When it comes down to it, gold has served as a measurement for how healthy the U.S. economy is ever since we went off the gold standard under FDR’s presidency in 1933. When the economy and U.S. dollar are rallying, gold sinks. When the economy and U.S. dollar plummet, gold goes on a tear. All the talk lately about a healthy economy on the rise, unemployment being down, and even the dollar rally in 2014 are either false or completely mask the truth: America is a deeply indebted country with so many unfunded obligations, resulting in a nation on the verge of economic collapse. But there are other developments in gold going on behind the scenes that the U.S. government has kept very well hidden.
This is a great question, because there really are several ways to invest in gold, but not all of them are equal. First, don’t invest in the gold ETF. For starters, it doesn’t put the physical metal in your hand, and it’s too disconnected from the actual production process. So, you can invest in gold bullion or rare gold coins. These are bound to hold their value over the long term, and they’re great lifestyle insurance since the metal is linked to the economy’s health, and since they’re valuable in the international markets. Another way you can go is investing in companies who have their hands in the mining process. You can invest in gold mining companies, but an even better way to go is to invest in gold royalty companies. We give a few examples in this report.
First of all, raising the minimum wage will simply lead to inflation and just generally undermine the economic well-being. The debate is revolving around this idea that, if you raise the minimum wage, it will pump more money into the economy. People who are getting paid more will have more money to spend, and businesses and industries and the overall economy will benefit from all this additional purchasing. And this maybe would be the case, if America was a closed economy. But it’s not. America is part of a global economy, and raising the threshold of the absolute minimum a person can make will grossly inflate the dollar, and ultimately will make us less competitive in the global economy. Of course, the vast majority of people are so enamored with the idea, and so many political agendas are revolving around it because it’s popular with so much of the electorate, that most people aren’t willing to recognize or consider the drawbacks of raising the minimum wage.
Some of the best opportunities you’re simply not going to find on any American-based stock exchange. Opening a brokerage account overseas will give you access to the emerging markets of the world. These are the places where real growth is happening — where economies are developing, not stagnating or faltering, and where middle classes are on the rise. Jeff goes into some detail in some of these overseas investing opportunities in The Sovereign Investor Daily, but he really goes in depth in his trading service, Frontline Investor.
The United States is one of the only countries in the world to implement a global tax regime. This means that, so long as you’re a citizen of the United States, money that you make anywhere in the world is considered taxable by the IRS. For individuals, the best way to reduce your tax burden is to relocate to a tax haven such as Panama or Uruguay. Of course, there are other opportunities to stash your cash away from the government’s reach through entities such as an offshore bank account, an offshore LLC or an offshore annuity. We explain these in detail inthis free report.
FATCA is concerning for multiple reasons. When you consider legislation such as the Patriot Act — designed purely for the sake of eliminating our freedoms and rendering us more susceptible to government infringement — you begin to see these motivations in other legislation as well. FATCA has lengthened the far-reaching arm of the IRS. Offshore banks that once would have happily embraced storing the wealth of U.S. person … are now threatened by vague and severe penalties imposed upon them by this legislation. This suggests the United States is willing to go to excessive measures to keep wealth inside the country. Perhaps it’s merely to force U.S. wealth to only circulate within the United States … or perhaps it’s one of the first steps toward implementing a one-time wealth confiscation tax. When you consider the astronomical size of America’s debt, and similar confiscation efforts in countries like Cyprus, it’s by no means out of the realm of plausibility. We discuss opportunities to store and protect your wealth in one of our books, Where to Stash Your Cash Legally.
They just can’t. Raising interest rates means raising their interest rate payments. They implemented a zero interest rate policy (ZERP) because they can’t afford this additional burden. Raising rates back to historical norms of 5% would occupy a third of the U.S. budget — about $1 trillion. Raising them even 1% is an annual expenditure of $176 million, and they’re talking about getting rates back to 2% by the end of 2015. When you look at this in conjunction with our national debt — $17.6 trillion, and about $130 trillion in unfunded liabilities and future payments — suddenly the idea of raising rates by any significant degree seems not only impractical, but impossible. There are still opportunities to generate income — particularly through owning dividend-paying stocks and a strategy known as put selling — which one of our editors, Chad Shoop, reveals in his service Pure Income.
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