By Patrick Heller, Market Update

There has been a constant stream of terrible financial news over the past nine months. This news makes investors leery of owing US dollars or dollar-denominated paper assets like stocks or bonds. When investors try to protect themselves by switching to other assets or currencies, the result is a decline in the values of the dollar and American stocks and bonds.

Apparently, the top priorities of the US Treasury and the Federal Reserve is that the US stock market must be supported and the price of gold held down, so as to avoid a massive exit from the dollar and American stocks and bonds. To accomplish this manipulation, the Federal Reserve trades short-term repurchase agreements with 20 approved primary government securities dealers. Among American dealers on this approved list are Bank of America Securities, Bear Stearns, Cantor Fitzgerald, Countrywide Securities, Daiwa Securities America, Goldman Sachs, Greenwich Capital Markets, HSBC Securities (USA), JPMorgan Securities, Lehman Brothers, Merrill Lynch Government Securities, and Morgan Stanley. As long as these companies use the liquidity provided by the repurchase agreements to do the government’s bidding, they will be allowed to make profits from the fees of the transactions.

When significant negative financial news is released, government officials know that this could scare investors into selling their US dollars and stocks and bonds and buying gold and silver with the proceeds. To diminish this effect, the Federal Reserve and Treasury (who know the bad news before its public release) give orders to boost stocks in the Dow Jones Industrial Average (DJIA) and to knock down the price of gold. Read the Full Numismaster Article Here

The final design in the three-year American Eagle Platinum Proof series celebrating the three branches of U.S. government, debuted this month. Last week, the U.S. Mint began taking orders for the coins that honor the judiciary branch. The latest coins are stately, with a historic feel. All American Eagle Platinum Proof Coins contain 99.95 percent platinum.

Struck in four sizes to fit coin collector’s budgets, this year’s coin emblazon on the reverse the image of Lady Justice with her scales suspended from a finger of her right hand, and a sword in the left. On the background is the bald eagle-an American symbol of courage and freedom-watching over the Lady with its wings spread wide. The unique feature of the series is that these are the only U.S. bullion coins that change reverse designs every year.

United States Mint Artistic Infusion Program Master Designer Joel Iskowitz sculpted the coin’s reverse. The engraving was done by Mint Sculptor-Engraver Charles Vickers. The obverse-designed and engraved by United States Mint Sculptor-Engraver John Mercanti remains unchanged and bears the now familiar image of Lady Liberty, symbolizing vigilance and faithfulness to duty.

The coins were minted at United States Mint at West Point, and they bear the “W” mintmark indicating their origin. Each coin is shipped from the Mint housed in a plastic capsule. The US Mint’s price of its platinum coins this year shot up about 40 percent compared to last year, even though the mintage limit remains the same.

Read the Full Collectors Society Article Here

In a recent Commentary by Barron’s Editorial Editor THOMAS G. DONLAN, there was a short addendum added to the end of the article which we felt was worth sharing. Below are Mr. Donlan’s comments

“THOMAS GRESHAM WAS NO FOOL. “Bad money drives out the good,” he said in the reign of Queen Elizabeth I. Canny people have been saying it ever since, and acting accordingly.

In 20th-century America, gold was the first good money to go. First, it was driven out of circulation by a flood of paper; then the government confiscated much of the gold its citizens were hoarding.

Silver dollars were the next driven out, and silver quarters and silver dimes weren’t far behind. In 1965, it cost more than 10 cents worth of silver to make a dime. First, the government made it illegal to melt down coins, then it took the silver out.

Pennies were next. Until 1982, there was enough copper in a penny to pose a temptation to melters and hoarders.

The pennies made after 1982, though intrinsically almost worthless at the time, now contain more than a pennyworth of zinc and copper. And there’s more than five cents worth of copper and nickel in a nickel coin.

Since 2006, it has been illegal to melt down pennies and nickels for their metal; now there are active proposals to substitute baser metals for zinc, copper and nickel.

There is a better alternative: Create good money, and maintain its value.”