Welcome to Capital Account.
President Obama won re-election
last night and during his
victory speech he declared “What makes America exceptional are the bonds that hold together the most diverse nation on earth.”
Bonds? Does he mean Treasury Bonds perhaps?
This is what makes America exceptional: the ability to
issue bonds in exchange for the global reserve currency, which allows the US government to spend despite running trillion
dollar deficits. We talk
to James Turk about what happens when the
“bonds” holding us together are no
And gold and silver prices
rallied ahead of the elections. We talk to James Turk about the recent spike in precious metals. Also, according to an essay published by the Gold Money Foundation,
the stock of gold is over-estimated
by sixteen-thousand tons, with
a nominal value of over 800 billion dollars. We
talk to one of the authors, James Turk, Gold Money founder and
chairman, about his piece
and why it matters.
Plus, the US elections are over but the economic problems facing the country are not.
Former Federal Reserve Chairman, Alan Greenspan, told Bloomberg this morning that he does not think
the elections will help avert the Fiscal Cliff: “I’m
concerned that the election per se has really not changed the balance very much of what’s going on and I think it will come down to the very last minute before particular action is taken… I think we underestimate the underlying momentum of this deficit and the building
up of debt and its consequences.” We don’t underestimate the momentum of the debt and its consequences, nor the expansionary policies we have seen under an ‘Obama
central bank.’ Is this
reflected in the price of
gold? Gold prices jumped
2 percent in the past few days.
Also the S&P 500 saw its biggest decline
since June, according to Bloomberg. We talk
to James Turk, author of
“The Collapse of the Dollar, and How to Profit From
It,” about what is behind these market moves.
Turk on the Overestimated
Gold Stock, the German Repatriation,
and an EU Crisis! | Foreign