Precious metals news

Accounting for inflation, current home prices surpass any previous records. Homes now cost 20% more than their inflation-adjusted 2008 peak. Shockingly, the median home now sells for an alarming 530% of the median annual income, and the median house payment consumes 49% of median PRE-TAX income. Housing affordability is at its all-time low.

Bonds have plunged to their weakest levels in years, pushing mortgage rates to near a 23-year high of 7.47% for a 30-year fixed rate. The Conference Board's Leading Economic Indicator reported a decline of -0.4% for August, with a year-over-year drop of -7.6%. Despite attempts by the Federal Reserve to curb inflation, their efforts fall short. The Fed's target rate has increased rapidly recently, but its balance sheet is slowly contracting.

Growth is linked to increasing debt and spending, but when discretionary spending falls, growth stumbles. High corporate profits are unsustainable, and if they drop to a more historic norm, it could lead to a 2/3 decline in stock valuations. Current stock market values are inflated due to temporary financial conditions and are detached from economic reality.

Amid fears of prolonged high interest rates, investors are rapidly withdrawing from equities, says Bank of America Corp. Global equity funds lost $16.9 billion in a week, with US stocks hit hardest. Alarming signs point towards potential market instability by 2024, with major financial firms echoing these concerns.

The Federal Reserve wrapped up its September meeting on Wednesday and left interest rates unchanged. But Powell and Company had plenty to say. In this episode of the Friday Gold Wrap, host Mike Maharrey breaks down the rhetoric and argues that what the Fed says and what it will do are two different things.

If the JP Morgan energy analysts are correct, the global oil industry is facing a massive decline in base production.  What's even more alarming, is that they have provided some "MAGICAL OIL SUPPLY" that will offset this base decline by 2030.  I have my doubts... LOL...

China, in a strategic move, increased its gold reserves in August, positioning itself positively in the global market. While global gold ETFs saw outflows, Chinese ETFs recorded inflows, highlighting the nation's strong inclination towards the precious metal. The Shanghai Premium, an indicator I've monitored, has been consistently bullish, reflecting China's burgeoning demand for gold. With the launch of the Shanghai Gold Exchange in 2014 and steady growth in official reserves, China's influence in the gold market has undeniably risen. This move not only showcases the public's trust in gold as a safe-haven asset but also emphasizes China's vision to play a dominant role in the gold sector. Simply put, China's golden era is in full swing.

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.