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Intruder Arrested After Entering White House Grounds With Trump Inside

Shortly before midnight last night, with President Trump in residence, Secret Service arrested a backpack-carrying man who breached security by scaling a fence near the south entrance to The White House.

The Washington Post reports, the person scaled a White House fence Friday night and was arrested on the grounds of the presidential residence, according to the U.S. Secret Service.

The incident occurred about 11:38 p.m. on the south grounds of the executive mansion. Uniformed officers with the Secret Service arrested the person without incident, according to a statement.

Authorities said the person was carrying a backpack that was searched. It did not contain any hazardous materials, the Secret Service statement said.

Officials did not identify the person who was arrested. Officers searched the north and south grounds of the White House complex and found nothing.

CNN confirms President Trump, who was in residence at The White House, was made aware of the situation, and The White House was placed under security condition “orange,” one of the highest levels of security for the Secret Service.

This appears to be the first incident of President Trump’s term, but as CNN notes, there have been numerous instances of people trespassing on the White House grounds over the last several years.

In one notable instance in 2014, 42-year-old Omar Gonzales, of Copperas Cove, Texas, made it through the north portico doors with a three-and-a-half-inch folding knife in his pants pocket, according to the Secret Service. Gonzalez was apprehended just after making it inside the doors, the Secret Service said. The first family was not at the White House at the time.

In another, the Secret Service apprehended Joseph Caputo, of Stamford, Connecticut, on the North Lawn after he scaled the fence wearing an American flag-like cape while the first family was inside the residence celebrating Thanksgiving.

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Widespread AT&T Outages Reported Across The U.S.

Two weeks after a massive Amazon cloud outage crippled numerous websites on the East Coast, this morning users of AT&T across the nation are reporting widespread outages in their cellphone service. This appears to be confirmed by the current downdetector.com data on reported problems with the cellphone carrier.

Twitter users from around the country have confirmed the interruption in service.

.@zerohedge ATT Service Down in Baltimore Cannot Make a Call! pic.twitter.com/MKzlLM39BU

— StockBoardAsset (@StockBoardAsset) March 11, 2017

AT&T is having issues since 10:09 AM ESThttps://t.co/GfgQnSQj5e
RT if you’re also affected #attoutage pic.twitter.com/6DQLxjHcJl

— Outage Report (@ReportOutage) March 11, 2017

No ATT cellular service what’s going on!?

— Mark Wilmes (@mcwilmes) March 11, 2017

Can’t make phone calls. Have @ATT service. Anyone else having the same issue? #attoutage

— Nikki Chasteen (@NikkiChasteen) March 11, 2017

@ATT I have full service LTE but all of my calls automatically are dropped.

— Haley Dolive? (@haleydolive) March 11, 2017

@ATT our service isn’t working.

— Lon Lane (@lon_lane) March 11, 2017

Yo, @ATT, when will I be able to make phone calls again? #attoutage ????

— Kristina Jingling (@kjingling) March 11, 2017

@ATT are you guys fixing towers in Tucson??

— Benben Miles (@benben_miles) March 11, 2017

Hell wrong with @ATT

— Yana (@_Bunsworld) March 11, 2017

@ATT I’m having the same problem!! I can txt and FaceTime but no one can call me and I can’t call out!!!! HELP ME

— jacquelyn (@JacquelynBeatty) March 11, 2017

@ATT fix ur fuckin service, why can’t I make or receive calls right now!?

— WhenALitNiggaWantYou (@Henny_Hardaway) March 11, 2017

@ATT When I dial 611 or (800) 331-0500 from my iPhone, I immediately get “Call Ended.” Is Customer Support operational at this time?

— Jim Bond (@JimBond01) March 11, 2017

No why tf AT&T won’t let nobody dial out ????????????

— Jefe (@Nonchalant_I) March 11, 2017

Anyone else having trouble making/receiving calls on @ATT ?

— #Resisting (@I_Luv_Thinkers) March 11, 2017

While some have joked that AT&T has activated the downtime to remove embedded CIA eavesdropping features, for now there has been no official statement from AT&T… or from the crack team of Kremlin-controlled spies for that matter.

h/t @StockBoardAsset

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When This All Blows Up…

Authored by Chris Martenson via PeakProsperity.com,

This report marks the end of a series of three big trains of thought. The first explained how we’re living through the Mother Of All Financial Bubbles. The next detailed the Great Wealth Transfer that is now underway, siphoning our wealth into the pockets of an elite few.

This concluding report predicts how these deleterious and unsustainable trends will inevitably ‘resolve’ (which is a pleasant way of saying ‘blow up’.)

The Ka-POOM Theory

In terms how this will all end, we favor the scenario put forth by Eric Janszen in 1998 called the Ka-POOM theory.

This theory rests on the belief that the Federal Reserve along with the other world central banks looked at Japan’s several decades of economic stagnation and decided that deflationary recessions are to be avoided at all costs — even if that means blowing asset bubbles and then cleaning up the destruction left behind in their aftermath.

Because the Fed, et al. have a limited playbook (which is: print, and then print some more), the Ka-POOM model calls for limited periods of disinflation, followed by massive money printing sprees that then produce high inflation.

Despite the trillions and trillions in thin-air money printed by the world’s central banks over the past 8 years, a common rebuttal we hear is “But there’s been no inflation so far!”  To which I reply, “Yes, that’s what we’re being told. But that’s not actually true.”

Remember: inflation is simply “too much money chasing too few goods.”  We can detect today’s excess of money in the rising prices in our cost of living — but those higher prices are symptoms, not causes. Inflation is not “higher prices”. Inflation is “too much money”.

Next, inflation is not an evenly-distributed event. It’s not like the price of everything rises 10% at the same time. The inflation rate is an average, which contains some prices going up, while others stay flat or even go down going down. It’s always a lumpy experience.  The reason why is that money is not evenly distributed across the economy, and it doesn’t always chase (or desire) the same things.

So the Fed and other central banks have printed up trillions and trillions of dollars, euros and yen, which they then essentially handed over to the financial markets and the very few people who work within them (as well as their biggest clients).  As a direct consequence, we’ve seen enormous inflation in the prices of things that relate to that tiny universe of people – stocks, bonds, trophy city apartments, Gulfstream 5 jets, fine art, and rare gems. 

These items have all gotten massively more expensive over the past decade. Just as would have happened if the Fed had printed up a trillion dollars and given them everyone living in a trailer park in the American South, with the restriction that the money could only be used to buy other trailers in the region. Do you have any doubt that the price of trailers in the South wouldn’t explode upwards?

Well, that’s exactly analogous to what has happened to financial and trophy assets. The amount of money created and poured into the financial markets by that central banks has been incredibly enormous. As a first-order event, it raised the prices of nearly all financial assets. And then, as a second-order derivative, it then flowed into the properties and cherished possessions of the financial industry insiders. 

The summary is that we’ve already had lots of inflation – but it has (so far) been mostly contained to the areas where the freshly-printed money was first directed. No surprise there.

But it’s certainly not only been limited to the rarified items the rich enjoy. Anyone who is currently looking to purchase a home, car or college education has a pretty good idea how prices have jumped substantially over the past decade.

Here’s the thing about the attempts by central banks to circumvent the workings of the actual economy by simply printing up money: It is doomed to fail. It always does; one cannot simply ‘print up’ prosperity.  Printing up money merely creates the illusion of free wealth for those with first access to it. In reality, what happens is that it secretly transfers the wealth from everyone else to those lucky few. 

The Fed and the rest of the central banking cartel are consciously and very pointedly picking winners and losers.

It’s not in their power to make everyone a winner.  So they have decided to throwing granny (and savers and pensions) under the bus while financial elites and well-connected speculators (e.g. JP Morgan and other large banks) extremely wealthy in the process.  Wealth is being transferred from Parties B-Z to Party A – from the many to the few.

What the Fed promised would happen along with all of this money printing has not materialized. There has been no return to rapid economic growth. And there won’t be, because we have massive structural problems in our economy that can’t be papered over forever.

This stark fact makes the Fed’s entire money printing misadventure not just pointless, but dangerously destabilizing from a social and political perspective. The world’s central banks, especially the Fed, have done an enormous amount of damage. These institutions, as well as the decision-makers within them, are going to have a heck of lot to answer for when the inevitable crack-up comes.

A Quick Re-Cap

And so here we find ourselves, at the final torturous, grinding part where the final bubble top is formed. The über-bubble. The Greatest Of Them All.

A bubble this spectacular requires a top worthy of its size. A long, massive top, full of increasing exuberance — until the very last investor is sucked in. 

Where I’ve noted humans’ remarkably silly behavior during bubble episodes in the past – tulip bulbs, railroads, swampland  – I still struggle to understand or even explain this one.

It’s so obvious at this point. And yet, like its brethren bubbles of the past, a lot of otherwise thoughtful and careful people are getting sucked in by its siren song.

I guess the best economic description of it might be “a credit bubble” with sub-components like sovereign and household debt, and sub-sub-components like Toronto real estate and the IPO price for SNAP shares (that’s Snapchat, which soon after its launch, had a valuation of $40 billion. This mind you, is a company that has no identifiable revenue model).

A credit bubble occurs when the issuance of credit grows faster than income supporting it. Here’s what that looks like on a national scale for the US. The bottom red line is income (GDP) and the top blue line is Total Debt. We can see that debt has been growing at twice the rate of GDP since 1970:

Debt to GDP

You have to be quite delusional to think that debt can be compound at twice the rate of income forever. Unfortunately, there are more than a few of those ungrounded optimists working in central banks and governments the world over. Their thinking is simply, The sky’s the limit! 

Those of us living in reality find this mindset puerile and insulting. And, of course, dangerously reckless. And it’s also maddening to hear the media cheerleaders for Wall Street selling us this bunk as if it were somehow sensible.  It is not.

Look, millions — likely billions — of people are at risk of getting badly hurt. When this bubble blows, it’s going to be enormously destructive and take out a lot of wealth along the way.  Millions of jobs will be destroyed. What people think of as wealth will evaporate as though it never existed in the first place (it didn’t). Political dynasties and major financial institutions will be ruined.

As I wrote recently, this will be widely and popularly referred to a period of wealth destruction. It will feel that way to must, but it will be actually be a period of wealth transfer:

The summary here is this: We are still printing and borrowing enormous amounts of money and credit, but the world is not growing any larger in response.  The pressure is building.  Nobody knows when all of that money and credit will have to be ‘trued up’ against the amount of real stuff out there. But it will. History shows us that it always does.

 

And that moment will be referred to by most as a period of wealth destruction. 401ks will be shredded, bonds will become worthless, defaults will spike, institutions and entire countries will fail – but the truth is that all of that paper ‘wealth’ was an illusion. People’s faith in it had been betrayed long before, when those in power started abusing the system by creating too many tertiary claims.

 

After the dust settles, there will be winners and losers, and those with the proper framework will understand that what actually happened was that all of the wealth was transferred from those who thought they owned it, to those who actually did.

 

The biggest remaining question is whether the wealth transfer comes about in the form of an inflationary destruction, like in Venezuela today, or as a deflationary bust more in the fashion of Greece.

(Source)

The only thing that capable of preventing this coming carnage would a resumption of rapid economic growth. And I mean growth that exceeds the rate of debt creation.

But that’s simply not going to happen. 

The Problem With Growth

We can dispense with the idea of “solving” our too-much-debt problem by a resumption of rapid economic growth either by deduction or observation.  Both work just as well on their own, but each tells a similar story in this case. 

The deductive route notes that economic growth stimulated by ever-higher amounts of borrowing simply requires greater and greater debt loads to accomplish.  Eventually debt levels simply become too high, and pinch off growth.

We can also deduce that because economic growth is tightly linked to energy consumption, lower amounts of usable energy flowing through an economy will cause that economy to stall out as well. Because we know that both the quantity as well as the net yield we get from our energy-producing activities are flattening, this explains why GDP growth is flattening too.

Thus, from a deductive standpoint, combining what we know about high levels of debt and flattening energy returns energy there’s really no more room for confusion about why GDP growth is, and will remain, anemic (at best).

Observationally, we now have more than a full decade of sub-par (i.e., ‘too low’) world GDP growth: 

Debt to GDP

(Source)

Notice that the last year of data, 2016, is coming in at the lowest reading since the Great Recession, while the next two years are estimated to also come in at less than 3%.  The world hasn’t averaged 3% GDP growth in a decade. Even the mighty US has gone more than ten straight years without breaking into the 3% range. 

We have to ask: How many years does it take to finally admit that there’s something seriously wrong with our hopeful story line that robust growth is going to save our debt-ridden bacon?

Just for the record, things are not shaping up any better here in 2017 either…

Atlanta Fed GDPNow model predicts 1.2% 1Q17 growth

And, just for kicks, we might also note that the GDP forecasting agencies of the world have consistent in over-estimating future growth.  Of course, this doesn’t deter them from continuing to predicting higher future growth each year. As a case in point, here are the IMF’s predictions for world growth over the past 6 years:

Debt to GDP

(Source)

Each of those colored lines is a forecast.  Each of them foresaw growth going notably higher in the near future.  Not only was every one of them utterly wrong in direction, each failed at getting even the next quarter anywhere close to right.  See how none of those lines ever dips below 3%?  See in the prior chart how global growth never breached 3% in any of these same plotted years?

For a variety of reasons, with aging demographics being a huge factor, future growth in the OECD countries must slow: 

Debt to GDP

(Source)

My ‘prediction’ is that these projections will turn out to be far too high. Mainly because I include declining net energy in my views and no mainstream economist ever does.  But the track records of these outfits shows that taking the ‘under’ side of the over/under bet offers incredibly safe odds.

At any rate, the main story here is that the only way we can begin to justify the astronomical levels of debt currently on the books, let alone slathering on new tranches just to keep the whole thing form imploding, is to have a story of endless, rapid future economic growth. Which is, we’ve already shown, a delusional fantasy.

Stagnating growth, ever more trillions of debt, and a finite amount of depleting net energy all adds up to an unsustainable mess.  With asset price bubbles everywhere and wealth transfer mechanisms already in place, the end-game involves a very few winners and a lot of losers.

Anything that is this unsustainable will someday end. But how? And how should we position ourselves for it? 

In Part 2: The Ka-POOM! Survival Guide, we detail in depth the most likely progression predicted by the Ka-POOM! model. First, a punishing crash in prices as natural market forces eventually overwhelm the Fed’s doomed efforts to print the world to prosperity. Think of the 2008 crash, but on steroids.

Then will come the inevitable response from the central banking cartel: Set the printing machines on maximum speed! While this may seem to work for a brief while, it will soon collapse the world’s currencies in a hyperinflationary deluge.

This will be a very tricky time for preserving wealth as things swing violently from disinflation to inflation. Understanding the mechanics and knowing what to expect will be critical — not just for safeguarding your money, but for taking advantage of what will surely be some of the best bargains of our lifetime.

Click here to read the report

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Restaurant Sales And Traffic Tumble In February

There appeared to be a glimmer of hope for the restaurant industry last month, when BlackBox Intelligence’s TDn2K titled its most recent Restaurant Industry Snapshot: “Flat Sales, Welcome Change for Restaurant Industry in January.” In the report, it said that “while same-store sales growth was flat (zero percent) in January, it represented a welcome break from the ten consecutive months of negative sales growth experienced by the industry through the end of last year.” That finding, however, was refuted by a recent Reuters/Ipsos opinion poll which found that one-third of the 4,200 adult respondents said they were eating in restaurants less often than three months ago. The poll was conducted in the second half of January. Of them, 62% cited cost as the primary reason.

The modest recovery was also denied by the most recent Restaurant Performance Index report by the National Restaurant Association, which lamented that “same-store sales and customer traffic levels remained soft” in January, which kept the Current Situation Index (tracking same-store sales, traffic, labor and capital expenditures) at 98.6 in January, the fourth consecutive month of contraction, and tied for the worst print in four years.

More concerning was the disclosure by restaurant operators, 50% of whom said same-store sales declined year-over-year, the second highest reading in recent history and second only to the 53% reported last August.

Quite unlike the rosy picture of consumer spending painted by various other macroeconomic data points such as consumer spending, or even alleged wage growth, looking at one of America’s favorite pastimes – eating out – the situation has rarly been more gloomy.

While the silver lining to the latest RPI report was a surge of hope in the near-term futures as a result of the “animal spirits” unleashed by Trump, which have impacted everything from the stock market to the jobs report (recall the January-February plunge in people out of the labor force was the biggest on record), the latest, just released report by TDn2Kquickly doused those hopes in its latest, February, Restaurant Industry Snapshot which found that “Restaurant Sales and Traffic Tumble in February.”

Same-store sales fell -3.7 percent in February, with traffic declining -5.0 percent. Unfortunately, January’s improved results were not a turning point in declining industry performance. Trends are hard to discern since weather, holiday shifts in Valentine’s Day and President’s Day and winter breaks distorted weekly results.

A macro view leaves little room for optimism. Same-store sales averaged -2.7 percent for the last three months. February’s results were among the weakest in the last four years.

Restaurant Sales and Traffic Tumble in February

Same-store sales fell -3.7 percent in February, with traffic declining -5.0 percent. Unfortunately, January’s improved results were not a turning point in declining industry performance.

A macro view leaves little room for optimism. Same-store sales averaged -2.7 percent for the last three months. February’s results were among the weakest in the last four years. This insight comes from data by TDn2K through The Restaurant Industry Snapshot, based on weekly sales from over 26,000+ restaurant units and 145+ brands, representing $66 billion dollars in annual revenue.

Guest Checks Plummet

Guest checks grew by a modest 1.2 percent in February, the lowest rate in four years. By contrast, checks had grown roughly 2.3 percent in the previous six months. This is a function of more conservative pricing, customer trade downs or discount promotions. All segments experienced a decline in the rate of check growth last month. Casual dining and quick service were virtually flat compared with the prior year. The bar and grill sub-segment actually experienced a drop in average checks versus 2016.

The Macroeconomic Environment

“While the stock market soars and confidence jumps, the economy continues on its steady but unspectacular upward path,” reported Joel Naroff, President of Naroff Economic Advisors and TDn2K economist. “Growth in the first quarter should exceed the tepid pace at the end of last year and with Europe finally starting to recover, the economy should pick up steam as we move through the year.”

Consumers are spending, but they are being battered by rising inflation. The rebound in energy costs may be helping that sector but it is not doing much for households. Indeed, spending power has flatlined as wage gains are barely offsetting price increases. That is putting additional pressure on the restaurant industry.

Still, the labor market is as tight as it has been in decades. Rising wages should lead to better spending in the months ahead. One note of caution: “The higher inflation has given the green light to the Fed to raise rates and if Trump spending and tax policies are implemented, rates are likely to rise faster than most currently expect.”

Income Tax Refund Delay

The IRS delayed roughly 40 million tax refunds associated with families claiming the “Earned Income Tax Credit” or the “Additional Child Tax Credit” this year. These delays undoubtedly depressed sales in the early weeks of February. In 2014, almost 30 million families received more than $70 billion in Earned Income Tax credits. Even a small delay in refunds had the potential to greatly impact consumer spending. Looking forward, the release of refunds provides some upside for the industry in the coming weeks. Curiously, none of this alleged weakness was observed in the recent retail sales data, which quite the contrary came in stronger than expected.

Upcoming: The Easter Effect

Easter is in April this year instead of March. The potential impact varies by segment. Brands where diners tend to celebrate special family occasions, such as upscale casual and fine dining, typically see an increase in sales during these periods. For these segments, same-store sales growth will likely be hurt in March but aided in April. For the dining segments where the holiday shift is less likely to impact consumer behavior, the sales impact will be less pronounced.

The Restaurant Workforce

According to the Q1 2017 Workforce Index published by TDn2K’s People Report restaurant operators predict staffing challenges to continue in 2017. However they are increasing at a slightly slower pace. One factor in this relative easing of labor woes is the slowdown in restaurant job growth reported in recent months. At the hourly employee level, 48 percent of restaurant companies reported that they planned to add staff during the first quarter, compared with 66 percent in the fourth quarter of 2016, hardly a glowing endorsement of the bright future for the sector.

Meanwhile, as job growth is slowing, but both hourly and management turnover continue to rise. As a consequence, recruiting and retaining qualified employees is the top people-related challenge for restaurant operators.

* * *

Finally as discussed last month, while a sense of renewed gloom has fallen over the restaurant space, one wouldn’t know this by walking around San Francisco. Yelp lists nearly 8,000 eating establishments in the City, many of them recent creations, including 500 cafés and 3,000 delis. A lot of the places are packed. Some can be impossible to get into on a Friday or Saturday night without a reservation days or weeks in advance. Others are nearly impossible to get into no matter when or what.

But, as Wolf Richter pointed out, other restaurants are nearly empty. There has been a slew of recent restaurant closures, amid talk of a big shakeout, including something called the “Mid-Market Massacre” in an area around Market St., where restaurant after restaurant closes, done in by exorbitant rents, not enough traffic, too much competition, a finicky public that might have lost interest, and insufficient sales. So yes, it’s tough out there, even in San Francisco, in what must be one of the toughest businesses on earth.

Yet while San Francisco – one of the few prosperous US hubs, generously funded with startup VC funding – is still holding on, the restaurant industry across the rest of the US continues to sink as consumer demand declines with every passing month, denying even the most rudimentary “recovery” narratives.

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Erdogan Calls Dutch “Fascists” After Turkish Foreign Minister Barred Entry

One week after Turkey president, and wannabe tyrant, Tayyip Erdogan launched a new diplomatic scandal when he accused Germany of “fascist actions” reminiscent of “Nazi practices” after various rallies organized by Turkish minister in Germany were cancelled ahead of an April referendum on granting Erdogan sweeping new presidential powers, he doubled down on Saturday after the Netherlands barred Turkey’s Foreign Minister from flying to Rotterdam, to which Erdogan responded by calling the Dutch “fascists” and his NATO partner a Nazi remnant” as the scandal over Ankara campaigning among emigre Turkish voters intensified.

Listen Netherlands, you’ll jump once, you’ll jump twice, but my people will thwart your game,” Erdogan said. “You can cancel our foreign minister’s flight as much as you want, but let’s see how your flights come to Turkey now. They don’t know diplomacy or politics. They are Nazi remnants. They are fascists.”

#BREAKING Erdo?an says “Netherlands should now think about how their planes will land in Turkey, they are Nazi remnants, fascists” pic.twitter.com/YIdY2tomV7

— CNN Türk ENG (@CNNTURK_ENG) March 11, 2017

Shortly after Erdogan’s comments, Dutch Prime Minister Mark Rutte said Turkish President Tayyip Erdogan’s remark comparing the Dutch to the Nazis was “way out of line.” 

“It’s a crazy remark of course,” Rutte told journalists during campaigning for the March 15 election. “I understand they’re angry, but this of course was way out of line.”

Rotterdam banned Foreign Minister Mevlut Cavusoglu from attending a Turkish rally in support of Erdogan’s drive for sweeping new powers, to be put to a referendum next month, Reuters reported.

Landing rights for the flight of Cavusoglu were withdrawn, the Dutch Foreign Ministry said Saturday in a statement. The government acted after an invitation to Turks to “participate in a public meeting” with Cavusoglu in Rotterdam put “public order and safety in jeopardy.”

With Netherlands itself set to hold a national election on March 15, in which anti-immigration sentiment has played a prominent role with nationalist candidate Geert Wilders calling Erdogan a dictator, the Dutch have been especially careful how they tread vis-a-vis Turkey. However, today’s ban has prompted a lashing out which may well boost the recently deflated Wilders’ anti-immigration campaign.

After being grounded, Cavusoglu said on Saturday morning he would fly to Rotterdam anyway and accused the Dutch of treating Turkish citizens in the country like “hostages”.

“I sent them so they could contribute to your economy … They’re not your captives,” he told CNN Turk television.

“If my going will increase tensions, let it be. What damage will my going have on them? I am a foreign minister and I can go wherever I want,” he said before the Dutch barred his flight.

Cavusoglu had threatened harsh economic and political sanctions if the Dutch refused him entry, a threat that proved decisive for the Netherlands government. According to Reuters, the Dutch cited public order and security concerns in withdrawing landing rights for Cavusoglu’s flight. But it said the sanctions threat made the search for a reasonable solution impossible.

Dutch prime minister Mark Rutte said that while the Netherlands and Turkey could search for “an acceptable solution”, Turkey was not respecting the rules relating to public gatherings. “Many Dutch people with a Turkish background are authorized to vote in the referendum over the Turkish constitution. The Dutch government does not have any protest against gatherings in our country to inform them about it,” he said on Facebook. “But these gatherings may not contribute to tensions in our society and everyone who wants to hold a gathering is obliged to follow instructions of those in authority so that public order and safety can be guaranteed,” Rutte added.

In addition to Germany and the Netherlands, four other planned Turkish rallies in Austria and one in Switzerland have also been cancelled in the dispute. Chancellor Merkel, whose country Erdogan also compared last week with Nazi Germany, has said she will do everything possible to prevent any spillover of Turkish political tensions onto German soil.

Meanwhile, Cavusoglu said Turks in Germany were under systematic pressure from police and intelligence services.

The reason for the ongoing rallies which are alienating the already scandal-plagued Turkey from its (former) European allies is that Erdogan is looking to the large number of emigre Turks living in Europe, especially Germany and the Netherlands, to help clinch victory in next month’s referendum which will shape the future of a country whose location on the edge of the Middle East makes it of crucial strategic importance to NATO and explains why despite the ongoing diplomatic fallout, Western “leaders” have engaged in little more than polite diplomatic rebuttals.

Erdogan cited domestic threats from Kurdish and Islamist militants and a July coup bid as cause to vote “yes” to his new powers. But he has also drawn on the emotionally charged row with Europe to portray Turkey as betrayed by allies, facing wars on its southern borders and in need of strong leadership.

More importantly, Cavusoglu has made a veiled threat of possible realignment of Turkey in the world in a reference to Russia. “The Netherlands should stop this faulty understanding and approach…If they think Turkey will take whatever they do, that Turkey is gone. I told them this, stop this boss-like attitude. If Europe keeps this up, they will lose many places, including Russia and us.”

The scandal comes one day after Erdogan flew to Moscow for his latest summit with Vladimir Putin during which he said that “we can say with certainty that our countries have returned to the path of authentic multi-faceted partnership,” Putin said at a news conference following expanded talks with Turkish President Recep Tayyip Erdogan in Moscow, to which Putin responded “I’d like to emphasize that we view Turkey as our key partner. We are ready to maintain active political dialogue at the highest level.

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Gold $10,000 Coming – “Time To Prepare Is Now”

James Rickards: Long-Term Forecast For $10,000 Gold

James Rickards, geopolitical and monetary expert and best selling author of the ‘The New Case for Gold’ has written an interesting piece for the Daily Reckoning on why he believes gold will reach $10,000 in the long term.


Gold in USD Adjusted for Inflation 1970-2017 – Macrotrends.net

He warns of the many systemic and geopolitical risks including the EU elections, from nuclear North Korea, tensions with Iran and “rapidly rising tensions between the U.S. and increasingly powerful China in the South China Sea.”

James Rickards believes that the EU elections “could potentially bring the future of the European Union into grave doubt” and that the “bottom line” is that “there are plenty of potential geopolitical shocks that could threaten the current system, in addition to existing concerns about a stock market collapse or debt crisis.”

“The time to prepare is now” advises Rickards.

From the Daily Reckoning:

I believe the Fed is preparing to raise into weakness and will have to reverse course in April or May. What happens to gold then? It’s going to go higher again, because the Fed will cheapen the dollar, and that’s very bullish for gold. So I expect gold to take off in the spring and finish the year very strongly. It could challenge $1,300 or $1,400.

Now, as many of my readers know, my long-term forecast is for $10,000 gold. We’re obviously not there now. So how do I arrive at $10,000?

I want to give the basis for that forecast. I never give any forecast without giving the analysis behind it. Anybody can pull a prediction out if a hat. If you don’t have the analysis to back it up I’m not interested.

So let’s go through the math, because there is a solid mathematical basis for $10,000 gold. It’s actually the implied non deflationary price of gold under a gold standard.

The combined M1 money supply in the world is about 24 trillion dollars. That includes the United States, China, the Eurozone and Japan. Those four entities combine for over 70% of global GDP.

Now, the official gold in the world is about 33,000 tons. That’s not counting private gold, because private gold is not part of the money supply.

So if you wanted to restore a gold standard, how much gold do you need to back up the money supply? My estimate is about 40%.

Historically, central banks have run successful gold standards with less backing. In the 19th century, for example, the Bank of England only had about 20% gold backing. In most of the 20th century, the U.S. had 40% gold backing.


I use the higher number, 40%, because I think a higher number might be needed to restore confidence in event of a collapse. The point is, 40% is a debatable, but reasonable figure.

Many people say there’s not enough gold to support the money supply. That’s one of the objections to gold standard. But my answer is that’s nonsense. There’s always enough gold to support the money supply. It’s a question of price.

Now, if you back 40% of the $24 trillion of money supply with the amount of official gold, it implies a gold price around $9,000 an ounce. But I predict $10,000.

So how do I arrive at $10,000 an ounce?

That’s because I expect central banks to print a lot more money by the time this issue comes to a head. So, by the time the printing presses stop running around the world, that $9,000 number will likely be in the range of $10,000.

The point is, $10,000 an ounce is not pie in the sky. It’s not a number I pulled out of a hat to get headlines. It’s the actual mathematical implied non deflationary price of gold. If you reintroduced a gold standard at a lower price, it would be deflationary. They’d have to reduce the money supply in order to bring it into alignment with the price of gold.

So I expect $10,000 is where gold will have to be, given the amount of official gold and the projected amount of printed money to give it 40% gold backing.

That’s the basis of my forecast. It’s rooted in history and sound monetary management. It’s rooted in simple mathematics. If anything, the number’s probably going to go higher. A year from now, that $10,000 figure might be even higher.

This is important because gold maintains a prominent place in the international monetary system, despite what elites say.

If gold is not money, if gold is not part of the monetary system, if gold is just a commodity that people trade, my analysis wouldn’t apply. But I believe that gold is money, and it always has been.

Gold has always been at the base of the international monetary system. To a certain extent it still is, whether or not central banks or the elites want to acknowledge it.

If gold was irrelevant, why does the U.S. have 8,000 tons? Why does the IMF have 3,000 tons? Why does Germany have 3,000 tons? Why has Russia tripled its gold supply in the last 10 years? Why has China more than tripled its gold supply in the last 10 years?

Why are they all hoarding and buying gold if it has no role in the monetary system?

The answer of course is that it does, but the monetary elites would just as soon not talk about gold bullion.

If you had the power of a central bank, why would you want gold to be part of the equation? It takes away their freedom to print money. Nobody kind of gives up power voluntarily, but they many not have a choice. A monetary system anchored to gold might be required to restore gold in event of another financial collapse.

The next question is, what’s the catalyst that could send gold soaring from today’s levels to $10,000 an ounce?

There are several potential catalysts.

It goes back to the avalanche metaphor I’ve used many times. Once enough snow builds up on the mountainside, it becomes unstable. At some point one snowflake will be the trigger that creates an avalanche.

Do you blame the snowflake or do you blame the instability of the system? The answer is you blame the instability of the system. One particular snowflake may have caused it, but the instability of the system is the real cause.

The current monetary system is unstable, the snow is piling up, and any number of snowflakes could trigger the avalanche. It’s hard to know exactly which one will be responsible, but it could be a geopolitical shock.

Iran recently deployed its navy to conduct exercises in all the important maritime choke points in the Middle East. President Trump has said if those Iranian speed boats get too close to our ships we’re going to blow them out of the water. We haven’t yet, as the navy’s rules of engagement have not permitted them to.

But now President Trump is apparently giving the green light. And the other day an American ship had to adjust course after an Iranian vessel came within 600 yards of it.

So with the Iranians testing us and the navy on full alert, how long will it be before there’s an incident where one of these boats is blown out of the water and maybe trigger something much larger?

That’s one example, but there are many others.

North Korea just conducted four ballistic missile tests that landed in the Sea of Japan. North Korean nuclear weapons will fairly soon be able to target the U.S, west coast. The U.S. is not going to allow that, and the State Department has said the U.S. is prepared “use the full range of capabilities at our disposal against this growing threat.” So we’ll probably have to attack North Korea if we can’t get China to rein them in.

The South China Sea is also another hotspot with rapidly rising tensions. China is flexing its muscles, pitting it against close American allies and American interests. One incident can easily escalate. There are many other geopolitical flashpoints that could trigger a major international crisis.

Another triggering snowflake could be a natural disaster. Or it could be a political earthquake.

The French elections are coming up over the course of two rounds in April and May. What if Marion Le Pen wins the election? I’m not forecasting that she’s going to win right now, but the market is underestimating her probabilities. We also have Netherland elections this month and German elections in October.

The outcome of these elections could potentially bring the future of the European Union into grave doubt.

The bottom line is, there are plenty of potential geopolitical shocks that could threaten the current system, in addition to existing concerns about a stock market collapse or debt crisis.

The time to prepare is now.

‘The Path to $10,000 Gold’ can be Read Here


News and Commentary

Gold suffering its longest losing streak since last May—Some smell buying opportunity (CNBC.com)

Bets on gold hold ground even as Fed rate hike looms large (Reuters.com)

Dollar on track for winning week as U.S. jobs data awaited, euro firm (Reuters.com)

Nikkei leaps amid global bond selloff (MarketWatch.com)

Ron Paul to AZ lawmakers: End capital gains tax on gold coins (Tucson.com)

Huge Gold Rally Expected In Spring 2017 (BusinessInsider.com)

Indian demand will recover from 2016’s lows (Gold.org)

2017 Platinum market deficit forecast increases (PlatinumInvestmnet.com)

Noah’s Flood of Cash Coming – Interview with Price (USAWatchDog.com)

Bond yields just hit the level that Bill Gross said would signify a bear market (CNBC.com)

7RealRisksBlogBanner

Gold Prices (LBMA AM)

10 Mar: USD 1,196.55, GBP 983.56 & EUR 1,127.15 per ounce
09 Mar: USD 1,204.60, GBP 991.39 & EUR 1,140.64 per ounce
08 Mar: USD 1,213.30, GBP 997.70 & EUR 1,149.00 per ounce
07 Mar: USD 1,223.70, GBP 1,003.56 & EUR 1,157.62 per ounce
06 Mar: USD 1,231.15, GBP 1,004.74 & EUR 1,162.82 per ounce
03 Mar: USD 1,228.75, GBP 1,005.12 & EUR 1,168.05 per ounce
02 Mar: USD 1,243.30, GBP 1,013.17 & EUR 1,181.14 per ounce

Silver Prices (LBMA)

10 Mar: USD 16.89, GBP 13.91 & EUR 15.92 per ounce
09 Mar: USD 17.14, GBP 14.10 & EUR 16.23 per ounce
08 Mar: USD 17.40, GBP 14.32 & EUR 16.48 per ounce
07 Mar: USD 17.70, GBP 14.52 & EUR 16.74 per ounce
06 Mar: USD 17.81, GBP 14.53 & EUR 16.83 per ounce
03 Mar: USD 17.66, GBP 14.44 & EUR 16.76 per ounce
02 Mar: USD 18.33, GBP 14.93 & EUR 17.42 per ounce


Recent Market Updates

– Silver Very Undervalued from Historical Perpective of Ancient Greece
– Gold Investing 101 – Beware Unallocated Gold Accounts With Indebted Bullion Banks and Mints (Part II)
– Gold Investing 101 – Beware eBay, Collectibles and “Pure” Gold Coins that are Gold Plated
– “Think About and Prepare For” Euro Catastrophe
– Silver On Sale – 4% Fall On Massive $2 Billion of Futures Selling
– Trump Avoid Debt Crisis ? “Extremely Unlikely” – Rickards
– Art Market Bubble Bursting – Gauguin Priced At $85 Million Collapses 74%
– Gold’s Value – Weight, Beauty, Rarity, Peak Gold and Secure Storage – Interview
– Oscars Debacle – Movies More Costly As Dollar Devalued
– Gold Up 9% YTD – 4th Higher Weekly Close and Breaks Resistance At $1,250/oz
– The Oscars – Worth Their Weight in Gold?
– Gold To Benefit from Rising Inflation and Higher Than “Official” China Gold Demand
– Russia Gold Buying Is Back – Buys One Million Ounces In January

www.GoldCore.com

The post Gold $10,000 Coming – “Time To Prepare Is Now” appeared first on crude-oil.news.


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Gold $10,000 Coming – “Time To Prepare Is Now”

James Rickards: Long-Term Forecast For $10,000 Gold

James Rickards, geopolitical and monetary expert and best selling author of the ‘The New Case for Gold’ has written an interesting piece for the Daily Reckoning on why he believes gold will reach $10,000 in the long term.


Gold in USD Adjusted for Inflation 1970-2017 – Macrotrends.net

He warns of the many systemic and geopolitical risks including the EU elections, from nuclear North Korea, tensions with Iran and “rapidly rising tensions between the U.S. and increasingly powerful China in the South China Sea.”

James Rickards believes that the EU elections “could potentially bring the future of the European Union into grave doubt” and that the “bottom line” is that “there are plenty of potential geopolitical shocks that could threaten the current system, in addition to existing concerns about a stock market collapse or debt crisis.”

“The time to prepare is now” advises Rickards.

From the Daily Reckoning:

I believe the Fed is preparing to raise into weakness and will have to reverse course in April or May. What happens to gold then? It’s going to go higher again, because the Fed will cheapen the dollar, and that’s very bullish for gold. So I expect gold to take off in the spring and finish the year very strongly. It could challenge $1,300 or $1,400.

Now, as many of my readers know, my long-term forecast is for $10,000 gold. We’re obviously not there now. So how do I arrive at $10,000?

I want to give the basis for that forecast. I never give any forecast without giving the analysis behind it. Anybody can pull a prediction out if a hat. If you don’t have the analysis to back it up I’m not interested.

So let’s go through the math, because there is a solid mathematical basis for $10,000 gold. It’s actually the implied non deflationary price of gold under a gold standard.

The combined M1 money supply in the world is about 24 trillion dollars. That includes the United States, China, the Eurozone and Japan. Those four entities combine for over 70% of global GDP.

Now, the official gold in the world is about 33,000 tons. That’s not counting private gold, because private gold is not part of the money supply.

So if you wanted to restore a gold standard, how much gold do you need to back up the money supply? My estimate is about 40%.

Historically, central banks have run successful gold standards with less backing. In the 19th century, for example, the Bank of England only had about 20% gold backing. In most of the 20th century, the U.S. had 40% gold backing.


I use the higher number, 40%, because I think a higher number might be needed to restore confidence in event of a collapse. The point is, 40% is a debatable, but reasonable figure.

Many people say there’s not enough gold to support the money supply. That’s one of the objections to gold standard. But my answer is that’s nonsense. There’s always enough gold to support the money supply. It’s a question of price.

Now, if you back 40% of the $24 trillion of money supply with the amount of official gold, it implies a gold price around $9,000 an ounce. But I predict $10,000.

So how do I arrive at $10,000 an ounce?

That’s because I expect central banks to print a lot more money by the time this issue comes to a head. So, by the time the printing presses stop running around the world, that $9,000 number will likely be in the range of $10,000.

The point is, $10,000 an ounce is not pie in the sky. It’s not a number I pulled out of a hat to get headlines. It’s the actual mathematical implied non deflationary price of gold. If you reintroduced a gold standard at a lower price, it would be deflationary. They’d have to reduce the money supply in order to bring it into alignment with the price of gold.

So I expect $10,000 is where gold will have to be, given the amount of official gold and the projected amount of printed money to give it 40% gold backing.

That’s the basis of my forecast. It’s rooted in history and sound monetary management. It’s rooted in simple mathematics. If anything, the number’s probably going to go higher. A year from now, that $10,000 figure might be even higher.

This is important because gold maintains a prominent place in the international monetary system, despite what elites say.

If gold is not money, if gold is not part of the monetary system, if gold is just a commodity that people trade, my analysis wouldn’t apply. But I believe that gold is money, and it always has been.

Gold has always been at the base of the international monetary system. To a certain extent it still is, whether or not central banks or the elites want to acknowledge it.

If gold was irrelevant, why does the U.S. have 8,000 tons? Why does the IMF have 3,000 tons? Why does Germany have 3,000 tons? Why has Russia tripled its gold supply in the last 10 years? Why has China more than tripled its gold supply in the last 10 years?

Why are they all hoarding and buying gold if it has no role in the monetary system?

The answer of course is that it does, but the monetary elites would just as soon not talk about gold bullion.

If you had the power of a central bank, why would you want gold to be part of the equation? It takes away their freedom to print money. Nobody kind of gives up power voluntarily, but they many not have a choice. A monetary system anchored to gold might be required to restore gold in event of another financial collapse.

The next question is, what’s the catalyst that could send gold soaring from today’s levels to $10,000 an ounce?

There are several potential catalysts.

It goes back to the avalanche metaphor I’ve used many times. Once enough snow builds up on the mountainside, it becomes unstable. At some point one snowflake will be the trigger that creates an avalanche.

Do you blame the snowflake or do you blame the instability of the system? The answer is you blame the instability of the system. One particular snowflake may have caused it, but the instability of the system is the real cause.

The current monetary system is unstable, the snow is piling up, and any number of snowflakes could trigger the avalanche. It’s hard to know exactly which one will be responsible, but it could be a geopolitical shock.

Iran recently deployed its navy to conduct exercises in all the important maritime choke points in the Middle East. President Trump has said if those Iranian speed boats get too close to our ships we’re going to blow them out of the water. We haven’t yet, as the navy’s rules of engagement have not permitted them to.

But now President Trump is apparently giving the green light. And the other day an American ship had to adjust course after an Iranian vessel came within 600 yards of it.

So with the Iranians testing us and the navy on full alert, how long will it be before there’s an incident where one of these boats is blown out of the water and maybe trigger something much larger?

That’s one example, but there are many others.

North Korea just conducted four ballistic missile tests that landed in the Sea of Japan. North Korean nuclear weapons will fairly soon be able to target the U.S, west coast. The U.S. is not going to allow that, and the State Department has said the U.S. is prepared “use the full range of capabilities at our disposal against this growing threat.” So we’ll probably have to attack North Korea if we can’t get China to rein them in.

The South China Sea is also another hotspot with rapidly rising tensions. China is flexing its muscles, pitting it against close American allies and American interests. One incident can easily escalate. There are many other geopolitical flashpoints that could trigger a major international crisis.

Another triggering snowflake could be a natural disaster. Or it could be a political earthquake.

The French elections are coming up over the course of two rounds in April and May. What if Marion Le Pen wins the election? I’m not forecasting that she’s going to win right now, but the market is underestimating her probabilities. We also have Netherland elections this month and German elections in October.

The outcome of these elections could potentially bring the future of the European Union into grave doubt.

The bottom line is, there are plenty of potential geopolitical shocks that could threaten the current system, in addition to existing concerns about a stock market collapse or debt crisis.

The time to prepare is now.

‘The Path to $10,000 Gold’ can be Read Here


News and Commentary

Gold suffering its longest losing streak since last May—Some smell buying opportunity (CNBC.com)

Bets on gold hold ground even as Fed rate hike looms large (Reuters.com)

Dollar on track for winning week as U.S. jobs data awaited, euro firm (Reuters.com)

Nikkei leaps amid global bond selloff (MarketWatch.com)

Ron Paul to AZ lawmakers: End capital gains tax on gold coins (Tucson.com)

Huge Gold Rally Expected In Spring 2017 (BusinessInsider.com)

Indian demand will recover from 2016’s lows (Gold.org)

2017 Platinum market deficit forecast increases (PlatinumInvestmnet.com)

Noah’s Flood of Cash Coming – Interview with Price (USAWatchDog.com)

Bond yields just hit the level that Bill Gross said would signify a bear market (CNBC.com)

7RealRisksBlogBanner

Gold Prices (LBMA AM)

10 Mar: USD 1,196.55, GBP 983.56 & EUR 1,127.15 per ounce
09 Mar: USD 1,204.60, GBP 991.39 & EUR 1,140.64 per ounce
08 Mar: USD 1,213.30, GBP 997.70 & EUR 1,149.00 per ounce
07 Mar: USD 1,223.70, GBP 1,003.56 & EUR 1,157.62 per ounce
06 Mar: USD 1,231.15, GBP 1,004.74 & EUR 1,162.82 per ounce
03 Mar: USD 1,228.75, GBP 1,005.12 & EUR 1,168.05 per ounce
02 Mar: USD 1,243.30, GBP 1,013.17 & EUR 1,181.14 per ounce

Silver Prices (LBMA)

10 Mar: USD 16.89, GBP 13.91 & EUR 15.92 per ounce
09 Mar: USD 17.14, GBP 14.10 & EUR 16.23 per ounce
08 Mar: USD 17.40, GBP 14.32 & EUR 16.48 per ounce
07 Mar: USD 17.70, GBP 14.52 & EUR 16.74 per ounce
06 Mar: USD 17.81, GBP 14.53 & EUR 16.83 per ounce
03 Mar: USD 17.66, GBP 14.44 & EUR 16.76 per ounce
02 Mar: USD 18.33, GBP 14.93 & EUR 17.42 per ounce


Recent Market Updates

– Silver Very Undervalued from Historical Perpective of Ancient Greece
– Gold Investing 101 – Beware Unallocated Gold Accounts With Indebted Bullion Banks and Mints (Part II)
– Gold Investing 101 – Beware eBay, Collectibles and “Pure” Gold Coins that are Gold Plated
– “Think About and Prepare For” Euro Catastrophe
– Silver On Sale – 4% Fall On Massive $2 Billion of Futures Selling
– Trump Avoid Debt Crisis ? “Extremely Unlikely” – Rickards
– Art Market Bubble Bursting – Gauguin Priced At $85 Million Collapses 74%
– Gold’s Value – Weight, Beauty, Rarity, Peak Gold and Secure Storage – Interview
– Oscars Debacle – Movies More Costly As Dollar Devalued
– Gold Up 9% YTD – 4th Higher Weekly Close and Breaks Resistance At $1,250/oz
– The Oscars – Worth Their Weight in Gold?
– Gold To Benefit from Rising Inflation and Higher Than “Official” China Gold Demand
– Russia Gold Buying Is Back – Buys One Million Ounces In January

The post Gold $10,000 Coming – “Time To Prepare Is Now” appeared first on crude-oil.news.


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Gold $10,000 Coming – “Time To Prepare Is Now”

<strong>James Rickards: Long-Term Forecast For $10,000 Gold</strong>

 

James Rickards, geopolitical and monetary expert and best selling author of the ‘The New Case for Gold’ has written an interesting piece for the Daily Reckoning on why he believes gold will reach $10,000 in the long term.

 

<img class=”alignnone size-large” src=”http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/03/gold-infl…” width=”651″ height=”394″ />

<em><strong>Gold in USD Adjusted for Inflation 1970-2017 – Macrotrends.net</strong></em>

 

He warns of the many systemic and geopolitical risks including the EU elections, from nuclear North Korea, tensions with Iran and <em>”rapidly rising tensions between the U.S. and increasingly powerful China in the South China Sea.”</em>

 

<a href=”http://www.goldcore.com/us/gold-blog/case-gold-wrong-james-rickards/” target=”_blank”>James Rickards</a> believes that the EU elections <em>”could potentially bring the future of the European Union into grave doubt”</em> and that the <em>”bottom line”</em> is that <em>”there are plenty of potential geopolitical shocks that could threaten the current system, in addition to existing concerns about a stock market collapse or debt crisis.”</em>

 

<em><strong>”The time to prepare is now” </strong></em>advises Rickards.

 

<strong>From the <a href=”https://dailyreckoning.com/path-10000-gold/?utm_source=hs_email&amp;utm_…” target=”_blank”>Daily Reckoning</a>:</strong>

 

<em>I believe the Fed is preparing to raise into weakness and will have to reverse course in April or May. What happens to gold then? It’s going to go higher again, because the Fed will cheapen the dollar, and that’s very bullish for gold. So I expect gold to take off in the spring and finish the year very strongly. It could challenge $1,300 or $1,400.</em>

 

<em>Now, as many of my readers know, my long-term forecast is for $10,000 gold. We’re obviously not there now. So how do I arrive at $10,000?</em>

 

<em>I want to give the basis for that forecast. I never give any forecast without giving the analysis behind it. Anybody can pull a prediction out if a hat. If you don’t have the analysis to back it up I’m not interested.</em>

 

<em>So let’s go through the math, because there is a solid mathematical basis for $10,000 gold. It’s actually the implied non deflationary price of gold under a gold standard.</em>

 

<em>The combined M1 money supply in the world is about 24 trillion dollars. That includes the United States, China, the Eurozone and Japan. Those four entities combine for over 70% of global GDP.</em>

 

<em>Now, the official gold in the world is about 33,000 tons. That’s not counting private gold, because private gold is not part of the money supply.</em>

 

<em>So if you wanted to restore a gold standard, how much gold do you need to back up the money supply? My estimate is about 40%.</em>

 

<em>Historically, central banks have run successful gold standards with less backing. In the 19th century, for example, the Bank of England only had about 20% gold backing. In most of the 20th century, the U.S. had 40% gold backing.</em>

 

<em><img class=”alignnone size-large aligncenter” src=”http://www.goldcore.com/us/wp-content/uploads/sites/7/2016/04/rickards_n…” width=”207″ height=”300″ />

I use the higher number, 40%, because I think a higher number might be needed to restore confidence in event of a collapse. The point is, 40% is a debatable, but reasonable figure.</em>

 

<em>Many people say there’s not enough gold to support the money supply. That’s one of the objections to gold standard. But my answer is that’s nonsense. There’s always enough gold to support the money supply. It’s a question of price.</em>

 

<em>Now, if you back 40% of the $24 trillion of money supply with the amount of official gold, it implies a gold price around $9,000 an ounce. But I predict $10,000.</em>

 

<em>So how do I arrive at $10,000 an ounce?</em>

 

<em>That’s because I expect central banks to print a lot more money by the time this issue comes to a head. So, by the time the printing presses stop running around the world, that $9,000 number will likely be in the range of $10,000.</em>

 

<em>The point is, $10,000 an ounce is not pie in the sky. It’s not a number I pulled out of a hat to get headlines. It’s the actual mathematical implied non deflationary price of gold. If you reintroduced a gold standard at a lower price, it would be deflationary. They’d have to reduce the money supply in order to bring it into alignment with the price of gold.</em>

 

<em>So I expect $10,000 is where gold will have to be, given the amount of official gold and the projected amount of printed money to give it 40% gold backing.</em>

 

<em>That’s the basis of my forecast. It’s rooted in history and sound monetary management. It’s rooted in simple mathematics. If anything, the number’s probably going to go higher. A year from now, that $10,000 figure might be even higher.</em>

 

<em>This is important because gold maintains a prominent place in the international monetary system, despite what elites say.</em>

 

<em>If gold is not money, if gold is not part of the monetary system, if gold is just a commodity that people trade, my analysis wouldn’t apply. But I believe that gold is money, and it always has been.</em>

 

<em>Gold has always been at the base of the international monetary system. To a certain extent it still is, whether or not central banks or the elites want to acknowledge it.</em>

 

<em>If gold was irrelevant, why does the U.S. have 8,000 tons? Why does the IMF have 3,000 tons? Why does Germany have 3,000 tons? Why has Russia tripled its gold supply in the last 10 years? Why has China more than tripled its gold supply in the last 10 years?</em>

 

<em>Why are they all hoarding and buying gold if it has no role in the monetary system?</em>

 

<em>The answer of course is that it does, but the monetary elites would just as soon not talk about <a href=”http://www.goldcore.com” target=”_blank”>gold bullion</a>.</em>

 

<em>If you had the power of a central bank, why would you want gold to be part of the equation? It takes away their freedom to print money. Nobody kind of gives up power voluntarily, but they many not have a choice. A monetary system anchored to gold might be required to restore gold in event of another financial collapse.</em>

 

<em>The next question is, what’s the catalyst that could send gold soaring from today’s levels to $10,000 an ounce?</em>

 

<em>There are several potential catalysts.</em>

 

<em>It goes back to the avalanche metaphor I’ve used many times. Once enough snow builds up on the mountainside, it becomes unstable. At some point one snowflake will be the trigger that creates an avalanche.</em>

 

<em>Do you blame the snowflake or do you blame the instability of the system? The answer is you blame the instability of the system. One particular snowflake may have caused it, but the instability of the system is the real cause.</em>

 

<em>The current monetary system is unstable, the snow is piling up, and any number of snowflakes could trigger the avalanche. It’s hard to know exactly which one will be responsible, but it could be a geopolitical shock.</em>

 

<em>Iran recently deployed its navy to conduct exercises in all the important maritime choke points in the Middle East. President Trump has said if those Iranian speed boats get too close to our ships we’re going to blow them out of the water. We haven’t yet, as the navy’s rules of engagement have not permitted them to.</em>

 

<em>But now President Trump is apparently giving the green light. And the other day an American ship had to adjust course after an Iranian vessel came within 600 yards of it.</em>

 

<em>So with the Iranians testing us and the navy on full alert, how long will it be before there’s an incident where one of these boats is blown out of the water and maybe trigger something much larger?</em>

 

<em>That’s one example, but there are many others.</em>

 

<em>North Korea just conducted four ballistic missile tests that landed in the Sea of Japan. North Korean nuclear weapons will fairly soon be able to target the U.S, west coast. The U.S. is not going to allow that, and the State Department has said the U.S. is prepared “use the full range of capabilities at our disposal against this growing threat.” So we’ll probably have to attack North Korea if we can’t get China to rein them in.</em>

 

<em>The South China Sea is also another hotspot with rapidly rising tensions. China is flexing its muscles, pitting it against close American allies and American interests. One incident can easily escalate. There are many other geopolitical flashpoints that could trigger a major international crisis.</em>

 

<strong><em>Another triggering snowflake could be a natural disaster. Or it could be a political earthquake.</em></strong>

 

<em>The French elections are coming up over the course of two rounds in April and May. What if Marion Le Pen wins the election? I’m not forecasting that she’s going to win right now, but the market is underestimating her probabilities. We also have Netherland elections this month and German elections in October.</em>

 

<strong><em>The outcome of these elections could potentially bring the future of the European Union into grave doubt.</em></strong>

 

<strong><em>The bottom line is, there are plenty of potential geopolitical shocks that could threaten the current system, in addition to existing concerns about a stock market collapse or debt crisis.</em></strong>

 

<strong><em>The time to prepare is now.</em></strong>

 

<strong>’The Path to $10,000 Gold’ can be <a href=”https://dailyreckoning.com/path-10000-gold/?utm_source=hs_email&amp;utm_…” target=”_blank”>Read Here</a></strong>

 

<strong>

News and Commentary</strong>

 

<strong><a href=”http://www.cnbc.com/2017/03/09/gold-is-suffering-its-longest-losing-stre…“>Gold suffering its longest losing streak since last May—Some smell buying opportunity (CNBC.com)</a></strong>

 

<strong><a href=”http://www.reuters.com/article/us-gold-investment-analysis-idUSKBN16H0I3“>Bets on gold hold ground even as Fed rate hike looms large (Reuters.com)</a></strong>

 

<strong><a href=”http://www.reuters.com/article/us-global-forex-idUSKBN16H020?il=0“>Dollar on track for winning week as U.S. jobs data awaited, euro firm (Reuters.com)</a></strong>

 

<strong><a href=”http://www.marketwatch.com/story/nikkei-leaps-amid-global-bond-selloff-2…“>Nikkei leaps amid global bond selloff (MarketWatch.com)</a></strong>

 

<strong><a href=”http://tucson.com/news/ron-paul-to-az-lawmakers-end-capital-gains-tax-on…“>Ron Paul to AZ lawmakers: End capital gains tax on gold coins (Tucson.com)</a></strong>

 

<img src=”http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/03/goldcore-…” />

 

<strong><a href=”http://uk.businessinsider.com/a-huge-gold-rally-expected-in-spring-2017-…“>Huge Gold Rally Expected In Spring 2017 (BusinessInsider.com)</a></strong>

 

<strong><a href=”http://www.gold.org/research/indian-demand-will-recover-from-2016-lows“>Indian demand will recover from 2016’s lows (Gold.org)</a></strong>

 

<strong><a href=”http://www.platinuminvestment.com/news“>2017 Platinum market deficit forecast increases (PlatinumInvestmnet.com)</a></strong>

 

<strong><a href=”http://usawatchdog.com/noahs-flood-of-cash-coming-hugo-salinas-price/“>Noah’s Flood of Cash Coming – Interview with Price (USAWatchDog.com)</a></strong>

 

<strong><a href=”http://www.cnbc.com/2017/03/09/bond-yields-just-hit-the-level-that-bill-…“>Bond yields just hit the level that Bill Gross said would signify a bear market (CNBC.com)</a></strong>

 

<a href=”http://info.goldcore.com/7-real-risks-to-your-gold-ownership” rel=”attachment wp-att-5047″><img class=”alignnone wp-image-5047″ src=”http://www.goldcore.com/news/wp-content/uploads/sites/16/2016/03/7RealRi…” alt=”7RealRisksBlogBanner” width=”822″ height=”430″ /></a>

 

<strong>Gold Prices (LBMA AM)</strong>

 

10 Mar: USD 1,196.55, GBP 983.56 &amp; EUR 1,127.15 per ounce

09 Mar: USD 1,204.60, GBP 991.39 &amp; EUR 1,140.64 per ounce

08 Mar: USD 1,213.30, GBP 997.70 &amp; EUR 1,149.00 per ounce

07 Mar: USD 1,223.70, GBP 1,003.56 &amp; EUR 1,157.62 per ounce

06 Mar: USD 1,231.15, GBP 1,004.74 &amp; EUR 1,162.82 per ounce

03 Mar: USD 1,228.75, GBP 1,005.12 &amp; EUR 1,168.05 per ounce

02 Mar: USD 1,243.30, GBP 1,013.17 &amp; EUR 1,181.14 per ounce

 

<strong>Silver Prices (LBMA)</strong>

 

10 Mar: USD 16.89, GBP 13.91 &amp; EUR 15.92 per ounce

09 Mar: USD 17.14, GBP 14.10 &amp; EUR 16.23 per ounce

08 Mar: USD 17.40, GBP 14.32 &amp; EUR 16.48 per ounce

07 Mar: USD 17.70, GBP 14.52 &amp; EUR 16.74 per ounce

06 Mar: USD 17.81, GBP 14.53 &amp; EUR 16.83 per ounce

03 Mar: USD 17.66, GBP 14.44 &amp; EUR 16.76 per ounce

02 Mar: USD 18.33, GBP 14.93 &amp; EUR 17.42 per ounce

 

 

<strong>

Recent Market Updates</strong>

 

<strong><a href=”http://www.goldcore.com/us/gold-blog/silver-undervalued-historical-perpe…“>- Silver Very Undervalued from Historical Perpective of Ancient Greece</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/gold-investing-101-beware-unallocat…“>- Gold Investing 101 – Beware Unallocated Gold Accounts With Indebted Bullion Banks and Mints (Part II)</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/gold-investing-101-beware-ebay-coll…“>- Gold Investing 101 – Beware eBay, Collectibles and “Pure” Gold Coins that are Gold Plated</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/think-prepare-euro-catastrophe/“>- “Think About and Prepare For” Euro Catastrophe</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/silver-sale-4-fall-massive-2-billio…“>- Silver On Sale – 4% Fall On Massive $2 Billion of Futures Selling</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/trump-avoid-debt-crisis-extremely-u…“>- Trump Avoid Debt Crisis ? “Extremely Unlikely” – Rickards</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/art-market-bubble-bursting-gauguin-…“>- Art Market Bubble Bursting – Gauguin Priced At $85 Million Collapses 74%</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/golds-value-weight-beauty-rarity-pe…“>- Gold’s Value – Weight, Beauty, Rarity, Peak Gold and Secure Storage – Interview</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/oscars-debacle-movies-costly-dollar…“>- Oscars Debacle – Movies More Costly As Dollar Devalued</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/gold-9-ytd-4th-higher-weekly-close-…“>- Gold Up 9% YTD – 4th Higher Weekly Close and Breaks Resistance At $1,250/oz</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/oscars-worth-weight-gold/“>- The Oscars – Worth Their Weight in Gold?</a></strong>

<strong><a href=”http://www.goldcore.com/ie/gold-blog/gold-inflation-china-koos-jansen/“>- Gold To Benefit from Rising Inflation and Higher Than “Official” China Gold Demand</a></strong>

<strong><a href=”http://www.goldcore.com/us/gold-blog/russia-gold-buying-back-buys-one-mi…“>- Russia Gold Buying Is Back – Buys One Million Ounces In January</a></strong>

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