Banks, Gold, and the Fiscal Cliff

Have you heard the term, fiscal cliff?  Do you know what it means, and more importantly, why it matters to us?
This topic was covered on Debt Free Wealth Radio. You may listen as you read:

So you know your money buys you less, that even though we earn more than our grandparents ever did, many of us have less than they were able to acquire, and every time you try to save, the money seems to disappear instead of accumulate.
What you don’t know is, the banks realize that too, BUT they are doing something about it. As the nation tries to recuperate from the broken economic system, the financial wizards of the financial world realize that the old standard – the gold standard, was the BETTER standard, and without any public buzz, and intentionally so, they have been quietly, and systematically, accumulating larger and larger stock piles of the shiny stuff.
Well, should you be taking note? Should you be taking similar strategies to protect YOUR wealth?
As a gold and silver enthusiast, I have been following this financial sector with a close eye. This has not escaped my notice and I feel ethically bound to share it with you. Nothing is as unfortunate as those who have eyes, but will not see, and ears but will not hear. Please be sure to put eye drops and ear wax removal in as you listen today. Some of you may need it!

• If you are an investor or place your own trades, this may be for you.
• If you have a 401K and care what is happening with it. This may be for you.
• If you have money you are thinking of saving or investing for the future, this may be for you.
• If you have had investments that have not done so well in the past and wondering where you go from here, this may be for you.
• If you have any interest in precious metals at all, this is definitely for you.

Gold, Silver, and Your Portfolio

A good Financial Broker will invest at least 10% of a person’s portfolio in paper gold and silver assets. Tangible gold and silver is way more fun. Stack it; count it, add a rare coin to a collection – it is all fun; exclusive fun. If you haven’t considered gold and silver before, did you even realize they can buy an ounce of silver for less than the cost of lunch for two.

The global financial news constantly confirms that more and more banks, and the very wealthy are increasing their holding of gold and silver, in fact, the increased interest in silver as an undervalued asset is where most of the speculation happens.
You really need to hear what Certified Financial Planner, Paul Mladjenovic shared with me in an interview I did with him on the topic PRECIOUS METAL INVESTING FOR DUMMIES AND SMART PEOPLE TOO. Paul is one of those who trains other Financial Planners and he believes strongly in clients owning and holding the TANGIBLE form of gold and silver. I will be happy to share that download with you. Just to to goldandsilverbizopp.com and enter your name and email to receive that free 30 minute audio that audio is very insightful and shares some information the average financial advisor is not sharing with their clients.

Gold and the World Standard.  Should You Be Concerned?

Now the World Gold Council in a Nov 2012 press release said, and I quote, ““Gold is beginning to re-establish itself as part of the fabric of the financial system. [ ] Against a backdrop of continued global economic uncertainty and elections in China and the US, it is clear from five year rising demand trends that gold’s fundamental property as a vehicle for capital preservation continues to endure, as evidenced by this quarter’s increase in global ETF investment, up 56% and continued purchasing by central banks, the ultimate long term investors.”

I propose that a statement like this from an organization like the World Gold Council should create a heightened level of due diligence within each of us as we watch our own financial backs. Ladies and gentlemen, even if you have a Financial Broker taking care of your money I strongly advise you to hold them accountable for the performance of your portfolio and check in on them often with lots of questions.

It is true that it is best to consider our investments with a long term view rather than the daily movements unless you are a day trader – but that premise is where a lot of Brokers get to make huge mistakes you do not realize until it is too late. Get in the habit of reviewing your portfolio regularly and ask lots of questions. They get paid regardless of how your portfolio performs because no Broker can ever give you a guarantee. Good Brokers know that doing a good job for you means you have more money for them to do more transactions so they in turn earn more in commissions on you, and doing a good job for you may also have you singing their praises and bringing them more of your friends, but at the end of the day YOU are the only one who TRULY CARES about the status of your portfolio’s performance. If I am wrong – why didn’t more of these Brokers protect us when the market was heading for the spiral down into the abyss as happened in the recent economic melt down?
According to what I am seeing in the news, the recent buzz about us approaching a ‘fiscal cliff’ means we might be looking at a new plunge into this financial darkness up ahead.

I am going to read various quote snippets from a Nov 21 article on goldprice.org Keep this definition in mind as you listen to the quote I will read shortly
Capital adequacy ratio is the ratio which decides the ability of a bank to meet its liabilities in the agreed upon time frame. REPEAT Capital adequacy ratio is the ratio which decides the ability of a bank to meet its liabilities in the agreed upon time frame
Ok so that Nov 21 article from goldprice.or says
“It appears the Central Banks are secretly returning to the gold standard, giving substance to the evident failure of President Nixon’s action in 1971 on the then Bretton Woods global financial exchange system.[ ] Starting in 2010 central bank gold purchases jumped to a then all time high of 455 metric tons. The biggest buy gold by central banks since 1964. [ ] Banks have raised the gold capital adequacy ratio* to Tier One so gold is now viewed as a core capital of equity and disclosed reserves.
Originally it was Tier Three, with a 50% risk weighing. The Basel Committee for Bank Supervision (or BCBS) met some months ago and decided that gold should be made a Tier 1 asset for commercial banks with a 100 percent weighing instead of the existing Tier 3 with just 50 percent weighing. [ ] *

Did you get that folks? The banks have increased not only their holding of gold assets quietly, but they have also raised the risk level as they realize the tier 3 status put them in jeopardy to meet their obligations. That in a nutshell is a return to the gold standard because when the gold standard existed, it basically was a holding of gold as an insurance that they were good to pay up on outstanding notes, that the banks had the financial backative to their commitments.
Remember the FDIC only insures up to $250,00 of your money in the banks. FDIC stands for Federal Deposit Insurance Corporation; key word here is FEDERAL! The strength of that promise is backed by the government, so the strength of government funding is very key to the strength of that insurance.
FDIC insurance is not unlimited. If you have too much money in the bank you may be leaving yourself open to risk. The basic FDIC insurance limits are:
• $100,000 per depositor
• $250,000 in certain retirement accounts per depositor
Note: The limit was raised from $100,000 to the current level in October 2008, but the rise was set to revert back Dec. 31, 2013, until the Dodd-Frank Wall Street Reform and Consumer Protection Act made the higher amount permanent, according to David Barr, a spokesman for the Federal Deposit Insurance Corp.     Read more: http://www.bankrate.com/finance/savings/fdic-insures-bank-deposits-to-250-000-1.aspx#ixzz2EN2DxCJm
I find it interesting that the amount of money protected by the FDIC is the same threshold of $250K as those who President Obama feels should be protected against the tax hikes when the Bush tax expires. Cooincidence? Hmmm. The message I get is, if you have or make more than $250K you are considered rich – at least by the government, and will be pay a higher tax rate than the rest of society for having more than $250K. I am not going to go into a political debate as to whether I agree with that or not. This is the simply a rehashment of the facts as comes off of the White House floor. The discussion going on currently is about the expiration of the Bush tax cuts with regards to the fiscal cliff and law makers are arguing for or against who should continue to benefit from those tax cuts if they are extended beyond January 2013.
A video on Youtube which was a clip from a European New show  basically talks about the failure and crashing stock values of several banks including our JPMorgan, it mentions George Sorros buying gold and basically tells the audiencd that
Gold Price Will Skyrocket By 2013!

In fact, according to a recent World Gold Council report, gold rose by over 11 percent and is up 16 percent on a yearly basis, outperforming almost all the worlds’ stock markets.
Now if the Mayan calendar is correct, we have nothing to worry about because the world will end before 2013 shows up anyway – but since I am a Bible believer and believe Matthew 24:36
“But of that day and hour no oneknows, not even the angels of heaven, but My Father only.”
So, assuming we are still here in 2013, I urge you to take a personal interest in your finances and not just leave it up to the experts. If the experts are handling it for you, remember THEY WORK FOR YOU. Do not let them intimidate you with their expertise status so you just figure they know better than you do. You have an interest in YOU results more than the experts do. Get involved. Take action to protect your family.
So what exactly is the fiscal cliff and why is there a growing concern that we are heading for the fall?
It is a term to visually convey the expected crisis coming in the first part of 2013 when massive scheduled spending federal cuts coincide with a scheduled tax hike. Regardless of whether you earn the earmarked $250K per year that President Obama uses to discuss who he thinks should benefit from extending the Bush tax cuts to or not, the fact is there is a fiscal cliff and nothing good can come out of a simultaneous class of spending cuts to key programs and tax spikes. There is likely to be massive layoffs, and so fewer of us will have to worry about those tax cuts anyway, because you may now be filling out applications for food stamps, Medicaid, the free cell phone, section 9 housing, subsidized day care, and access to cash assistance.
For those of you who can see the writing on the wall, and have the presence of mind to take heed, you may want to consider looking at tangible gold and silver as an option for saving and growing your money because cash is losing its buying power everyday.
If you are going to buy gold and silver – who doesn’t like a great deal? There is a way to buy your gold and silver at a spit over spot. Spot price for gold and silver is the daily market price as determined by the market and it is illegal to sell gold and silver below that price. Big retailers that market gold and silver to the public are advertising harder than ever because they anticipate the increase in demand that is already here and growing. However, I have a resource for you that will allow you to buy your gold and silver bullion bars and coins, the collectible numismatics, and even some coin based jewelry at as close to spot price as possible. Those of you with the entrepreneurial DNA will also see the value in making extra money from this opportunity. There is no such thing as having too much money folks. If you have more than you need, there are several worthy organizations that hope you will send them some of that extra.
For full disclosure, I am involved in gold and silver as a business opportunity, but I got involved because I was buying gold and silver all along and when the economic recession of 2007 -2009 hit, gold and silver out performed our plunging investment portfolio and our real estate holdings. It was a no-brainer for me to investigate how I could capitalize on this financial fact and in addition to getting my gold and silver for less than retail, to create an income stream from the local, national, and global demand. It is easier to do than you think. It costs way less than an iphone to get involved and I find it super sexy to be a player in this industry and most of all, I love the look on the faces of my friends and associates when I tell them I am in gold and silver.
So if you are curious about this opportunity to buy your gold and silver at a spit over spot, and get my free audio , go to goldandsilverbizopp.com enter your name and email
Here’s what you get when you put your name and email to opt in:
• Immediate delivery of my free 30 minute audio interview
• hear Certified Financial Planner, Paul Mladjenovic tell you the #1 reason to buy TANGIBLE precious metals (hint…it’s NOT what you think!)
• hear how tangible precious metals stack up against mutual funds, stocks, bonds etc. and why your Financial Planner should have YOU buying this TANGBILE asset class
• discover how to never pay retail ever again for your bullion bars, coins, or numismatic collectibles
• since there is no such thing as having too much money (heck, if you really don’t want it, you can generously donate it to others who do), learn the secret to adding to your wealth with an additional internet driven income stream – if you want of course -TOTALLY OPTIONAL!
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