China Emerging As A Global Leader

“Hot off the press!”

China has the gold! It has overtaken Japan to become the world’s second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty. Now, just depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others.
Oh, so the world will definitely not end in 2012. Thanks World bank, Goldman, Sachs and others for your assurances!
Okay, illuminate me further… “yes indeed,” Yi Gang, China’s chief currency regulator, mentioned the milestone in passing in remarks published on Friday. “China, in fact, is now already the world’s second-largest economy,” he said in an interview with China Reform magazine posted on the website (www.safe.gov.cn) of his agency, the State Administration of Foreign Exchange. Cruising past Japan might give China bragging rights, but its per-capita income of about $3,800 a year is a fraction of Japan’s or America’s. So roar on Tigress…with every roar of your performance gives us caution to signal right and turn left!

“China is still a developing country, and we should be wise enough to know ourselves,” Yi said, when asked whether the time was ripe for the Yuan to become an international currency.

China is a leading member of the Group of 20 rich and emerging nations, which since the 2008 financial crisis has become the world’s premier economic policy-setting forum.
But, in one important respect, China is still a shrinking violet: anxious to shield itself from the rough-and-tumble of global markets, it does not permit its currency to be freely exchanged except for purposes of trade and foreign direct investment.” (Additional reporting by Zhou Xin; Editing by Ken Wills)

Also, in an assessment disputed by Beijing, “the International Energy Agency said last week, that China has surpassed the United States as the world’s largest energy user.” Well, at least they had a savoir faire to brush us off lightly! Even though Beijing doesn’t agree…here are some facts to back that up…Look at the size of a 4000 year old Tiger compared to a 200 year old Red/White and Blue, using oil, gas, coal, Hydro electrics, nuclear power, geothermal wind, solar energy, wood—and then compare the population of 280 mil Americans to 1300 mil Chinese…. But, CAN IT BE SUSTAINED? That’s another question.

Back on home turf, I have something to tell you. Are you sitting down?

“Last week, three Democratic senators publicly advocated extending the 2003 Bush tax cuts scheduled to expire at the end of the year. That’s right. Three senators from the political party that since 2003 have bashed those tax cuts as a sop to “the rich” have suddenly decided that it’s not a smart idea to let tax rates go up when the economy is as weak as it still is.
These three bright fellows are Evan Bayh (Ind.), Kent Conrad (N.D.) and Ben Nelson (Neb.). All honor to them for having the political courage to do the right thing for the economy, even if it means going against the conventional wisdom of their party.

News of their conversion broke the evening of July 21. The following day, the S&P 500 index gained 2.3%.
Here’s the logic behind Bayh, Conrad and Nelson’s decision.

First and foremost, they’re thinking about jobs — and with the unemployment rate at 9.5%, everyone in Washington ought to be thinking the same thing. Bayh, Conrad and Nelson understand that the prospect of higher taxes on “the rich” next year is holding back job creation.”

Instead of focusing on the negative, stuff that changes daily, hoard your stash your physical gold and silver, and the best way to use this strategy is to do your research and prepare at Regal Assets. If you stay on your toes you’ll be ahead of making a topsy-turvy volatile economy into a lifetime of opportunity! Call 1-888-700-9887 begin_of_the_skype_highlighting 1-888-700-9887 end_of_the_skype_highlighting or visitwww.regalgoldcoins.com.

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The Hidden Health Care Bill

So, what is this next Shoe Dropping?

This is no hocus-pocus, thanks to the new reporting requirements sneaking into the health care reform bill. I just read that “Every U.S. business, and individuals as well, will be forced to obtain the tax ID number and/or the Social Security number of everyone with whom they do more than $600 worth of business in a year.
This is not a joke, but you need to know that this does take effect on Jan. 1, 2012 — and it applies to all U.S. business and private transactions.” Says Bob Bauman (July 27, 2010)…

“Americans are already outraged by President Obama’s new health care law. And now, many are up in arms about a little-noticed provision buried deep in the 906 pages of that law,” says Bob.
“The 2010 Patient Protection and Affordable Care Act” (Health Care Act, P.L. 111-148) contains a sneak provision (IRC §6041(h)) that is set to directly impact you. This law requires any person engaged in a trade or business to file an IRS Form 1099, reporting all payments totaling $600 or more in a calendar year to any single person, other than a tax-exempt corporation (non-profit).
No, they don’t care to know who donated $600 to a local animal rescue. Only that Joe Schmo sold you an old pick-up truck for $750 for your lawn service company. He’d better pay tax on that transaction! And you are responsible for getting him the forms and, at the same time, submitting them to the IRS.

And when you mail off your rent check for your equipment bay, guess what? Time to send the old 1099s to the IRS and your landlord.” Bauman report, (July 27, 2010)…
If you don’t believe me, let me reiterate, not even the Starship Enterprise traveling to the Delta Quadrant 300 thousand light years away will save you! You get it? You and I will be subjected to this new legislation and will affect every American!

There’s a bigger Goblin out there with a few relatives!

“Even corporations are affected. That’s right. That John Deere lawnmower you just bought? Again, you’ll need to mail a 1099 to the IRS and to John Deere.
Until now, IRS 1099 forms have been used to track and report miscellaneous income paid for services of independent contractors or self-employed individuals.”
I thought these games were over a long time ago when we formed the constitution of the United States and the free enterprise! I don’t know what you think, but is this the highest good of all concerned? And, yes, it is your beeswax to be concerned. Why??? Read on…

The Really Scary Part…is

Precious metals such as coins and bullion fall into this new 1099 category and U.S. coin dealers are among those most outraged by the new law.
And it’s on privacy buffs’ and freedom lovers’ radars for another reason.
Those who remember history recall that Americans’ freedom to own gold (except for jewelry, dental, and numismatics) was made illegal after 1933, when President Franklin D. Roosevelt issued an executive order prohibiting gold ownership.

Those who value their right to own gold note the obvious: You might want to stay on the financial defensive ‘cause you will need it to make physical gold and silver purchases before January 2012!

The 1099 reporting rule will tell IRS agents who owns gold and where they live.

Will this administration confiscate your only “sovereign currency”?

My thoughts are, ethics or no ethics, the minute this conquest is achieved, kaput ethics and hello black-market…Either your grateful kisses cover the hand of the tormentor, or your hair will stand up like a cockatoo ruffle with a very short fuse, just to pull yourself out of the net, which only become more tangled!

It remains to be seen of course, however, here’s what you can do to protect yourself now: “Gold you store yourself in a safety deposit box or private vault to which only you have access doesn’t appear to be reportable — yet.”
“Fortunately, as this provision doesn’t go into effect until January 2012, you have more than a year to “stock up” on gold and silver bullion. I’d suggest acting fast — the metals are typically in a slump through Labor Day, after which gold demand picks up.
“There’s still more than a year for this provision to be replaced, possibly by a friendlier Congress in 2011. But regular additions to your gold and silver bullion stockpile today will alleviate a potential headache of paperwork tomorrow.
If you’ve been making excuses to put off your purchases of gold and silver, Congress has just given you the best reason to take action and protect yourself today.” Says Bob Bauman

So stay defensive and safe, and stay sovereign. That means time to really polish up your portfolio. No matter what happens, a sound defensive is—gold—and you might bulk up now with small easily visible quantities of silver, cause’ by the time gold and silver hit their respective peaks, the world as we know it will still be here after 2012, but will have changed dramatically. To get your precious metals purchasing in before 2012 make sure you visit www.regalgoldcoins.com the nation’s leading precious metals firm.

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FDIC Is In Hot Water

Banks are failing throughout the world…but lets get to the bottom of the page, help is on the way!

Joe Schmo wrote: “Yes, we will have fewer banks after the recession is over, but fewer more risky blood sucking banks.”
Oh boy…But wait…keep on reading this is serious stuff…
No, its not a pretty picture in Europe either
Seven of Europe’s 91 largest banks could not survive an unexpected decline in economic growth or a sharp deterioration in the value of European government bonds.

And what about our home Turf—USA

This just in:

103 bank institutions are forced to close in the wake of the financial crisis.
Friday evening, July 23, 2010, the FDIC announced seven more bank failures, bringing the totals to 103 so far this year and 270 since 2008. The seven banks closed had collective assets of $2.16 billion and deposits of $2.02 billion.

Their closings cost the FDIC an estimated $431 million, about 21% of deposits. So far this year, bank closings have cost the FDIC an estimated $18.5 billion.

Five of the seven closings were accomplished with the FDIC entering into loss-share agreements with the acquiring banks. That means, in effect, that the FDIC makes a guarantee to the acquiring bank that assets it has taken over from the failed bank will not decrease in value beyond a pre-agreed limit.

In connection with those five closings this week, the FDIC entered into loss share agreements covering an additional $1.25 billion in assets. So far in this crisis, the FDIC has entered into loss share agreements covering about $180 billion.
Once again, these failed banks demonstrate the tremendous impact of the housing market distress nationwide!
So you guys, I’m moving to Mars next week, if you have any boxes…
But wait a minute…

Having said that, I called the American housing market ridicules yesterday, it’s only fair that I point out “there’s a surprising rebound in the hardest-hit markets,” said Brad Hunter, chief economist with the consultant Metro study. “People are buying again.” From the recession’s lows, construction has nearly doubled in Las Vegas, Phoenix and Tucson. It is up 74 percent in inland Southern California and soaring in Florida. Oh, I get it! So, now were building new homes. Bankrupt the old ones, buy new ones, but with the bank situations failing, who’s gonna’ carry the mortgages…Oh, its free you say?

Hold off the boxes! I’ll just take a rain check on Mars!

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Did you just say China and Japan is jumping ship?

Yes, you’re right, I can’t ignore this one! Are you absolutely sure? I recall growing up, my mother always said, according to the Bible; two gigantic markets will rule the post-dollar world: one in Europe, focused on Germany, and one in Asia, focused on China and Japan. Strange how it’s coming to fruition! The way these two markets will grow to dominate trade, and will do so at our expense, just hit me like a slingshot!

Sure, we made mistakes…who hasn’t! It’s no secret that our government is bleeding the single greatest gushing of red ink in history, but really, are we talking Hyperinflation here?

Just how much is our total U.S obligations—I mean the gross federal debt outstanding, plus the net present value of unfunded liabilities?—$ 66 trillion, you say? Unbelievably high! These numbers are truly beyond my conception! I can’t even write these figures down…How many zero’s…oh never mind…

But, but, but, how do we save America from such disaster! We are, the people of the United States of America, and have been the primary source of benevolence, which has given capital throughout the world for whomever needed it. It was we, us who owned big stakes in foreign economies, not Europe and Asia; we certainly didn’t need their capital to sustain us. So what’s this dark cloud over our Lady Liberty, the very pedestal my former countryman, the Hungarian born Joseph Pulitzer (noted for the Pulitzer Prize) helped to erect? Why do I suddenly feel more and more like the way we look—a third-world country–a charity case!

So, while the ordinary schmo sits rustling his newspaper he hasn’t got the faintest idea of what’s going on as usual…or anybody for that matter!

Dang! How much do we owe these ‘Chinese Tigers?’…
Their foreign exchange reserves, valued at $2,399.2 billion at the end of December 2009 (not inclusive of Gold), include only $894.8 billion in US Treasury bonds. In contrast, the US must issue or roll over $702 billion in debt in 2010 and a total of $2.55 trillion in Treasuries to be issued this year, while $3.7 trillion in US Treasuries are held abroad.

China holds the world’s largest stockpile of reserves, worth some $ 2.5 trillion. And they just cut their U.S. treasury holdings by $32,5 billion in May, but it still holds $ 867.7 billion, making it the largest holder of U.S. government debt in the world. In the past China has repeatedly threatened to use the so called “nuclear option” and liquidate its vast holding of US treasuries in response to continued pressure on the Communist state to force a Yuan evaluation. Such will trigger a dollar crash for sure, which will be disastrous for us! Further reports have suggested that Senior Chinese military officers have proposed selling U.S. bonds en mass as a way of “punishing” Washington. I think to get out of this mess, its time to pitch the White House as a new Reality Show!

Yuan vs. Dollar = One World Market?

The People Bank of China just issued a report that should have sent shock waves through our financial markets. “To avoid the shortcomings of sovereign credit currencies acting as reserve currencies, we need to create an international reserve currency that can maintain the long-term stability of its value.” The primary one would be today is the U.S. dollar. In other words, China does NOT want to own dollars anymore! They want a new international currency of their own! This would put the dollar in direct competition with their Yuan? Eeek!

But the scary part is that if the Yuan becomes part of the SDR, it gets instant legitimacy as a global reserve currency and then it goes head-to-head with the dollar on international markets….

Gold in the Year of the Tiger?

Prominent economists in China are calling for their government to further ditch vast holdings of US Treasuries in favor of tangible assets such as gold, a move that will have far reaching impact on the economy. Reuters reports that Yu Yong Ding, a former academic adviser to the Chinese central bank has appealed to state representatives to move away from U.S. debt and invest in assets denominated by gold.

So when, not if China starts dumping more U.S. bonds, the bottom is going to fall out of our bond market and our dollar, which is already freefalling without a parachute and slowly becoming worthless…

How do we turn dog kaka into Caviar!

Facts:

Being #1, the largest holder of U.S. Treasury bonds: China with $894 billion and Japan in the # 2 spot with $768 billion, both blaming the United States for wrecking the global economy in agreement with India, Brazil, Russia, France and Germany, we Americans have more then just a rising uncertainty about the dollar. We have what its called; no one is paying much attention to the activity happening in Asia three weeks ago. Too many reality shows keep us occupied with hamburger and hot dogs!

Japanese cohorts with China

The irony is, America is completely blind to the catastrophe heading its way. We might have not known everything there was to know about world economics 10 years ago, but we knew Japan was the wave of the future. Nine out 10- biggest banks in the world were Japanese, Japan carried huge trade surplus with us. American CEO’s were practicing their bows from the waist in preparation for greeting their new masters.

But, just today, President Hu Jinato of the China and Emperor Akihito reached agreement on promoting China-Japan strategic relationship of mutual benefit in all-around way for both…and if that meant dumping the dollar, it was sealed in a void carried by the wind.

Are we Deaf and Dumb?

“American leaders seem blind to the looming dollar revolt.” Says one report, “Global economies are in crisis! Unemployment rolls are soaring! People want answers and solutions! The jobless will demand action, and culpable politicians will look for scapegoats and distractions. The first step, blaming the U.S. and its currency for the global recession, has already begun. A new global currency—and leveraging it to knock the U.S. down—will be the solution.”

Gold rush throughout Asia

Zhang Monan, of the powerful think tank The State Information Center, commented that China should replace increasing of its foreign exchange reserves with hard assets such as gold. Japanese, with 2.1% of the nations gold reserve, owning 25.4 billion in gold says the same…both in cohorts with each other…Make no mistake, China’s gold demand is not only real but big and rising. And with the largest population on earth, of any other country, the buying power of the citizens of China is massive!

Anyways, the move could send gold prices back toward record highs following yesterday’s recent slide.

Remember that old Chinese proverb, “Man who speak with forked tongue is blowing golden smoke and is about to buy so much gold he has to carry it with his forked tongue lift!”

So, how was your day? Follow what China and Japan are doing buy gold! If you have any plans of retaining the value of the dollar do yourself a favor and visit www.regalgolcoins.com the number one precious metal dealer in the nation.

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Hmmm… Dang it! I’m trying to remember the time, when Mammoths walked the earth with dragons and dinosaurs–the first pages of the chronicle of mankind–before men became the top dog. My point is–what has for centuries supposed to have raised man above the beast is not the cudgel but an inward music an irresistible power of unarmed truth…Ethics! What a bummer! He never got it right!

Did you know, and by the way these numbers are not my own, they are from someone who knows what he’s talking about…China is dove tailing the Saudi’s…hoarding the gold behind your back!

China has been busy as a bee and at such speed with which they’re shifting their economic system that it is even more startling then you can envision! But we’ll talk about that later. For the time being, here’s another profound financial bitty going on in recent Middle East history that’s rising more than eyebrows. Gulf Arabs are having secret meeting by finance ministers and central bank governors in Russia, China and Japan to end dollar dealings for oil, and to move instead to a basket of currencies including the Japanese Yen and Chinese Yuan, the Euro, and Gold, and are planning a new unified currency for the nations in the Gulf cooperation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar—which means, oil will no longer be priced in dollars!

This sounds like a dangerous prediction of a future economic war between the US and China over black gold—yet its again turning the region’s conflicts into a battle for great power supremacy! Well discuss this at a later time as other new developments are coming in screamin’ hot!

Back to the jungle.

As I always do, I read multiple reports a day on economy, and ran across this little ditty. It said, Saudi Arabia has doubled its gold holding recently, so secretly, and so covertly, that they had to modify their reported gold reserve in the first quarter of 2008 from 143 tonnes or 1.2 % previously to a now reported 322.9 tonnes or 2.9 %.

Here’s the paradox, is it really a mere accounting adjustment or is it an indication that the oil rich nation is veering away from its conservative reserve policy!

Only a fool could know that? Bearing arms in a responsible manner subjectively in this regard, I am trying to use my hind sight objectively, by informing those unawares, in a higher level of intelligence than me, just how this covert operation was born into U.S., soil.

Do you know where your dollars went? I mean, other than to the movies…

Did you know that in 1928, Saudi Arabia gave an exploration license to Standard Oil Company of California for around 35,000 Gold sovereigns? The company stuck oil in 1937. After this, more and more companies stuck oil in the Middle East. Then, in 1960, the Organization of Petroleum Exporting Countries (Opec) was formed, comprised largely of oil producing countries from the Middle East. It was formed so that the countries could take on the big international oil companies, who till then been dictating terms…

Not to give you a history lesson here, but it’s worthy to know, that Juan Palo Perez Alfonso, a Venezuelan oil minister was the brain behind Opec. And the irony was, he had studied the way the Texas Railroad commission works when he had been exiled to the U.S. So, he used the Texas model to establish Opec.

But, here’s the tip of the iceberg—Saudi Arabia and some other Opec countries started to use these dollars to buy gold and the price of gold shot up through the roof, going from $ 258 p/oz in May 1979 to $ 678 p/oz in 1980. And, while they were buying gold, we in the West were stacking up on credit cards…not that I blame you, I did it too, thinking like you, that the World of Finance System is based on the belief, that Credit is Money…especially, if you didn’t have cash on hand for the movies…

But as the fantasy began to blur, truth revealed–Credit is not money, ‘cause money cannot be created out of Nothingness. Money is a store of work, a store of wealth…but, Gold is money! A devilishly tempting little ‘gem,’ which is becoming more and more of a hierarchical thing in the scheme of high finance awakening.

Otherwise, why would the Fox hoard this ‘gem’ into his fox hole?

The impetuous behind skyrocketing global gold demand, has become a sudden golden revelation for the world as the kingdom, which sits atop the world’s largest proven reserves of conventional crude oil, steps up to reveal his ancient talent—the kind in the likes of Ali-Baba and his 40 thieves, but have chosen not to publicize, it until now…

History of mechanics or a despot

“The World Gold Council said on Friday, that the central banks of Russia, the Philippines, Kazakhstan and Venezuela have been buying gold, and Saudi Arabia’s monetary authority has ‘restated’ its reserves upwards from 143m to 323m tones.” But just a sec, let’s look at the flip side. If there is any theme to this–to the bullion rush, it is a fear, that the global currency system is unraveling. Or, if we look at it another way, gold itself is reclaiming its historic role as the ultimate safe haven and benchmark currency.

But, what about that sly Fox accumulating it, and hiding it behind the chicken coop!

Saudi’s SAMA’s (Saudi Arabian Monetary Authority) total official holdings of the precious mental are worth about $14.33 billion, or roughly 3.5 % of the country’s total $413 billion in foreign assets. “the only reason (for change) besides the accounting of a larger portion of gold as SAMA assets, was they could have brought more gold in 2008,” said John Sfakianakis, chief economist at the Riyadh-based Banque Saudi Fransi-Credit Agricole Group. “I think it was purely a buying opportunity in 2008,” he said, and that it should not be “seen as a signal for sovereign debt doubts globally by the central bank.”

Wha’…whoah! If it was all there was to it, then why hide it? The increases, recorded in SAMA’s April Monthly Statistical Bulletin, fails to even remotely explain the more than doubling of its gold reserves as reported by the World Gold Council! Saudi figures show that gold holdings by the country climbed by 867 million riyals (231.2 million) in 2008 from the previous year. A call to SAMA for comment went unanswered. Of course!

A fox is a fox is a fox with an accomplice! From available evidence, there are facts to show that the Saudi’s bought all of this gold in the first quarter of 2008—but refused to publicize or report the purchase until now, instead of holding the bullion in a “non-reserve” account or possibly by the Saudi Sovereign Wealth Fund on behalf of SAMA. So, come on Chief honcho Sfakianakis, do you think the entire world is under the spell of a Jedi mind trick?

Okay, let’s back peddle

Maybe I am way off base, but I suspect in this case if all the details were disclosed, there wouldn’t be a conspiracy, nor some covert secret scheme going on, as it has been for a long time with some of the oil-rich nations. Have we been so clueless that we didn’t see, we didn’t suspect that they might be buying gold on the sly through their sovereign wealth funds that do not necessarily report their investment holdings— you tell me?

Saudi highway code

Ai, Ai, Ai! Unshakable grasp of the obvious…The world’s 4th largest holder of foreign exchange reserves is hoarding…Watch for crossroads! Cause–

Saudi news is reminiscent of China’s announcement in April 2009 that it had purchased some 600 tons of gold over the prior six years, more than doubling its holdings from 454 tons to the current reported level of 1054 tons. The Chinese have not reported additional gold purchase since then. However, we believe China’s central bank continues to buy gold month after month but chooses not to report their additions so as not to boost the market price as such an announcement would likely to do.

Maybe I am wrong, and I am sure someone will be happy to inform me of such, but a fox is a fox is a fox that hunts in the dark so you can’t be sure what he hoards away until you awake to daylight! Based on Saudi’s covert and a cunning intelligence, I wouldn’t be surprised to learn that “SAMA continues to buy gold, and with the number of other central banks either buying gold outright, or surreptitiously, and with U.S. policymakers already on the defense, the Saudi’s may no longer feel quite so obligated to tow the U.S. line.”

Which also makes me wonder, how long do you think Saudi Arabia—Bin Laden’s birthplace—fuel our war planes so we can bomb their Muslim neighbors? What’s at stake here is 259 trillion barrels of oil and 204 trillion cubic feet of natural gas….perhaps, just in case, we should put our sights elsewhere. Maybe Afghanistan…The oil fields above Afghanistan are vast, we’ll have to probably build pipelines through Afghanistan…but at last we might be free of the high fluting oil prices, fuelling Saudi’s Gold hoard!

Home turf and the right algorithm

While we contemplate our global economy, there’s a grasshopper outbreak in Boise, Idaho! Okay, I just threw that in so you have something else to think about…But seriously, with the rising uncertainty of what will happen, whether its grasshoppers assaulting your fields, or the economic uncertainty driving the gold higher and faster over your head, you have to decide how to safe regard your futures survival. Your hard earned savings depends on it! I can only tell you, as a greenback, Regal Assets gave me the intelligent and ethical answers I needed to back peddle from credit cards and be in the Gold! It is your time too, to protect your fields as well as your wealth with precious metals. Gold and silver have staged one of the best ten year runs in history and captured the attention of millions of investors worldwide. Here’s what Adam Brochert said in a very insightful article last May, 2009.

Gold is money. Gold is a form of cash just like a U.S. Treasury Bill is. I know you can’t spend Gold at 7-11 but you can’t spend a T-Bill at 7-11 either and yet they are both cash equivalents. The advantage Gold has over the U.S. Dollar is that Gold is not backed by debt and does not represent debt. Debt is bad thing to have hanging over your head during deflation as debt burdens become more and more oppressive as deflation grinds on. So, Gold is the only form of money on the planet (allow me to neglect other precious metals for now) available right now that is accepted world wide, is nobody’s liability/promise/debt instrument and requires effort to produce so it is valued for its relative scarcity.

And, with the banks failing week after week, and the Euro falling, how long do you think your dollars will last? The last decade may soon be written in history as what jumpstarted the revolution in personal finance. Don’t get slapped in the face with pie in the sky promises, your financial future is too precious to postpone. To get your start in precious metals call 1-888-700-9887 begin_of_the_skype_highlighting              1-888-700-9887      end_of_the_skype_highlighting or visit www.regalgoldcoins.com.

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Do you feel like your going up the creek without a paddle, spinning your wheels to understand what’s in the next financial crisis? You are not alone! The trend of what may lay ahead, a bad day at the office, or suddenly being unemployed, is like the budget, changing every hour, everyday. So what do you do if the Bush tax threatening to expire by 2011 happens? And or will the gold still rises against the top marginal income-tax rate set to increase on the first day of 2011 to 39.6 % from 35%. And, will it hold against the phase-out of itemized deductions that will lift that, effectively, to 40.8%. Or in 2013, the 3.8% Obama’s health-care tax on investment income that will kick in, make the top rate 44.06% to such degree, that this tax hike will push us into double-dip territory?

But, what is this new word, “Double Dipping” added to our lexicon?

It used to be a 2 scoop of ice cream but now, its a financial meltdown–referred to a recession—a double-dip recession, with a W shape on the chart. A recession followed by a short-lived recovery, dove-tailed by another recession. That’s double dipping, which may create an avalanche, which could be positive implications for precious metals. “If there is a double dip, it will be a reflection of a long-term economic crisis,” that may be good for gold,” Paul Walker, Chief Exec., of GFMS (Gold Fields Mineral Services) said yesterday from Tokyo. Any increase in investment will likely “push gold towards $1, 300,” he said.

With that said, the euro tumbling to a four-year low against the dollar amid investors, there is a concern that Europe’s debt crisis may engulf the heart of Europe, Hungary, and spreading beyond Greece to more Easter Europe. European finance ministers put the finishing touches yesterday to a rescue fund backed by 440 billion euros ($524 billion) in national guarantees, seeding to halt the turmoil. Walked did not rule out the possibility that the sovereign-debt crisis may expand from Europe to other regions. But, that too will push Gold “significantly higher” than $1,300 an ounce, or by further $500 to $700”, he said.

So, Who said What said?

The Chief economist for City Group has called Gold the subject of the “longest-lasting bubble” in human history! Goldman Sachs has raised its medium-terms gold price forecast to $1,355 !

Japan’s biggest bank recently proclaimed assets held in Japan’s first exchange-traded funds backed by gold may increase eightfold in a year as investors seek to protect their wealth in the country with the world’s largest public debt. So if you purchase a good car, it will go to Japan.

But, if you spend money at Wal-Art, the money will go to China! Then, if you spend it on gasoline it will go to the Arabs, if you purchase a fruit and vegetables it will go to Mexico, Honduras and Guatemala, but unfortunately, none of it will help the American economy! So, stick with Gold…the surest commodity you can keep for yourself, and let it grow!

Mr. Soros, arguably the most famous hedge fund manager in history managing about $25 billion, has increased its investment in SPDR Gold Trust, the world’s largest exchange-traded fund for metal, by 152%. He said: “When interest rates are low we have conditions for assets bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.” And, while prices have fallen 9.2% since reaching a record, in a Bloomberg survey, they say gold will reach a new high, with the median forecast predicting a 17 % advance to as much as $1,300 an ounce this year…

So, Who’s going to Win, The Tortoise or the Hare—

Now that everyone is grasping for a new topic having grown weary of talking about that whole oil-spill-thingy, as the quieter summer winds up into autumn, its time for all of us to leave the magpie-nest and make solid sense in resource investment.

You might have noticed, if you’ve been following the Gold trend for longer then 30 seconds, that the gold price at hand is never the gold price in question. Analysts and commentators tend to run towards the fondness of the Pizza Eating Contest mode of speculation, in which the current state of things is rapidly stomached and barely digested before focus turns towards the next dip in the dollar, the next economic headline, and above all, what are the implications for precious metals!

As the joblessness recovery continues, with a high unemployment, and housing across the country, none of us are immune. We have friends, relatives, neighbors who have been laid off, and no sight to get a new one! Older workers are laid off first, and they take the longest to find new jobs, and now with the unemployment checks running out at the end of this month, which used to make people feel like they are still part of the labor force, 3.2 million will have a few glimmers of hope in their job search—all the while the country waiting for another stimulus, or risk a double dip recession. I’m afraid, the look behind the numbers suggests that liberal policies will hand us a double dip whether we get a stimulus or not…So, while millions are unemployed, having no money for gas to look for a job, Federal budget deficits will further erode confidence in the once almighty dollar, putting more pressure on the Federal debt to print more money. Although this deprecated and debase the dollar, we need to focus on the flip side, which brought a higher price for Gold investors!

The discouraging business conditions in the United States that already have serious detrimental consequences for the Federal budget deficit, for U.S. treasury funding requirements and the bond markets, for U.S. monetary policy, for the U.S. dollar, and Wall Street—all will benefit Gold.

Slow like a Tortoise but safe, Gold has enjoyed a steady increase for the past decade as the best option. Since 1999 the price of Gold has risen from $271 p/ounce to 1,180 and going. Gold trading with 1.5% of a record may rally to an all-time high as investors seek a heaven. As a Hungarian gypsy once said to me while tapping my little gold coin to his teeth, “I can’t eat this gold, but sure can buy food with it for my children!”

Gold have been around for 3,000 years, or so. So, who wins the animal that takes off without thinking or the reliable slower one, the one that continues at a constant, although slower pace that will provide stability and steady term investments in the future? Gold for all its boring, basics is something else—reliable! So, if the bank returns your check for insufficient funds, you call them and ask them if they meant you or them! If you want to learn how to get into physical gold visit the nations top precious metals dealer www.regalgoldcoins.com.

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By Peter Costa

As the economic turmoil unfolds worldwide the future for gold is looking more and more promising. It would literally take an entire essay to map out why gold is going to become the most valuable asset on the planet in the coming times. For the more immediate term I am going to map out why I feel gold will hit $1300 an ounce before the end of the fall. At this point in time everyone knows that gold is the ultimate asset. We have seen billionaires and central banks pouring their wealth into gold or gold related investments as a flee for safety from paper based assets. There are many reasons why gold is going to have precipitous growth in the coming times but I have narrowed it down to my top 3 reasons. Here are the top 3 reasons why I feel gold will hit $1300 an ounce before the end of the fall.

THE BANKING CRISIS

The banking crisis is only escalating in the United States and in the last 3 years we have had the most bank failures since the great depression. The current amount of failed banks for 2010 is at a staggering 86 and is only growing by the week. This same time last year there were 40 failed banks making the current number double what last year was. In addition 247 banks and counting have failed since 2008 and the number of banks on the troubled list has been increased from 500 to 750. This year alone we could see more banks from the troubled list close their doors for business. In lieu of the pending banking crisis troubled banks have begun issuing 7 days warnings letting depositors know that if things continue to escalate they could take up to 7 days to get depositors funds from checking, saving or money market accounts. In a time where banks are failing left right and center, the Federal Reserve has to print up enough money to protect depositors. This alone will cause massive inflation catapulting the price of gold.

LOW INTEREST RATES

Ben Bernanke head of the Federal Reserve has no plans to raise interest rates and may not raise interest rates until late 2011 therefore guaranteeing inflation in the United States. Inflation is the plan for the next while and Bernanke feels we can have positive inflation. As gold hit new record highs on June.18, 2010 closing out at almost $1264 an ounce, Bernanke denied inflation. This was the response Ben Bernanke had in regards to fears about rising inflation and the price of gold:

“Gold is out there doing something different from the rest of the commodity group. I don’t fully understand movements in the gold price, but I do feel that there is a lot of uncertainty and anxiety in financial markets right now; and some people believe that holding gold will be a hedge against the fact that they view many other investments as being risky and hard to predict at this point.”

“There is a great deal of uncertainty and anxiety in the financial markets right now,” Bernanke said. “Some people believe that holding gold will be a hedge against the fact that they view many other investments being risky and hard to predict at this point.”

We only have two ways to go in the US economy and it is inflation or deflation. There is no possible way Bernanke is going to let deflation happen because it could very quickly escalade into a great depression. We have become a consumption based economy in the United States and our industry relies heavily on consumption. If citizens begin massively cutting back on spending than we could quickly spiral into a great depression because many companies rely on our consumption and would become bankrupt. This would in turn create even more unemployment and would be the catalyst for a great depression. Everyone knows in an inflationary period gold soars. Historic record to back this fact up is the last inflationary period we had which was 1970 to 1980 where inflation peaked out at 13.3%. Due to such a high inflation rate gold grew 2400% in 9 short years it went from $35 an ounce to $850 at its peak.

STRENGTH IN THE YUAN

The yuan could appreciate by as much as 3% this year after which the yuan’s value would be dictated by supply and demand in the open market. Some analysts argue that the yuan is undervalued by as much as 40%. News of the Chinese allowing gradual appreciation in the yuan is expected to further bolster demand for gold in China as the Chinese consumers’ and investors’ purchasing power is increased. It was illegal in China to own physical precious metals until 2009 when they lifted the ban. Citizens are now allowed to purchase precious metals and are now being encouraged from the government to purchase gold and silver. With this recent ban being lifted there is one stipulation, citizens can not in any way export the precious metals they buy, they can only hold onto them. Chinese demand for gold has been growing at an average of 13% per annum over the past five years and it now has to import gold to meet national demand, despite being the largest producer of gold in the world. With gold still priced in US dollars the strength of the yuan will allow citizens to buy gold at a mere fraction of the price creating massive demand and a surge in gold prices.

I am predicting gold will hit $1300 an ounce before the end of fall this year. Before the dollar is grossly over inflated and the cost of gold is absurd, start transitioning your wealth into gold. Regal Assets has made it effortless with their website www.regalgoldcoins.com and also provide up to the minute market values for your position so you can track the growth yourself. It is not a question whether gold will grow in the coming times the only question is how fast it will grow and if the average household investor will be able to afford it.

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1. 3 Reasons Why Gold Could Hit $1300

By Peter Costa

The rush for gold has not even begun according to billionaire Thomas Kaplan a New- York born commodities mogul. In fact he is so convinced of this that he has put $2 billion of his own money into physical gold through his company Tigris Financial. With this move Mr. Kaplan has now joined the likes of world market gurus such as John Paulson, George Soros, David Einhorn and Warren Buffet to name a few who have started to amass large quantities of physical precious metals. The key to their investment strategy is physical possession of precious metals that they store on their own and is something all precious metal investors need to take note of.

As the gold rush continues to unfold investors are being swayed into the paper asset of precious metals rather than the physical asset. Just like the old days when traveling merchants would hand their gold over to banks and would receive a promissory note in return, exchange traded funds are promising the same. Instead of a receiving physical metals these various ETFs promise to hold your gold and when your contract is up you are able to receive physical delivery of precious metals or you can sell the contract for cash. This strategy is becoming increasingly popular and such fund as GLD, SPDR, COMEX and SLV are experiencing incredible demand. The problem with this strategy is similar to the problem that arose centuries ago and is doomed to repeat itself. The main driving force behind the popularity of this paper asset is none other than registered financial advisers pushing these securities on their diminishing clientele base. Since there has been a complete loss of confidence in stocks and mutual funds these registered financial advisers are scrambling to find alternative paper assets so they can continue to keep clients money under management.

Centuries ago when a bank would create a promissory note for the traveling merchant and realized that nobody was cashing in the note for the gold being held, the bank would begin creating more promissory notes then they had gold. Once word got out in the land that this bank had more notes circling around than they had gold they were flooded with depositors wanting physical possession of their gold. Once this happened the bank would immediately become bankrupt and would have no choice but to close their doors for business due to lack of gold holdings. This event alone would devastate economies and more importantly the merchants who worked hard for their wealth. For centuries this cycle continued and mass amounts of wealth were vaporized due to greedy banks.

As much as we have had technological advances the same issues still remain today that plagued societies centuries ago. The exchange traded fund strategy is nothing but a more advanced version of what banks did centuries ago to vaporize wealth and will soon do the same thing to millions of hard working individuals. While the current state of humanity is greed based, I find it extremely difficult to believe that these various funds are actually holding the exact amount of precious metals that are trading. As banks have practiced fractional reserve banking for the last century loaning out $9 for every $1 they receive I feel the exact same strategy is being utilized for these various funds. I feel strongly that they are holding a mere fraction of what is trading through their fund and that if the whistle is blown on their operation there will be a 1 to 100 ratio meaning, if everyone requested physical delivery of their contracts 1 out 100 would receive their metals. Furthermore with this kind of a faulty fractional reserve operation these various funds are suppressing the true value of precious metals by creating a fictitious market place. Millions upon millions are trading these contracts on what they feel is physical precious metals none the wiser to the reality of the situation that they are trading a useless piece of paper just as useless as the greenback and all fiat currencies.

Smart money are already cognizant to the illusion of these various exchange traded funds and have begun ditching the paper asset of precious metals for physical possession. In the coming times as this fractional reserve practice is revealed with various ETFs, the illusionary price of precious metals will evaporate, setting in stone a new heightened floor for all precious metals. Only the owners of physical precious metals will be the recipients of this growth story leaving behind the owners of paper assets in shock and awe as their wealth evaporates. In 2009 legendary hedge fund manager David Einhorn who was the largest holder of the GLD fund with over 4.2 million shares, sold his entire stake in favor of physical gold. This strategy is being favored by world renowned investors such as John Paulson, George Soros, Warren Buffet, Thomas Kaplan, Jim Rogers who combined have purchased over $100 billion in physical precious metals. On May.22, 2010 Thomas Kaplan made front page news with the Wall Street Journal on his decision to purchase over $2 billion in physical gold that he stores on his own. “I’ve reached a point where I feel the only asset I have confidence in is gold” stated Mr. Kaplan in an interview at Tigris’s midtown Manhattan headquarters. The smart money knows what is coming and are focusing primarily on the acquisition of physical precious metals in preparation for the coming times.

It is not by chance that billionaires and smart money alike are rolling over their wealth into physical precious metals rather than the paper asset. Exchange traded funds, the green back, and all fiat currencies for that matter….will end like any fatally flawed system: With an unhappy ending. We are in a time of great change and as history has shown us we are about to learn a great lesson in owning paper assets over physical assets. If you have the paper asset of gold do yourself a favor and sell it now before the option no longer exists. Physical precious metals are the easiest asset to acquire and sites like www.RegalGoldCoins.com have made the transition seamless. As more and more paper asset based financial advisers are put out of business heed the warnings and position your wealth appropriately.

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By Peter Costa

It is staggering how so many individuals use the stock market as a gauge for economic recovery. They look blindly at the levels of the S&P 500 and the DOW Jones in hopes of finding the answer to where we are in the recovery stage. Whether the stock market is up or down, these simpletons continue to foolishly dump their hard earned wages into the market place. They are incognizant to the reality of our financial system and have no interest in learning the truth.

The world stared in awe as the DOW dropped 1000 points within a 15 minute time span on May.6, 2010. This was the largest drop the DOW has ever had in a single day since its inception. As the DOW scrambled to recover rumors began to surface that the event was triggered by a negligent trader. Apparently he meant to type $10 million for a trade and instead typed $10 billion. Thanks to our experts and market analyst being on the ball we learned that the fatal drop of the DOW had to do with the letter “b”. Simple mistake that anyone can make and now that we have it all figured out the DOW will go back to record highs. Who are we kidding? How “birdbrain” does one have to be to believe this rhetoric? There is no way that the DOW took such a precipitous drop due to $10 billion. This is a sign to all that are still in the market place to GET OUT.

I strongly believe that the stock market is just as illusionary as our monetary system. I feel like so many have become accustomed to using the stock market as a gauge for economic recovery that those in charge have an interest in keeping it up. The greenback is on such volatile ground right now that any loss of consumer confidence could bring down a collapse of the whole system. I’m coming to believe that most of the money being printed up right now is being used to prop up the stock market to give it illusionary growth. Companies are continuing to be bailed out and funneled more money so that the stock market can show some sort of recovery. It seems like Wall Street has become more important than the citizens of the United States. While citizens are being handed out food rations and barely surviving, Wall Street is being handed billions of dollars to keep the stock market propped up. Unfortunately the reality is that more people are exiting the stock market than entering and this is the reason the DOW took such a tumble on May.6, 2010. Further more for almost 3 years now the smart money has quietly exited the marketplace leaving nothing but the uninstructed to fend for themselves.

I am calling for a complete crash in the stock market within the next 2-5 years. Based on copious research I have come to conclude that there is no possible way for the stock market to survive in the coming times. There are 3 major factors guaranteeing the demise of the stock market and they are as follows:

HYPER INFLATION:

There is no doubt that hyper inflation is about to rear its ugly head in the United States. Ben Bernanke has stated on several occasions that he would rather create inflation than deflation. He has kept interest rates extremely low to guarantee this and has no interest in the immediate future of changing things. The economy has hit such a breaking point in the US where the printing press at the Federal Reserve is churning out strenuous amounts of money. The amount of money being printed right now is unprecedented from anytime in the nation’s history and the demand is only growing. We are projected to spend trillions of dollars in the coming years guaranteeing the devaluation of the greenback. The banking crisis alone is projected to cost the US $23.7 trillion to solve. This number does not even include social security, outstanding treasury bills to foreign nations or the toxic mortgage debt that continues to grow among many other things. As the dollar continues to be printed it will encounter precipitous devaluation. As the dollar crashes investors will jump ship from the stock market scrambling to put whatever they can into tangible assets such as gold and silver.

UNEMPLOYMENT:

Unemployment is at record highs and has no sign of recovery. The problem that lies ahead is the amount of people getting cut off of unemployment insurance. For the first time in decades they recently had to extend unemployment insurance for all recipients. This solution was temporary and in 2010 millions will be cut off of assistance. Here is where things get sticky. With most people unable to find employment they are now being forced to cash out of their retirement plans. As millions of IRAs and 401(K)s are cashed out, billions of dollars are being pulled out of the market place. The majority of retirement plans in the US are invested heavily in the stock market with over 90% in mutual funds and various stocks. As these are cashed in and the money is pulled out of the market place we are guaranteed to see a drop in the stock market. If things continue the way they are going in 3 short years we could see billions upon billions of dollars pulled out of the stock market in an attempt for unemployed people to survive. If $10 billion was really the reason the DOW dropped 1000 points in a day imagine what this will do.

LOSS OF CONFIDENCE:

With the stock market on such volatile ground it has caused a ton of uncertainty in the market place. Since the drop of the DOW on May.6, 2010 hundreds of thousands of investor have begun to quietly pull their money out of the stock market. Many have interpreted the drop of the DOW as a fore warning to get out of the market and have begun to act accordingly. In less than 2 weeks of this event millions of dollars have already been pulled out of the market place. We have already lost confidence from some of the largest investors in the world including Warren Buffet, John Paulson, David Einhorn and George Sorros who have begun pouring their wealth into commodities. Warren Buffet who has made billions investing in US stocks is now turning his strategy over into precious metals and recently made a substantial investment in silver. John Paulson owner of Paulson and Co. who runs a $60 billion hedge fund has positioned over 50% of its assets in gold or gold related investments and opened up a gold only hedge fund this year with $250 million of his own money. This is a sign of the times and will only increase as things take a turn for the worst.

If you are currently in the stock market heed my warning about the coming collapse. It is not by chance that the DOW took such an enormous drop; it is truly a sign of the times to come. For almost 3 years now all of the smart money have been quietly exiting the market place and changing their strategies into hedges. It is not by chance that most successful investors in the world right now are hedge fund managers. This is a time of hedging not investing. When the dollar is strong and showing a lot of possibility that is when you want to double it and make investments. When the dollar is dropping like a rock in value and being printed like monopoly money you want to hedge against it. Take a look around the world and see the change in the market place this is not a time for investments it is a time for hedges. If you have not properly hedged yourself now is the time to take action. When everything takes a turn for the worst it will happen suddenly and without warning. As we all saw on May.6, 2010 the DOW dropped 1000 points in 15 minutes without warning. You have worked hard your entire life do not let the wealth you have accumulated go down the drain. Physical possession of precious metals such as gold and silver are the easiest way to begin hedging. If you need help in doing this please visit www.regalgoldcoins.com and get started right away. Regal Assets is one of the most trusted names in the precious metals industry and has some of the best prices when it comes to precious metals. Take this action before you are left with paper that has been stripped of all its monetary value.

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