Inflation Rising, Real Yields Falling, Gold Set to Head Higher?

“Capital gains tax on gold and silver is especially misleading. It is more likely a tax on inflation than on the underlying metals. “This bill is an effort by one state to protect the people from such confiscation,” said Representative Finchem.

With this bill, the inflationary tax can be deducted from gross income on their state income tax. The bill now goes to the Senate.

Finchem argues that any perceived capital gain from gold and silver is not actually a gain, but a protection against losing money in the inflationary federal reserve system.

“It’s called inflation,” Finchem continued. “The Internal Revenue Service for many, many years has been taxing inflation as though it was a gain.”

“The idea is that if more states can remove unjust taxation real currency competition will be in a position to return. “This isn’t going to end the fed’s monetary monopoly overnight, but it sets the foundation and opens the door for more market activity by the people,” Michael Boldin of the Tenth Amendment Center reportedly said.”

…“Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”

Conclusion: The path back to real money is a slow one but states are embarking on it now. And as they continue, silver and gold are gradually seen as money again. That’s real progress.”

Source.

“U.S. Price Inflation Hits 58-Month High!

The official year-over-year U.S. price inflation rate for January 2017 reached a new 58-month high of 2.5%!

In August 2016 after the BLS reported an official U.S. price inflation rate for July 2016 of only 0.84%, NIA predicted that it would triple over the following six months to an official price inflation rate for January 2017 of 2.52%. NIA’s forecast was off by only 2 basis points!

In fact, the official U.S. price inflation rate for July 2016 was later revised downward to 0.827%. This means it has increased over the last six months by 167.3 basis points.

NIA in August 2016 had forecast a six month increase in the official price inflation rate of 168 basis points, which was almost perfectly accurate and off by less than 1 basis point!

NIA remains confident in its August 2016 prediction that the official U.S. price inflation rate will explode past 3% for the month of February 2017! Click here to see a chart of the official U.S. price inflation rate over the last 58 months and compare it to NIA’s August 2016 forecast of the official U.S. price inflation rate through February 2017!”

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“Inflation just got another jolt, rising as much as 2.5 percent year-over-year in January, the highest such rate since March 2012. Led by higher gasoline, rent and health care costs, consumer prices have now advanced for the sixth straight month. In addition, January is the second straight month for rates to be above the Federal Reserve’s target of 2 percent.

The question I have is: Why would an investor deliberately choose to lose money? But that’s precisely what’s happening now with inflation where it is.

These were among some of the topics addressed by former Fed Chair Alan Greenspan, who spoke with the World Gold Council (WGC) for the winter edition of its “Gold Investor.”

He also reiterated his view, which I share, that gold is much more than just a metal but a currency:

Source.

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