Precious metals news

The FDIC's Problem Bank List is woefully inadequate in assessing the true issues plaguing the banking sector. Despite recent major bank failures, it shockingly reported no significant changes in the number of problem banks, listing a mere $46 billion in assets for all problem banks in the U.S. This alarming oversight, coupled with credit downgrades by S&P Global and Moody's, and escalating risks within the banking system, raises serious doubts about the FDIC's competence and transparency in safeguarding the financial industry.

In July, the mainstream financial media breathlessly reported that consumer spending was "holding up" based on better-than-expected retail sales. But how did consumers manage to spend all of that money?
They borrowed it.
After a pause in June, American consumers went back to charging up their credit cards in July.

Gold has been trading in a tight range recently due to growing uncertainty surrounding interest rates. It's poised for a potentially significant move after the release of Wednesday's inflation data. Gold bulls have been grappling with strong resistance around the 50-day Exponential Moving Average (EMA) at $1,930. Momentum indicators suggest a sideways trend as investors eagerly await a new economic catalyst.

Amid Russia's sphere of influence, the U.S. has launched joint military exercises with Armenia, a long-standing Russian ally. This marks a shift in geopolitical dynamics linked to Russia's Ukraine conflict. While Armenia traditionally leaned on Moscow for security, recent tensions, including a blocked corridor to Nagorno-Karabakh, have strained the relationship. The U.S. is seemingly seizing opportunities to weaken Russia's grip on former allies, but officials downplay this motive.

The US faces a challenging battle with inflation, and there are concerns it won't ease smoothly. Rising oil and food prices, along with unpredictable core inflation, could disrupt the decline. The Federal Reserve must decide whether to tolerate above-target inflation or risk a recession and financial instability. This complicated situation, combined with uncertainty about policy rates, Fed independence, and the evolving economic landscape, makes achieving the 2% inflation target a daunting task.

Bidenomics resembles a never-ending train wreck. Unlike E. Palestine Ohio's train derailment and toxic spill, Bidenomics persists with alarming trends: 1. US net cash farm income is plummeting, reaching negative growth. 2. US office vacancy rates exceed levels seen during the financial crisis. 3. US debt has surged to nearly $33 trillion, a 19% increase under Biden. 4. The US carries a staggering $194 trillion in unfunded liabilities, a problem left unaddressed by Biden's policies.

Most people think everything is fine. The Fed is getting inflation under control and soon they'll be able to cut interest rates, keeping the economy from falling into a deep recession. In his podcast, Peter Schiff poured cold water on this narrative. He explains why the Fed won't be able to repeat the magic it pulled off after the financial crisis and COVID.

Consumer credit data shows weakening demand for mortgage refinancing as consumers turn to credit cards to cope with rising prices. Credit card debt is increasing rapidly due to inflation and reduced stimulus support. Job revisions have been negative, leading to uncertainty about the strength of the economy. Critics also question the accuracy of GDP numbers and suggest using Gross Domestic Income (GDI) for a more accurate assessment. The Federal Reserve is making decisions based on potentially flawed and frequently revised data, despite a significant increase in M1 Money.

The US is tapping into its Strategic Petroleum Reserve, causing crude oil inventories to hit their lowest levels since 1985. Household spending has been crucial for the US economy, but rising oil and gas prices may push it lower, potentially triggering a recession. Consumer sentiment, particularly concerning gas prices, plays a significant role in economic stability. While one index suggests a bleak outlook,

To change things up a bit today, I wanted to share this interesting research on the age of the Great Egyptian Sphinx.  Why is this so interesting for this blog?  Because it dovetails into the ancient history of massive wood production, Deforestation, and its impact on civilization, the environment & climate...

New Delhi is gearing up to host the World G20 Summit at Bharat Mandapam in Pragati Maidan on September 9-10. In a bid to showcase India's cultural richness, leaders will dine using meticulously crafted silver and gold-plated utensils adorned with intricate motifs. These exquisite pieces, totaling around 15,000 items, were painstakingly created by over 200 skilled artisans from Iris Jaipur and required 50,000 man-hours. Iris Jaipur is the exclusive supplier for the summit, emphasizing India's cultural heritage in a grand way.

A metal detectorist, Erlend Bore, uncovered an extraordinary treasure in Southwestern Norway: nine 6th-century gold pendants (bracteates) with rare horse symbols, alongside ten gold beads and three gold rings. This discovery, dubbed "the gold find of the century in Norway," sheds light on a historical crisis period. The bracteates, displaying a distinctive horse motif, may have been hidden for safekeeping or offered to the Gods. They symbolize distress and hope. These bracteates are exceptionally rare, all featuring the same image. They likely served as badges of honor, indicating trust in local kings.

China's central bank continues to increase its gold reserves, adding 29 tons in August, bringing the total to 2,165 tons. This move is part of China's strategy to reduce its reliance on US dollar reserves and challenge the dollar's global dominance. Over the last 10 months, China has added approximately 217 tons of gold to its holdings. In June, China also significantly reduced its holdings of US Treasurys, bringing them to a 14-year low. This aligns with a global trend where 62% of central banks plan to increase their gold reserves in the next five years, according to a World Gold Council report from May.

In 1973, the US and Saudi Arabia struck a pivotal deal that shaped their futures and the US dollar's role for five decades. This deal entailed Saudi Arabia selling oil to the US at a reasonable price in exchange for US military protection and massive purchases of US treasuries. Over time, this arrangement solidified the petrodollar system. However, recent developments, including the Biden administration's strained relations with Saudi Arabia and the rise of new alliances, suggest a potential shift away from this deal, impacting the long-term stability of the US dollar. Observers should closely monitor OPEC and Eastern powers' interactions, as subtle shifts could signal significant changes for the dollar in the coming decade.

Bank of China has opened its first branch in Riyadh, Saudi Arabia, marking a significant step in expanding the use of the yuan in global finance and trade. This move aligns with the BRICS nations' efforts to promote local currency settlements in cross-border trade, reducing dependence on the US dollar. China's growing influence and the yuan's role in BRICS trade make this development noteworthy. It also insulates BRICS countries from potential US dollar-based sanctions. China's status as the largest buyer of Saudi Arabia's crude oil further underscores its global financial influence.

The Fed's reliance on unreliable data with substantial revisions spells trouble. The annual benchmark revision for March 2023 employment estimates indicates a grim -306,000 job adjustment, double the usual size. These revisions, set to appear in February 2024, could drastically alter the economic narrative. Central banks, including the Fed, making decisions based on such shaky data raises concerns about the accuracy of economic assessments, painting a potentially bleaker picture than portrayed by GDP and GDI.

The US debt-to-GDP ratio is on track to surpass WWII levels without a baby boomer-led recovery. The federal budget deficit is estimated to more than double in fiscal year 2023, with revenues down 10% and outlays up 10% compared to the previous year. Medicare's share of deficit spending will grow due to an aging population, while healthcare costs per person are expected to rise. Major healthcare programs, primarily Medicare, will increase from 27% to 38% of total spending. When factoring in interest payments and Social Security, these three categories will account for 74% of total outlays. With no recessions factored in, deficits are likely to rise even further when a recession inevitably occurs.

China's real estate market slump intensifies default fears, risking massive losses for Chinese banks with potential global repercussions. Developers like China Evergrande Group and Country Garden Holdings face negative net worth amid plummeting housing prices. Bad loans to the real estate sector at major Chinese banks surge, especially impacting regional banks. Goldman Sachs estimates potential bank losses of about 1.2 trillion yuan, raising concerns for global financial stability. International investors are growing wary of China, affecting Asian economies.

FDIC Chair Martin Gruenberg warns of significant risks to the US banking industry due to inflation and high interest rates, leading to weakened profitability and credit quality. The second quarter was one of the most tumultuous periods for banking since the 2008 crisis. Deposits continued to decline, adding pressure on banks to raise funding costs. Gruenberg notes these challenges, along with concerns about a softening commercial real estate market, will remain under FDIC scrutiny.

Bank of America warns of a potential "hard landing" for the US economy and a stock market selloff over the next two months due to the lingering threat of higher interest rates. Rising bond yields make stocks less appealing, with the S&P 500 earnings yield trailing behind Treasury bill yields. Michael Hartnett, the bank's strategist, emphasizes the need to "get defensive" and prepare for a "long and hard landing" as yields continue to climb.