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Hyperinflation - what is it?

Can you remember those late night calls where your senators and congressmen called to get YOUR decision to promise YOUR money for such monumental and wrong tasks? What? NO, nobody called? How about blowing 10 Trillion dollars in 8 years of president Obama’s reign? We are sure they verified with the American people that they approve spending more money than 43 previous presidents all together. Never happened. No surprise there. You are left holding a bag. Nobody was interested in the wealth and well being of the average American.

Fast forward to today. May of 2017. USA is in the hole for 19 Trillion dollars with a strong lead over any other country (Wikipedia):

List of countries by external debt

 Rank  Country  External debt  Date  USD per capita % of GDP 

 1.

 USA  18,235,489,000,000    31 December 2016  56,000  97
 2.  United Kingdom  554,815,500,000    31 December 2016  119,000  314
 3.  France  5,104,831,200,000    31 December 2016  75,800  210
 4.  Germany  5,002,093,100,000    31 December 2016  61,700  148
 5.  Netherlands  3,945,974,400,000    31 December 2016   234,000   525
 6.  Luxembourg  3,932,580,200,000    31 December 2016  6,733,000    6731
 7.  Japan  3,645,534,000,000    31 December 2016  26,400  74
 8.  Italy  2,265,430,500,000    31 December 2016  37,900  126
 9.  Ireland  2,235,142,300,000    31 December 2016  471,000  780
 10.  Spain  2,032,000,000,000     31 December 2016  44,100  167
 11.  Canada  1,754,375,600,000    31 December 2016  46,800  116
 12.  Switzerland  1,719,445,000,000    31 December 2016  204,000  265
 13.  Australia  1,603,542,800,000    31 December 2016  59,000  126
 14.  China  1,420,657,200,000     31 December 2016  1,000  13
 15.  Hong Kong   1,329,506,400,000    31 December 2016  180,000  414
 16.  Singapore  1,316,296,100,000    31 December 2016  227,000  453
 17.  Belgium  1,203,060,800,000    31 December 2016  105,000  254
 18.  Sweden  853,689,600,000    31 December 2016  86,200  177
 19.  Brazil  671,647,290,000    31 December 2016  3,200  38
 20.  Austria  630,428,500,000    31 December 2016  74,200  167
 21.  Norway  625,999,000,000    31 December 2016  117,000  169
 22.  Russia  529,651,000,000    31 March 2017  3,700  40


It's mixed bag above. Citizens loaded with anything from a thousand dollars up to 6.7 Million. Surprisingly enough China owes only 13% of their GDP. We guess population matters. With 1.5 Billion people at their disposal their Government has ability to control debt.

Others are in dire straits. There is no way the country will pay even 50% of huge debt like that, let alone 3-4 or more times GDP. Interest is there to ruin everybody's day. Interest is counted in Billions and in seconds. Don't believe us?? We dare you to visit this page: US National Debt Clock After that shock come back and continue reading.

So when Government paints itself into the corner like that they make easiest choice around: start printing money. Usually day and night. Everybody including my grandmother knows that uncontrolled money printing inevitably leads to hyperinflation. Especially my grandmother because she lived through it. WWI, WWII brought destruction, hunger and misery. Only people living in villages, peasants, survived eating food from land as they did for thousands of years. People living in towns fared much worse. An old airplane mechanic I once worked with said that he remembers being a kid on a farm and seeing people from Toronto coming every day asking to work for a potato or handful of corn. Mind you, actual war was 3500 thousand kilometers away. How was it in Europe ravaged by war one can only imagine. 

But one doesn’t need World War to experience hyperinflation. Just check out this:  

HYPERINFLATION CHAMPIONS

Hyperinflation Has Occurred in 21 Countries Over the Past 25 Years

1. Angola (1991-1999)

In the 1995 currency reform, 1 kwanza reajustado was exchanged for 1,000 kwanzas… In the 1999 currency reform, 1 new kwanza was exchanged for 1,000,000 kwanzas reajustados. The overall impact of hyperinflation: 1 new kwanza = 1,000,000,000 pre-1991 kwanzas.

2. Argentina (1975-1991)
In the 1983 currency reform, 1 Peso Argentino was exchanged for 10,000 pesos. In the 1985 currency reform, 1 austral was exchanged for 1,000 pesos Argentine. Hyperinflation continued reaching a peak annualized rate of 4,923.3 percent in December 1989. At that time, government expenditure reached 35.6 percent of GDP and the fiscal deficit was 7.6 percent of GDP. In 1990 the Argentine government created a new monetary system and established a Currency Board in April 1991. Inflation fell from 1,344 percent in 1990 to 84 percent in 1991. In the 1992 currency reform, 1 new peso was exchanged for 10,000 australes. The inflation rate for 1992 was 17.5 percent, 7.4 percent in 1993, 3.9 percent in 1994 and 1.6 percent in 1995. By 1995, government expenditure represented 27 percent of Argentina’s GDP. The overall impact of hyperinflation: 1 new peso = 100,000,000,000 pre-1983 pesos.

3. Belarus (1994-2002)
In the 2000 currency reform, the ruble was replaced by the new ruble at an exchange rate of 1 new ruble = 2,000 old rubles.

4. Bolivia (1984-1986)
In the 1987 currency reform, the peso boliviano was replaced by the boliviano which was pegged to the U.S. dollar.

5. Brazil (1986-1994)
By the mid 1980s inflation was out of control reaching a peak of 2000 percent. In 1986 three zeros were dropped and the cruzeiro became the cruzado. In 1989, another three zeroes were dropped and the cruzado became the cruzado novo. In order to avoid confusion and not associate the new currency with previous monetary policy, the cruzado novo was renamed the cruzeiro with no change in value in 1990. By 1993, three more zeros were dropped from the cruzeiro which became known as the cruzeiro real. The overall impact of hyperinflation: 1 (1994) real = 2,700,000,000,000,000,000 pre-1930 reis.

6. Bosnia-Herzegovina (1993)
Bosnia-Hezegovina went through its worst inflation in 1993. In 1992, the highest denomination was 1,000 dinara. By 1993, the highest denomination was 100,000,000 dinara. In the Republika Srpska, the highest denomination was 10,000 dinara in 1992 and 10,000,000,000 dinara in 1993.

7. Bulgaria (1991-1997)
In 1996, Bulgaria defaulted on its international debt and narrowly escaped a revolution. From 1991 to 1997, Bulgaria experienced hyperinflation (rates of inflation exceeding 50%) that crippled its banking system and during the winter 1996-97 hyperinflation and food shortages led to hunger protests. A currency board established in July 1997 slashed three zeroes off the currency.

8. Ecuador (2000)
Ecuador officially pegged its currency to the US dollar in September 2000 after a 75% drop in value in early January of that year.

9. Georgia (1995)
In the 1995 currency reform, 1 new lari was exchanged for 1,000,000 laris.

10. Madagascar (2004)
The Madagascan franc lost nearly half its value in 2004. On 1 January 2005 the Madagascan ariary replaced the franc at a rate of 1 ariary for five Madagascan francs.

11. Mexico (1994)
On 1 January 1993, the Bank of Mexico introduced a new currency, the nuevo peso which was equal to 1,000 old pesos. Since the Mexico Peso Crisis of 1994 the value of the Mexico peso has plummeted by almost 60%.

12. Nicaragua (1987-1990)
 Nicarauga went through a currency reform in 1988 which saw 1 new Cordoba replace 1,000 old cordobas. In the mid-1990 currency reform, 1 old Cordoba equaled 5,000,000 new cordobas. Total impact of hyperinflation: 1 old Cordoba = 5,000,000,000 pre-1987 cordobas.

13. Peru (1984-1990)
In the 1985 currency reform, 1 intis was exchanged for 1000 soles de oro. In the 1991 currency reform, 1 nuevo sol was exchanged for 1,000,000 intis. The overall impact of hyperinflation: 1 nuevo sol = 1,000,000,000 pre 1985 soles de oro.

14. Poland (1990-1993)
Poland suffered two bouts of hyperinflation. The first occurred from 1922 to 1924 when inflation rates reached 275%.[The second,] after three years of hyperinflation, resulted in currency reform in 1994 in which 10,000 old zlotych were exchanged for 1 new zloty.

15. Romania (2000-2005)
Romania is still working through steady inflation that began around the time when the Iron Curtain came down… Consumer inflation in 2000 was over 45%. In July 2005 the leu was replaced by the new leu at 10,000 old lei = 1 new leu. Inflation in 2005 was about 9%.

16. Russia (1992-1994)
Russia experienced 213% inflation during the Bolshevik Revolution and again during the first year of post-Soviet reform in 1992 when annual inflation peaked at 2520%. In 1993 the annual rate was 840%, and in 1994, 224%. The ruble devalued from about 100 r/$ in 1991 to about 30,000 r/$ in 1999.

17. Turkey (1990’s)
Throughout the 1990s Turkey dealt with severe inflation rates that finally crippled the economy into a recession in 2001…Recently Turkey has achieved single digit inflation for the first time in decades, and in the 2005 currency reform, introduced the New Turkish Lira; 1 was exchanged for 1,000,000 old lira.

18. Ukraine (1993-1995)
Inflation rates peaked at 1400% per month between 1993 and 1995 resulting in the karbovantsiv being taken out of circulation in 1996 and replaced by the hryvnya at an exchange rate of 100,000 karbovantsivi = 1 hryvnya.

19. Yugoslavia (1989-1994)
[Yugoslavia had the] second worst hyperinflationary period in recent history with a monthly inflation rate of 5 quintillion percent. Between Oct 1, 1993 and January 24, 1994 prices doubled every sixteen hours on average. At the end of it, one novi dinar = 1,300,000,000,000,000,000,000,000,000 pre-1990 dinars.

20. Zaire (1989-1996)
In the 1993 currency reform, 1 nouveau zaire was exchanged for 3,000,000 old zaires. In 1997 Zaire was renamed the Congo Democratic Republic and changed its currency to francs. 1 franc was exchanged for 100,000 nouveaux zaires. The overall impact of hyperinflation: One 1997 franc = 300 billion pre-1989 dinars.

21. Zimbabwe (1999 – 2009)
The Rhodesian dollar (R$) replaced the pound as the currency in 1970 at a rate of 2 Rhodesian dollars = 1 pound (R$ 0.71 = USD $1.00). At the time of independence in 1980, one Zimbabwean dollar (of 100 cents) was worth US$1.50…. [Inflation reached an absurd 231,000,000% in the summer of 2008. Output measured in dollars had halved in barely a decade. A hundred-trillion-dollar note was made ready for circulation, but no sane tradesman would accept local banknotes. A ban on foreign-currency trading was lifted in January 2009. By then the American dollar had become Zimbabwe’s main currency, a position it still holds today.

WHAT DOES HYPERINFLATION MEAN IN EVERYDAY LIFE?

After reading a horrific numbers listed above one will ask himself what that means when going to the store to buy necessities for life?

That means liter of milk costing $1 at 8:00AM at 11:00AM could be $2 and by afternoon $6. Clerks in the store actually write whole day new prices in order to keep up with inflation. Tomorrow it may happen that store will not have any milk at any price. Why? Paper money is deemed to be worthless! Farmers and other true producers of food won't take fiat money any more. It's good as firewood only. Only value accepted shall be bartering or precious metals. Gold and silver come to mind first.

Doom and gloom scenarios are not reserved to Sci-Fi movies. Take a look at Venezuela today. At least 800% inflation from 2015 until today. They actually run out to money to pay for the money which is printed in UK for them.

So this is reserved for third world countries, right? We here in North America are quite safe. Not quite so. US debt is at record level. Take for example Greece or Cyprus. Don’t make anything but wine, some olive oil and run hotels. Overnight ATMs got unplugged, people run on banks with no avail. No money. Remember it is so easy to turn money off. Specially in today’s plastic money oriented societies. Hopefully Government is here to “help you”, not. They “helped” themselves building personal wealth behind the curtains of politics and big decisions. That is how we got in troubles in the first place.  

So where true wealth is? Gold and silver would be right call. It provides timeless value. It was here before our time and will be here in 100 or 1000 years. Gold proved to be best investment of all times. Yes, we heard about stock investments like Coca Cola, Apple or Tesla. When person lost his job, is about to lose car and house, can’t pay basic necessities we wonder which model of iPhone he will want to wait in line for? Or get Tesla S to ride around in style and environmentally friendly. Basic rule of economy is that luxury items are to be dumped first. Suddenly latest laptop and 250 cable TV channels do not look that appealing any more.

WHAT IS COMMON FOR ALL COUNTRIES HIT BY HYPERINFLATION LISTED ABOVE? 

It's one simple fact, no gold to backup paper money! Sometimes there is no gold to start with or something like this. By colossal mistake in August 1971 president Nixon disconnected US gold reserves and paper money. Bankers were happy. Fed bank could not be more ecstatic, they could print any amount of money they wanted. And print they did ... and never stopped. Highway to Hyperinflationtown opened for business.

Having hard assets is the only way. Even something like land isn't worth much. Simply put there are no buyers that can pay some true value for it. Trusting paper money and Government could bring person to the edge of survival. Not unless one plans wisely and carries a SmartGold card in their pocket.

Paper money - how we got here?

The government may say the inflations is 2.4% but any purchasing consumer can feel it as much more without anyone running calculations. Things simply cost more and more. There are also tricks manufacturers use to play with the minds of the consumers. Did you notice how a large box of cereal actually contains smaller and smaller inner bag of product? Instead of getting 500 grams of product, suddenly there is only 400 grams but the box looks the same from the outside. That is more than a 20% increase in price right there!

ROMAN EMPIRE - HOW THEY DID IT?

The major silver coin used during the first 220 years of the empire was the denarius. This coin, between the size of a modern nickel and dime, was worth approximately a day’s wages for a skilled laborer or craftsman. During the first days of the Empire, these coins were of high purity, holding about 4.5 grams of pure silver.

However, with a finite supply of silver and gold entering the empire, Roman spending was limited by the amount of denarii that could be minted. This made financing the pet-projects of emperors challenging. How was the newest war, thermae, palace, or circus to be paid for?

Roman officials found a way to work around this. By decreasing the purity of their coinage, they were able to make more “silver” coins with the same face value. With more coins in circulation, the government could spend more. And so, the content of silver dropped over the years.

By the time of Marcus Aurelius, the denarius was only about 75% silver. Caracalla tried a different method of debasement. He introduced the “double denarius”, which was worth 2x the denarius in face value. However, it had only the weight of 1.5 denarii. By the time of Gallienus, the coins had barely 5% silver. Each coin was a bronze core with a thin coating of silver. The shine quickly wore off to reveal the poor quality underneath.

THE CONSEQUENCES

The real effects of debasement took time to materialize. Adding more coins of poorer quality into circulation did not help increase prosperity – it just transferred wealth away from the people, and it meant that more coins were needed to pay for goods and services. At times, there was runaway inflation in the empire. For example, soldiers demanded far higher wages as the quality of coins diminished.

By 265 AD, when there was only 0.5% silver left in a denarius, prices skyrocketed 1,000% across the Roman Empire.
Only barbarian mercenaries were to be paid in gold.

FINAL EFFECTS

With soaring logistical and admin costs and no precious metals left to plunder from enemies, the Romans levied more and more taxes against the people to sustain the Empire. Hyperinflation, soaring taxes, and worthless money created a trifecta that dissolved much of Rome’s trade. The economy was paralyzed. Roman Empire lasted about 1500 years, as republic about 500.

Initial 250 years were so stable and money appreciated that even enemies across the borders of Roman Empire used the same money. Things turned sour after administrators "invented" diluting mostly silver money with other less worthy metals.

SHOULD WE LEARN FROM THE ROMANS?

Absolutely! After a few hundred years of success with true silver coins they must have had someone from Wall Street come up with the idea to dilute the mints! That idea truly ruined everything forever.

Fast forward to today's fiat money, backed up by nothing in reality. The explosion of Bitcoins and other digital currencies is about the same thing as fiat money. Very volatile, no intrinsic value, almost no practical value, driven by market hype. That is a short description of digital currencies.

Gold or silver is a completely different story. Buy it! It will last forever, never diminish and increase in value.

Is our gold safe in US banks?

... us all out including TEFRA and are proposing to outlaw cash. When the Federal Reserve and global bankster’s pull the plug on the stock market/global economy, there will be a major tax hike on precious metals to confiscate that as well as your savings and pensions. Who will you sell precious metals to when everyone is broke? The Federal Reserve will utilize all its global bullion banks to place massive naked short positions at Comex that will crush any hope of a precious metals safety net. Politicians will continue to use our treasury as their private piggy bank with no accountability, just blame the other “party”, lie, deflect and draft punitive, unconstitutional laws until we are transformed into serfs. The Bill of Rights is already a worthless document having been gutted long ago. Trump will never be able to drain the swamp of these corrupt lawyers gaming the system.”

WHAT DOES THIS MEAN?

If this gentleman is even half right we are in for a very rough ride. Basically he is saying that we (here in North America) will get robbed blind … yet again. Sounds impossible? Not really, history repeats itself and we have to learn from it. Read our other page with the case for gold.

Facing a stock market crash he thinks the Federal bank and US Government will raid people’s bank accounts. Precious metals will skyrocket and the greedy Government will try to seize people’s holdings. We would not surprised. Would you?

WHAT IS HAPPENING IN EUROPE?

Another anonymous post from Money and Markets:
   
“In Italy they have been doing it for over two years. A friend of a friend was a victim of this. He had 400,000 euros in the bank and was ready to start building his home. The bank made excuses of errors pretending to fix them – but never fixed them. At the time of the story he was lucky if there were 10,000 euros left. Victims are picked randomly – and from different towns – without a chance that they would group to fight the injustice.”

Sounds crazy but kind of matches the above post, not by geography but by mode of operation.

How about an excerpt from a Financial Post article:

“In an effort to boost the eurozone’s flagging economy, the ECB has slashed interest rates to record lows, and, since March, has charged a 0.4% fee on excess deposits left with it by eurozone banks.”

Whoa! You mean a person who is saving money has to pay the bank to hold it and earn profit using his deposits? Exactly that. It is called negative interest rates. So not only cash savings get eroded by inflation but also by paying negative rates.

PROTECT YOURSELF!

Yes, above we have doomsday speculations and some facts. Looking at Dow Jones and S&P indexes picture is completely different. They are at record highs. For how long? Nobody knows. You draw your own conclusions, but protect yourself. Don't just read about it. We will help you to help yourself!

SmartGold Membership is there for you. Vehicle to safety and wealth. Start saving in gold. We’ll take care of it and store it for you at several secure locations. Besides that we have some unexpected features in store. We will roll them out in the upcoming months and you will be glad to have that valuable SmartGold membership.

Value of dollar

1910s
The Federal Reserve Act is signed in 1913 by President Woodrow Wilson.
U.S. Money Supply: $13 billion
What $1 Could Buy: A woman’s house dress.
1920s
U.S. dollar bills were reduced in size by 25%, and standardized in terms of design. The Fed starts using open market operations as a tool for monetary policy.
U.S. Money Supply: $35 billion
What $1 Could Buy: Five pounds of sugar.
1930s
To deal with deflation during the Great Depression, the United States suspends the gold standard. President Franklin D. Roosevelt signs Executive Order 6102, which criminalizes the possession of gold. By no longer allowing gold to be legally redeemed, this removes a major constraint on the Fed, which can now control the money supply.
U.S. Money Supply: $46 billion
What $1 Could Buy: 16 cans of Campbell’s Soup
1940s
The massive deficits of World War II are almost financed entirely by the creation of new money by the Federal Reserve. Interest rates are pegged low at the request of the Treasury.
Under Bretton-Woods, the “gold-exchange standard” is adopted.
U.S. Money Supply: $55 billion
What $1 Could Buy: 20 bottles of Coca-Cola
1950s
The Korean War starts in 1950, and inflation is at an annualized rate of 21%. The Fed can no longer manage such low interest rates, and tells the Treasury that it can “no longer maintain the existing situation”.
U.S. Money Supply: $151 billion
What $1 Could Buy: One Mr. Potato Head
1960s
An agreement, called the Treasury-Federal Reserve Accord, is reached to establish the central bank’s independence.
By this time, U.S. dollars in circulation around the world exceeded U.S. gold reserves. Unless the situation was rectified, the country would be vulnerable to the currency equivalent of a “bank run”.
U.S. Money Supply: $211 billion
What $1 Could Buy: Two movie tickets.
1970s
In 1971, President Richard Nixon ends direct convertibility of the United States dollar to gold.
The period following the Nixon Shock is uncertain. The federal deficit doubles, stagflation hits, and the oil price skyrockets – all during the Vietnam War.
Over the decade, the dollar loses 1/3 of its value.
U.S. Money Supply: $401 billion
What $1 Could Buy: Three Morton TV dinners.
1980s
The stock market crashes in 1987 on Black Monday.
The Federal Reserve, under newly-appointed Alan Greenspan, issues the following statement:
“The Federal Reserve, consistent with its responsibilities as the nation’s central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system.”
The Dow would recover by 1989, with no prolonged recession occurring.
U.S. Money Supply: $1,560 billion
What $1 Could Buy: One bottle of Heinz Ketchup.
1990s
This decade is generally considered to be a time of declining inflation and the longest peacetime economic expansion in U.S. history.
During this decade, many improvements are made to U.S. paper currency to prevent counterfeiting. Microprinting, security thread, and other features are used.
U.S. Money Supply: $3,277 billion
What $1 Could Buy: One gallon of milk.
2000s
After the Dotcom crash, the Fed drops interest rates to near all-time lows.
In 2008, the Financial Crisis hits and the Fed begins “quantitative easing”. Later, this would be known as QE1.
U.S. Money Supply: $4,917 billion
What $1 Could Buy: One Wendy’s hamburger.
2010-
After QE1, the Fed holds $2.1 trillion of bank debt, mortgage-backed securities, and Treasury notes. Shortly after, QE2 starts.
In 2012, it’s time for QE3.
Purchases were halted in October 2014 after accumulating $4.5 trillion in assets.
U.S. Money Supply: $13,291 billion
What $1 Could Buy: One song from iTunes.

Paper money properties

Medium of Exchange
* Definition: Can be used to intermediate the exchange of goods and services.
* Use: A common ground for determining value.
* Example: A community uses beaver pelts as a medium to trade for other goods.


Unit of Account
* Definition: A standard numerical unit of measurement of market value for goods, services, and other transactions.
* Use: Can be used to compare goods using a common system.
* Example: Housing prices in Japan can be compared using the yen as a unit of account.


Store of Value
* Definition: Maintains its value over time.
* Use: Can be spent or exchanged at a later date without penalty.
* Example: An ounce of gold could buy a toga in Roman times, yet it can still buy a nice suit today.


In other words, money must meet be:
1. Divisible: Can be divided into smaller units of value.
2. Fungible: One unit is viewed as interchangeable with another.
3. Portable: Individuals can carry money with them and transfer it to others.
4. Durable: An item must be able to withstand being used repeatedly.
5. Acceptable: Everyone must be able to use the money for transactions.
6. Uniform: All versions of the same denomination must have the same purchasing power.
7. Limited in Supply: The supply of money in circulation ensures values remain relatively constant.


The above properties of money will certainly help us uncover more truths, but there are still problems:
* What happens if money no longer holds its value?
* What happens if money supply is no longer limited?
* Where does money’s value come from?
* What is difference between money and debt, and how much is there?

What could possibly go wrong?

Don't be fooled by stock market reaching new heights every day. House of those cards can came down at astonishing speed. Geo-political situation is working in that direction every day. Politicians just can't let a good times run:

  • Instead of stepping away from Syria USA is getting involved deeper and deeper every day. They shut down Syrian Air Force aircraft just few days ago. Russians will not allow things like that. Direct clash between US and Russian forces is inevitable
  • USA just sold a lot of most modern arms to Taiwan making China very mad
  • USA in dispute with China over islands China built in South China Sea
  • Germany announced that USA is not really friend but only partner
  • USA is always arming wrong groups of people destabilizing countries in process
  • USA now has permanent fleet close to North Korea and threatens to strike it
  • USA trying to seat on several chairs at the same time: Saudi Arabia, Qatar, Iraq, Turkey, Kurds. Each of those entities has completely different agenda usually opposite of what others want
  • NATO playing war games and placing installations at Russian borders
  • North Korean president is trigger happy firing ballistic missiles towards Japan, South Korea or wherever they weer off to
  • USA will arm Ukraine, means give them arms in return for something else
  • USA and recently Canada are arming Kurds in Syria with goal to oppose unity of Syria and tear it apart

So world is very explosive place and hell could break lose at any time. Protect your values and prepare for the future the best you can.

Good news - bad news

Now bad stuff. US Congress overwhelmingly voted to punish Russia for meddling into elections. By 419 to 3 votes they pushed President into corner and he signed off actions. "Funny" part is that there is no proof of anything. Blame it on Russians seems to be democratic party's theme of day. Most of republicans agreed. Why is this important to gold investors?

  • Congress practically killed any opportunity for President Trump to negotiate with Russia
  • They are poking into Russian bear with sharp stick. Nothing good can come out of that
  • Russians will not be affected much with those or any sanctions. First of all they don't take orders by anyone. Secondly for last 100 or rather few hundred years their way of life is so restricted by internal rules that they will not be missing GM cars, iPhones, GMO corn, pork bellies and other wonders of US industry
  • They already kicked out several hundred US diplomats. After unprecedented move by Obama to seize Russian diplomat's houses and property in USA it is surprise that it didn't happen earlier 
  • This will sure cause tit for tat kind retaliation and in that game US is prone to lose much more. How about losing whole currency war?
  • This kick in the ass will also be a kick into Russia and China efforts to undermine USD. They have plenty of national gold to do so and plenty of other nations that want to get off USD dominance in international business
  • They are about only supplier of energy to Europe and major supplier to China and other nations. What if they start asking to be paid in gold or silver only?

We'll see how this unveils. It is good for metals. They will go up.