Tuesday, February 26, 2013

The Federal Reserve Is Already Insolvent

"I am making the assumption that the Fed will not suffer any losses on the toxic mortgage securities it still holds, and that its other assets are recorded at a fair market value. Both of these generous assumptions would mean that the Fed is probably in worse financial shape than I am indicating.

So the Fed governor's study is off-the-mark. So, again, the Federal Reserve is already insolvent, but like all banks, they get around this reality with accounting gimmicks. A bank only marks assets to market if they are in the bank's “trading” portfolio. If the bank claims it will hold the asset to maturity, the asset is put into its “investment” portfolio and does not need to be marked to market. Of course this accounting gimmick only masks the true value of the asset.
But the simple analysis above reveals that the Federal Reserve is insolvent. Like many zombie commercial banks that are still operating by being propped up with government handouts, the Federal Reserve is liquid, but not solvent. What is important for investors to understand here is that this is dire news for the dollar.”

- James Turk, via a recent King World News Interview:

Wednesday, February 20, 2013

Central Planners Are About To Completely Lose Control

"Given the ongoing bullish backdrop for the metals, we may be reaching the tipping point when the central planners completely lose control. They are so fearful of that event, they attack the one market over which they have the most influence, and which is also the one market that will send signals to the world most friendly to the central planners' cause - they trash gold. And they do it by selling paper derivatives.

On Friday there was a headline saying “Gold futures tumble in wake of Fed's Empire State data.” I mean, what does that have to do with gold? All it says to me is that the central planners were using every news release last week as cover for their interventions in the market to make it look like investors were driving the price of gold and silver lower so government interference would be somewhat cloaked.

Who thinks this drop is going to dissuade Chinese buyers, who are now back in the market this week after being outré last week for their New Year celebration? Who believes that the central planners are going to manage currencies to preserve purchasing power?

- James Turk via a recent King World News interview, read the full interview here:

Sunday, February 17, 2013

There Are Too Many Fiat Currencies Being Printed

“Sentiment is fairly weak at the moment, even while the fundamental picture is improving. Look at some of the evidence. For example, Brent crude is at a 9-month high and approaching $120 per barrel. All of the usual excuses for this price rise are being given, like strong demand from China, lower OPEC production, and ongoing concerns about political instability in North Africa.

These factors are having an impact of course, but what is being ignored is the most important explanation because people aren't paying attention. There is no shortage of crude oil. Rather, there are just too many dollars, euros, pounds and other fiat currencies being printed by central banks...."

- James Turk via a recent King World News interview, read the full interview here:

Thursday, February 14, 2013

Gold and Silver Have Some Catching Up to Do

“Increasing attention needs to be given to what is happening with the quantity of money, Eric. All the money printing ordered by central planners is starting to take effect. US dollar M1 has now been growing at double-digit rates for two years. Over the same period M2 growth has been in the high single digits. Even the broader measure of dollars, M3, which is calculated by ShadowStats.com, is at 4.5%, which is the highest rate of growth in more than 3½ years.

Money is no different from any other good or service. It too complies with the laws of supply and demand. If you create money at a rate faster than the demand for it, its ‘price’ declines, which for money is its purchasing power. With crude oil and other commodity prices like copper continuing to work their way higher, the purchasing power of dollars and other fiat currencies is being eroded. So all of this money printing is clearly taking hold and becoming apparent. That gold and silver prices remain in their trading ranges suggests to me that both of them have some catching up to do with the price rises we are seeing in some basic commodities."

- James Turk, via a recent King World News interview, read the full interview here:

Saturday, February 9, 2013

History Will Repeat Itself

James Turk appears on Future Money Trends. He discusses how the most important thing for investors at this time is to keep your money safe. How do you do this? Of course you invest in gold and silver. He see's history repeating itself, gold will go higher and stocks will fall.

- Source: Future Money Trends:

Tuesday, February 5, 2013

Suspension of the Debt Ceiling

“But here's the really important point: These two words used by Bloomberg in reporting this event – temporarily suspend – are chilling… These are the exact same two words that Nixon used in his August 15, 1971 speech announcing that he was breaking the dollar's link to gold. “His temporary suspension has now lasted 42 years, which is the key point I am making here. This suspension of the debt ceiling is not going to be temporary. Each time it comes up for consideration, the politicians will just keep extending the suspension again and again. They will always take the soft political option.”

- Source, GoldMoney Research:

Saturday, February 2, 2013

Gold, SIlver and the 2013 Debt Crisis

James Turk of Goldmoney is interviewed by "Future Money Trends". In this interview, James shares his outlook for both gold and silver going into the year 2013. Also he discusses the potential for a 2013 debt crisis.

- Source, Future Money Trends: