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 Reaffirms 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 national reports, the SPR has reached its "lowest point 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 one digs the root cause, then this is an inevitable consequence of U.S.’ blind and unlimited money printing for temporarily maintaining 'prosperity'." "In other words Washington has not been able to fix the deep-rooted problems that 2008's financial crisis exposed.
The Washington political elites 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
How is gold taxed in an IRA?
The tax on the sale of gold is based on its fair market value when sold. When you purchase gold, you don't have to pay any taxes. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
Loans can be secured with gold. Lenders try to maximize the return on loans that you take against your assets. This often means selling gold. This is not always possible. They might keep it. They might decide that they want to resell it. The bottom line is that you could lose potential profit in any case.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. You should leave it alone if you don't intend to lend against it.
Can I buy Gold with my Self-Directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts are financial instruments based on the price of gold. These financial instruments allow you to speculate about future prices without actually owning the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
How Much of Your IRA Should Be Made Up Of Precious Metals
It is important to remember that precious metals can be a good investment for anyone. You don't need to be rich to make an investment in precious metals. There are many ways to make money on silver and gold investments without spending too much.
You might also be interested in buying physical coins, such bullion rounds or bars. Shares in precious metals-producing companies could be an option. You might also want to use an IRA rollover program offered through your retirement plan provider.
You'll still get the benefit of precious metals no matter which country you live in. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (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)
- 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 accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Lawful – WSJ
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
How to keep physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. But, this approach comes with risks. These companies may not survive the next few years. Even if they do survive, there is still the possibility of losing money to fluctuating gold prices.
The alternative is to buy physical gold. You will need to either open an online or bank account or simply buy gold from a reliable seller. This option is convenient because you can access your gold when it's low and doesn't require you to deal with stock brokers. It's also easy to see how many gold you have. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You are also less likely to be robbed than investing in stocks.
There are however some disadvantages. Bank interest rates and investment funds won't help you. You can't diversify your holdings, and you are stuck with the items you have bought. The taxman might also ask you questions about where your gold is located.
BullionVault.com is the best website to learn about gold purchases in an IRA.
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