Federal Reserve Governor Michelle Bowman expressed strong concerns about a U.S. central bank digital currency (CBDC), highlighting "significant risks" to the financial system and consumer privacy. She questioned the clear benefits of a CBDC and warned of its potential impact on the banking sector. While the Fed remains cautious, the European Central Bank is pushing ahead with its CBDC efforts.
Gold is on the move. Silver is flying.
Due to excessive currency debasement, especially in the U.S., prices have skyrocketed. Canadian Prime Minister Justin Trudeau's threats to tax grocery stores, blaming them for inflation, is misguided. The main culprit behind inflation is the government's own policies: high taxation, excessive regulations, and rampant money printing. Ironically, politicians like Trudeau, after causing these problems, position themselves as the solution. Their "solutions" only exacerbate the issue, as adding taxes will inevitably lead to higher consumer costs.
The Fed's hubris in battling inflation could be leading to its own devastating "Waterloo." As debt levels rise alarmingly, the tipping point for financial fragility draws closer. The recent spikes in yields are clear warnings that the system is under duress. Despite their outward confidence, there are whispers within the Fed of halting rate hikes, revealing underlying panic.
December Gold Futures Break $2000.00 an Ounce today on multiple news fronts.
This week, a firmer trend in gold continued as markets realised the seriousness of the deteriorating situation in the Middle East. In European trade this morning, gold traded at $1979, up $46 from last Friday’s close and up $160 from the October 6 low. Silver was less responsive at $22.95, up a modest 25 cents from last Friday’s close.Open interest in gold remains remarkably low, as our next chart shows.This is possibly the most bullish chart we can show. It illustrates the very low level of speculative and hedging interest in gold, both of which can be expected to increase materially as the conflict in Israel evolves. Central to the problem, of course, is oil. Any attempt by the US and her NATO allies to intervene increases the likelihood of Iran closing off Hormuz at a time when western oil reserves are depleted. And according to StanChart, oil demand now exceeds pre-covid pandemic levels.Higher oil and distillate prices are also being encouraged by OPEC+, led ...
Gold price reaches a three-month high of $1,985, driven by Middle East tensions and expectations of the Federal Reserve holding rates. A significant retreat in US Treasury bond yields, especially the benchmark 10-year yield pulling away from its 16-year peak, further bolsters gold's ascent.
Tucker Carlson's social media video titled "How to avoid World War III" has stirred controversy. In the video, Carlson and guest Vivek Ramaswamy suggest the U.S. assist Israel in targeting Hamas's top officials as an alternative to a ground offensive. They highlight the potential for escalating conflict involving major global powers, including the U.S., China, Russia, and Iran. The discussions imply grave consequences if tensions further escalate in the Middle East.
Rising oil prices could skyrocket to $140 per barrel, spelling disaster for the global economy. These levels risk accelerating inflation and stunting economic growth, pushing us towards a potential recession. Major financial entities, including the International Monetary Fund and European Central Bank, have expressed grave concerns.
President Biden on Thursday night delivered a speech from the Oval Office making his case for the US continuing to fund the proxy war in Ukraine and Israel’s onslaught on Gaza. Biden said he will ask Congress on Friday to authorize more spending for the Ukraine war and “unprecedented” military aid for Israel. Media reports … Continue reading "Biden Pitches Americans on Funding Wars in Gaza and Ukraine"
China has been aggressively reducing its US Treasury holdings, marking a significant 20 sales in the past 22 months. This major pullback, combined with the largest offload of US stocks by China in four years, is fueling concerns. Speculation suggests Beijing is preparing for geopolitical moves or defending a weakening yuan. Japan is also cutting back on US assets. Such substantial divestments by key players like China and Japan highlight rising apprehensions in the US debt market.
The People’s Bank of China provided a record short-term liquidity boost to stabilize rates and promote lending. This comes as Beijing addresses economic challenges, including a property downturn. While GDP and retail sales showed improvement, concerns about a potential liquidity crunch remain.
The economy is strong. The American consumer is resilient. Everything is great. At least that's the mainstream narrative. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey explains why it's all just an illusion of prosperity. Along the way, he covers the September retail sales data, Federal Reserve Chairman Jerome Powell's speech this week, and the recent gold rally.
After the Natgas Breakout and now Breakdown, what's next for the volatile gas price?? Nothing can destroy an investment more than the volatile Natgas Market. In this update, I share my analysis of the natural gas inventories and why the UNG ETF is difficult to trade...
As tensions in the Middle East rise, JP Morgan's Chief Global Markets Strategist, Marco Kolanovic, is spotlighting gold as a prime investment. In a note to clients, while he expressed reservations about equities, Kolanovic strongly recommended bolstering investments in gold and bonds. He emphasized gold's significance amidst current geopolitical risks and its enduring value in uncertain times.
Gold remains resilient despite U.S. rate hikes and the Federal Reserve's narrative, as global governments accumulate it amidst growing economic and geopolitical uncertainties. Joseph Stefans from MKS PAMP highlights gold's enduring appeal beyond just being a safe haven. Its role in diversifying from local currencies and countering economic uncertainties keeps it in demand. With some nations favoring gold over U.S. debt, the precious metal might see long-term support, presenting potential advantages for gold in the coming years.
Federal Reserve Chair, Jerome Powell, raised alarms about lingering high inflation, suggesting that rate hikes are still on the table if the economy doesn't cool down. His recent remarks hinted at an unstable economic outlook, where the current measures might be insufficient to curb escalating inflation. Despite some suggestions of maintaining steady rates in the near future, the persistent threat of "meaningful tightening" looms large. Powell's warnings, coupled with concerns voiced by other Fed officials, paint a bleak picture of potential economic pitfalls ahead.
Positive economic data might be misleading, while significant negative indicators are often overlooked by mainstream media. Investors should be wary of overly positive news and pay more attention to warning signs with better predictive value. While economies like China, Japan, and Germany previously showed strength, they're now facing slowdowns or recessions. A global recession seems imminent. Instead of panicking, investors should diversify, consider assets like gold and silver, and focus on sectors like energy and agriculture that remain resilient over time.
"Bond king" Jeffrey Gundlach of DoubleLine Capital warns that the U.S. risks losing its status as the world's reserve currency if it doesn't rein in its spending. With rising interest rates and a national debt of $33.59 trillion, Gundlach stresses the situation will deteriorate if the Federal Reserve persists with rate hikes and the debt continues to soar.
We're in the midst of a pivotal moment in the financial world...