Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Dec 21, 2021 - 08:26:03 PST
Washington named five already-sanctioned Chinese officials for reducing Hong Kong’s autonomy in a report and warned that foreign financial institutions doing business with them would be punished too.
If only our Treasury Secretary and Fed Chair had such backbones, we wouldn’t likely be fighting real world inflation that’s well over 10% to begin with.
There is a distinct possibility the Federal Reserve is about to hit a wall, and that its very constitutional underpinnings will soon come into question.
The risk is not the initial rate hike, the second, or even the third for stocks. It is the point where the increase in rates causes something to break either in the economy, credit markets, or a change in bullish psychology. Secondly, without exception, rate-hiking campaigns led to a negative outcome. Furthermore, the negative impact occurred at consistently lower levels.
Stocks are bouncing from yesterday’s lows, but the technical damage from yesterday’s bloodbath is severe. The S&P 500 was stopped by its 50-day moving average (DMA) at 4,607 (see red line in the chart below). Unless the S&P 500 can break above this line, we’re in for MORE downside.
Don’t-Buy-Hawkish-Fed’s-View” Nonsense: It’s the Fed’s Reckless Interest-Rate RepressionDec 21, 2021 - 07:20:05 PST
Bond Markets will buy Hawkish Fed’s views just fine if the Fed stops buying bonds, period, and sells outright its TIPS, MBS, and long-dated Treasuries.
"It's a raging inflation inferno right now" says Chris." We may not see positive real rates again in our lives”. We also discuss demographics, housing, and flaws in the measurement of inflation.
Higher prices, a worker shortage and a revitalized labor movement are bringing about the return of pay increases tied to inflation, known as cost-of-living adjustments, or COLAs.
Dec 21, 2021 - 07:07:26 PST
Now, the climate is shifting again. In 2022, the economy will get less stimulus from government spending and the Fed’s easy-money policies, easing pressure on the supply bottlenecks that have clogged ports and rail yards. That combination should eventually take inflation off the boil.
President Vladimir Putin threatened a military response to counter NATO expansion toward Russia’s borders, but said he hoped for a diplomatic solution to rising tensions as the U.S. said it was ready to discuss his security demands.
In October, Chinese gold imports reached the highest level since December of 2019 as the market continues to recover after taking a hard hit during the coronavirus pandemic.According to the latest data from Chinese customs, the country imported 123 tons of gold in October. That was a 38-ton month-on-month increase.China ranks as the world’s number one gold consumer.
Gold Rises Modestly in Rebound Tuesday on a Weaker Dollar, a Day After Broad-Based SelloffDec 21, 2021 - 05:42:09 PST
Light holiday trading was likely to create some anomalies in trading action over the next few days but bullish bullion investors may be taking the opportunity to hedge further volatility in markets with haven bets. Meanwhile, the dollar was weaker on the early session, down 0.1%, as gauged by the ICE U.S. Dollar Index DXY, -0.14%.
When the credit impulse is negative, expect that growth will cool down significantly in the next six to nine months afterwards. Said differently, we could see growth slowdown from Q2-Q3 onwards in 2022. This has not been priced in by any investors at that stage.
Labor market productivity has been dropping for decades. And you can trace the plunge back to the demise of the gold standard.US labor market productivity plummeted in the third quarter of 2021. Revisions to the data showed a 5.2% drop in productivity, even worse than the dismal initial reading last month. It was the worst productivity decline since 1960.
Since the financial crisis of 2007-2008, central banks have emerged from dull obscurity to print trillions in multiple currencies. The pandemic has only increased their resolve to buy up vast tranches of government debt and to maintain rock-bottom interest rates, even in the face of inflation.
Countries across Europe were considering new curbs on movement on Tuesday as the fast-moving Omicron variant swept the world days before Christmas, throwing travel plans into chaos and unnerving financial markets.
With Biden Spending Plan Blocked, More Economists Lower 2022 Growth ForecastsDec 21, 2021 - 05:25:47 PST
Some economists expect the U.S. economy to grow more slowly next year after a key Democratic lawmaker dealt a seemingly fatal blow to President Joe Biden's $1.75 trillion spending plan, further clouding an outlook that was facing heightened risk from the rapid spread of the Omicron variant of COVID-19.
Biden’s Promise of More Equal U.S. Takes Hit With Spending Plan: BloombergDec 21, 2021 - 05:21:53 PST
President Joe Biden’s promise to reduce income and wealth disparities in the U.S. has suffered a major setback with the collapse of his social-spending bill.
The Federal Reserve’s zero-interest rate policies (ZIRP) has The Fed Funds Target Rate at a measly 25 basis points or 0.25%. While this is great for some, it is disastrous for savers. Once we subtract off the inflation rate (CPI YoY), we find that the REAL 90-day Certificate of Deposit (CD) rate is a horrifying -6.74%.
The People’s Bank of China could bolster liquidity in the banking system by selling yuan, which will help lower borrowing costs while stemming the currency’s gains, Nomura Inc. said.