Who Can You Trust?

It was announced today that Equifax Inc., a public company and one of the three major credit bureaus that is responsible for keeping and reporting on consumer credit records, had a cyber breach that may have affected 143 million customers. Apparently, intruders accessed names, social security numbers, birth dates, addresses, and driver’s license numbers. Credit card information for about 209,000 consumers was also accessed. The unauthorized access occurred from mid-May through July of this year. The company discovered the security breach on July 29 and regulatory filings show that the company’s CFO sold shares worth $946,374 on August 1, while the President of U.S. Information Solutions and the President of Workforce Solutions exercised options to dispose of stock totaling $834,557 on August 2. The company issued a statement saying that none of the executives had yet been informed when the stock transactions occurred.

At last month’s Jackson Hole Summit, Federal Reserve Chair Janet Yellen expressed concern about the public’s complacency toward the 2008 financial debacle and asserted that most research shows that post-crisis regulatory reforms have curbed risky banking activities, and yet “credit is available on good terms, and lending has advanced…, contributing to today’s strong economy.” President Trump disagrees that continued and even more regulation is needed. Less than a year ago, speaking of Yellen, Candidate Trump said, “I think she’s very political and to a certain extent, she should be ashamed of herself.” In a recent Wall Street Journal article, he was quoted to have said that he has “a lot of respect for her” and that she’s doing a good job.

In order for the economy to have a minimum defensive armory to combat a strong surge of inflation, the Fed funds interest rate needs to be at least 3%. We aren’t there and can’t get there, because after two rounds of Quantitative Easing, at a cost of $4.5 trillion, we haven’t come close to hitting economic targets that would permit a .25% increase, let alone a 1.75% increase. Meanwhile today, banks like Deutsche Bank, Wells Fargo, and Bank of America have exponentially greater liability exposure to dangerous derivatives, than they did in 2008, such that with an unfortunate roll of the dice, any one or all of them could “crap out” and go bust.

You won’t hear the truth in mainstream media, because that could cause a panic. All of the talking heads will just keep telling you what you want (need) to hear. But a simple reality check confirms that the only thing keeping the stock market from a 50% swan dive is the Fed’s ongoing injection of cash and overly abused public company stock buyback programs. The only true protection from all of the dangers in today’s artificial economy is the same as it’s been for millennium, physical precious metals. Call the 5-star experts at American Bullion for truth and fairness at (800) 653-4653. Gold, silver and other precious metals are the only true currencies. Don’t get caught without a chair when the music stops!

Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.