Our government in cohoots with the Federal Reserve have manipulated interest rtes to near zero. So, anyone who has any kind of dollars in the banks is receing nearly zero dollars. The bank then goes ahead and uses those dollars to profit. A few years ago interest rates were near 5%. Now that they are near zero, what the government has done is basically robbed savers of interest rates that they should have gotten had interest rates been determined by the market.
Interest rates are also artificially low in North America and in Europe. Canada has interest rates about 1%, the UK about 0.5%, Switzerland it's about 0.25%. Asia is another story. China is about 6%, Phillippines is about 3.5%, and India is about 8%.
There's been new recently about the Cyprian government getting levy on it's citizen bank holdings and stealing their money. Well in America it is nothing new. The difference is that in Cyprus the stealing is overt. In America it is covert. The American government steals your money through denying interest rates that should have benn given to you by having manipulated near zero interest rates. Plus, they devalue the dollar by printing money.
Cyprus will open their banks tomorrow. I am predicting a run on their banks. Expect to see long lines of people at the bank withdrawing all of their money and hiding it on their own.
This is what happens when you have a tyranical government imposing their will on a populace that is unwilling. The run on banks will be a clear message to their government and to governments world wide that you cannot just go and steal money from it's citizens without their permission.
This bank run will spread to other countries like a contagion. Some will choose to ignore it. The smart ones will get their money out of teh government controlled banks before it is too late.
They are devaluing the dollar and as a result people's savings are being stolen from them more than the 10% taken from Cyprus bank holders.
‘Would I rather have a bank deposit or would I rather have gold in my own possession?’ That is what people in Cyprus are thinking right now. Many new people throughout the rest of the world are now beginning to think the same thing.
Cyprus could be the snowflake that starts a world wide run on banks and collapse the current fragile financial system.
Some people will blame Cyprus for agreeing to the crazy IMF terms. Some people will blame Germany for putting Cyprus against the wall and force them to make their decision. Some people will blame the Russians for using Cyprus as a tax haven.
It's not any of them. It is the powder keg that was created over the years.
As I right this, no one in mainstream America is even aware of the grave danger they are in. See, the United States is in an even bigger financial mess than Cyprus. One day - maybe much much sooner than anyone even thinks it could all blow up over here. One day Americans could wake up and see that their own governments have nationalized all banks and have confiscated- better yet stolen some of their wealth.
The United States government is already taking- no stealing - its citizens wealth. Maybe not as direct as the Cyprus government is doing. But they do it much more stealthily through currency devaluation, through interest rate manipulation, through various capital controls, through inflation, and more. The average American is not even remotely aware of the scam being perpetrated on them. The smart money is aware. The average middle class and average rich person has no clue.
One day a Cyprean type of event will happen here. When that happens there will be a scape goat. They could blame the conservatives, the Tea Party, the Republicans, the Democrats, the liberals, the Chinese, God, Wall Street greed, the Fed, George Soros, the banks, and/or a mutitude of other scape goats. But they cannot blame them, Americans must only look at themeselves, for only they are to blame because this is a situation that could have been prevented a long time ago. With courage, with strength, with conviction of doing the right thing.
Those who are smart, will take action before their money is confiscated and before their world collapses. The rest will have their money stolen and see their world collapse before their eyes and try to blame someone. Too late. A smart Cyprinian could have seen it all coming and got their money out of Euros and into something else of value. Now it is too late. Their money is gone and it won't be given back to them. The Russians will be very mad. They will not forget this. They will take corrective action and when they do some people will be even angrier.
1 oz silver buffalos are very generic and selll for a very low price over spot. I've bought silver before from Gainesville Coins at a very low price.
I may buy it today from another source to see which is better.
Gainesville currently sells the above coin for $30.83 paying via credit card - or $2 above spot price of $28.83. I did a quick internet search and found out that Goldmart sells it for $29.71 or $1.12 over spot. My local coin store (Morton Grove Coin and Collectibles sells it for $2 over spot. So that is a savings of 88 cents per ounce. Plus I ahve to pay for shipping so let's see what is cheaper.
I found out that shipping and handling for 12 1 oz coins cost $19.47 if paid by credit card or $8.95 if paid by personal check or bank wire.
I'm going to try paying by credit card for this transaction then maybe in the future try paying by check or bank wire transfer. Theoretically if I paid by wore transfer or check it would have cost me $8.95, that is a savings of over $10 if I paid by credit card.
Plutarch on the outbreak of the Roman Civil War
The Roman Empire was known for its decline as much as its rise. The common thinking is that Rome fell due to the Barbarian invasions from the north. In other words an external enemy. Yes, that has a part to it. However, another less known part is that the decline came internally as well. Rome had infighting that eventually destroyed it.
Roman legions became loyal to their own generals instead of the state. In a 20 year period, Rome had 20 different emperors claiming to be Roman emperor. Rome was falling internally. Soldiers became loyal to the army more than the state and that led to civil wars. Roman legions were fighting each other instead of fighting barbarians or other external enemies.
The same thing could happen here in America. People think of the American civil war as the first major conflict among Americans. What may people do not realize is that the conflict amongst it's people even before that. In the Revolutionary War, when America was an England colony, Americans hd to decide whether to support the English (called Loyalists) or to support the revolution. A great number choose to be Loyalist. Even Benjamin Franklin's son William Franklin was a Loyalist.
Today, America is definitely not United. I feel the greatest division is between political ideological grounds. We have the liberals on one side and the conservatives on the other. There are battles between these two distinct ideologies every day. Gay marriage versus traditional definitions of marriage, gun control vs gun rights, abortion vs life, more regulations vs less regulation, the state vs religion, controlled markets vs free markets, restriction of speech vs freedom of speech, high taxes vs sane taxation, and on and on.
We have a president in Obama who seems to relish in these differences and is looking to defeat the other side.
Unfortunately- or better yet realistically- history shows that this will eventually lead to internal strife and ultimately greater divisions. The Roman empire was one of the greatest in the world. The American dream still lives to this day. However, internal strife abounds and even America is not impervious.
I discovered this website called Hard Assets Alliance. It is a place to buy and sell gold and silver. It is worth noting because it appears to be a very cheap and secure source to buy gold and silver. If that is the case, then it is worth taking the time to learn more about it.
I'm going to use this blog post to document what I've learned about it.
Here is a direct quote from a Squidoo post on the benefits of HardAssets Alliance:Hard Assets Alliance is a new precious metals investment program designed for you to buy and store gold, silver, platinum and palladium with these benefits:
How to use the Hard Assets Alliance Website Video (Buying and Selling Gold)
After doing some quick research on the site, I noticed a couple of things. The biggest is that there seems to be a $5,000 minimum purchase requirement. The prices seem rock bottom. However, it seems to only work for the person who has the money to invest at least $5,000.
One option is to open an account for any amount since there is no minimum to open an account. Then add dollars to the account when available. Then, when the balance goes above $5,000 purchase the discounted price gold or silver.
Price comparison for gold
Here is the price of a 1oz, gold American Eagle.
Current spot price = $1591.16
At Hard Asset Alliance it is $1674.69 or $83.53 over spot.
At Morton Grove Coin Store - a local coin shop I recently paid $67.09 over spot for a 1 oz coin or $55 over spot for a 1/2 oz coin.
In short, the coin shop price is actually better for gold. For silver, I still have to evaluate the difference.
Price comparison for silver
Here is the price of a 1oz, silver American Eagle.
Current spot price = $28.91
At Hard Asset Alliance it is $31.92 or $3.01 over spot.
It is no secret that China has been amassing gold. Last year alone they may have accumulated an additional 1,500 tons of gold.
What do the Chinese plan on doing with all the gold? There's talk that they may be preparing for a another Bretton Woods type meeting. And why not. The Chinese Yuan is rapidly increasing in terms of international usage. Some reports say that the Chinese Yuan has increased it's global financial transactions by 170% last year. This means more and more countries are using the Yuan as a medium of exchange as opposed to other popular currencies such as the US Dollar and the Euro.
“We are headed for another Bretton Woods. It is unsustainable for currencies to continue to lose their purchasing power while median incomes, especially in the US, continue to go down in the West.
At a certain point the Chinese will say, ‘It’s time to have another equivalent of Bretton Woods.’ That will challenge the BIS, and quite possibly lead to some sort of gold standard. What Bretton Woods did was reestablish the gold standard as the Second World War was coming to an end."
- said Stephen Leeb in a Kings World News article
The Bretton Woods meeting established a globa gold standard and made the US Dollar dominant globally. The US dollar is still the main global reserve currency. However, with the US getting greater in debt and the dollar being regularly devalued, countries may look for alternatives. If the Chines accumulate enough gold and call for another Bretton Woods meeting, we could see a more rapid decline of the US Dollar and a bigger role of a gold backed Chinese yuan.
How soon could this happen? Well right now the United States has somewhere between 8,000-20,000 tons of gold. It is more likely closer to the lower number. In a few years (2-5) China could amass enough gold (10-12,000 tons) to surpass the US holdings.