Tag Archives: Ben Bernanke

Price of Gold-Can it Go Higher

April 20, 2011  Price of Gold-Can it Go Higher

The price of Gold just surpassed $ 1,500 per ounce closing at $ 1,505.90 today, giving investors a 25 % return and has only climbed higher each year since 2001 -over 10 years.  In those 10 years the world’s economies have weakened or they are dead broke.  Governments have over spent their budgets and cannot pay off their debts.

Price of Silver Expected to Rise to $ 70.00 or up to $ 100.00 an Ounce

 

Silver prices just topped $ 44.00 an ounce hitting a 31 year high cycle due to the scarcity of it and is not about to drop soon. In 2010 the price of silver rose 150 % whether by market speculation or a possible bubble ready to burst in the precious metals market. Precious metals have always been the beacon indicator of rising inflation and economic woes in the global economies.

Graph Showing the Price of Gold for the Past 10 Years

 

 

Silver is used in industrial processes and 95 percent of the world’s silver is gone, consumed by industrial processes and irretrievable forever it is gone.  Silver is used to make mirrors, radio frequency technology, explosives, chemicals and silver oxide used in watch batteries. The demand has exceeded the supply of the world’s silver and that trendy bit of information indicates the value of silver will rise sharply in the near future.

 

During tough economic times, the price of gold has been the standard bearer of bad news as its price rises due to lack of faith in out of control government spending. Political unrest, can either make silver and gold prices go up or down

Buy Gold Safely

In Europe, only two countries of the European Union are thriving, while the others are declaring bankruptcy unable to meet their obligations. The Euro dollar is not fairing much better closing at $ 1.451 US today.

Standard & Poor’s Downgrading the US Triple AAA Credit Rating

It is always a negative when your credit rating is degraded and it is a sign of the decline of the United States dollar which could have impacted on the rise in precious metal prices. It also signals that the US dollar not a preferred currency when major world power countries are using their own currency to trade not the US greenback.

The United States now holds the dubious title of having its debt equal its Gross National Product which means it spends as much as the whole country produces totally unhealthy for investors.

 

The second problem is the lack of true regulation of Wall Street where the 2008 meltdown had worldwide destroyed the finances of banks worldwide.

The shorters have re-entered the stock market setting up rising prices in oil, precious metal and major stock commodities.

Wall Street is still raking in billions of dollars in profits, but not many have faith that another disaster is not in the offing.  The fact that most CEO’s are still in charge on Wall Street and Ben Bernanke is still the head of the Fed does not exude faith in the US financial system.

The price of gas is rising rapidly and hovers at $ 4.20 a US gallon which also negatively impact the economy which impacts fear into the stock market.

The price of silver will rise further due to the physical metal shortage and the focus is on the physical market is

The physical market will never be devalued as much as the paper dollar and when you hold the actual gold or silver physically the benefits are far greater.


[easyazon-image asin="0982586116" alt="Buy Gold and Silver Safely: The Only Book You Need to Learn How to Buy or Sell Gold and Silver" src="http://ecx.images-amazon.com/images/I/51ialsbm1-L.jpg" align="center" width="190" height="300"]

[easyazon-image asin="0446510998" alt="Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future" src="http://ecx.images-amazon.com/images/I/51tvbEkXpUL._SL160_.jpg" align="center" width="101" height="160"]

Feds Refuse Disclosure on Bailout

Feds Refuse Disclosure on Bailout

Secretary Henry Paulson first approached Congress with the bombshell that the US economy would come to an end, let alone the world if an emergency bailout was not forthcoming.
 
Paulson demanded total control of the funds, legal indemnity and in a secretive manner would not disclose who would receive the funds or what comprises the collateral.
 
 
Not one person appearing that day or several days later seemed to be bothered by these terms, and seemingly were so afraid of the sky falling -they went along with the plan to bailout Wall Street.
This timeliness of the bailout came in the middle of a Presidential election, when most people and politicians were distracted by the election and the subsequent infighting in both parties.
Two trillion dollars later, we are no closer to the truth and in fact if we were to know the truth there would be a run on the banks.
Feds Refuse Disclosure on BailoutFeds Refuse Disclosure on Bailout
There are no details on the collateral in spite of the agreements made in September that both Ben Bernanke and Henry Paulson would comply with the demands for transparency Americans do not know where the money is going, and nor does Congress.
 
Bloomberg News is requesting the details under the FOI Act and has filed a lawsuit in the federal court several days ago to impose full disclosure.
 
Since it is taxpayers money to begin with, there should be truthfulness in who is receiving these funds and under what terms. Barney Frank said the Fed’s disclosure is sufficient and that the central bank’s risk exposure is appropriate during these hard economic times.
Everyone states they want transparency but this is basically a wash on disclosure and that is not acceptable.
 
Updated Sept. 28, 2011
 
We all know now that the Wall Street bailout went to executives in the way of Christmas Bonuses, golden parachutes and huge salaries for CEO’s like Lloyd Blankfein who took home 68.5 million dollars in cash and equities in 2007. Blankfein later shopped for a 40 million dollar estate in the Hamptons, a 26 million dollar apartment in Central Park and sold his Nantucket property for sale at 55 million dollars.
 
Goldman Sachs had partners also that received huge bonus money worth 12 to 15 million dollars, as well 30,000 employees received 10.9 billion in pay and bonuses that year.
 
 
 
 
Basically, they took the TARP money and paid themselves richly, rewarding themselves for criminal behavior in manipulating mortgages and derivatives.We know now that only Bernie Maddoff was sent to prison for his crime of a ponzi scheme but no other CEO’s have seen a jail cell.
 
 
Today, people are out of work in greater numbers than in 2007 and a certain backlash has started with Occupy Wall Street which is spreading like a virus across the USA.

People are standing up to these Wall Street crooks, in a peaceful demonstration that demands they be removed and banks to be dismantled by the government, so that control of the US financial system will not be subjected to any further criminal schemes by these same CEO’s who are still in charge on Wall Street.
Feds Refuse Disclosure on BailoutFeds Refuse Disclosure on Bailout
 
Feds Refuse Disclosure on BailoutFeds Refuse Disclosure on Bailout