The first Bitcoin has become the first U.S. entity to be regulated by banking laws, we readon CNBC: A New York City-based bitcoin exchange itBit has become the first to receive a charter under New York banking laws.
Last Sunday, Sept. 15, marked the five-year anniversary of the collapse of Lehman Brothers. At that time the gold price was trading near the $900 per ounce level. I believed that to be on the high side, actually expecting gold to trade down to around $700.
If global banks’ are realistically going to improve their balance sheet diversification and liquidity profiles, gold will have to be part of that process. It is ludicrous to expect banking to regain a sure footing through the increased ownership of government securities.
Rather than going on for eternity, this third round of QE is only hastening the day when there is a flight of confidence from the dollar and US Treasuries. This will cause a sharp rise in market interest rates and surging consumer prices across America.
It is often said that silver bullion has no counter-party risk, and in a monetary sense, this is indeed true. Although silver bullion requires no counter-party to sustain its value, there is and always remains the very real threat of theft.
According to the former special inspector general for the $700-billion US Troubled Asset Relief Program (Tarp) that bailed out the US banking system in 2008, another financial crisis is all but inevitable and the cost will be even higher than the 2008 financial crisis.