By Swiss AmericaNews Daily
Gold prices settled modestly higher recouping the prior day’s loss and then some to finish at their highest level in nearly a month. U.S. stocks continue to rise, U.S. dollar remains weak. Gold last traded at $1,473 an ounce. Silver last traded at $23.90 an ounce.
MARKET NEWS HEADLINES
-Santelli: Changing Landscape of ‘Bail-Ins’- CNBC
-Friendly Reminder: CNBC Viewership Plunges To Eight Year Lows- Zero Hedge
-Attention Boomers: The Economy Needs You to Work Past 70 – The Fiscal Times
-Gold’s Biggest Drop in 30 Years Fails to Deter Advocates- Bloomberg
-Spotlight on the economy: Jobless claims seen rising- Market Watch
-Gold Imports by India Seen Topping 100 Tons for a Second Month- Bloomberg
The mainstream media is reporting the record high of the Dow as good news. “A rising stock market used to mean we had a rising, robust economy, yet this is no longer true” says Craig R. Smith, a monetary expert frequently interviewed by Fox’s Neil Cavuto and other prominent business journalists.
In a recent press release, Smith noted that “This week’s Dow 15,000 was a magic trick of levitation by the Federal Reserve. It is an illusion created to seduce millions of small investors.”
“The Fed hinted that it will keep on conjuring more than a trillion dollars a year out of thin air until at least 2015, with much of this enriching giant hedge funds and banks,” says Smith. “This assures big stock market speculators that their casino will stay open and awash in an ocean of easy, interest-free money.”
One Yahoo! Finance article noted the stock market is just one barometer of prosperity. The problems that have plagued the United States in recent years, such as declining household income and low interest rates, remain very much in place.
Investors have also lost confidence in recent years, and went to cash before the Dow began its bullish run. The market’s average may not reflect what many Americans are seeing in the monthly portfolio statements.
The dollar – and the USA – is toast – World Net Daily
The once-mighty United States is now the most indebted nation on Earth. The national debt has reached $17 trillion, or $150,000 per taxpayer. The net assets for each U.S. citizen are $300,000 while the net liability of the U.S. government amounts to almost four times that amount at $1.1 million a head. To cover the annual deficit, the government is printing $1 trillion a year of currency that is not backed by any asset whatsoever.
When the crash occurs, the first thing that will happen is the dollar will cease to be the world’s reserve currency. China has already realized the dollar is finished and has made progress with bilateral and multilateral deals to replace the dollar with the yuan as the world’s reserve currency of choice.
Is the Fed Blowing Bubbles? – Slate
The ongoing weakness of the American economy has led to stubbornly high unemployment and sub-par growth. Recent data has silenced hints by some Federal Reserve officials that the Fed should begin exiting from its current third round of quantitative easing. Given slow growth, high unemployment, and inflation well below the Fed’s target, now is not the time to start constraining liquidity.
The Fed’s liquidity injections, however, are not creating credit for the real economy. The issuance of risky junk bonds under loose covenants and low interest rates is increasing. The reality is that credit and asset/equity bubbles are likely to form in the next two years.
Silver Coin Dealers Are Reporting Very High Quality Fakes – Market Daily News
Fake gold coins and bars have been discovered at dealers all over the world. Some analysts have even suspected that central banks may have fallen prey to the scam. Since silver has recently achieved all time highs, counterfeiters see a potential boon for their bottom lines.
Counterfeiting silver isn’t new, but right now scammers are focusing their attention on the American Silver Eagle. Last April, the U.S. Mint sold over four million of these coins, making it easy for counterfeiters to slip fake silver coins and bars into circulation. In Hamilton, Ontario, the problem is so widespread, they have dedicated a special task force to investigate the fake American Eagles that were discovered.
The Enduring Glow of Gold – Caixin Online
The global economy has already entered stagflation. Currently the growth rate is at 2 percent while inflation is at 3 percent, and inflation is likely to rise to 4 percent within 18 months. With inflation twice as high as the growth rate, the global economy will only slip deeper into stagflation.
Despite the recent setback in gold prices, gold still remains a big beneficiary of the current macro environment. It has the potential to reach a new high in this current year and continue to rise much higher levels in 2014. The gold bull market will end once an inflation crisis pushes global central bankers to tighten aggressively.