Tag Archives: risk

Dear Federal Reserve: Please Raise The Price of Gold

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This sounds selfish but this is the only solution to prevent a world-wide recession.

prayingtogold

There are two possible solutions to the problem of the high dollar value and low gold price.  But before discussing the solutions, we need a little background information.

The Federal Reserve, the European Financial Organizations and the largest banks in the world have agreed to keep the US Dollar as the monetary standard.  To do that they need to manipulate the price of gold so it does not replace the dollar.  This means keeping the dollar high and the price of gold low.

Keeping the dollar high has the added advantage of keeping imports low which improves the US trade deficit.  Having a good trade deficit and a strong dollar gives the impression of a strong US economy.

One problem is Russia and China.  They are not happy with the high dollar value and low gold value.  Consequently they are creating their own monetary standard and creating exchanges in their own currency.  This allows them to avoid the US dollar completely.

Another problem is the largest banks such as JPMorganChase are dealing in large quantities of gold derivatives which is lowering the price of physical gold.  See this:

http://www.zerohedge.com/news/2015-07-09/are-big-banks-using-derivatives-suppress-bullion-prices

The real problem is the amount of debt of many countries around the globe.  Greece and the US are just 2 of 12 countries out of 64 whose debt is greater than their country’s Gross Domestic Product (GDP).  That means almost 20%of the largest countries in the world are in debt as seen in this website:

https://en.wikipedia.org/wiki/List_of_countries_by_public_debt

Now to discuss the solutions to the problems of  high debt and the high dollar value and the low gold price.

One solution is to let the nations in debt exchange their US dollars for gold.  But this could result in the depletion of US gold reserves and then the world would find out that the paper gold value does not equal the physical gold value. That would cause a run on banks, a rush to cash and possibly a global recession.

Chris Powell of the Gold Anti-Trust Action Committee said, “The system may end when one country pulls the plug on it, exchanging U.S. dollars and government bonds for more gold — real metal — than is available, or when ordinary investor demand exhausts supply, which is more or less how the London Gold Pool ended in 1968.”

So a better solution is to raise the price of gold to eliminate the debt around the world.  Some people are proposing a 7 fold increase in price.

Chris also said, “… a study in 2006 by the Scottish economist Peter Millar concluded that to avert such a catastrophic debt deflation, central banks would need to raise the gold price by a factor of seven to 20 times in order to reliquefy themselves and devalue their currencies and society’s debts…”

For more information on what Chris Powell said, read the following website:
http://www.gata.org/node/14839

Okay.  I admit I own GLD and UDN and this would benefit me.  But now I am giving you the chance to also profit from this information.  here is some more useful information:

https://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/

Thanks

Central Bank of Central Banks Warns Of Crash

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The Bank for International Settlements, BIS, warns that silence is NOT golden.

golden-gun-hd-wallpapers

The BIS has been warning for years of the dangers of very low interest rates.

“A common mistake is to take unusually low volatility and risk spreads [aka silence] as a sign of low risk when, in fact, they are a sign of high risk-taking,” said Claudio Borio, head of the monetary and economic department at the BIS.

Borio added that the last time uncertainty was this low was in 2007 — just before one of the largest forecast errors the economics profession has ever made [aka Great Recession].

Now the BIS has warned the world again.  This time with specifics.

The BIS said 55% of collateralised debt obligations (CDOs) now being issued are based on leveraged loans, an “unprecedented level”. This raises eyebrows because CDOs were pivotal in the 2008 crash. “Activity in the leveraged loan markets even surpassed the levels recorded before the crisis: average quarterly announcements during the year to end-September 2014 were $250bn,” it said.

See the following link for more information.

http://www.marketwatch.com/story/low-volatility-is-a-sign-of-high-risk-taking-bis-official-says-2014-09-14?siteid=nwham

Does the BIS have to get out its big guns to make its point?

Stock System for the Little Guy

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Why can’t anyone submit a stock sell order with a price range?  In other words with a maximum price AND a minimum price so you maximize your profit and minimize your loss?  Why do we have to hope it will go up and never go down?

Why do we have to use a 100 year old process that is susceptible to flash crashes and flash freezes?

Benefits of a selling price range include less risk.  A flash crash would be averted because free-falling stock prices would not happen since everyone would sell out at the lower price before a crash occurred.

But better yet, what if you allowed the maximum price to rise with the stock price?  The result is more profit if your stock rises even further.

And what if this new system works for shorting stocks as well as buying stocks?

There is a patent pending process called the Low High Trailing Execution Stock Orders System.

Time to enter the next century.