Currencies Will Be ‘Flushed Down The Toilet’

By Mike Gleason – Re-Blogged From http://www.Gold-Eagle.com

Mike Gleason: It is my privilege now to welcome back Michael Pento, president and founder of Pento Portfolio Strategies, and author of the book The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market.

Michael is a well-known money manager and a fantastic market commentator, and over the past few years has been a wonderful guest and one of our favorite interviews here on the Money Metals Podcast and we always enjoy getting his Austrian economist viewpoint.

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A Trade Deficit Is Never A Problem

[Fiat Money(paper money) can allow Trade Deficits to continue indefinitely, while under a Gold Standard, the imbalance is corrected automatically. In either case, Trade is good, while restrictions are bad. – Bob]

By Steve Saville – Re-Blogged From http://www.Silver-Phoenix500.com

It’s not just Donald Trump. Many political leaders around the world operate under the misconception that a trade deficit is a problem to be reckoned with. This misconception has been the root of countless bad policies over the centuries.

Trade, by definition, is not an adversarial situation resulting in a winner and a loser. Rather, both parties believe that they are benefiting, otherwise the trade would not take place. Most of the time, both parties do benefit. In general, one side wants a particular product more than a certain quantity of money and the other side wants the quantity of money more than the product. When the exchange takes place, both sides get the thing to which they assign the higher value at the time.

All the hand-wringing about international trade deficits is based on the ridiculous notion that the side receiving the money is the winner and the side receiving the product is the loser, but how could this be? If the side receiving the product was losing-out then it wouldn’t enter into the trade. Furthermore, given that today’s money is created out of nothing, if a trade were to be viewed as a win-lose situation then surely it’s the side receiving the product that should be viewed as the winner.

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Carnage of the Middle Class

By Michael Pento – Re-Blogged From http://www.PentoPort.com

In President Donald J. Trump’s inaugural address he promised, “This American carnage stops right here and stops right now.” And immediately liberals and the MSM took umbrage to his use of the word carnage, which means the slaughter of a large number of people, claiming it was just too dark a description for America. Maybe so. However, in a recent Bloomberg commentary, Justin Fox cites some sobering statistics that support Trump’s statement.

While the overall murder rate for the nation should end up increasing about 8% year-over-year, the surge within U.S. cities is absolutely staggering. Chicago suffered a 59% increase in homicides during 2016. Murders were up 56% in Memphis, 61% in San Antonio, 44% in Louisville, 36% in Phoenix and 31% in Las Vegas.

There were also 44,193 suicides in the US in 2015, with the percent increase in suicides rising the most for females aged 10–14, and for males aged 45–64. The suicide rate has risen 24% over the past 15 years and is the highest recorded rate in 28 years.

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Will Trump Bring Inflation To America’s Shores?

By Stefan Gleason – Re-Blogged From http://www.Gold-Eagle.com

Something is brewing in the economy. Since the election of Donald Trump, interest rates have spiked, copper prices have surged, and various sectors of the stock market have swung “bigly” on speculation of what “Trumponomics” will bring.

Scores of triumphant Republican commentators are already painting a bullish picture of the Trump economy. The GOP – which will control the White House, Congress, and most state governments – has a rare opportunity to implement a pro-growth agenda.

Republicans squandered their last great window of opportunity. George W. Bush and his Congressional allies grew government spending at a faster clip than the economy and saddled the country with trillions of dollars in new debt.

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Massive Twin Deficits To Impact UK Assets

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

Sterling is now the worst performing major currency in 2016 and gold the best.

The pound has completed its worst four day performance since Brexit and the pound remains considerably weaker versus the dollar, euro and gold since the Conservative Party conference, when Theresa May promised to trigger article 50 within six months.

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United States Imported Oil and Gold

By Gary Christenson – Re-Blogged From The Deviant Investor

The US has imported crude oil for many decades. The following data (1970 – 2015) comes from the Energy Information Administration of the US government. This data shows reported barrels of crude oil imported into the US.

(Note: This is not a comprehensive analysis of imported energy, nor does it compensate for exports of crude oil, imports or exports of coal, natural gas or other energy sources.)

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The Dollar in FOREX Markets

cropped-bob-shapiro.jpg   By Bob Shapiro

The paper currencies of all countries fluctuate in exchange rate for several reasons, mostly (but not always) due to government policies.

The exchange rate for the Euro (since 1999 when the Euro was introduced) vs the US Dollar, started around $1.18, dropped to $0.83 in 2001, jumped up to $1.60 in 2008, and now is back just below where it started, today at $1.1275 per Euro.

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