Precious metals news

Following Western sanctions due to Russia's incursion into Ukraine, the UAE's primary gold supplier in the past year was Russia. According to the UN's Comtrade database, the UAE imported 96.4 tons of Russian gold, constituting about a third of Russia's yearly mining output and marking over a 15-fold yearly surge in gold imports from Russia to the UAE.

The House Financial Services Committee approved a bill banning the Fed from developing a US central bank digital currency (CBDC). Introduced by Congressman Tom Emmer, the bill highlights concerns about privacy and individual sovereignty. Despite many countries progressing with their own CBDCs, the U.S. remains divided. While the bill's fate in the House is uncertain, its prospects in the Democrat-led Senate appear grim. Rep. Maxine Waters warns the bill could hinder the U.S., especially if the dollar loses its global dominance. The House's decision on the bill remains awaited.

The U.S. penalizes the homeless, poor, and mentally ill for merely trying to survive. Despite a housing crisis, laws against basic survival activities rise. The bail system jails those who can't pay, ruining lives. Many can't handle minor emergencies financially, yet face crippling bails and fines. Instead of aiding the mentally ill, the U.S. imprisons them. These harmful policies deepen societal rifts, showcasing the nation's misplaced priorities.

Rising flash mob thefts across the U.S. are devastating retailers, forcing many to lock up goods reminiscent of restrictive shopping eras. Crimes like the $300,000 heist at a Los Angeles Nordstrom are becoming commonplace. This criminal surge, combined with staff cuts and increased costs, is endangering the traditional shopping experience. The situation reflects a failing system due to misguided policies favoring criminals over law enforcement.

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Amid pandemic lockdowns, record inflation, mounting student debt, and an unstable job market, more young adults are living with their families than striking out on their own. The American Dream seems shattered, with 45% of Americans aged 18 to 29 living with family. This dismal economic situation, reminiscent of the 1940s post-Great Depression era, suggests the current landscape is stacked against young people, rendering financial success nearly unattainable.

New interventionist policies threaten to choke the gig economy, imposing burdens like fixed minimum wages. While most gig workers value their independence, these changes risk excluding many, especially the less competitive. The red tape and rising costs will hit businesses and consumers, with food service prices set to surge.

The Federal Reserve failed to raise rates, despite previous intentions to curb inflation. Their projections even indicate a potential rate decline in 2024. On the housing side, existing-home sales dropped in August, with a significant 15.3% year-over-year decline, suggesting a weakening housing market.

Billionaire Ray Dalio warns of the U.S. resorting to printing more money as its debt escalates, leading to potential economic instability. As debt surpasses income, consumption gets strained, pushing the government towards quantitative easing to increase dollar supply. The current national debt is at $33.044 trillion. Dalio also points out a looming risk: if the U.S. prints more money, leading to a drop in the dollar's value, bondholders might liquidate their holdings due to reduced bond value.

Indonesia has taken steps against the dollar's global dominance, launching a National Task Force to promote local currency transactions with partner nations. This move is in line with the growing trend of "de-dollarization," with countries like China, Russia, and India seeking alternatives to the dollar in global trade. The push to distance from the U.S. dollar is seen as an irreversible shift, as stated by Russian president Vladimir Putin.

Among the many problems currencies and markets face, there is one which is undocumented: the eurodollar market, which is yet another very large elephant in the room. This article quantifies eurodollars and eurodollar bonds, which are additional to US money supply and credit.
Research by the Bank of International Settlements puts this market at $93 trillion, of which on-balance sheet debt (i.e., customer deposits) of non-US banks is $15 trillion, a sum which should be added to US M2 money supply of $21 trillion for a truer picture of total dollar bank credit. Only a small of this debt is in other currencies.
In this article, I describe the origin of eurodollars and why they have grown to such an enormous quantity. They introduce unrecognised risks to capital markets, and particularly the dollar at a time of growing financial instability. While the factors leading to a Triffin-style crisis are already in place, the unwinding of eurodollar credit will be an additional, unexpect...

The U.S. Senate's last-minute move to raise the debt ceiling only delays the looming crisis as the national debt soars past $33 trillion. Treasury Secretary Yellen's attempts to downplay concerns ring hollow, especially as the deficit balloons by a staggering 61% from last year, pushing inflation. This reckless financial path risks our global position, diminishes our economic agility, and threatens to saddle future generations with insurmountable financial burdens.

First-time jobless claims in the U.S. dropped to 201k last week, marking the lowest since January. This decline wasn't influenced by previous irregularities from Ohio and Minnesota. Continuing claims fell below 1.7 million, also a low since January. This robust employment data supports Powell's hawkish position.

September's Manufacturing Business Outlook Survey from the Philly Fed indicated a decline, moving back into contraction. The headline index fell sharply from +12 to -13.5, with significant decreases in new orders and shipments. Despite low jobless claims, the employment index contracted for the sixth consecutive month. Firms reported price increases, with 22% expecting the impacts of COVID-19 measures to intensify. Signs suggest building stagflationary pressures with slowing growth and rising prices.

U.S. unemployment claims dropped to 201,000 for the week ended Sept. 16. However, a UAW union strike impacting auto manufacturers may soon reverse this trend. The Federal Reserve maintains current interest rates but hints at a year-end increase. Strikes at Ford, GM, and Stellantis are disrupting supply chains, leading to layoffs. The labor market remains tight, but upcoming data will clarify its status.

U.S. Treasuries are now more volatile than gold for the first time in 45 years and that could mean trouble for your portfolio...

We thought we had learned our lesson from the last U.S. Housing Bubble, but unfortunately, we didn't.  The U.S. Housing Market is just as insane, or even worse than during the 2005-2008 period.  Americans have no idea that we are facing a massive Category 5 Storm in the U.S. Housing Market...

The BRICS group is expanding, with Saudi Arabia, UAE, Egypt, Iran, Argentina, and Ethiopia joining, strengthening its global economic and population influence. Post-expansion, the group will control around 41% of global oil production, boosted by the inclusion of significant Middle East oil producers. The bloc also has a combined gold reserve of 5,493 tonnes. The aim is to form a powerful coalition representing the Global South's interests, especially against Western dominance.

Equities and US Treasuries are now historically overvalued, indicating limited returns ahead, especially in an inflationary environment. As traditional 60/40 portfolios (equities/bonds) undergo reassessment, gold is gaining prominence. With Treasuries showing greater volatility than gold for the first time in 45 years, and central banks accumulating gold for stability, it's time to consider incorporating gold into the 60/40 portfolio for enhanced security and returns.

The CEO of DoubleLine Capital, a billionaire, warns of a weakening US economy due to factors like corporate layoffs, high credit-card debt, and increased mortgage rates affecting housing. He also expressed concerns about small businesses refinancing their debts at steeper rates. Gundlach, known as the "Bond King," anticipates a potential recession next year and believes the current economic growth is fueled by unsustainable government spending. With the Federal Reserve's rate hikes, the interest on government debt is set to surge significantly.