MY GOD MY HUSBAND, WHAT DO I DO! HELP HELP HELP!!!
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GLOBAL GOLD GROUP BEVERLY Hills CA USA 888-700-4148
Global Gold Group COINS BULLION GOLD BLOG
WHILE THE STOCK MARKET AND REAL ESTATE ARE IN BEAR MARKETS RIGHT NOW, COMMODITIES ARE ACTUALLY MOVING UP. SOME PEOPLE HAVE WAITED A LONG TIME TO DIVERSIFY AND FIGURE RIGHT NOW MAY BE THEIR BEST CHANCE TO RECOUP THIS YEAR’S LOSSES BY PURCHASING PRECIOUS METALS WHILE THEY ARE ON A BULL RUN. DID YOU KNOW YOU CAN EVEN BUY GOLD THROUGH YOUR RETIREMENT FUND? IT’S TRUE, YOU CAN LEGALLY HOLD ALL OR PART OF YOUR 401K OR IRA OR 403B IN PRECIOUS METALS. ITS ONE OPTION TO CONSIDER WHEN HALF OF AMERICANS WILL BE PUNCHING THE CLOCK FOR A LOT LONGER THAN THEY PLANNED.
DOLLAR TO BE WORTH ZERO, FABER PREDICTS”
WHILE THE STOCK MARKET AND REAL ESTATE ARE IN BEAR MARKETS RIGHT NOW, COMMODITIES ARE ACTUALLY MOVING UP. SOME PEOPLE HAVE WAITED A LONG TIME TO DIVERSIFY AND FIGURE RIGHT NOW MAY BE THEIR BEST CHANCE TO RECOUP THIS YEAR’S LOSSES BY PURCHASING PRECIOUS METALS WHILE THEY ARE ON A BULL RUN. DID YOU KNOW YOU CAN EVEN BUY GOLD THROUGH YOUR RETIREMENT FUND? IT’S TRUE, YOU CAN LEGALLY HOLD ALL OR PART OF YOUR 401K OR IRA OR 403B IN PRECIOUS METALS. ITS ONE OPTION TO CONSIDER WHEN HALF OF AMERICANS WILL BE PUNCHING THE CLOCK FOR A LOT LONGER THAN THEY PLANNED.
DOLLAR TO BE WORTH ZERO, FABER PREDICTS”
DR. MARC FABER WAS INTERVIEWED ON BLOOMBERG TV YESTERDAY. CALLING FED CHAIRMAN BERNANKE NOTHING ELSE BUT “A MONEY PRINTER,” FABER IS BRACING HIMSELF FOR A DISASTER “THE DOLLAR WILL BECOME WORTHLESS WHEN PEOPLE EVENTUALLY REALIZE THE FISCAL SITUATION IN THE US IS A DISASTER. IT WILL GO TO A VALUE OF ZERO EVENTUALLY, BUT NOT RIGHT NOW. LOOKING AT MR. OBAMA’S ADMINISTRATION, IT SHOULD ALREADY BE THERE…IN MY OPINION ABOUT 50% OF TAX REVENUES WILL BE USED JUST TO COVER INTEREST PAYMENTS ON THE GOVERNMENT DEBT. THAT’S UNSUSTAINABLE. THEN YOU’LL REALLY BE FORCED TO PRINT MONEY. THE BEST INVESTMENTS RIGHT NOW ARE FOREIGN CURRENCIES, COMMODITIES, AND EQUITIES.”
PETER SCHIFF EXPLAINED HIS LOGIC BEHIND HIS EXUBERANT PREDICTION A MONTH BACK THAT GOLD WOULD HIT $5000 AN OUNCE IN THE NEXT COUPLE YEARS. HE COMPARED THE CURRENT ADMINISTRATION’S GOVERNMENT SPENDING TO THAT OF THE 1960S. LYNDON JOHNSON’S GREAT SOCIETY WAS A MASSIVE GOVERNMENT SPENDING PROGRAM THAT SUPPORTED THE PRESIDENT’S NOBLE WAR AGAINST POVERTY AND REFORMS TO ELIMINATE RACIAL INJUSTICE. THE PROGRAM HAD BEAUTIFUL ASPIRATIONS AND DIRECTLY HELPED A LOT OF PEOPLE, BUT IT ALSO PAVED THE WAY FOR THE INFLATION OF THE 1970S AND GOLD’S MASSIVE RISE IN VALUE IN THAT DECADE. THE ALL NIGHT DOLLAR PRINTING PRESS APPEARS TO BE RUNNING ON ENERGIZER BATTERIES BECAUSE THE US TREASURY ANNOUNCED ANOTHER $123 BILLION WILL BE INJECTED INTO THE ECONOMY THIS WEEK (HEY, A NEW RECORD!).
THE 1970S CULMINATED IN AN ALL TIME HIGH FOR GOLD IN JANUARY OF 1980 WHEN GOLD MADE AN UNHEARD OF AT THE TIME RECORD OF $873 AN OUNCE. USING THE U.S. DEPARTMENT OF LABOR’S INFLATION CALCULATOR, IN TODAY’S DOLLARS THAT WOULD BE $2,287. GOLD APPEARS TO BE SITTING AT A BARGAIN PRICE TODAY.
PERMANENT JOB LOSSES AT 30-YEAR-HIGH
PUBLISHED ON OCTOBER 27, 2009 · FILED UNDER: ECONOMY, GOLD; TAGGED AS: ECONOMIC RECOVERY, JOB LOSS RATE, MICHAEL MOORE, OUTSOURCED JOBS
GLOBAL GOLD GROUP BEVERLY HILLS BELIEVES THAT PETER SCHIFF STILL STANDS BY HIS STATEMENTS OF THE LAST FEW YEARS THAT WE ARE IN FOR A COMMODITIES BOOM. WHETHER IT’S A BULLION BAR OR A GLOBAL GOLD GROUP IRAGOLDPROOF.COM CLICK HERE, THE DOLLAR’S CURRENT RALLY MAKES THIS WEEK AN EXCELLENT TIME TO BEGIN EASING INTO DIVERSIFYING YOUR WEALTH TO PREPARE FOR ANY FUTURE UPSETS IN THE ECONOMY.
PETER SCHIFF, RENOWNED FINANCIAL ANALYST AND AUTHOR, APPEARED ON CNBC YESTERDAY TO GIVE REMARKS ABOUT THE DOLLAR’S LATEST RALLY:
“THE DOLLAR HAS MOVED UP ABOUT 1 POINT FROM THE LOWS AND I GUESS IF YOU ARE A DAYTRADER THAT MEANS SOMETHING BUT FOR EVERYBODY ELSE IT’S INSIGNIFICANT. THE TREND HASN’T CHANGED, NOTHING HAS CHANGED, THE FUNDAMENTALS HAVEN’T CHANGED, IF ANYTHING THEY CONTINUE TO GET WORSE DAY BY DAY. SO I WOULD CONTINUE TO BE OUT OF THE US DOLLAR, I WILL CONTINUE TO BE ON THE ANTI-DOLLAR TRADES, GOLD, COMMODITIES, FOREIGN STOCKS. NOTHING MOVES IN A STRAIGHT LINE, THE DOLLAR IS ALWAYS GOING TO HAVE SOME RALLIES BUT YOU KNOW, DON’T BE FOOLED BY THEM.”
Your Golden Parachute! Today when the stock and paper markets are in turmoil, inflation is on the rise and the Dollar is substantially weaker than any other currency in the world, Americans with IRAs, self directed 401k’s and other retirement funds must diversify their portfolios in order to protect their nest eggs. Unfortunately with the majority of portfolios these days invested in the stock market that is backed by the U.S. Dollar, these retirement funds run a high risk of devaluating rapidly as the Dollar loses its purchasing power.
HALF OF US HOUSEHOLDS CAN’T RETIRE BY 65
GLOBAL GOLD GROUP GOLD COINS BLOG | GOLD, GOLD COINS, GOLD BULLION, Gold information
- GLOBAL GOLD NEWS
- DOLLAR HOLDS ONTO CLIMB DESPITE STRONG GOLD RALLY | DAILY MARKETS
- NOVEMBER 3, 2009 BREWERFX
- Global gold group reports GAINS TO NEAR RECORD AFTER gold surge 2009
- NOVEMBER 3, 2009 FOREX
- GOLD CLIMBING TO NEAR RECORD AFTER IMF SALE, AS DOLLAR
- DECLINES
- GLOBAL GOLD GROUP BEVERLY HILLS CA
- NOVEMBER 3, 2009 DAILYFOREXNEWS
- GOLD SEEKER CLOSING REPORT: GOLD AND SILVER GAIN ROUGHLY 1%NOVEMBER 2, 2009 UNKNOWN
- STOCKS, INDUSTRIAL METALS DROP AS YEN STRENGTHENS; GOLD GAINSNOVEMBER 2, 2009 UNKNOWN
What is a Gold backed IRA?
Simply put, a Gold back IRA is an IRA whose funds have been invested in the commodity of Gold. This precious metal is substantially less prone to decreasing in value unlike stocks, bonds or investments that are backed by paper currencies such as the Dollar-- making a Gold backed IRA a safer place to have your retirement funds.
Diversification of your portfolio is key
Any financial advisor or analyst will tell you that the best way to protect the wealth you have accumulated over time is to have a diversified portfolio. The best diversification occurs when the assets in the portfolio are not associated or connected to one another… and since Gold has traditionally had a substantially low correlation to stocks and paper backed assets, it is the best diversifier.
History has shown that tangible assets like Gold and other precious metals increase considerably in value and are less risky investments in times when non-tangible assets such as stocks are diminishing in value. This is only because when paper currency loses its value, so do the stocks that they are backed by. Those who do not want to see the value of their stock based pension plans gradually decrease as the Dollar has eroded in value, must diversify their portfolios to guard their savings before it’s too late…and what safer asset to invest in than GOLD.
How do you know its time to move your IRA or retirement funds into Gold?
In the financial sector Gold is popularly known as the “crisis commodity” because it is the best performing asset in times of trouble and uncertainty. Historically when events such as wars, inflation, high budget deficits, falling stock and bond prices, weakening of the U.S. Dollar, or increasing oil and gas prices take place-- Gold prices are always driven up. Why? It’s because Gold is a natural resource, there’s only a finite supply of it in the world and unlike paper money, it cannot be endlessly produced by governments around the world. In turn, this always makes Gold a much stable investment. Today, almost all of these events have unfolded… there seems to be no end in sight for our wars in Iraq and Afghanistan, oil is closing in on $100 a barrel and still on an upwards trend, as well as the Dollar continuing to depreciate in value everyday.
So in the end, only GOLD is the only rational dependable place to park your hard earned retirement funds during these shaky economic times in our country.
The proof is in the numbers from a Gold portfolio projection…
The following is a recent portfolio projection we completed for one of our clients who had his retirement funds invested in a conventional portfolio with stocks, bonds and annuities.
In the last five years Gold has yielded an average between 25 to 30 %. When GGG’s Gold specialists showed our client the amount of interest he stood to gain if he invested in Gold as compared to his returns on stocks and bonds, it was a no brainer for him… we think you’d agree:
After six years, this client stands to gain in excess of $470,000 more with this investment in Gold than he would have made in a conventional portfolio…and that’s the power of GOLD!
What is the difference between “Rolling Over” and “Transferring” your IRA?
A transfer occurs when you move your assets directly from trustee or custodian to another trustee or custodian of your portfolio. There are no requirements for an investor to report to the I.R.S. the transfer of his or her assets from one custodian to another.
On the other hand, a rollover is when you request the administrator of your plan to make the distribution of your assets directly to the new trustee or custodian. It should be noted that only one direct rollover from an IRA account to another IRA account is permitted per year and rollovers must be reported to the I.R.S.
IRA’s are easy to rollover or transfer to Gold…
Global Gold Group can help you easily transfer or rollover your existing IRA into a Gold backed
IRA. This is done when our clients open a Gold IRA account with us and give us the authorization to transfer their funds from their previous IRA custodian. The beauty of transferring your existing IRA to a Gold backed IRA is that you need not report the transfer of funds to the I.R.S. GGG recommends all of its clients consult their CPA/accountant before rolling over any funds to a Gold IRA as there may be fees or penalties that their existing custodians charge for moving funds.
Where does the Gold for the Gold backed IRAs come from?
The United States government’s Mint has designed, produced and earmarked “Gold Proof” coins specifically for retirement accounts. These coins are given the official U.S. Mint Certificate of Authenticity and are backed by the government which allows them to be accepted for sales in markets anywhere in the world. These coins also can not be confiscated by the U.S. Government for any reason.
What time is needed to rollover or transfer an IRA into Gold?
We at GGG take pride in working meticulously and expeditiously to transfer or rollover the funds from your existing retirement custodian to your new Gold backed IRA. While the time it takes for each client’s plan to be transferred or rolled over is different, we roughly estimate it to be between 3 to 4 weeks.
We will also gladly provide you with an analysis of the performance of your current portfolio and give you an indication of how Gold would yield you a substantially higher return on your retirement funds. CALL NOW…
Contact us at 1-888-700-4148 to speak with one of our friendly Gold specialists that will provide you valuable information on how you can purchase Gold and shield your wealth from devaluation.
GLOBAL GOLD GROUP - 468 NORTH CAMDEN DRIVE - BEVERLY HILLS, CALIFORNIA 90210 TEL: 1-888-700-4148
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HALF OF US HOUSEHOLDS LACK THE FUNDS TO RETIRE BY AGE 65. WILL IT BE YOU OR YOUR NEXT DOOR NEIGHBOR?
BOSTON COLLEGE’S CENTER FOR RETIREMENT RESEARCH RELEASED A STUDY THAT SHOWS 51% OF US HOUSEHOLDS SIMPLY DO NOT HAVE ENOUGH SAVINGS IN THEIR RETIREMENT FUNDS TO EXIT THE WORK FORCE AT 65. THIS IS AN INCREASE FROM 2006’S STUDY WHICH SHOWED THAT ONLY 44% OF HOUSEHOLDS WERE IN THE SAME UGLY FINANCIAL POSITION. THE CURRENT FINANCIAL CRISIS HAS HIT THOSE NEAR RETIREMENT AGE DOUBLY HARD. NAMELY, THEIR DISMAL 401KS AND THE DECREASED VALUE OF THEIR HOMES.
GLOBAL GOLD GROUP KNOWS THE OLD GOLD STORY OF THE BLUE COLLAR AMERICAN WORKER WHOSE JOB HAS BEEN OUTSOURCED IS ONE THAT HAS RECEIVED MUCH COVERAGE IN THE MEDIA OVER THE LAST DECADE. FROM MICHAEL MOORE’S DOCUMENTARIES TO 60 MINUTES, THE EMIGRATION OF FACTORIES TO COUNTRIES WITH CHEAP LABOR IS NOT A HIDDEN PHENOMENON. UNDER THE RADAR THOUGH IS THE NUMBER OF WHITE COLLAR JOBS THAT ARE BEING OUTSOURCED. CUSTOMER SERVICE CALL CENTERS HAVE SPRUNG UP ALL OVER INDIA. ARCHITECTURE AND ENGINEERING FIRMS SEND THEIR HAND SKETCHES TO CHINA AND COLUMBIA TO HAVE BLUEPRINTS DRAWN AT A TINY FRACTION OF THE COST. AND THE NUMBER OF JOBS THAT HAVE PERMANENTLY BEEN LOST IN THE UNITED STATES IS THE HIGHEST IT’S BEEN IN 30 YEARS. THIS NUMBER CAN ONLY INCREASE AS CORPORATIONS TRY TO CUT COSTS AND GLOBALIZATION HAS MADE HIRING CHEAP EDUCATED WORKERS AS EASY AS HIRING CHEAP UNEDUCATED WORKERS.
THIS FASCINATING POST FROM CALCULATED RISK EXAMINES THE HARD DATA WITHIN THE UNEMPLOYMENT NUMBERS. UNEMPLOYED WORKERS FALL INTO SEVERAL CATEGORIES. EITHER THEY QUIT, WERE TEMPORARILY LAID OFF, HAVE REENTERED THE LABOR MARKET, ARE ENTERING THE LABOR MARKET FOR THE FIRST TIME, OR THEY WERE PERMANENTLY SEPARATED FROM THEIR PRIOR EMPLOYER. THE FINAL CATEGORY OCCURS WHEN A JOB HAS BEEN ELIMINATED COMPLETELY AND AN EMPLOYER HAS NO INTENTION OF REFILLING THAT POSITION. AND AT 56%, MOST UNEMPLOYED WORKERS RIGHT NOW FALL INTO THIS LAST CATEGORY.
HOW CAN WE BE SEEING ANY SORT OF ECONOMIC RECOVERY RIGHT NOW WHEN SO MANY AMERICANS HAVE PERMANENTLY LOST JOBS AND NEW JOBS ARE NOT BEING CREATED? HOW CAN WE EXPECT TO STOP FORECLOSURES IF THE PEOPLE HOLDING MORTGAGES ARE LOSING THEIR INCOME? THESE NUMBERS SUGGEST THAT ANY RECOVERY WE SEE NOW MAY MERELY BE THE EYE OF THE HURRICANE. HISTORICALLY, THE FED WAITS 19 MONTHS AFTER UNEMPLOYMENT PEAKS TO RAISE RATES. WITH NO PEAK IN SITE, HOW LONG WILL THIS EASY CREDIT LAST? IF THE RATES ARE RAISED TOO SOON, THE ECONOMY COULD PLUNGE INTO A DEFLATIONARY SPIRAL. IF THE RATES AREN’T RAISED AT ALL, WE CAN EXPECT RAMPANT INFLATION. ACCORDING TO CREDIT SUISSE, THE FED FUNDS RATE IS THE MOST IMPORTANT FACTOR THAT DRIVES THE PRICE OF GOLD. WHILE FRUSTRATED WORKERS HAVE LITTLE JOB SECURITY OR CONTROL OF THEIR INCOME, ONE THING WE CAN CONTROL IS OUR PERSONAL SAVINGS. LUCKILY, AS WE HAVE PREVIOUSLY WRITTEN ABOUT, GOLD PERFORMS WELL IN BOTH TIMES OF INFLATION AND DEFLATION.
VACANT RETAIL SUITES. TENANTS IN OFFICE BUILDINGS HAVE DOWNSIZED AND NEED LESS SPACE FOR THEIR DISAPPEARING WORKFORCE. THEY ARE TRYING TO RENEGOTIATE LEASES, AND WHEN THAT’S NOT POSSIBLE, SOME SIMPLY WALK AWAY TO AVOID PAYING FOR SPACE THEY CAN’T USE.
IF COMMERCIAL REAL ESTATE LOSSES CONTINUE TO RISE, IT WILL PUT EVEN MORE PRESSURE ON THE FDIC’S ABILITY TO COVER DEPOSITS SHOULD MORE BANKS FAIL. AND ACCORDING TO A REPORT FROM CREDITSIGHTS, WE ARE ONLY 10% OF THE WAY THROUGH THIS CYCLE OF BANK COLLAPSES. THEIR ANALYSTS FORECAST A TOTAL OF 1,100 BANK FAILURES WILL OCCUR DURING THE PERIOD FROM 2008 TO 2011. THAT MEANS WE CAN EXPECT 13.4% OF ALL US BANKS TO FAIL.
“ANOTHER WAVE OF PROLONGED LOSSES DRIVEN BY WEAKNESS IN COMMERCIAL REAL ESTATE COULD PROVE CATASTROPHIC TO MANY OF THESE WEAKENED BANKS,” ACCORDING TO CREDITSIGHTS.
THE DATA BEHIND CREDITSIGHTS REPORT SHOWS THAT COMMERCIAL REAL ESTATE LOANS MAKE UP 50% OF THE LOANS OF 80% OF THE BANKS THAT FALL INTO THE “TROUBLED” CATEGORY. THE FDIC IS PREPARING FOR MORE BANK FAILURES, AND HAS IDENTIFIED MORE THAN 400 “PROBLEM INSTITUTIONS.”ARE YOU PREPARED FOR THE NEXT WAVE OF BANK FAILURES? WOULD YOU FEEL MORE PREPARED IF YOU WERE PORTFOLIO WAS BACKED WITH GOLD!
WHILE GOVERNMENTS AROUND THE WORLD HAVE CONDUCTED STIMULUS PLANS FOR THEIR ECONOMIES, INCLUDING BAILING OUT BANKS, IT IS STILL EXTREMELY DIFFICULT TO GET LOANS AND RAISE CAPITAL FOR A NUMBER OF COMPANIES. THE LATEST VICTIM IS MINING AND METALS COMPANIES, WHO ARE BURDENED WITH A “WALL OF DEBT” ACCORDING TO A REPORT FROM ERNST AND YOUNG RELEASED THIS WEEK. THE INABILITY TO RAISE MONEY IS SEVERELY RESTRICTING THE OPERATIONS OF THESE COMPANIES, WHICH WILL ALSO LIMIT THE SUPPLY OF COMMODITIES, AND COULD DRIVE UP THE PRICE OF GOLD AND OTHER METALS.
CAPITAL IS NECESSARY TO MINING COMPANIES BECAUSE OF THE LONG LEAD TIME REQUIRED TO ACTUALIZE GAINS. IT TAKES ABOUT 10 YEARS AFTER A BODY OF ORE IS LOCATED BEFORE ACTUAL PRODUCTION OF GOLD OCCURS, AS MAPPING AND PERMITTING ARE TIME-INTENSIVE PROCESSES.
JEWELRY SALES ARE CLIMBING TO DOUBLE DIGIT PROFITS IN CHINA ACCORDING TO GOLD COMPANY HONG KONG RESOURCES HOLDINGS, LTD. THE CHINESE MIDDLE CLASS IS DRIVING THE SHOPPING SPREE. THE NATION’S ECONOMY GREW 8.9% IN THE THIRD QUARTER ALONE, AND THESE REAL, ACTUALIZED PROFITS ARE ALLOWING THE MIDDLE CLASS TO GROW LARGER THAN EVER WHEN MOST COUNTRIES ARE LOSING THEIR MIDDLE CLASS AND SEEING HUGE WAGE GAPS BETWEEN THE VERY RICH AND THE VERY POOR.
EVERY YEAR, 10 MILLION COUPLES MARRY IN CHINA, AND ANALYSTS ARE EXPECTING EVEN MORE JEWELRY PURCHASES IN THE FOURTH QUARTER BECAUSE IT COINCIDES WITH THE WEDDING SEASON. JEWELERS HAVE BEEN SPEAKING TO THE PRESS ABOUT EXPANDING THEIR RETAIL STORE PRESENCE BY THE HUNDREDS IN MAINLAND CHINA. GOLD AND SILVER JEWELRY SAILS IN CHINA HAVE GAINED 16% ALREADY THIS YEAR, DESPITE RECORD HIGHS FOR THE PRICE OF BULLION.
BOSTON COLLEGE’S CENTER FOR RETIREMENT RESEARCH RELEASED A STUDY THAT SHOWS 51% OF US HOUSEHOLDS SIMPLY DO NOT HAVE ENOUGH SAVINGS IN THEIR RETIREMENT FUNDS TO EXIT THE WORK FORCE AT 65. THIS IS AN INCREASE FROM 2006’S STUDY WHICH SHOWED THAT ONLY 44% OF HOUSEHOLDS WERE IN THE SAME UGLY FINANCIAL POSITION. THE CURRENT FINANCIAL CRISIS HAS HIT THOSE NEAR RETIREMENT AGE DOUBLY HARD. NAMELY, THEIR DISMAL 401KS AND THE DECREASED VALUE OF THEIR HOMES.
GLOBAL GOLD GROUP KNOWS THE OLD GOLD STORY OF THE BLUE COLLAR AMERICAN WORKER WHOSE JOB HAS BEEN OUTSOURCED IS ONE THAT HAS RECEIVED MUCH COVERAGE IN THE MEDIA OVER THE LAST DECADE. FROM MICHAEL MOORE’S DOCUMENTARIES TO 60 MINUTES, THE EMIGRATION OF FACTORIES TO COUNTRIES WITH CHEAP LABOR IS NOT A HIDDEN PHENOMENON. UNDER THE RADAR THOUGH IS THE NUMBER OF WHITE COLLAR JOBS THAT ARE BEING OUTSOURCED. CUSTOMER SERVICE CALL CENTERS HAVE SPRUNG UP ALL OVER INDIA. ARCHITECTURE AND ENGINEERING FIRMS SEND THEIR HAND SKETCHES TO CHINA AND COLUMBIA TO HAVE BLUEPRINTS DRAWN AT A TINY FRACTION OF THE COST. AND THE NUMBER OF JOBS THAT HAVE PERMANENTLY BEEN LOST IN THE UNITED STATES IS THE HIGHEST IT’S BEEN IN 30 YEARS. THIS NUMBER CAN ONLY INCREASE AS CORPORATIONS TRY TO CUT COSTS AND GLOBALIZATION HAS MADE HIRING CHEAP EDUCATED WORKERS AS EASY AS HIRING CHEAP UNEDUCATED WORKERS.
THIS FASCINATING POST FROM CALCULATED RISK EXAMINES THE HARD DATA WITHIN THE UNEMPLOYMENT NUMBERS. UNEMPLOYED WORKERS FALL INTO SEVERAL CATEGORIES. EITHER THEY QUIT, WERE TEMPORARILY LAID OFF, HAVE REENTERED THE LABOR MARKET, ARE ENTERING THE LABOR MARKET FOR THE FIRST TIME, OR THEY WERE PERMANENTLY SEPARATED FROM THEIR PRIOR EMPLOYER. THE FINAL CATEGORY OCCURS WHEN A JOB HAS BEEN ELIMINATED COMPLETELY AND AN EMPLOYER HAS NO INTENTION OF REFILLING THAT POSITION. AND AT 56%, MOST UNEMPLOYED WORKERS RIGHT NOW FALL INTO THIS LAST CATEGORY.
HOW CAN WE BE SEEING ANY SORT OF ECONOMIC RECOVERY RIGHT NOW WHEN SO MANY AMERICANS HAVE PERMANENTLY LOST JOBS AND NEW JOBS ARE NOT BEING CREATED? HOW CAN WE EXPECT TO STOP FORECLOSURES IF THE PEOPLE HOLDING MORTGAGES ARE LOSING THEIR INCOME? THESE NUMBERS SUGGEST THAT ANY RECOVERY WE SEE NOW MAY MERELY BE THE EYE OF THE HURRICANE. HISTORICALLY, THE FED WAITS 19 MONTHS AFTER UNEMPLOYMENT PEAKS TO RAISE RATES. WITH NO PEAK IN SITE, HOW LONG WILL THIS EASY CREDIT LAST? IF THE RATES ARE RAISED TOO SOON, THE ECONOMY COULD PLUNGE INTO A DEFLATIONARY SPIRAL. IF THE RATES AREN’T RAISED AT ALL, WE CAN EXPECT RAMPANT INFLATION. ACCORDING TO CREDIT SUISSE, THE FED FUNDS RATE IS THE MOST IMPORTANT FACTOR THAT DRIVES THE PRICE OF GOLD. WHILE FRUSTRATED WORKERS HAVE LITTLE JOB SECURITY OR CONTROL OF THEIR INCOME, ONE THING WE CAN CONTROL IS OUR PERSONAL SAVINGS. LUCKILY, AS WE HAVE PREVIOUSLY WRITTEN ABOUT, GOLD PERFORMS WELL IN BOTH TIMES OF INFLATION AND DEFLATION.
VACANT RETAIL SUITES. TENANTS IN OFFICE BUILDINGS HAVE DOWNSIZED AND NEED LESS SPACE FOR THEIR DISAPPEARING WORKFORCE. THEY ARE TRYING TO RENEGOTIATE LEASES, AND WHEN THAT’S NOT POSSIBLE, SOME SIMPLY WALK AWAY TO AVOID PAYING FOR SPACE THEY CAN’T USE.
IF COMMERCIAL REAL ESTATE LOSSES CONTINUE TO RISE, IT WILL PUT EVEN MORE PRESSURE ON THE FDIC’S ABILITY TO COVER DEPOSITS SHOULD MORE BANKS FAIL. AND ACCORDING TO A REPORT FROM CREDITSIGHTS, WE ARE ONLY 10% OF THE WAY THROUGH THIS CYCLE OF BANK COLLAPSES. THEIR ANALYSTS FORECAST A TOTAL OF 1,100 BANK FAILURES WILL OCCUR DURING THE PERIOD FROM 2008 TO 2011. THAT MEANS WE CAN EXPECT 13.4% OF ALL US BANKS TO FAIL.
“ANOTHER WAVE OF PROLONGED LOSSES DRIVEN BY WEAKNESS IN COMMERCIAL REAL ESTATE COULD PROVE CATASTROPHIC TO MANY OF THESE WEAKENED BANKS,” ACCORDING TO CREDITSIGHTS.
THE DATA BEHIND CREDITSIGHTS REPORT SHOWS THAT COMMERCIAL REAL ESTATE LOANS MAKE UP 50% OF THE LOANS OF 80% OF THE BANKS THAT FALL INTO THE “TROUBLED” CATEGORY. THE FDIC IS PREPARING FOR MORE BANK FAILURES, AND HAS IDENTIFIED MORE THAN 400 “PROBLEM INSTITUTIONS.”ARE YOU PREPARED FOR THE NEXT WAVE OF BANK FAILURES? WOULD YOU FEEL MORE PREPARED IF YOU WERE PORTFOLIO WAS BACKED WITH GOLD!
GOLD PRICE TO RISE AMID MINING COMPANY WOES?
WHILE GOVERNMENTS AROUND THE WORLD HAVE CONDUCTED STIMULUS PLANS FOR THEIR ECONOMIES, INCLUDING BAILING OUT BANKS, IT IS STILL EXTREMELY DIFFICULT TO GET LOANS AND RAISE CAPITAL FOR A NUMBER OF COMPANIES. THE LATEST VICTIM IS MINING AND METALS COMPANIES, WHO ARE BURDENED WITH A “WALL OF DEBT” ACCORDING TO A REPORT FROM ERNST AND YOUNG RELEASED THIS WEEK. THE INABILITY TO RAISE MONEY IS SEVERELY RESTRICTING THE OPERATIONS OF THESE COMPANIES, WHICH WILL ALSO LIMIT THE SUPPLY OF COMMODITIES, AND COULD DRIVE UP THE PRICE OF GOLD AND OTHER METALS.
CAPITAL IS NECESSARY TO MINING COMPANIES BECAUSE OF THE LONG LEAD TIME REQUIRED TO ACTUALIZE GAINS. IT TAKES ABOUT 10 YEARS AFTER A BODY OF ORE IS LOCATED BEFORE ACTUAL PRODUCTION OF GOLD OCCURS, AS MAPPING AND PERMITTING ARE TIME-INTENSIVE PROCESSES.
JEWELRY SALES ARE CLIMBING TO DOUBLE DIGIT PROFITS IN CHINA ACCORDING TO GOLD COMPANY HONG KONG RESOURCES HOLDINGS, LTD. THE CHINESE MIDDLE CLASS IS DRIVING THE SHOPPING SPREE. THE NATION’S ECONOMY GREW 8.9% IN THE THIRD QUARTER ALONE, AND THESE REAL, ACTUALIZED PROFITS ARE ALLOWING THE MIDDLE CLASS TO GROW LARGER THAN EVER WHEN MOST COUNTRIES ARE LOSING THEIR MIDDLE CLASS AND SEEING HUGE WAGE GAPS BETWEEN THE VERY RICH AND THE VERY POOR.
EVERY YEAR, 10 MILLION COUPLES MARRY IN CHINA, AND ANALYSTS ARE EXPECTING EVEN MORE JEWELRY PURCHASES IN THE FOURTH QUARTER BECAUSE IT COINCIDES WITH THE WEDDING SEASON. JEWELERS HAVE BEEN SPEAKING TO THE PRESS ABOUT EXPANDING THEIR RETAIL STORE PRESENCE BY THE HUNDREDS IN MAINLAND CHINA. GOLD AND SILVER JEWELRY SAILS IN CHINA HAVE GAINED 16% ALREADY THIS YEAR, DESPITE RECORD HIGHS FOR THE PRICE OF BULLION.
DANGER AHEAD FOR US BANKS, SAYS TARP CHIEF
PUBLISHED ON OCTOBER 27, 2009 · FILED UNDER: ECONOMY, GOLD; TAGGED AS: CNN, TARP, GLOBAL GOLD GROUP IS HERE FOR YOU!
THE BAD NEWS IS PILING UP. AND IT’S GOING TO GET WORSE. IF YOU’VE BEEN COUNTING, THE NUMBER OF FAILED BANKS THIS YEAR HAS CLIMBED TO 106. AND THE BANKS THAT NEEDED A MASSIVE BAILOUT OF TAXPAYER MONEY BECAUSE THEY WERE TOO BIG TO FAIL? WELL, NOW THEY ARE BIGGER!
THIS WEEK, NEIL BAROFSKY, RESPONSIBLE FOR OVERSEEING THE TROUBLED ASSET RELIEF PROGRAM TOLD CNN THAT THE GOVERNMENT’S ACTION HAVE PLACED THE US ECONOMY IN A HAZARDOUS POSITION.
“GOVERNMENT HAS SPONSORED AND SUPPORTED SEVERAL MERGERS THAT MADE THEM LARGER AND THAT GUARANTEE, THAT IMPLICIT GUARANTEE OF MORAL HAZARD, THE IDEA THAT THE GOVERNMENT IS NOT GOING TO LET THESE BANKS FAIL, WHICH WAS IMPLICIT A YEAR AGO, IS NOW WE HAVE SAID IT. SO IF ANYTHING, NOT ONLY HAVE THERE NOT BEEN ANY MEANINGFUL REGULATORY REFORM TO MAKE IT LESS LIKELY, IN A LOT OF WAYS, THE GOVERNMENT HAS MADE SUCH PROBLEMS MORE LIKELY…POTENTIALLY WE COULD BE IN MORE DANGER NOW THAN WE WERE A YEAR AGO.”
PART OF THE PROBLEM IS THAT THE TREASURY AND THE FED ARE NOT BEING TRANSPARENT ENOUGH IN THEIR POLICIES.
“I THINK THIS CYNICISM, THIS ANGER, THIS DISTRUST OF GOVERNMENT THAT’S BORN IN PART FROM A LACK OF TRANSPARENCY COULD HAVE FAR-REACHING RAMIFICATIONS, WHETHER THERE’S A NEXT CRISIS OR WHEN ANYTIME THE GOVERNMENT IS GOING TO CALL ON THE AMERICAN PEOPLE, THE TAXPAYER, TO SUPPORT NECESSARY PROGRAMS.”
THE FDIC HAS NOT USED ANY TAXPAYER MONEY TO COVER THE BANK FAILURES SO FAR, BUT INSTEAD ITS OWN INSURANCE FUND. YET MANY AMERICANS ARE WORRIED ABOUT THE SAFETY OF THEIR MONEY AND IF EVENTUALLY TAXPAYERS WILL BE ON THE HOOK FOR THIS COST, TOO. WHILE GOVERNMENT POLICIES ARE OUT OF THE CONTROL OF THE AVERAGE CITIZEN, WE ALL HAVE CONTROL OVER OUR PERSONAL SAVINGS. TAKE STEPS TO ENSURE THAT YOUR CASH SAVINGS IN YOUR BANK ARE WITHIN THE INSURABLE LIMITS OF THE FDIC. IF YOU ARE WORRIED ABOUT THE DOLLAR ITSELF AND HOLDING CASH, PERIOD, MOVE SOME PAPER ASSETS INTO GOLD OR OTHER PRECIOUS METALS TO HEDGE YOUR WEALTH.
RUSSIA BALKS ON GOLD SALE
THIS WEEK, NEIL BAROFSKY, RESPONSIBLE FOR OVERSEEING THE TROUBLED ASSET RELIEF PROGRAM TOLD CNN THAT THE GOVERNMENT’S ACTION HAVE PLACED THE US ECONOMY IN A HAZARDOUS POSITION.
“GOVERNMENT HAS SPONSORED AND SUPPORTED SEVERAL MERGERS THAT MADE THEM LARGER AND THAT GUARANTEE, THAT IMPLICIT GUARANTEE OF MORAL HAZARD, THE IDEA THAT THE GOVERNMENT IS NOT GOING TO LET THESE BANKS FAIL, WHICH WAS IMPLICIT A YEAR AGO, IS NOW WE HAVE SAID IT. SO IF ANYTHING, NOT ONLY HAVE THERE NOT BEEN ANY MEANINGFUL REGULATORY REFORM TO MAKE IT LESS LIKELY, IN A LOT OF WAYS, THE GOVERNMENT HAS MADE SUCH PROBLEMS MORE LIKELY…POTENTIALLY WE COULD BE IN MORE DANGER NOW THAN WE WERE A YEAR AGO.”
PART OF THE PROBLEM IS THAT THE TREASURY AND THE FED ARE NOT BEING TRANSPARENT ENOUGH IN THEIR POLICIES.
“I THINK THIS CYNICISM, THIS ANGER, THIS DISTRUST OF GOVERNMENT THAT’S BORN IN PART FROM A LACK OF TRANSPARENCY COULD HAVE FAR-REACHING RAMIFICATIONS, WHETHER THERE’S A NEXT CRISIS OR WHEN ANYTIME THE GOVERNMENT IS GOING TO CALL ON THE AMERICAN PEOPLE, THE TAXPAYER, TO SUPPORT NECESSARY PROGRAMS.”
THE FDIC HAS NOT USED ANY TAXPAYER MONEY TO COVER THE BANK FAILURES SO FAR, BUT INSTEAD ITS OWN INSURANCE FUND. YET MANY AMERICANS ARE WORRIED ABOUT THE SAFETY OF THEIR MONEY AND IF EVENTUALLY TAXPAYERS WILL BE ON THE HOOK FOR THIS COST, TOO. WHILE GOVERNMENT POLICIES ARE OUT OF THE CONTROL OF THE AVERAGE CITIZEN, WE ALL HAVE CONTROL OVER OUR PERSONAL SAVINGS. TAKE STEPS TO ENSURE THAT YOUR CASH SAVINGS IN YOUR BANK ARE WITHIN THE INSURABLE LIMITS OF THE FDIC. IF YOU ARE WORRIED ABOUT THE DOLLAR ITSELF AND HOLDING CASH, PERIOD, MOVE SOME PAPER ASSETS INTO GOLD OR OTHER PRECIOUS METALS TO HEDGE YOUR WEALTH.
RUSSIA BALKS ON GOLD SALE
IF YOU’VE ALREADY DIVERSIFIED WITH GLOBAL GOLD GROUP, YOU CAN SOON EXPECT COMPANY! A NUMBER OF LARGE PENSION FUNDS WILL SOON BE MOVING SIGNIFICANT AMOUNTS OF CAPITAL INTO GOLD. SHAYNE MCGUIRE, A DIRECTOR AT THE TEACHER RETIREMENT SYSTEM OF TEXAS, PUBLICLY ANNOUNCED THE LAUNCH OF $250 MILLION INTERNALLY MANAGED GOLD FUND WITHIN THE PENSION FUND’S HOLDINGS. THE GOLD FUND WILL BE MADE UP OF PHYSICAL PRECIOUS METALS INVESTMENTS, SUCH AS COINS AND BULLION, AS WELL AS ETFS AND MINING COMPANY STOCKS.
AT 1.3 MILLION PUBLIC EDUCATORS AND RETIREES PARTICIPATING IN IT, THE FUND IS THE SEVENTH-LARGEST IN THE US. WHILE MCGUIRE BELIEVES GOLD WILL RISE IN THE NEXT FEW YEARS, HE STATED THAT THE MOTIVATION FOR SUCH A LARGE MOVE IS PRIMARILY DIVERSIFICATION AND WORRIES ABOUT THE DOLLAR, WHICH IS LOSING GROUND AGAINST OTHER CURRENCIES AT AN ALARMING RATE.
MCGUIRE STATED YESTERDAY, “I DON’T THINK THE QUESTION IS REALLY WHAT IS GOLD WORTH BUT WHAT ARE CURRENCIES NOT WORTH. CONSIDER THE TREMENDOUS FISCAL EXCESS THAT MAJOR GOVERNMENTS HAVE MADE TO PREVENT THE WORLD ECONOMY FROM COLLAPSING.”
MCGUIRE STATED YESTERDAY, “I DON’T THINK THE QUESTION IS REALLY WHAT IS GOLD WORTH BUT WHAT ARE CURRENCIES NOT WORTH. CONSIDER THE TREMENDOUS FISCAL EXCESS THAT MAJOR GOVERNMENTS HAVE MADE TO PREVENT THE WORLD ECONOMY FROM COLLAPSING.”
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