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Recalling George Washington’s Winters Struggling with Worthless Paper “Continentals”

1st American Reserve thinks this is a great post taken from the THE MIKE FULJENZ METALS MARKET REPORT of  9/30/2020.
History has made General George Washington’s winter in Valley Forge, PA (1777-78) a story of great courage, and indeed it was, but the next three winters with his dwindling army in northern winter camps were much more trying. Washington’s last major battle was at Monmouth, New Jersey, June 28, 1778. It was a draw after Washington rallied his retreating troops. The following three years and four months were a tale of strategic retreats with a dwindling army and few supplies from a bankrupt nation and Congress, using a worthless currency called “The Continental.” Many farmers preferred selling their produce to the British Army with their “hard” currency, the British pound, thereby impoverishing the Patriot army.

Here are two portraits of the U.S. Army entering their winter quarters in 1779 and 1780, taken from Ron Chernow’s “Washington: A Life.” He is the author who wrote the biography of Alexander Hamilton, which became the basis for the Broadway musical, “Hamilton,” and his most recent biography is “Grant.”

 

 

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Beaumont Survives Hurricane Laura – But Lake Charles Was Hit Hard

1st America Reserve's hometown, Beaumont, Texas survives Hurricane Laura – But Lake Charles Was Hit Hard. As indicated in the previous week’s Lake Charles HurricaneMetals Report, 1st American Reserve came through Hurricane Laura reasonably unscathed. We endured one day of rolling electrical backouts but most of us were either at work or were helping others in need, and we were all back at work in full force the next Monday. That wasn’t the case for our friends and family in Lake Charles, Louisiana, Mike Fuljenz original hometown. Hurricane Laura, the strongest hurricane ever to hit Louisiana, went right over Lake Charles with the highest winds on the eastern wall of Laura’s eye hitting the city directly. The peaceful eye never even gave them a moment of relief.

 

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The U.S. Mint’s Gold Eagle Sales Rose 383% in 2020 vs. 2019 (and +1,459% in Summer Months)

During the first eight months of 2020, 589,500 Troy ounces of Gold American Eagles were sold by the U.S. Mint vs. only 122,000 ounces for the same eight months in 2019, a 383% increase. This was despite periodic work shutdowns this year due to coronavirus, and a complete cessation of production of the popular $5 tenth-ounce gold Eagles for a three-month period. Production of the $5 gold Eagles finally resumed in July, with 35,000 of the smaller coins sold in July and another 30,000 sold in August. 

 

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The Fed’s Goal is Now Clearly to Inflate the Dollar

In the last week of August every year, the Federal Reserve Bank of Kansas City hosts a central bankers’ convention in Jackson Hole, Wyoming, near the Grand Teton mountain range. This year, due to the coronavirus pandemic, the meeting was held “virtually” via Zoom. In his keynote address last Thursday, Fed Chairman Jerome Powell clearly stated that the Fed’s primary goal for the foreseeable future will be to fight unemployment and let inflation run however high it will run. He even said the Fed will now allow inflation to overshoot their previous 2% target. This is in directly opposite of what the Fed faced 40 years ago, in 1980, when inflation was enemy #1. Fed chair Paul Volcker faced inflation, unemployment and interest rates ALL in the double-digits, providing the basis for gold’s initial run up to $850 in early 1980.

 

Continue reading "The Fed’s Goal is Now Clearly to Inflate the Dollar"

Beaumont Survives Hurricane Laura – But Lake Charles Was Hit Hard

As I indicated in last week’s Metals Report, our company came through last week’s hurricane reasonably unscathed. We endured one day of rolling electrical backouts but most of us were either at work or were helping others in need, and we were all back at work in full force on Monday. That wasn’t the case for my friends and family in Lake Charles, Louisiana, my original hometown. Hurricane Laura, the hardest hurricane ever to hit Louisiana, went right over Lake Charles, La. and Orange, Tx. with the highest winds on the eastern wall of Laura’s eye hitting Lake Charles directly. The peaceful eye never even gave them a moment of relief.

 

Continue reading "Beaumont Survives Hurricane Laura – But Lake Charles Was Hit Hard"

The U.S. Mint’s Gold Eagle Sales Rose 383% in 2020 vs. 2019 (and +1,459% in Summer Months)

During the first eight months of 2020, 589,500 Troy ounces of Gold American Eagles were sold by the U.S. Mint vs. only 122,000 ounces for the same eight months in 2019, a 383% increase. This was despite periodic work shutdowns this year due to coronavirus, and a complete cessation of production of the popular $5 tenth-ounce gold Eagles for a three-month period. Production of the $5 gold Eagles finally resumed in July, with 35,000 of the smaller coins sold in July and another 30,000 sold in August. 

          

Continue reading "The U.S. Mint’s Gold Eagle Sales Rose 383% in 2020 vs. 2019 (and +1,459% in Summer Months)"