Must See Charts – Gold Hedges USD Devaluation, Rise in Oil, Food and Cost of Living Since “Tricky Dicky”

Must See Charts – Gold Hedges USD Devaluation, Rise in Oil, Food and Cost of Living Since “Tricky Dicky”

– Gold hedges massive ongoing devaluation of U.S. Dollar
– 46th anniversary of ‘Tricky Dicky’ ending Gold Standard (see video)
– Savings destroyed by currency creation and now negative interest rates
– Long-term inflation figures show gold a hedge against rising cost of fuel, food and cost of living
– $20 food and beverages basket of 1971 cost $120.17 in 2017
– Household items increased by average of 2000% and oil by 5,373% since 1913
– Gold gained 5,669% since 1913; by nearly 3,000% since 1971
– Dollar has been reserve currency of world in the period and most other currencies have seen greater devaluation
– Evidence of gold’s role as inflation and currency devaluation hedge

 Editor: Mark O’Byrne

US dollar Purchasing Power As measured By Gold’
Source: Goldchartsrus

You don’t need ‘Tricky Trump’ to devalue the dollar, it’s been doing that since 1913 and ‘Tricky Dicky’ in 1971

In 2015 President Donald Trump made headlines when he told a town hall event in Atkinson, New Hampshire about how his father had once given him a ‘small loan of a million dollars.’

Outcry swept around the media who asked how much the future President was really in touch with the common voter.

Whilst Trump’s reference to ‘small’ was in relation to the (apparent) size of the empire he subsequently built he may as well have been referring to the value of a million dollars now and how small it is compared to in 1975 when he was lent the money.

$1 million dollars was a lot of currency in 1975. Today it will barely buy you a nice house in a nice city.

Using today’s CPI data Trump Sr’s $1 million loan would today be equivalent to $4.4 million. The purchasing power of a 1975 US dollar has fallen by over 400%. It has fallen a lot more since 1971.

In this week 46 years ago on August 15 1971, President Nixon announced the U.S. Dollar would completely cut ties with sound money gold (see video below).

Without gold backing and gold as a monetary anchor, we can now see just how much the purchasing power of the consumer dollar has declined since 1971.

You can see an even better example of the dollar’s collapse in purchasing power when measured in gold ounces (see charts above).

Prices climb by over 2000% since 1913 and creation of the Fed

‘[Since 1913] the general public and policymakers have focused almost constantly on inflation; they have feared it, bemoaned it, sought it, and even tried to whip it.’ Bureau of Labour Statistics 

In 1970, after many decades of dollar devaluation, Herbert W. Armstrong quoted the Labor Department’s figures for how much $5 would have purchased in 1913:

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Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

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NAHB: Builder Confidence increased to 68 in August

NAHB: Builder Confidence increased to 68 in August

by Bill McBride on 8/15/2017 10:16:00 AM

The National Association of Home Builders (NAHB) reported the housing market index (HMI) was at 68 in August, up from 64 in July. Any number above 50 indicates that more builders view sales conditions as good than poor.

From NAHB: Builder Confidence Springs Back with Four-Point August Jump

Builder confidence in the market for newly-built single-family homes rose four points in August to a level of 68 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

“Our members are encouraged by rising demand in the new-home market,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “This is due to ongoing job and economic growth, attractive mortgage rates, and growing consumer confidence.”

 “The fact that builder confidence has returned to the healthy levels we saw this spring is consistent with our forecast for a gradual strengthening in the housing market,” said NAHB Chief Economist Robert Dietz. “GDP growth improved in the second quarter, which helped sustain housing demand. However, builders continue to face supply-side challenges, such as lot and labor shortages and rising building material costs.”

All three HMI components posted gains in August. The component gauging current sales conditions rose four points to 74 while the index charting sales expectations in the next six months jumped five points to 78. Meanwhile, the component measuring buyer traffic increased a single point to 49.

Looking at the three-month moving averages for regional HMI scores, the Northeast rose one point to 48. The West, South and Midwest all remained unchanged at 75, 67 and 66, respectively.
emphasis added

NAHB HMI Click on graph for larger image.

This graph show the NAHB index since Jan 1985.

This was above the consensus forecast – a solid reading.

Reduced Fear of Korean War

Reduced Fear of Korean War

Reduced Fear of Korean War

August 15, 2017

Today is the 72nd anniversary of Korea’s liberation from Japan, and markets there are closed. Reported remarks by the leaders of both Korean nations dispelled fear of an imminent resumption of war.

Markets were also closed today in India for a holiday commemorating the 70th anniversary if independence and Italy for Assumption Day.

The dollar rose today by 0.9% against sterling, 0.7% relative to the yen and Australian dollar and 0.4% versus the euro.

U.S. stocks at mid-day are little changed on balance. Equities are up 0.4% in France and the U.K. but down 0.3% in Hong Kong.

Reduced haven demand for gold depressed its price by 0.9% to $1,279.1 per ounce. WTI oil also has decline, sliding 0.5% to $47.36 per barrel.

10-year U.S. Treasury and German bund yields climbed back another three basis points.

Slower-than-forecast British inflation accounted for sterling’s drop of nearly 1%. CPI inflation held steady at 2.6% with a 0.1% on-month dip. PPI inflation also decelerated in July. House price inflation of 4.9% was 0.1 percentage point lower in June than May. The U.K. index of leading economic indicators slipped 0.1% in both May and June.

U.S. retail sales advanced 0.6% last month, twice expectations and raising the 12-month rate of increase to 4.2% (3.8% excluding motor vehicles).

U.S. import prices edged up 0.1% in July after dipping 0.1% in May and 0.2% in June. Import prices remained just 1.5% higher than a year earlier despite an 8.9% leap in fuel. Export prices were 0.8% above their year-earlier level.

The NY Fed’s Empire State manufacturing index jumped from 9.8 in July to an August reading of 25.2, best since September 2014. The U.S. National Association of Home Builders housing market index rose four points to a 3-month high of 68 in August.

German real GDP climbed 0.6% on a quarterly and calendar-adjusted basis last quarter and was 2.1% greater than a year earlier. That’s stronger than the 1.9% growth in full-2016 and the 2.0% on-year pace in 1Q17.

Japan’s growth in industrial production during June was revised up 0.6 percentage points to 2.2%. The revised 12-month rate of increase, 5.5%, compares to 4.9% reported initially. Output advanced 2.1% in 2Q and by 5.8% from 2Q16. Capacity usage in June was 5.5% greater than a year earlier.

Minutes from the Reserve Bank of Australia’s Board meeting earlier this month revealed rising concern about domestic housing and excessive household debt, less concern about wage growth, and confidence the inflation will remain low. Macroeconomic forecasts for next year and 2019 were not changed. Officials seem less likely to modify policy because of a firm Aussie dollar.

Chinese bank lending growth fell in July to the smallest monthly total thus far in 2017 as was expected. M2 money growth of 9.2% was lower than expected and the slowest so far in 2017.

Australian  motor vehicle sales fell 2.0% in July but were 1.8% above their year-earlier level.

The Swiss producer price/import price index was flat in July and 0.1% below its year-earlier level. Danish producer prices in the the same 12 months rose 1.5%. Swedish consumer price inflation accelerated to 2.2% in June.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Chinese money growth, German GDP, import prices, U.S. retail sales


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Bitcoin Market Cap Reaches 70$ Billion, Now Worth More Than Paypal

Bitcoin Market Cap Reaches 70$ Billion, Now Worth More Than Paypal

The price of bitcoin has gone parabolic in the past few weeks, creating and smashing countless new all-time highs along the way. Trading began today at $4,111.35 (GMT 00:05), and after less than 6 hours elapsed, the daily low was realized at $3,966.50 (GMT 05:55). The remainder of the day saw an upswing in market activity, that eventually secured a new $4,328 Bitstamp all-time high (GMT 17:00).

Mainstream media has been heavily covering the break above $4,000, most of the articles and corresponding coverage has been highly bullish. Prominent sources such as Forbes, CNBC, the Wall Street Journal, and Business Insider have all fully covered the fanfare pertaining to the milestone event.

The total crypto currency market cap has ballooned to $140 billion, with bitcoin now conferring to a larger chunk of that pie at $70 billion (more than 50% at the time of writing). The remainder is split up between ethereum at $28 billion, ripple which is holding at $6.5 billion, bitcoin cash at a valuation that is slightly below $5 billion, as well as other alternative crypto currencies and assets.

In the meantime, segwit has locked in and has entered its activation period. Completion is expected by August 22, if the existing momentum and speed in block generation stays constant.

Interestingly, bitcoin is as of this moment, worth more than Paypal, at least when it comes to market capitalization. An actual detailed article comparing both, that would factor in existing global circumstances, along with comprehensively explained causes for the anomaly, appears to be lacking at present.

Startups in the fintech industry are rapidly taking away business from the ageing banking sector. Disruptions of the old paradigms are rampant, proving that innovation and flexibility may be needed, if the exhausted banking giants and conglomerates are to survive.

Exotic predictions are plentiful as well, and certain social media figures are citing the top of this run-up at $5,000, with some even stating $10,000 as a reasonable target.

History is being revisited due to the unfolding events, comparisons are being drawn to the dot-com bubble, and the 2008 pre-crash period too. There are other numerous examples that could serve as a cautionary reminder; Silver Thursday comes to mind, as does the infamous tulip mania.

Trading began on August 9 at the $3,178.72 weekly low (GMT 10:00), before a meteoric rise in price stopped out at today’s currently unbroken $4,328 all-time high (GMT 17:00). Since then, oscillations have been minor, and a rising ascending wedge has formed.

If you have any questions and comments on bitcoin today, use the form below to reply.

Kim Jong-un cold feet? Leader takes wait-and-see posture over Guam attack

Kim Jong-un cold feet? Leader takes wait-and-see posture over Guam attack

North Korean leader Kim Jong-un has been briefed on the military’s plan to fire ballistic missiles near the U.S. territory of Guam, home to key American air and naval bases, Pyongyang’s state media said Tuesday. After examining the plan, the North’s leader said that he would watch Washington’s behavior “a little more,” but it will make…

Forex Video: Trailing Stop or Hard Take Profit?

Forex Video: Trailing Stop or Hard Take Profit?

In trading, there are a lot of different debates… The debates range from Scalping vs Swing Trading to Martingaling vs Anti-Martingaling to Automated Trading vs Manual Trading, etc.

Today, I want to discuss the logic of using a trailing stop to get out of trades vs trying to hit a  hard take profit.

In my opinion, this is a crucial question… This is a question that could determine whether a trader is profitable or unprofitable.

With that said, let’s take a look at how to answer it.

There are a lot of things to take into consideration when pondering this, but obviously, the most important thing to consider is which is going to be more profitable in the long run. Remember, if you want to build wealth over a long period of time, it is imperative that you choose a trade management style that is going to make more profit over multiple years. Another thing to keep in mind is that you can change your entry strategy according to market conditions, but use the same type of trade management strategy with all different kinds of entry rules.

I have two goals for this article.

My first goal is to get feedback. I want to know what our readers are doing in terms of trade management, why they are doing it, and if it is working. Getting feedback from hundreds of real, active traders is the best way I know of to learn more about Forex trading. So whether you are losing money every day, treading water, earning small profits, or a millionaire trader, I really, really want your feedback on this so that I can learn more and so that other readers can learn more. Please vote AND leave a comment with more in-depth information. I will appreciate it and so will many other traders.

My second goal is to illustrate what I believe about this matter. I want to explain my feelings about this topic and give you an idea of why I am in very strong support of one side.

Before watching the video on what I think, please vote on which you think is a better way to manage trades:

Thanks for voting! Please also leave a comment to share why you voted the way you did!

I am now going to share my personal opinion via a special forex video on this matter. This is, of course, just my opinion, but I hope I can shed some light on how to use trailing stop and hard take profit