Elizabeth Warren—and actually every one of them—do not want the free market to have full control. Most government leaders’s subtle tendency is to have the reigns of power, thereby diminishing the soul of those trying to get ahead and gain autonomy through self-reliance.