Completing the Capitulation: The Entirety of the FED Turns Dovish

As previously forecast, the FED has once again taken a step back from its stance on raising interest rates, admitting that the economy as a whole appears to not be on as solid footing as they once stated.

This complete and utter capitulation by FED Chairman Jerome Powell has shocked many market participants, however, for those who have been closely following his statements since early December, it was quite predicable and you could see it coming.

The farce is over and the FED has proven that they are beholden to the markets demands, who not only desire lower rates, but need them to continue growth. 

Interest rates, at least in the short to medium term are going to remain either unchanged, or decrease, anything else and the markets will revolt, resulting in a sharp collapse in prices that will make 2008 look like an opening act.

This is a sharp change in sentiment from just a few short months ago, when the majority of FED members were predicting that two interest rate increases throughout 2019 would be appropriate and needed.

Now, the Federal Open Market Committee has voted unanimously to leave rates unchanged, proving that the committee has discarded all hawkish intents and turned incredibly dovish.

Currently the FED holds the benchmark funds rate in a range of 2.25 percent to 2.5 percent, which is used to determine the majority of adjustable rate consumer debt, like credit cards, lines of credit, etc.

As a result 10 year treasuries crashed to their lowest level in over a year, while the broader markets received the news positively, as rising rates would significantly impact consumers ability to spend.

In addition to the FED announcing that no further rate increases would be coming throughout the remainder of 2019, the FED also stated that they would not change their current stance unless something significant changed within the markets.

This change in stance came as positive news to President Trump and his administration, who have been in series of recent public disputes with the FED over its "raising rates" rhetoric.

The reasoning for this of course was the extreme volatility that the FED's hawkish talk was causing to the markets as a whole, causing sharp moves higher and lower.

Given how closely President Trump has tied himself to the rising stock markets, this of course caused him much grief, as a crashing market would not help his chances of a 2020 reelection and would look poorly on his presidency.

Unfortunately for President Trump, the reasoning that the FED has given to justify their drastic change in position is not good.

Despite one of the best job markets in decades, the FED has downgraded its economic forecast, reducing GDP growth expectations as they see a slow down in consumer and business investment spending in the first quarter of 2019.

What this means for precious metals and the markets as a whole is that at least for now, the punch bowel is going to remain full and the party is going to continue on.

Easy money is here to stay and thus real inflation is going to continue to move higher, ultimately resulting in a higher price in both gold and silver bullion when they inevitably break free from their shackles and soars higher, adjusting to the unfathomable fiat money that has been injected into the system.

- Source, as first seen on the Sprott Money Blog

War Drums: US Diplomats Ordered Home From Venezuela

Secretary of State Pompeo has ordered all US diplomats to return from Venezuela. Their presence in country is "constraining" US foreign policy, he says. 

Is this the pre-cursor to a US attack? What about the power outages in Venezuela? A US cyber-attack? Are the neocons about to pull the trigger?

- Source, Ron Paul

FED Rate Cut Rumors As Gold Near Key Levels

This week we review the price movements of gold, silver platinum, palladium, The US Dollar Index, & DOW. 

We look ahead at the possible direction and levels the gold price in 2019 could hit. 

We'll then look at the silver price in 2019 alongside platinum and palladium prices.

- Source, Golden Rule Radio

What Will You Be Holding When The Dollar Dies?

Gold & the USD Reign Supreme in Venezuela as it Descends Toward Collapse

If you don't hold it, you don't own it.

I have stated the above sentence time and time again and the reason why it bears mentioning is once again unfolding in front of our very eyes.

The people of Venezuela continue to suffer under a historic blackout that has destroyed what little remained of control that the government once had over its people.

This comes at a crucial time within the country, as President Nicolas Maduro was already finding himself on shaky ground both within his own country and on the international stage, with the United States government leading the charge against him.

Looting, pillaging and stealing has exploded across the country as the blackout continues to drag on, with no end in site. The risk of collapse ticks higher with each passing day, as law and order continues to deteriorate.

We have seen this event unfold countless times throughout history, as socialism eventually always fails and ends in misery. 

The very foundation that this political system is built on is structurally unsound and goes against the very competitive nature that is ingrained in humanity. In a perfect world, perhaps it could work, but sadly, that is not the reality we live in.

The free market and capitalism always win in the end.

Unfortunately, this is not a thing to be rejoiced, as millions upon millions of Venezuelan people are now suffering due to the faults of their leadership and the Maduro led government.

As the system continues to collapse, you cannot blame those who are doing whatever it takes to keep themselves and their families alive, this is the natural course of things in an economic collapse, such as the one we are now witnessing unfold within Venezuela.

People are being forced to pillage, loot, steal, do whatever it takes to keep their families from starving.

Inflation has ravaged the country of Venezuela, with the IMF predicting that it has reached 10 million percent over the last year! Making the bolivar almost entirely worthless, wiping out peoples savings in the process.

The USD, which at least for the time being is still the reserve currency of the world, and until it is dethroned it will become common currency in these break down style events.

This is exactly what we are now seeing, as people are turning to a barter system, where tangible goods, the USD and precious metals are being preferred over the countries own currency.

We are very likely entering the end stages of collapse for Venezuela, after which it will hopefully be able to restructure and regrow into a once again prosperous nation, that is overwhelming rich in natural resources.

Sadly it is incredibly likely, that at least in the short term, much more pain is in store for those who do not have the economic means of escaping the country and the hardships being inflicted on the people there.

Those with the means, those who prepared in advance have already fled.

History has shown us time and time again that these events are entirely possible. Which is just one of the many reasons why physical possession of gold and silver bullion are not only beneficial, but necessary.

Dollar cost averaging, month after month is the safest, most convenient way of hedging yourself against economic turmoil and collapse. 

This allows you to ride out of the highs and the lows, such as those we have experienced over the last few years. Accumulating precious metals at a steady and consistent rate can be done on just about any budget with a long enough time horizon.

Gold and silver are the ultimate insurance policy against economic and governmental collapse. 

Precious metals have proven this countless times throughout its long and lustrous 10,000 year history as a financial asset and they will continue to prove it for thousands of years to come.

Always be prepared. Keep stacking. You'll be happy you did.

- As first seen on the Sprott Money Blog

Jim Grant: Ivory Tower Delusions About Interest Rates and Inflation Threaten the Markets

Grant's Interest Rate Observer Founder and Editor Jim Grant: one of the clear and present risks in today's markets is the intellectuals, the ignorance that knows not it is ignorant.

These people are one of the biggest threats that the world now faces. What are the risks? Can we stop them, or is it to late?

- Source, CNBC

Manafort To Jail: Not About Justice, Not About Russia

Former Trump campaign official Paul Manafort has been sentenced to nearly four years in prison for acting as an unregistered agent for Ukraine. 

But looking at the media coverage of the case one would never know that "taking down" Manafort was not all about Russia collusion. Reporting... or propaganda?

- Source, Ron Paul

Unintended Consequences: Minimum Wage Hike Backfires at Whole Foods

As is always the case, government "help" backfires on the very people that are purportedly being "helped." 

The minimum wage law is a prime example. As government outlaws jobs below a certain dollar amount, low-skilled workers suffer tremendously and are forced into unemployment. 

Employees of Whole Foods are now experiencing a minimum wage hike blowback as their hours are being slashed. 

Ron Paul discusses on today's Liberty Report.

- Source, Ron Paul

The Trend Continues: Romania Introduces a Bill to Repatriate it's Gold Reserves

The trend is accelerating, just as predicted.

Countries all over the globe are growing anxious as the geopolitical atmosphere of the world continues to heat up, threatening to hit a boiling point.

Central bankers and government officials who have chosen to see the world through an unfiltered, non rose tinted lens are well away of this and are beginning to take the necessary actions required to protect themselves and their homelands.

China, Russia, India, Poland and Turkey are just a few of the countries who have made it no secret that their plan is the long term accumulation of precious metals, in a hope to diversify their national reserves out of the US Dollar and into hard money.

I, along with many others in the precious metals community believe that the reasoning for this is that they can see the writing on the wall and are well aware of what is coming down the road.

They know that the US Dollar will not be the reserve currency of the world forever, and from their actions, I believe they know that precious metals will once again take center stage, playing a vital role in the next successor to the throne.

Joining the growing ranks of concerned countries is Romania, a holder of 103.7 tonnes of gold, or rather a country that believes they hold 103.7 tons of gold.

As I have stated numerous times, if you don't hold it, you don't truly own it. 

Physical possession of a significant portion of your precious metals is vital in these times of growing unrest.

Waking up to this reality, Chamber of Deputies President Liviu Dragnea and Senator Serban Nicolae of Romania have proposed a bill to force the National Bank to repatriate 95 percent of Romania’s gold reserves, of which are largely held abroad.

Before you dismiss this as a nothing burger, take note that this bill is not being introduced by some "small fry" government official, but quite the opposite, Liviu Dragnea is a high ranking member of the Romanian government.

As per Wikipedia;

"The President of the Chamber of Deputies of Romania is the deputy elected to preside over the meetings in the lower chamber of the Parliament of Romania. The President is also the President of the Standing Bureau of the Chamber of Deputies, and the second in the presidential line of succession, after the President of the Senate."

What this means is that this bill has legs and will likely move forward, forcing the holders of the Romanian gold reserves to come up with the precious metals, or what is more likely, stonewall them with excuses for the next few years as they attempt to pool together the metals they rehypothecated to infinity.

Currently the Treasury of the National Bank of England holds 61 tons of Romanian gold, the Bank of International Settlements in Basel Switzerland holds 5 tons and the other 40 tons are held at the Bank of Romania in Bucharest.

Sadly for the Bank of Romania and the people of the country itself, they have an uphill battle if past results are any indication of what is to come next.

Germany and other countries who have attempted to repatriate their gold have been successor ultimately, however, only through great effort and time, highlighting the fact that the gold that is supposed to be in safe holding, simply isn't.

The fact is, the majority of gold in trust, is not there, it is gone, sold into the open market.

The active suppression of gold over the past decade plus has required a tremendous amount of physical ammunition and London has been one of the biggest contributors in this suppression.

The question is, who is next? Because trust me, Romania won't be the last.

The acceleration towards honest money continues.

- Source, as first seen on the Sprott Money Blog

The Unavoidable Threat To The Economy

Dr. Peter Warburton, director of Economic Perspectives outlined last fall the three bear threats to the global economy and financial markets. He joins Silver Doctors to give us an update. 

While two have subsided for the moment, one remains unavoidable. 

Warburton says the threat of a bond yield spike which would halt the economic recovery has subsided. 

While no longer an immediate threat, if inflation picks up, then so could bond yields. There is a threat to the economy that is unavoidable. 

Rising interest rates is causing a refinancing cycle. Debt default cycles are coming, Warburton says. In the midst of all this, Warburton says gold is going to be seen as a safer place to be. 

He discusses how the rise in the gold price could impact gold mining stocks.

- Source, Silver Doctors

Something Strange is Happening With The 100 Bill, Gold Brings Down The FED

The [CB] economy continues to deteriorate, the statistical numbers look great, Trump is using the [CB][DS] weapon against them. 

The entire [CB] is collapsing at a record pace, it has been for a long time, Trump and the Patriots are working quickly to get everything ready for the transition into the new economy. 

The 100 dollar bill was created by the Patriots, one side is the Federal Reserve Note and the Other Is The US treasury and it is printed in gold.

- Source, X22 Report

The US National Debt is Completely Out of Control, Oh Well?

The US National Debt recently blew past the $22 Trillion mark, shocking and amazing... 

Almost no one.

Although there remains a small minority of individuals who are concerned about the exploding debt level, they are a shrinking minority as more and more people are simply content to drift into blissful ignorance, ignoring the alarm bells going off all around us.

To many, especially the millennial and younger generations, the creation of money is just as mysterious as electricity or the internet, it simply is and it has always been.

Too few now remember when honest money reigned and governments were forced to be fiscally responsible due to the checks and balances that the gold standard placed on them.

Sadly, $22 Trillion is just the start, as the unfunded liabilities that the United States now owes stands at a truly ghastly number, $122 Trillion.

And they aren't alone. Countless "established" countries around the world find themselves deeply in debt, with no chance of ever "digging" themselves out.

For years I have pointed out these increasing debt levels, for years I and many others have been ignored, and sadly, I fear that we have now crossed the Rubicon and there is no going back.

What cannot be repaid, will not be repaid. Remember these words.

This is the reality that we now live in, a world where debt levels, at least in the short term simply do not matter, until they do. 

We are in one massive shell game and those playing the game know that it is rigged, but have no choice but to continue with their participation.

To upset this never ending cycle of fiat money creation would mean to end our current fiscal way of life, sending the world spinning out of control and ultimately headed towards a massive financial disaster as the system attempts to right itself.

Make no doubt about it, this would led to war on a grand scale.

For those who worry about this scenario unfolding, you can rest easy, at least for the short term.

The financial elites simply have too much skin in the game and much to my surprise, they have been able to keep this proverbial coyote from looking down for much longer than I and many others could of ever guessed.

Although I believe that it is too late to correct the disastrous course we now find ourselves on, that does mean that you should simply sit on your hands, waiting for drop to occur.

Action is needed and it is needed now more than ever. You will only have yourself to blame if find yourself unprepared and caught off guard, the warning signs are all around us.

Fortunately, at least some are taking notice.

As predicted, silver, the money of the people, is on the move, once again playing catch up with the yellow metal.

In fact, the accumulate of silver has been so intense in the past few months, that the US Mint has had to temporary suspend the sale of Silver Eagles, due to fierce demand.

According to a recent statement by the US Mint, Silver Eagle sales were 2,057,500 oz's in the month of February versus the 942,500 oz's during the same month in 2018. A staggering 118% increase.

Are people finally waking up? Or are these moves being made by a few key players?

As I have written about in a recent article, moves behind the scenes are already being made by those pulling the strings behind the curtain, as Central Bankers and other government entities have begun to rapidly move into gold bullion, causing one the most dramatic periods of accumulate that we have seen in decades.

The countries partaking in this action know that precious metals and "big guns" are ultimately what is going to get them through the next financial crisis. A crisis that is not a "if", but a "when".

Hopefully, the latter will not be needed and the former will do the talking, restoring fiscal sanity in a world where fiat money has run a muck for far too long.

One can hope, but in the mean time, one can stack.

- As first seen on the Sprott Money Blog

Michael Pento: Falling Interest Rates is Rocket Fuel for Gold

Money manager Michael Pento gives his simple economic road map. Pento says, 

“We’re going to have one final whoosh down in stock prices and in the economy. 

That’s going to bring Jerome Powell (Fed Head) back to 0% interest rates and back into QE (money printing), and then it is intractable inflation for as far as the eye can see. 

That is going to be a very, very dangerous new paradigm for the world. We are all going to look like Rome. 

Real interest rates will be falling, and that is rocket fuel for gold.”

- Source, USA Watchdog

Martin Armstrong: Permanent Gridlock and Tax Disaster Coming to America

Legendary geopolitical and financial analyst Martin Armstrong says global debt is what you need to watch. 

Armstrong further contends, 

“Debt is a real problem. People need to realize the problem is in government and not in the private sector. Interest rates will start to rise, and that is what we are looking for going out of the year 2020. 

You also have all this crazy stuff going on in Congress. Real hatred has developed. It’s incredible. 

Before, if whoever you voted for lost, you accepted it and moved on. I mean people don’t accept it anymore. 

So, what is this stuff ‘Trump is not my President’? Well, then, who is he? There is no President of the United States? 

It’s your way or no way is what they are really saying. It has polarized the country so much that it’s going to be permanent gridlock. 

Congress is out of control. 

Don’t expect anything to help the economy coming out of there. All they are going to do is continually raise taxes. That’s going to really be disastrous.”

- Source, USA Watchdog

A Reason to Return to the Gold Standard

Something that really grabbed my attention a couple of weeks ago was an IMF blog post.

In this article, two IMF economists discussed the introduction of e-money as a way for central banks to implement as negative an interest rate as necessary for countering a recession, without triggering large-scale substitutions into cash.

Perhaps it stood out as something to take note of because of the many other developments taking place around this.

E-money to implement negative interest rates is being explored while, despite negative interest rates already in place, the European Commission recently slashed its 2019 growth forecast for the 19-nation euro-area economy from the 1.9 percent it projected in November to 1.3 percent.

So, with European growth slowing but negative rates already in place, might we see a case being put forward to take rates even further into negative territory in an attempt to stimulate economic activity?

But at the same time with e-cash in place to stop one from taking cash out of the bank and putting it under the bed. Is it also any surprise then that the ECB recently posted this video on their twitter about how QE helps reduce inequality?

To the US, then, where the San Fran Fed wrote recently that ‘allowing the federal funds rate to drop below zero may have reduced the depth of the recession and enabled the economy to return more quickly to its full potential.’

With the Fed funds rate at 2.5%, rates are still low by any historical standard, giving the Fed less room to move in the face of any downturn.

At the same time, the Fed has gone from expecting to hike three times in 2019 a few months ago to removing all references to future hikes in January’s FOMC comment, while noting the cross-currents that the economy is facing. A decidedly dovish turn.

Will the Fed need to turn to negative interest rates to stimulate growth, too?

If central banks are considering the use of digital currencies to enforce negative interest rates on depositors, what are the other options?

Kinesis Money could be one answer.

Kinesis is creating two digital currencies based 1:1 on physical, allocated gold and silver. Kinesis will charge a 0.45% transaction fee for the use of its digital currency network, but redistribute a portion of these fees as a ‘yield’ to further incentivise the use of its system for transactions.

These two currencies will allow one to access day-to-day spending outside of the banking system and remove exposure to fiat currencies, by giving liquidity to gold and silver. It will do so through the use of innovative blockchain and exchange technology, and a debit card attached to the Visa network.

Significant technical developments have already been completed and this year is set to see the release of a new monetary system that aims to change the way people see and use gold, Kinesis Money.

- Source, Ryan Case of Kinesis Money