Ireland’s Biggest Bank Charging Depositors Negative Interest Rate Madness

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

Deposits at Bank of Ireland are soon to face charges in the form of negative interest rates after it emerged on Friday that the bank is set to become the first Irish bank to charge customers for placing their cash on deposit with the bank.

This radical move was expected as the European Central Bank began charging large corporates and financial institutions 0.4% in March for depositing cash with them overnight.

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Three Big Stories NOT Being Covered Part 3

By Andy Sutton & Graham Mehl – Re-Blogged From http://www.Gold-Eagle.com

The third and final (for now) portion of this series might be a tad anticlimactic. If so, we apologize. Most people know America is in debt beyond comprehension. A small subset of people understand that the numbers published by the government are missing a whole bunch of important items and use accounting methods that would land most business people in prison. An even smaller subset understands the idea of generational accounting.

What we are going to discuss this time around is not the long-term situation, but rather the medium to short-term situation because some really bad things are going to take place within the next 5-7 years absent major, MAJOR policy changes. At that point, the policy changes will have to be drastic since our government fiddled while Rome burned for the last 3 decades.

If you take nothing else away from this article, understand that our ‘leaders’ – of all political affiliations and stripes – KNEW this was going to be the result if they did nothing, yet that’s precisely what they did. The blame game this time around ought to be one for the ages, however a well-informed populace can short-circuit the traditional mudslinging by inserting the following statement: “You all knew. You knew and you did nothing. You are guilty of dereliction of duty. You failed your constituents and your country. ALL of you.”

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Hyperinflation Is Nigh

By Egon von Greyerz – Re-Blogged From http://www.Gold-Eagle.com

This coming autumn we are likely to see the beginning of the hyperinflationary phase of the sovereign debt crisis. Hyperinflation normally hits an economy very quickly and unexpectedly…and is the result of the currency collapsing. Hyperinflation does not arise as a result of increasing demand for goods and services.

The course of events in a hyperinflationary scenario can be summarised as follows:

  • Chronic government deficits
  • Debt issuance and money printing escalating rapidly
  • Bonds falling – interest rates rising fast
  • Currency collapsing

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Gold Miners’ Q2’16 Fundamentals

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold miners’ stocks have skyrocketed this year as investors started returning to this long-abandoned sector. Many have tripled, quadrupled, or even quintupled since mid-January alone! But are such epic gains fundamentally justified? Much insight into this crucial question for investors can be gleaned from the gold miners’ latest quarterly financial and operational results. Their Q2 reports just finished coming in.

Companies trading on the US stock markets are required by the Securities and Exchange Commission to file quarterly earnings reports four times a year. For normal quarters that don’t end fiscal years, these 10-Q reports are due 45 calendar days after quarter-ends. They are a great boon to financial-market transparency and investors seeking to understand companies, yielding a treasure trove of information.

The gold miners are no exception, so about 6 weeks after quarter-ends I eagerly look forward to digging into their latest quarterly reports to see how they’re faring. And the just-reported second quarter of 2016 proved an exceedingly-strong one for gold stocks. Their benchmark HUI NYSE Arca Gold BUGS Index soared 38.4% higher in Q2 on a mere 7.4% gold rally! Gold stocks’ 5.2x upside leverage to gold was extreme.

The gold stocks began 2016 at fundamentally-absurd price levels relative to gold, the overwhelmingly-dominant driver of their profits and hence ultimately stock prices. Coming out of mid-January’s crazy 13.5-year secular low, the gold stocks were certainly overdue to soar in a massive mean-reversion rally. But with the HUI skyrocketing 182.2% at best in just 6.5 months by early August, the gains have been huge!

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$15.00 Minimum Wage Would Put 7-9 Million People Out Of Work

By Jeff Dunetz – Re-Blogged From The Lid

A Heritage Foundation study examined what would happen to the workforce if Hillary Clinton and her progressive friends were able to enact the nation-wide  $15.00 minimum wage idea she stole from Bernie Sanders. And it ain’t pretty.

Heritage’s approach was different rather than look at it on a national basis, they examined what would change on a state by state basis. When the the state results are aggregated we learn that the progressive’s $15.00 minimum would put between 7 and 9,000,000 Americans out of work.

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On Being A FOMC Member

By Alasdai Macleod – Re-Bogged From http://www.Silver-Phoenix500.com

It’s easy to criticise the Fed for its failures, because its successes have been only one in number: kicking the can down the road. But we should spare a thought for the difficulties policy-makers now face. So what would you do if you were on the Federal Open Markets Committee?

Repeatedly kicking that can has so far succeeded. However, economic conditions are changing all the time, throwing up new challenges. The next chart dramatically exposes the one issue that historically would have determined interest rate policy in advance, but is being widely ignored, even by the FOMC.

Simply subtracting M2 money from M1 money gives a running indication of bank lending. And as the chart shows, it has been growing above trend since mid-January, followed by a sudden spurt timed from early July. This requires, on the face of it, an immediate normalisation of interest rates to bring the expansion of bank credit back towards its established trend.

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The Ugliest Economic Data I’ve Ever Seen (Part 2)

By Andrew Hoffman – Re-Blogged From http://www.Gold-Eagle.com

It’s Thursday morning – and there are nearly a dozen “PM bullish, everything-else-bearish” headlines worthy of distinct articles.  Such as…

1. This shocking, and hilarious, segment of the John Oliver show, depicting how subprime auto lending has officially reached the destructive lunacy of the 2007-08 subprime mortgage market. Not to mention, subprime student lending, as a whopping 37% of the $1+ trillion, government-underwritten student loan “market” is now delinquent.

2. Obamacare is literally on the brink of collapse, with insurers losing $2 billion in 2015 alone, and pulling out of the program en masse

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