The Peter Schiff Show Podcast

* Today's Podcast is entirely devoted to gold and gold stocks

* Last night, in just a few minutes, gold dropped $50

* One or more major sell orders hit the market at the same time and gold went down below $1100

* It was down $20 by the time New York trading opened and by market close gold was down around $37 on the day

* Silver was down only about .15 today

* Why was all that gold dumped? The goal could not have been to get a good price - the goal was to knock the price down

* The HUI was down 10% on the day

* This bear market in gold stocks is now bigger than the one from 1996 to 2000

* Gold stocks are much cheaper today than they were at the end of the dot com bubble

* If this a measure of trust in central bankers, the market is expressing greater confidence in Janet Yellen than it did in Alan Greenspan in 1999-2000,

* We know how badly that turned out for stocks and how bullish it turned out for gold

* The timing of this selloff comes on the heels of the media's spin on Janet Yellen's recent Congressional testimony

* But the real news that ignited the sell-off was China's admission that they have gold reserves and in fact they intend to add to those reserves, surprising the market

* If China was lying about how much gold they have had for the last six years, why does anyone believe they are telling the truth now?

* I think they are still lying - being strategic

* They want to get the price of gold down because they still want to buy a lot more gold

* If China still needs more gold, eventually this will bring the price of gold up

* Also a very negative WSJ article compared gold to the "pet rock" craze

* This is the same nonsense that proliferated in the 1990's

* The WSJ article describes gold investment as "a leap of faith" relative to dollar or stock investments

* Gold should not be compared to stocks - it is currency, a commodity

* Gold has intrinsic value, whereas the dollar is a fiat currency, backed by faith alone

* Gold has had value for 5,000 years - you don't need ot have faith, you just own it

* There will always be a use for gold

* Why have faith in central bankers when everybody who has put their faith in central bankers in the past has been burned

* An article on Zero Hedge compared the WSJ op-ed to a similar one from 1999

* The title was, "Who Needs Gold, When You Have Alan Greenspan?"

* They called him "the maestro"

* He gave us the dot com bubble, the real estate bubble and the financial crisis of 2008

* That's what happened to the people who put their faith in Alan Greenspan

* Over the next 12 years after that article was written, gold appreciated 650%

* Who needs gold when you have Alan Greenspan? Everybody

* Today Alan Greenspan recommends gold

* If we've got Janet Yellen, then we need gold

* Greenspan wrote the playbook that Bernanke and Yellen are expanding and he knows it does not work

* When you have Janet Yellen, you need all the gold you can get

* Fortunately, it's a lot cheaper to buy gold and it is a lot cheaper to buy the companies that mine it

* What could go wrong? Everything - what went wrong in 1999 and in 2008?

* The same thing that went wrong then will go wrong now, because it is the same central bankers

* And the same players on Wall Street either don't recognize the danger or are pretending it doesn't exist and abandoning everything we know about monetary policy

* This is the biggest bubble yet - the entire economy is dependent on bubbles

* Just when people trust the central bankers the most, that's the best time to buy gold

* When this market turns it's going to be vicious

* Once the market turns,

Our Sponsors:
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Today's Podcast is entirely devoted to gold and gold stocks

Last night, in just a few minutes, gold dropped $50

One or more major sell orders hit the market at the same time and gold went down below $1100

It was down $20 by the time New York trading opened and by market close gold was down around $37 on the day

Silver was down only about .15 today

Why was all that gold dumped? The goal could not have been to get a good price - the goal was to knock the price down

The HUI was down 10% on the day

This bear market in gold stocks is now bigger than the one from 1996 to 2000

Gold stocks are much cheaper today than they were at the end of the dot com bubble

If this a measure of trust in central bankers, the market is expressing greater confidence in Janet Yellen than it did in Alan Greenspan in 1999-2000,

We know how badly that turned out for stocks and how bullish it turned out for gold

The timing of this selloff comes on the heels of the media's spin on Janet Yellen's recent Congressional testimony

But the real news that ignited the sell-off was China's admission that they have gold reserves and in fact they intend to add to those reserves, surprising the market

If China was lying about how much gold they have had for the last six years, why does anyone believe they are telling the truth now?

I think they are still lying - being strategic

They want to get the price of gold down because they still want to buy a lot more gold

If China still needs more gold, eventually this will bring the price of gold up

Also a very negative WSJ article compared gold to the "pet rock" craze

This is the same nonsense that proliferated in the 1990's

The WSJ article describes gold investment as "a leap of faith" relative to dollar or stock investments

Gold should not be compared to stocks - it is currency, a commodity

Gold has intrinsic value, whereas the dollar is a fiat currency, backed by faith alone

Gold has had value for 5,000 years - you don't need ot have faith, you just own it

There will always be a use for gold

Why have faith in central bankers when everybody who has put their faith in central bankers in the past has been burned

An article on Zero Hedge compared the WSJ op-ed to a similar one from 1999

The title was, "Who Needs Gold, When You Have Alan Greenspan?"

They called him "the maestro"

He gave us the dot com bubble, the real estate bubble and the financial crisis of 2008

That's what happened to the people who put their faith in Alan Greenspan

Over the next 12 years after that article was written, gold appreciated 650%

Who needs gold when you have Alan Greenspan? Everybody

Today Alan Greenspan recommends gold

If we've got Janet Yellen, then we need gold

Greenspan wrote the playbook that Bernanke and Yellen are expanding and he knows it does not work

When you have Janet Yellen, you need all the gold you can get

Fortunately, it's a lot cheaper to buy gold and it is a lot cheaper to buy the companies that mine it

What could go wrong? Everything - what went wrong in 1999 and in 2008?

The same thing that went wrong then will go wrong now, because it is the same central bankers

And the same players on Wall Street either don't recognize the danger or are pretending it doesn't exist and abandoning everything we know about monetary policy

This is the biggest bubble yet - the entire economy is dependent on bubbles

Just when people trust the central bankers the most, that's the best time to buy gold

When this market turns it's going to be vicious

Once the market turns, it will move quickly that very few people will have an opportunity to buy

* Today Janet Yellen goes back up the Hill for the second of her 2-day Congressional testimony and the press has already made headlines about what she did not say

* According to the headlines, Yellen's "hawkish" testimony reflected that she is putting the Fed on a path to hike rates later later this year

* That is not what she said

* From her prepared, written testimony, which was carefully crafted for all eyes, this is what she said:

* "If the economy evolves as we expect, economic conditions likely will make it appropriate at some time this year to raise the Federal Funds rate target, thereby beginning to normalize the stance on monetary policy."

* This sentence starts with a big condition: "If the economy evolves as we expect"

* When has the economy ever evolved as the Fed expected? - Probably never

* Even if the economy improves, those improvements may not live up to the Fed's unspecified expectations

* "Economic conditions might make it appropriate to raise rates-

* Not result in raising rates, of require us to raise rates - just because it is appropriate to raise rates doesn't mean the Fed will raise them

* If the Fed was going to do what was appropriate, they would have raised rates a long time ago

* Zero percent interest rates was never appropriate

* Yellen herself has said she was likely to leave interest rates lower than would be appropriate because of "special circumstances"

* Even if it is appropriate, there is no commitment to raise rates at any point this year

* If Janet Yellen really said what the headlines infer, she would have said:

* "Given the strength in the economy we will be raising interest rates later this year

* She said nothing like that

* The Fed went way out of its way to commit to nothing

* Yet that's not the way the media is covering this

* Why is that? Everyone wants to pretend that the economy is good and that the Fed is going to normalize interest rates

* All of this make-believe causes the dollar to rally and gold to go down

* By talking about raising interest rates, the Fed is pretending that the U.S. economy is strong enough to withstand higher interest rates without actually inflicting the pain of higher interest rates on all those addicted to the bubble economy

* Yellen's responses to to questions during the Q&A were equally dovish

* At one point in particular Yellen admitted that we've had zero percent interest rates for a long time and will proceed slowly in any attempt to raise rates

* If we notice higher rates are causing pain, we will slow down

* What is hawkish about that?

* When Paul Volker raised rates to 20% of course he knew it would hurt the economy in the short term, but he knew it was needed

* Yellen is worried that if the patient makes a bad face, she will discontinue the "medicine"

* It is impossible to raise rates without hurting the economy, especially because a large part of our economy is now dependent on zero interest rates

* Higher interest rates will expose a lot of unsound business decisions

* It's not the economy that will be hurt, but the bubble - zero percent interest rates are the fuel for the bubble

* Zero percent interest rates are more essential now than they were six years ago

* Now we have much more debt to service

* An interest rates hike would quickly wipe out any minimal gain from a stronger economy

* The reality is the economy is already weakening

* 70% of our GDP is consumption fueled by debt

* Yellen said that zero percent interest rates may be a problem in the long run

* It's the long run now

* The deficit is already unsustainable

* One of the most interesting rates went unanswered:

Our Sponsors:
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Today Janet Yellen goes back up the Hill for the second of her 2-day Congressional testimony and the press has already made headlines about what she did not say

According to the headlines, Yellen's "hawkish" testimony reflected that she is putting the Fed on a path to hike rates later later this year

That is not what she said

From her prepared, written testimony, which was carefully crafted for all eyes, this is what she said:

"If the economy evolves as we expect, economic conditions likely will make it appropriate at some time this year to raise the Federal Funds rate target, thereby beginning to normalize the stance on monetary policy."

This sentence starts with a big condition: "If the economy evolves as we expect"

When has the economy ever evolved as the Fed expected? - Probably never

Even if the economy improves, those improvements may not live up to the Fed's unspecified expectations

"Economic conditions might make it appropriate to raise rates-

Not result in raising rates, of require us to raise rates - just because it is appropriate to raise rates doesn't mean the Fed will raise them

If the Fed was going to do what was appropriate, they would have raised rates a long time ago

Zero percent interest rates was never appropriate

Yellen herself has said she was likely to leave interest rates lower than would be appropriate because of "special circumstances"

Even if it is appropriate, there is no commitment to raise rates at any point this year

If Janet Yellen really said what the headlines infer, she would have said:

"Given the strength in the economy we will be raising interest rates later this year

She said nothing like that

The Fed went way out of its way to commit to nothing

Yet that's not the way the media is covering this

Why is that? Everyone wants to pretend that the economy is good and that the Fed is going to normalize interest rates

All of this make-believe causes the dollar to rally and gold to go down

By talking about raising interest rates, the Fed is pretending that the U.S. economy is strong enough to withstand higher interest rates without actually inflicting the pain of higher interest rates on all those addicted to the bubble economy

Yellen's responses to to questions during the Q&A were equally dovish

At one point in particular Yellen admitted that we've had zero percent interest rates for a long time and will proceed slowly in any attempt to raise rates

If we notice higher rates are causing pain, we will slow down

What is hawkish about that?

When Paul Volker raised rates to 20% of course he knew it would hurt the economy in the short term, but he knew it was needed

Yellen is worried that if the patient makes a bad face, she will discontinue the "medicine"

It is impossible to raise rates without hurting the economy, especially because a large part of our economy is now dependent on zero interest rates

Higher interest rates will expose a lot of unsound business decisions

It's not the economy that will be hurt, but the bubble - zero percent interest rates are the fuel for the bubble

Zero percent interest rates are more essential now than they were six years ago

Now we have much more debt to service

An interest rates hike would quickly wipe out any minimal gain from a stronger economy

The reality is the economy is already weakening

70% of our GDP is consumption fueled by debt

Yellen said that zero percent interest rates may be a problem in the long run

It's the long run now

The deficit is already unsustainable

One of the most interesting rates went unanswered:

Because you have waited so long to raise rates, what will the Fed do if we go back into recession?

The biggest disconnect is that people do not see that if interest rates went up, we would not be able to service out debt

I said the same thing about sub-prime mortgages - everyone thought real estate prices would go up indefinitely

The problem the U.S.

* As I have been saying all along, the Greek Prime Minister capitulated to German demands

* In fact, he is agreeing to a plan that is more onerous on Greece than the one he encouraged his own people to vote down just over a week ago

* Those who thought Greece held all the cards, that the Eurozone would risk a domino effect of other nations leaving the euro

* I felt Germany held the stronger hand and would push Greece from the Eurozone rather than cave in to Greek demands

* Greece is going to stay a part of the Eurozone, at least for now, because it is the only way they can get the bailout funds they need to sustain Greek socialism

* Greek socialism will be mitigated to a degree, by the austerity demands to cut government spending

* They don't need higher taxes

* If Germany were to allow the Greek debt to be forgiven, the moral hazard for other struggling states would be enormous

* The message Germany is sending is that it did not go well for Greece, it is not going to go well for any country who refuses to get their economic house in order

* Germany demonstrated that membership in the Eurozone is not for life

* This will force other countries to get their house in order

* I don't agree with Greece's choice, although it might be better for Greece in the short than leaving the Eurozone

* No Greek politician wants to accept responsibility for the austerity measures - it is easier to throw the blame over to Germany of Brussels

* Push comes to shove no politician is going to be able to undo Eurozone austerity measures without having to face the music

* Greece has run out of other people's money to fund socialism

* Now their debt to GDP will be over 200%

* They can't pay their debt now - how are they going to pay off a larger debt?

* Part of the austerity measures, included a €50 billion privatization program, similar to the IMP's recommendation years ago

* Greek government assets will be sold off for the benefit of foreign creditors

* I think it would have been best for Europe to kick Greece out and loan them no more money

* The euro is down today, but I think it is a dip to buy the euro

* This move will show the markets that the euro is here to stay

* Greece could have done one of two things:

* Greece could have refused the aid package and defaulted on the debt

* If they got kicked out of the euro, they could still use the euro as currency, they just would not have access to the ECB for bailout

* If this happened, banks would fail; the government would have to downsize, pensions would have to be cut;

* Without a tax income in euros, the government would have to operate on a balanced budget

* Eventually, relieved of the debt they currently owe, they would be about to re-establish better credit

* Greece could then enact real tax reform, become a tax haven in Europe and that would grow the Greek economy

* The liberals will point to Greek economic challenges as proof that cuts in government spending do not work

* It's not about asking the people who are already pulling the wagon to pull harder; it's about the people who are riding in the wagon to get out and start pulling themselves

* Greece needs government level austerity

* The Greek shipping industry is vibrant because it is not taxed

* If shipping is now taxed, it will drive the industry away from Greece

* In order to stimulate business with lower taxes, they would have to leave the Eurozone

* Another choice is to establish a sound drachma backed by gold

* Where would they get the gold? From privatization of assets

* I would use the proceeds to back up my currency

* Alternatively, they could back the currency with a Foreign Exchange Reserve

Our Sponsors:
* Check out Fast Growing Trees and use my code GOLD for a great deal: https://www.fast-growing-trees.com
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As I have been saying all along, the Greek Prime Minister capitulated to German demands

In fact, he is agreeing to a plan that is more onerous on Greece than the one he encouraged his own people to vote down just over a week ago

Those who thought Greece held all the cards, that the Eurozone would risk a domino effect of other nations leaving the euro

I felt Germany held the stronger hand and would push Greece from the Eurozone rather than cave in to Greek demands

Greece is going to stay a part of the Eurozone, at least for now, because it is the only way they can get the bailout funds they need to sustain Greek socialism

Greek socialism will be mitigated to a degree, by the austerity demands to cut government spending

They don't need higher taxes

If Germany were to allow the Greek debt to be forgiven, the moral hazard for other struggling states would be enormous

The message Germany is sending is that it did not go well for Greece, it is not going to go well for any country who refuses to get their economic house in order

Germany demonstrated that membership in the Eurozone is not for life

This will force other countries to get their house in order

I don't agree with Greece's choice, although it might be better for Greece in the short than leaving the Eurozone

No Greek politician wants to accept responsibility for the austerity measures - it is easier to throw the blame over to Germany of Brussels

Push comes to shove no politician is going to be able to undo Eurozone austerity measures without having to face the music

Greece has run out of other people's money to fund socialism

Now their debt to GDP will be over 200%

They can't pay their debt now - how are they going to pay off a larger debt?

Part of the austerity measures, included a €50 billion privatization program, similar to the IMP's recommendation years ago

Greek government assets will be sold off for the benefit of foreign creditors

I think it would have been best for Europe to kick Greece out and loan them no more money

The euro is down today, but I think it is a dip to buy the euro

This move will show the markets that the euro is here to stay

Greece could have done one of two things:

Greece could have refused the aid package and defaulted on the debt

If they got kicked out of the euro, they could still use the euro as currency, they just would not have access to the ECB for bailout

If this happened, banks would fail; the government would have to downsize, pensions would have to be cut;

Without a tax income in euros, the government would have to operate on a balanced budget

Eventually, relieved of the debt they currently owe, they would be about to re-establish better credit

Greece could then enact real tax reform, become a tax haven in Europe and that would grow the Greek economy

The liberals will point to Greek economic challenges as proof that cuts in government spending do not work

It's not about asking the people who are already pulling the wagon to pull harder; it's about the people who are riding in the wagon to get out and start pulling themselves

Greece needs government level austerity

The Greek shipping industry is vibrant because it is not taxed

If shipping is now taxed, it will drive the industry away from Greece

In order to stimulate business with lower taxes, they would have to leave the Eurozone

Another choice is to establish a sound drachma backed by gold

Where would they get the gold? From privatization of assets

I would use the proceeds to back up my currency

Alternatively, they could back the currency with a Foreign Exchange Reserve

If Greece abandoned socialism and became a tax haven the proceeds of privatization would yield much more to the Greek government because all of those assets are worth a much in a tax haven

A tax-free Greece, with all its natural resources, coastline and tourism, would be rich

Singapore and Hong Kong don't have nearly the resources of Gre...

* This podcast comes from my hotel room in Las Vegas, as I am attending Freedom Fest

* Janet Yellen received a standing ovation at the end of her talk, and I can't understand why...

* Headlines from the talk report "Rates to go up by the end of the year"

* Actual quote:"Based on my outlook, I expect that it will be appropriate at some point later to take the first step to raise the Federal Funds Rate, and thus begin normalizing monetary policy."

* "I want to emphasize that the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate the first step."

* In other words, the process will be delayed because whatever happens will be unanticipated or unannounced because the last thing Yellen wants to do is to admit that she can't raise rates.

* We have gone 9 years without a rate hike

* The market is not prepared for a rate hike given the enormity of the debt

* The U.S. owes more money than all the other debtor nations combined

* We can only pretend to be solvent and zero percent interest rates are a big part of that pretense

* We will not be able to service our debt under normalization

* Yellen states that the labor market is continuing to improve

* No, it's not

* Didn't she see Friday's jobs report, based on downward revisions to prior months?

* Didn't she see the plunge in the labor force participation rate to a new low since 1977?

* Didn't she see the all the part-time jobs that have replaced the lost full-time jobs?

* Didn't she see yesterday's weekly jobless claims report that surged to 297,000?

* Yellen previously stated that she would not raise interest rates until the labor market improves, and since then, the labor market has worsened

* Wholesale inventories for May up by .8%

* Year over year, sales are down 3.4%, the biggest decline since the 2008 financial crisis

* Greece is forced to revisit austerity measures as Germany refuses to budge

* Greece realizes they don't want to leave the Eurozone

* The moral hazards are such that Europe can't budge

* I dont'know how the Greek economy can grow, given the enormity of their debt in the hands of a socialist government

* Europe needs to keep pressure on Greece in order to maintain standards for weaker economies

* The Chinese stock market "collapse" is being overstated in the press

* Even though the Chinese market is down 30% in a short period of time the Chinese market is still positive on the calendar year

* The U.S. market is down

* In April of this year, Chinese stocks took off because changes in Chinese government policy, making it possible for investors to own certain stocks for the first time

* It should be no surprise that when a rush of investors tried to buy the new stocks, the price went up

* At some point there is going to be profit-taking, sparking panic selling

* This is normal market behavior

* The market just retraced its steps, leaving gains achieved prior to April

* The fundamentals that drove the market higher earlier this year are still solid, and they're in place

* The dip in the market is a buying opportunity

* The next round of gains will be more sustainable

* The Chinese government exacerbated the volatility, making a classic mistake by chasing the market

* U.S. economic pundits are commenting on the absurdity of the valuations on some of the Chinese stocks

* They are living in a glass house - why are they throwing stones?

* The same can be said about some U.S. stocks with ridiculous valuations

* The Chinese monetary policy is creating issues, but beneath the bubble is a legitimate economy with production growth, savings and investment

Our Sponsors:
* Check out Fast Growing Trees and use my code GOLD for a great deal: https://www.fast-growing-trees.com
* Check out Plaud AI and use my code GOLD for a great deal: https://www.plaud.ai


Privacy & Opt-Out: https://redcircle.com/privacy

This podcast comes from my hotel room in Las Vegas, as I am attending Freedom Fest

Janet Yellen received a standing ovation at the end of her talk, and I can't understand why...

Headlines from the talk report "Rates to go up by the end of the year"

Actual quote:"Based on my outlook, I expect that it will be appropriate at some point later to take the first step to raise the Federal Funds Rate, and thus begin normalizing monetary policy."

"I want to emphasize that the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate the first step."

In other words, the process will be delayed because whatever happens will be unanticipated or unannounced because the last thing Yellen wants to do is to admit that she can't raise rates.

We have gone 9 years without a rate hike

The market is not prepared for a rate hike given the enormity of the debt

The U.S. owes more money than all the other debtor nations combined

We can only pretend to be solvent and zero percent interest rates are a big part of that pretense

We will not be able to service our debt under normalization

Yellen states that the labor market is continuing to improve

No, it's not

Didn't she see Friday's jobs report, based on downward revisions to prior months?

Didn't she see the plunge in the labor force participation rate to a new low since 1977?

Didn't she see the all the part-time jobs that have replaced the lost full-time jobs?

Didn't she see yesterday's weekly jobless claims report that surged to 297,000?

Yellen previously stated that she would not raise interest rates until the labor market improves, and since then, the labor market has worsened

Wholesale inventories for May up by .8%

Year over year, sales are down 3.4%, the biggest decline since the 2008 financial crisis

Greece is forced to revisit austerity measures as Germany refuses to budge

Greece realizes they don't want to leave the Eurozone

The moral hazards are such that Europe can't budge

I dont'know how the Greek economy can grow, given the enormity of their debt in the hands of a socialist government

Europe needs to keep pressure on Greece in order to maintain standards for weaker economies

The Chinese stock market "collapse" is being overstated in the press

Even though the Chinese market is down 30% in a short period of time the Chinese market is still positive on the calendar year

The U.S. market is down

In April of this year, Chinese stocks took off because changes in Chinese government policy, making it possible for investors to own certain stocks for the first time

It should be no surprise that when a rush of investors tried to buy the new stocks, the price went up

At some point there is going to be profit-taking, sparking panic selling

This is normal market behavior

The market just retraced its steps, leaving gains achieved prior to April

The fundamentals that drove the market higher earlier this year are still solid, and they're in place

The dip in the market is a buying opportunity

The next round of gains will be more sustainable

The Chinese government exacerbated the volatility, making a classic mistake by chasing the market

U.S. economic pundits are commenting on the absurdity of the valuations on some of the Chinese stocks

They are living in a glass house - why are they throwing stones?

The same can be said about some U.S. stocks with ridiculous valuations

The Chinese monetary policy is creating issues, but beneath the bubble is a legitimate economy with production growth, savings and investment

This is economic growth that is missing in the U.S. economy

* Over the weekend the Greeks voted no to the Eurozone bailout terms

* The Greeks ars still hoping for a better deal, hoping to avoid austerity

* The irony is that the consequences of their vote will bring on even more austerity, as a return to the drachma will result in a lower-valued currency

* For example, pensioners will be paid not in fewer euros but drachmas that buy less

* This will mean a huge collapse in the standard of living in Greece - far worse than the "austerity" called for under the Eurozone bailout terms

* There is no way out without substantive reforms, particularly in smaller government

* The markets are reacting adversely because they want to extend and pretend

* The euro will be stronger without Greece, despite comments in the press to the contrary

* Fears of "contagion" - other countries leaving - are unfounded

* Greece is headed for hardship, but they will have to impose austerity from within they could rebound

* Greece has a lot of potential, they have natural resources and a thriving shipping industries

* The secret of the success of the shipping industry is that it is not taxed

* The answer will be fewer taxes and less government spending

* Short term, leaving the Eurozone will be negative for Greece

* The Greek vote will be positive for the euro

* There is still a flight to the dollar for safety over gold

* The reason gold has not benefited from Greek instability is that the dollar is still viewed as a safe haven

* More and more economic data reveals how weak the U.S. Eeconomy is

* This week the Service Sector PMI for June contracted from 56.8 in May to 54.8

* More and more people are looking for a rate hike in December rather than September, but they are still buying the narrative that interest rate hikes are feasible

* This belief supports the dollar over gold

* Our economy is weaker than other countries whose interest rates are higher

* When are the dollar buyers going to realize that they have jumped out of the frying pan into the fire?

* The dollar is the grandaddy of the fiat currencies

* In light of continued weak economic data and further deterioration in the job market, the Fed will have to come out with another round of QE

* That will be a game changer

* All the economic news around the world is fundamentally good for gold

* At some point the speculative forces that are restraining gold will not hold up

* All that stands behind the U.S. dollar is faith

* At one point people had faith in Greece, they had faith in Puerto Rican government bonds and in sub-prime mortgages - and then they didn't

* When we were on the gold standard, we had real value backing up our money

* All that stands between us and economic collapse is the faith we have in a worthless piece of paper


Our Sponsors:
* Check out Fast Growing Trees and use my code GOLD for a great deal: https://www.fast-growing-trees.com
* Check out Plaud AI and use my code GOLD for a great deal: https://www.plaud.ai


Privacy & Opt-Out: https://redcircle.com/privacy

Over the weekend the Greeks voted no to the Eurozone bailout terms

The Greeks ars still hoping for a better deal, hoping to avoid austerity

The irony is that the consequences of their vote will bring on even more austerity, as a return to the drachma will result in a lower-valued currency

For example, pensioners will be paid not in fewer euros but drachmas that buy less

This will mean a huge collapse in the standard of living in Greece - far worse than the "austerity" called for under the Eurozone bailout terms

There is no way out without substantive reforms, particularly in smaller government

The markets are reacting adversely because they want to extend and pretend

The euro will be stronger without Greece, despite comments in the press to the contrary

Fears of "contagion" - other countries leaving - are unfounded

Greece is headed for hardship, but they will have to impose austerity from within they could rebound

Greece has a lot of potential, they have natural resources and a thriving shipping industries

The secret of the success of the shipping industry is that it is not taxed

The answer will be fewer taxes and less government spending

Short term, leaving the Eurozone will be negative for Greece

The Greek vote will be positive for the euro

There is still a flight to the dollar for safety over gold

The reason gold has not benefited from Greek instability is that the dollar is still viewed as a safe haven

More and more economic data reveals how weak the U.S. Eeconomy is

This week the Service Sector PMI for June contracted from 56.8 in May to 54.8

More and more people are looking for a rate hike in December rather than September, but they are still buying the narrative that interest rate hikes are feasible

This belief supports the dollar over gold

Our economy is weaker than other countries whose interest rates are higher

When are the dollar buyers going to realize that they have jumped out of the frying pan into the fire?

The dollar is the grandaddy of the fiat currencies

In light of continued weak economic data and further deterioration in the job market, the Fed will have to come out with another round of QE

That will be a game changer

All the economic news around the world is fundamentally good for gold

At some point the speculative forces that are restraining gold will not hold up

All that stands behind the U.S. dollar is faith

At one point people had faith in Greece, they had faith in Puerto Rican government bonds and in sub-prime mortgages - and then they didn't

When we were on the gold standard, we had real value backing up our money

All that stands between us and economic collapse is the faith we have in a worthless piece of paper