The United States Mint is responsible for producing and circulating all coinage for use in economic trade or commerce. However, few are actually aware of the history behind this financial intuition. In the beginning of America’s days as a colony, each state produced its own currency or accepted foreign coins as a means of payment. Massachusetts was the first of the colonies to produce a paper currency, which later gave rise to Continental Currency in an effort to finance the Revolutionary War. However, these paper notes had no solid backing of any kind other than predicted taxes revenue collected from each colony. In 1781, The Continental Congress sought to increase confidence in its currency through the establishment of The Bank of North America in Philadelphia, which was then the capital. The printing of money was left to private banks who printed notes of all kinds. As a result, paper notes and coins were easily counterfeited. Silver bullion coins were easily pressed and engaged with images and the exchange rate varied throughout each colony. Continue reading our market analysis
The Gold Standard
The United States had been under the gold standard from 1879-1933. Following the bank failures of the Great Depression in the 1930’s and the stock market crash of 1929, President Roosevelt enacted the Gold Reserve Act of 1934. As the US was still facing the the after effects of the economic turmoil, this act attempted to counter these effects by confiscating the majority of gold owned by Americans in the 1930’s in return for paper money.
JP Morgan is Buying Lots of Silver
JP Morgan is buying monstrous amounts of silver. They have already stockpiled a very large amount of silver already. Being one of the most powerful banks in the world, is it fearing a hit to its reputation in case of another financial recession?
The bank’s stockpile of silver has already reached astounding levels within the last 4 years. Although it had nearly no silver by 2011, It drastically increased its silver stockpile by purchasing nearly 5M ounces of silver within one year. Continue reading our market analysis
Of all the things so uncertain and fragile about the stock market, I can tell you one thing that is repeatable and very certain about the market. It goes through a correction.
It’s been 6 years since the last correction and ever since then investors have been wary of the next correction. They know that putting their money in the stock market is like riding a race car without brakes, if you take the wrong turn, there is no coming back.
While investors are in love with the market’s performance right now, some still remember the bleak aftermath of the last stock market crash and the damage it did. They know it is going to come back and wreak havoc on their portfolios yet again.
So, how near is the next crash or correction? Let’s look into some factors that might signal a coming correction: Continue reading our market analysis
China has been hoarding gold for the past decade. Is China planning to back the yuan with Gold? In fact, some unofficial reports state that China is ready to do this. This giant’s hunger for Gold is unprecedented and a gold backed yuan will mean rifts of economic collapse in the West.
Some think that this is not really a very promising prediction, as China is dependent on the US dollar for trade. They fail to understand the fact that China owns nearly a trillion dollars of US debt and if it has enough reserves, it will back the yuan with gold to rid itself completely of the US dollar. It is already the second largest economy in the world and aiming for the first place. China’s dependence on the US dollar for international trade is the single biggest factor China is ready to back yuan with Gold. Continue reading our market analysis
America in the 1970’s
There was a lot going on in America in the 1970’s. Politically it was not a great time for the country. The USA was dealing with the Watergate scandal and a number of strikes. In addition, because of the USA’s involvement in the Yom Kippur War, they were hit with the Arab embargo of 1973. That’s just to name a few issues the country was facing politically at the time.
Inflation in the 1970’s
In addition to the political issues, the US was facing financial issues as well. The stock market was in terrible shape. In a period of 18 months the stock market lost 40%. The banks were lending out money left and right in an attempt to create jobs, which ended up creating really high inflation. Their policies were so loose that everyone was applying and interest rates rose rapidly. Continue reading our market analysis
Although the U.S. dollar dominated the international trade for more than seven decades, its future as the known global reserve currency is turning dim. The reign of the U.S. dollar in the world market, which constitutes over 60 percent of the total currency holdings worldwide, mainly benefits the U.S. financial system and the U.S. consumers. This has also allowed the current generations of American corporate and governing powers to overspend year after year than what is gained through export revenues and taxes.
Continue reading our market analysis