The Fed raises USD rates

True but the last reserve currency that fell was the pound and that barely coursed a ripple.

The importance of Americans to the rest of the world is big no doubt about it, but as all civilisation wane like Britain, Spain and Dutch before it won't be more than decade of slow growth nothing more.

Look at Venezuela and Zimbabwe economy have become tinpot countries but people still live and eat.
 
Ipv6Ready said:
If America let out all the prisoners, will it enter into a golden era of economic growth, would they contribute enough if at all?

If there is a depression, what comes next a recovery, a boom and a bust for the cycle to go on again or will there be a revolution and will everyone call each other comrades and work for good of each other, be it doctors or street sweepers earning the same every week.

Though after depression USA might recover to find out they are no longer the biggest economy in the world.
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Umm if poop hits the fan I see no scenario in which any prisoners are left alive. I have heard talk (third hand) that indicates there is a plan already in place. True or not, since I have no way of verifying this information.

What got America and the bankers out of the Great Depression? WAR

As far as the future who knows? My point is this, It is up to the people to decide. Not listen to people who have an agenda and a vested steak in the outcome.

Also have a couple of countries already started the everybody gets $x to live off. I remember seeing stories about it the last year however never read one.
 
Ipv6Ready said:
True but the last reserve currency that fell was the pound and that barely coursed a ripple.

The importance of Americans to the rest of the world is big no doubt about it, but as all civilisation wane like Britain, Spain and Dutch before it won't be more than decade of slow growth nothing more.

Look at Venezuela and Zimbabwe economy have become tinpot countries but people still live and eat.
Click to expand...


Umm Venezuela I hear they killed the animals at the zoo so the populace can live and eat.
 
SilverBum said:
Also the economist magazine in 1988 had a cover of a Phoenix rising from the ashes with a headline of 2018 gold standard. Nearly 20 years and look 20 trillion dollars of debt. I think they were right because they were privy to the plan all that time ago.
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As a matter of interest what does gold standard mean to you, does going to gold standard mean, US just clears all debt and replace it with gold, bearing in mind vast majority of debt is owed to average American citizens?

Would we be paying for coffee with fractional gold coins say micro gram dust speck, how would you buy a house, would it be a physical exchange of gold bars?

Or would it be the some private depository owned locals who will store the gold and we will exchange electronic gold like Visa cards and bank notes that say it's worth x ounce of gold?

Why not coal standard or oil standard, this bank note is covered by a barrel of oil, since USA has a large t of it.
 
Ipv6Ready said:
SilverBum said:
Also the economist magazine in 1988 had a cover of a Phoenix rising from the ashes with a headline of 2018 gold standard. Nearly 20 years and look 20 trillion dollars of debt. I think they were right because they were privy to the plan all that time ago.
Click to expand...

As a matter of interest what does gold standard mean to you, does going to gold standard mean, US just clears all debt and replace it with gold, bearing in mind vast majority of debt is owed to average American citizens?

Would we be paying for coffee with fractional gold coins say micro gram dust speck, how would you buy a house, would it be a physical exchange of gold bars?

Or would it be the some private depository owned locals who will store the gold and we will exchange electronic gold like Visa cards and bank notes that say it's worth x ounce of gold?

Why not coal standard or oil standard, this bank note is covered by a barrel of oil, since USA has a large t of it.
Click to expand...



What it means to me is irrelevant, but since you ask I will give you my own opinion on what that means.

It in my estimation would be a paper currency that is backed and perhaps exchangeable for gold. I would imagine after the insolvent banks ultimately fail, they will roll out a new currency backed or exchangeable for physical gold. The way to get this new currency or gold as it may be, would be using a federal entity for the delivery of currency or gold.

I would imagine the post office would be used for this in this scenario. Man around the holidays that line was long before imagine if that was the new form of banking.

As far as gold and why not this or that. Again this is not my idea in the first place just what I foresee as the future for my broke, country. As it was written about nearly 20 years ago in the Economist magazine.

I sure could be wrong but I will not say I hope I am wrong. I want the average american to actually wake up to what our government has actually been doing including 9/11 and everything after.

There is a website can't remember the name I will look for the story as I remember who put it on youtube where in 2025 the US government will spend 3 billion for defense. Also they predict that the population is extremely less then today.
 
TheEnd said:
Janet Yellen raised Fed rate to 1.25% this morning and most likely another rise to 2.00% in December.

She says 'The Great Recession' is basically over.

http://www.abc.net.au/news/2017-06-15/us-federal-reserve-raises-interest-rates/8619182
Click to expand...

What does this mean exacty?
"The Fed's announcement that it would begin paring its balance sheet later this year — "provided that the economy evolves broadly as anticipated" — involves its enormous portfolio of Treasury and mortgage bonds."
 
SilverDJ said:
What does this mean exacty?
"The Fed's announcement that it would begin paring its balance sheet later this year — "provided that the economy evolves broadly as anticipated" — involves its enormous portfolio of Treasury and mortgage bonds."
Click to expand...

It owns a lot of bonds, ie "QE" bonds that it bought which has been earning interest
The FEDs are going to slowly sell it to the funds who will purchase it. I believe they have like $5 trillion worth.

As they sell it they will clear it off their books for a big profit.

Similar to when us and U.K. government loaned/bailout GM and Chrysler from Feds and Lloyds Bank got from exchequer. The government have made decent money from all three transactions
 
Ipv6Ready said:
It owns a lot of bonds, ie "QE" bonds that it bought which has been earning interest
The FEDs are going to slowly sell it to the funds who will purchase it. I believe they have like $5 trillion worth.

As they sell it they will clear it off their books for a big profit.

Similar to when us and U.K. government loaned/bailout GM and Chrysler from Feds and Lloyds Bank got from exchequer. The government have made decent money from all three transactions
Click to expand...


You are saying the US gov made money on the GM stock buy program?

https://www.forbes.com/sites/brians...-taxpayers-with-10-million-loss/#1479bcf03512
 
Jim4silver said:
You are saying the US gov made money on the GM stock buy program?

https://www.forbes.com/sites/brians...-taxpayers-with-10-million-loss/#1479bcf03512
Click to expand...

Do you take into account if GM closed and all its employees and contractors required benefits?

In the same article

"GM bailout helped save 1.2 million jobs in 2009 and ensured $39.4 billion taxes over two years" that was in 2013, presumably GM have paid billions more every year since. Feds could have could have let GM go into bankruptcy and be taken over by Germans, Koreans or Japanese and potentially taken vast majority of manufacturing overseas if they had capacity and more efficient be it, technology or cost. So yes the Feds made money.

It is very much like the 2nd Airport in Sydney, no private enterprises wanted to fund it. None was saying the second airport wont make money but in current environment it was too risky to fund for infrastructure that will require billions and not break even for ten years.

So the government is funding it, to the government this will create tens of thousands of jobs in the building stages and new infrastructure to western Sydney. Generating billions over the life time in taxes and new economic activity around the area.
 
Ipv6Ready said:
So the government is funding it, to the government this will create tens of thousands of jobs in the building stages and new infrastructure to western Sydney. Generating billions over the life time in taxes and new economic activity around the area.
Click to expand...

Even if this were true, and ignoring problems with diverting capital investment to cost-ineffective projects and forcing cost burdens upon non-users, as long as governments maintain or even increase their budgetary gaps, then any potential benefits will not accrue to the tax payer.
 
I'm almost a week late on this:

CNBC Source Link
CNBC said:
The Federal Reserve approved its second rate hike of 2017 even amid expectations that inflation is running well below the central bank's target.
Click to expand...

CNBC said:
As financial markets had anticipated, the policymaking Federal Open Market Committee increased its benchmark target a quarter point. The new range will be 1 percent to 1.25 percent for a rate that currently is 0.91 percent.
Click to expand...

CNBC said:
In addition, the Fed provided more detail on how it will unwind its $4.5 trillion balance sheet, or portfolio of bonds that includes Treasurys, mortgage-backed securities and government agency debt.
Click to expand...
 
Interest rate hikes = money supply tightening = DEFLATION.
Less currency (not money) going into Gold & Silver = lower prices for them, until the average citizen panics out of the devaluing currencies & bids up the limited above-ground supplies of both metals.
There are only about 2 Billion oz. of above-ground Silver in the world. This equates to about 1/4 of an ounce for each person on the planet.
Do you have your 1/4 oz. of Silver? _JOHNLGALT.
 
The FED (allegedly) collapsed the stock market on purpose, by tightening the money supply into a collapsing economy similar to what we have today.

The main difference today is that the $U.S. is the World's Reserve Currency - which it was not back in 1929.

The Crash of 1929 PBS Documentary

1 HOUR 16 minutes of history of packaged HISTORY for those wanting to know what happened.

It is well worth the watch if you don't know the story. _JOHNLGALT. (SilverDoctors member)


 
There is a nice article on the silverbearcafe website.



When there Click ENTER, then Click Precious Metals

Silver and the Great Future of Mexico by Hugo Salinas Price _JOHNLGALT.
 
SilverDJ said:
What does this mean exacty?
"The Fed's announcement that it would begin paring its balance sheet later this year — "provided that the economy evolves broadly as anticipated" — involves its enormous portfolio of Treasury and mortgage bonds."
Click to expand...


Nominal vs. real interest rates:
What matters is whether real interest rates are positive or negative. Negative real interest rates, which occur when rates are running below the inflation rate, are favorable for precious metals. So interest rates could skyrocket at the same time as precious metals prices rise. As long as rate hikes are behind the curve, gold and silver will have a tailwind.

It is not so much whether the Federal Reserve Board is raising or lowering rates in nominal terms, but whether real interest rates are running above or below inflation.
 
The above Video about the 1929 Crash with J.K.Galbraith speaking is a classic, and whatever your politics, is an Historic record of that period.

Maybe some can learn something of that time if they are willing to listen.

No Crypto BULL$#!T back then, just good old-fashioned manipulation (allegedly) ha, ha _JOHNLGALT.

_JLG. you've upset the Cryptologists again, lol.
 
My comments on Zero Hedge to the December rate hike in 2015.

Policy error, (or intentional as in 1929)?
RATE HIKE_DEC 2015.JPG
 
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