There were new all-time highs on the Dow and S&P 500 this week. Of course, the mainstream media didn’t mention a word about how the Fed’s “open-ended” $85 billion a month bond buying program helped push the stock market to new highs. Maybe that’s why even some of the folks on CNBC called the market “creepy.” Legendary investor Jim Rogers said he wasn’t buying into this market. Rogers was more concerned with the ripple effect that the Cyprus banking crisis was throwing off. He’s worried that other banks around the world will start taking money out of bank accounts. Rogers says the die is cast, and it is going to happen elsewhere. He told CNBC viewers to “run for the hills.” There is now record all-time high in food stamp usage. Nearly 48 million Americans are using government assistance to buy food. How can there be a “recovery” in the economy with that kind of statistic?
They opened the banks in Cyprus, but you can only take out a little of your money. Everybody learned a new word over there, and you all should pay attention. It’s called “capital controls.” It’s like going to your drycleaners to pick up your 10 shirts, but they will only give you one per day. Think that can’t happen anywhere else? Think again. The IMF and EU have condoned this. Even Canada has a new provision to seize money out of bank accounts in the event of a systemic failure. That should make anyone with bank deposits very nervous, especially in the U.S. There is $10.8 trillion in deposits with just $33 billion in the FDIC insurance fund. No one has ever lost money in an insured FDIC account, but isn’t there a first time for everything?
The State of Texas is the latest to want control over its gold, and it looks like it will make a request to get it back from the Federal Reserve. Countries such as Germany and Switzerland are doing the same thing. Jim Rickards says this is not a run on the federal government; it is a run on the Federal Reserve gold holdings. Seems this trend towards repatriation of gold is only growing. At some point, you got to wonder if the Fed really has all this gold it has been keeping for people. You also have to wonder if there are multiple owners for the same numbered bars. Gold is coming back into the monetary system, that’s for sure. Legendary gold trader Jim Sinclair says gold is poised to go much higher in price.
Finally, North Korea has been pounding the war drums and threatening war. This is a nuclear armed country, and it is dangerous. I compare it to an eight year-old waiving around a loaded .45. The eight year-old is probably not a very good shot, but the gun could go off and kill somebody. This is North Korea, and the U.S. military is taking its threats seriously. It sent B-2 bombers to South Korea recently. These bombers can carry nuclear weapons. That means if there is a mistake or miscalculation, this could go nuclear in a hurry. I do not take the threats from North Korea lightly because war can sometimes be started accidentally, but it is still war.
Join Greg Hunter as he gives his analysis of these stories and more in the Weekly News Wrap-Up.
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.