U.S. President Joe Biden was criticised for saying that inflation in America had not increased over the past few months. Biden stated that he was telling Americans that inflation will be controlled during Sunday's "60 Minutes" interview. The U.S. Dollar Index (DXY), despite Biden's claims, climbed to the 110.776 area ahead of Wednesday's Federal Reserve meeting. A recent report by Global Times, which is supported by the CCP, calls for de-dollarization because the U.S. Dollar's rise "might prove to be the beginning of another disaster" for many countries in the world strong>
Biden Highlights that US Gas Prices are Back to March Levels after His Administration Depleted the US Strategic Petroleum Reserve by 193 Million Barrels
Although inflation has been terrible in the United States, Joe Biden, the U.S. president, has assured the American people that it will soon be under control. He spoke during an interview on "60 Minutes" a few days before Federal Reserve met to raise the benchmark interest rate by 75-100 basis points (bps).
After he stated that the country's inflation rate hadn't risen for months, Biden received a lot of criticism from economists and market analysts. The U.S. president also took pride in America's lower gas prices.
Biden tweeted Tuesday, "Folks gas prices are back to levels they were in March early" "This means that almost all the increases in gas prices since the start of Russia's war with Ukraine have been eliminated."
The Biden administration has not explained why gas prices dropped during the Ukraine-Russia conflict and the highest inflation rate in 40 years. The U.S. president failed to mention that oil prices have fallen in the U.S. because he has been drawing down the U.S. Strategic Petroleum Reserve. Biden claims that gas prices have returned to the levels of March early, but he fails to mention that the administration began draining the SPR March 31, 2022.
According to various reports, the SPR has reached its lowest level since 1984. While the Ukraine-Russia conflict is ongoing, Europe still faces a serious energy crisis. Biden complained about carbon emissions, but the SPR has dropped from 640 million barrels to 450million barrels. In spite of the U.S. sending billions to Ukraine this week, Russian President Vladimir Putin stated that he will not back down and would use "all means possible" to win.
DXY creeps higher, but CCP-Backed Editorial Claims US Bureaucrats have Committed Financial Looting and a Strong Dollar is a 'Nightmare for Other Nations
A CCP-backed Global Times editorial urged foreign countries to de-dollarize as the rising dollar could become "the beginning and end of another nightmare." It was published just days before the U.S. Federal Reserve met to raise its federal funds rate. Global Times states that a super-strong U.S. dollar will help to reduce the soaring inflation in the U.S., but that the rest of the world will still have to pay.
Global Times' opinion piece claims that U.S. bureaucrats are guilty of "financial theft" and have exported crisis to other countries since the end of World War II, and the beginning of the Bretton Woods accord. The U.S. Dollar Index (DXY), which had dropped for three consecutive day, has now risen to 110.776 ahead the Fed's meeting.
The DXY measures six major fiat currencies. In recent months, the greenback's strength has increased more than ever. Global Times editorial states that Washington and the Fed will not solve America's problems because they are unwilling to look at the root cause.
The opinion editorial states that "if people dig the root cause of the 2008 financial crisis, this is an inevitable consequence of the U.S.' unlimited and blind money printing to temporarily maintain prosperity." "In other words Washington has not been able to fix the deep-rooted problems that 2008's financial crisis exposed.
The Washington political elite boast about the "myth of America" and claim credit for 'alleviating crisis. However, thousands of poor families all over the globe are being trampled on by them.
What do you think of Biden's claims regarding gas prices in America while he depletes SPR? What do you think of the Chinese state media editorial that claims a strong dollar is a disaster for foreign countries? Please share your views on this topic in the comments below.
Frequently Asked Questions
Is gold buying a good retirement option?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion bars are the most popular way to invest in gold. There are other ways to invest gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
If you don’t want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you are looking for cash flow from your investment, buying gold stocks will work well.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
Is gold a good investment IRA option?
If you are looking for a way to save money, gold is a great investment. You can diversify your portfolio with gold. There is much more to gold than meets your eye.
It’s been used as a form of payment throughout history. It’s often referred to as “the world’s oldest currency.”
Gold, unlike other paper currencies created by governments is mined directly from the earth. It is very valuable, as it is rare and hard to create.
The supply and demand for gold determine the price of gold. If the economy is strong, people will spend more money which means less people can mine gold. The result is that gold’s value increases.
The flip side is that people tend to save money when the economy slows. This causes more gold to be produced, which lowers its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you have gold to invest, you will reap the rewards when the economy expands.
You’ll also earn interest on your investments, which helps you grow your wealth. If gold’s value falls, you don’t have to lose any of your investments.
How to Open a Precious Metal IRA
The first step in opening an Individual Retirement Account, (IRA), is to decide if it’s something you want. To open the account, complete Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form must be submitted within 60 days of the account opening. Once this is done, you can start investing. You might also be able to contribute directly from the paycheck through payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. The process for an ordinary IRA will not be affected.
To qualify for a precious-metals IRA, you’ll need to meet some requirements. The IRS says you must be 18 years old and have earned income. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. You must also contribute regularly. These rules apply to contributions made directly or through employer sponsorship.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, you can’t purchase physical bullion. You won’t have the ability to trade stocks or bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. This option can be provided by some IRA companies.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they are not as liquid or as easy to sell as stocks and bonds. It’s also more difficult to sell them when they are needed. Second, they are not able to generate dividends as stocks and bonds. Therefore, you will lose more money than you gain over time.
What proportion of your portfolio should you have in precious metals
First, let’s define precious metals to answer the question. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. Gold is by far the most common precious metal traded today.
However, many other types of precious metals exist, including silver and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
All precious metals prices tend to rise with the overall market. However, the prices of precious metals do not always move in sync with one another. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rate, making bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. These precious metals are rare and become more costly.
You must therefore diversify your investments in precious metals to reap the maximum profits. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What are the benefits of a gold IRA
A gold IRA has many benefits. It can be used to diversify portfolios and is an investment vehicle. You have control over how much money goes into each account.
You also have the option to transfer funds from other retirement plans into a IRA. If you are planning to retire early, this makes it easy to transition.
The best part about gold IRAs? You don’t have to be an expert. They are readily available at most banks and brokerages. Withdrawals can happen automatically, without any fees or penalties.
That said, there are drawbacks too. The volatility of gold has been a hallmark of its history. It’s important to understand the reasons you’re considering investing in gold. Are you looking for growth or safety? Is it for insurance purposes or a long-term strategy? Only when you are clear about the facts will you be able take an informed decision.
You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce isn’t enough to cover all of your needs. You may need several ounces, depending on what you intend to do with your precious gold.
You don’t need to have a lot of gold if you are selling it. Even one ounce is enough. You won’t be capable of buying anything else with these funds.
What should I pay into my Roth IRA
Roth IRAs allow you to deposit your money tax-free. You cannot withdraw funds from these accounts until you reach 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, your principal (the deposit amount originally made) is not transferable. This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you take out more than the initial contribution, you must pay tax.
The second rule says that you cannot withdraw your earnings without paying income tax. When you withdraw, you will have to pay income tax. Let’s assume that you contribute $5,000 each year to your Roth IRA. Let’s also assume that you make $10,000 per year from your Roth IRA contributions. Federal income taxes would apply to the earnings. You would be responsible for $3500 So you would only have $6,500 left. Because you can only withdraw what you have initially contributed, this is all you can take out.
So, if you were to take out $4,000 of your earnings, you’d still owe taxes on the remaining $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs do not allow you to deduct your contributions. But once you’ve retired, you can withdraw the entire contribution amount plus any accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. It doesn’t matter if you are 70 1/2 or older before you withdraw your contribution.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
wsj.com
- Saddam Hussein’s Invasion Helped Uncage a Bear In 1990 – WSJ
- You want to keep gold in your IRA at home? It’s Not Exactly Legal – WSJ
irs.gov
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement plans
How To
Three ways to invest in gold for retirement
It’s crucial to understand where gold fits in your retirement strategy. There are many ways to invest in gold if you have a 401k account at work. It is also possible to invest in gold from outside of your work environment. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
If you do invest in gold, follow these three simple rules:
- Buy Gold with Your Money – You don’t need credit cards, or to borrow money to finance your investments. Instead, deposit cash into your accounts. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. Physical gold coins are easier to sell than certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify Your Portfolio – Never put all of your eggs in one basket. In other words, spread your wealth around by investing in different assets. This can reduce market volatility and help you be more flexible.
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By: Jamie Redman
Title: As Biden Drains the SPR Down to 1984 Levels, Chinese State Media Claims US Dollar ‘Is Once Again the World’s Problem’
Sourced From: news.bitcoin.com/as-biden-drains-the-spr-down-to-1984-levels-chinese-state-media-claims-us-dollar-is-once-again-the-worlds-problem/
Published Date: Wed, 21 Sep 2022 21:00:32 +0000
