Banks try to criminalize the use of cash – Levenstein

by David Levenstein, Mine Web During the month of April, gold prices were range bound between $1180 and ounce and $1215 an ounce with much of the transactions being set at around the $1200 an ounce level. Gold prices bounced off the previous session’s six-week low on Monday, but remained under pressure as the U.S dollar firmed while buyers remained cautious on the timing of a US interest rate hike. June gold closed up $12.60 an ounce at $1,187.10 an ounce and spot gold ended the day at $1187.80 per ounce. Gold hit its’ highest since early April at $1,215 earlier this week but failed to hold that level after the latest Federal Reserve meeting. Last Wednesday, the Federal Reserve downgraded its view of the U.S. labour market and economy in a policy statement that suggested the central bank may have to wait until at least the third quarter to begin raising interest rates. While the Federal Reserve remains optimistic on growth this year, the latest disappointing GDP report has put a coffin nail in any talk of an interest-rate increase before the fall — or maybe even into 2016. That’s positive news for safe havens like gold. The sad truth is that despite six years of the Fed’s zero interest rates, first-quarter GDP avoided negative territory only because of a huge build-up of business inventories. Blaming the snow and bad weather, the Fed says it sees light at the end of the tunnel and that its targets are just around the corner. But it’s been consistently wrong in its forecasts. So, I doubt they are going to be correct now. Don’t believe them. As far as I am concerned too many traders are fixated on when the Federal Reserve might launch an interest-rate hike. For now it seems that they want to put a cap on the gold price at around $1,215 an ounce. Furthermore, I have no idea how analysts have come up with the theory that higher interest rates are bearish for gold. This certainly wasn’t the case in the eighties when interest rates soared. Meanwhile, the financial noose is tightening on Greece, which is due to pay about 200 million euros to the International Monetary Fund on May 6 and another 770 million euros on May 12. According to financial officials, Greece intends to meet debt payments this month and reach a deal with its international lenders to unlock remaining bailout aid, but the International Monetary Fund insists on tough labour reforms. The European Central Bank is set to meet on May 06, to discuss whether to increase discounts on the collateral it accepts from Greek banks in return for emergency funding, a move that could further restrict access to liquidity. Of more importance is the insidious action taken by many banks in several countries around the world that most people are not even aware of. Suddenly, having cash is becoming a problem. Governments and banks around the world are making it more difficult to save and transact with cash in their latest attempt to financially suppress their citizens. Their goal is to force you to deposit cash and charge you interest as well as having total control over the money on deposit. Not surprisingly, the reason given was to “fight terrorism!” The war on cash is proliferating globally. Recently, the Swiss National Bank implemented negative interest rates without first solving the “problem” of how to prevent cash from fleeing the banks. And as to be expected, prudent depositors started doing some calculations. In one example, a Swiss pension fund, calculated it would save 25,000 francs for every 10 million it held in the bank by simply withdrawing those millions and storing them in a vault. The vault storage fees are less expensive than the negative interest rate. What happened next is truly unbelievable. When the pension fund informed the bank that they wanted to withdraw their funds, the Swiss bank responded to the fund’s withdrawal request with a letter stating: “We are sorry, that within the time period specified, no solution corresponding to your expectations could be found.” Continue Reading>>>

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