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The BRICS economic bloc aims to challenge the global order and reduce reliance on the U.S. dollar. 20 countries are reportedly applying for membership, with their acceptance determining the bloc's expansion plans this summer.
The U.S. Dollar Conquered the World. Is It at Risk of Losing Its Top Spot?Jun 16, 2023 - 12:59:42 PDT
The U.S. dollar's rise to become the dominant international currency was a meticulously planned strategy that unfolded at the Bretton Woods Conference in 1944. With the British Pound Sterling faltering after World War II, the conference sought a common currency to facilitate global trade. Recognizing the need for stability, the U.S. dollar, backed by substantial gold reserves, emerged as the chosen currency, securing its position at the top.
Argentina battles high inflation, prompting citizens to consider emigration. The government supports a struggling currency, causing desperation among the populace.
A Recent Economist/YouGov Poll Found That 52% Believe the Economy Is Getting WorseJun 16, 2023 - 12:19:45 PDT
President Biden's economic plans have not effectively tamed inflation. Despite his claims, the cumulative impact of his government spending already surpasses that of any other president this century. The 4% increase in the inflation rate is not a result of his policies, but rather the Federal Reserve's intervention.
Michael Hartnett, the chief investment strategist at Bank of America, has cautioned that the stock market may face another downturn soon. He doubts the emergence of a new bull market and compares the current situation to previous market collapses in 2000 and 2008. Hartnett predicts a maximum upside of 100 to 150 points for the S&P 500 but warns of a downside risk of 300 points by early September, mentioning Labor Day specifically.
Jun 16, 2023 - 12:00:59 PDT
On June 14, the Fed signaled two more interest rate hikes in 2023, with one scheduled for July. The market agrees with the "Long Pause Theory" of no rate cuts this year. However, the author remains skeptical, believing that stock prices are inflated and unrealistic, regardless of the Fed's actions.
Jun 16, 2023 - 08:42:22 PDT
DoubleLine Capital CEO and billionaire bond investor Jeffrey Gundlach doubled down on his recession call and said he still liked gold as 'real money' despite the precious metal's trouble staying above $2,000 an ounce.
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The Fed’s Real Problem May Be The Government – Inflation Versus Deflation: ForbesJun 16, 2023 - 08:17:42 PDT
In this commentary, we will examine the tug-of-war between inflationary forces (labor shortages/residential shelter shortages/reshoring of manufacturing and assembly) and deflationary forces (aging population/high government debt levels/technological advancements) which may ultimately determine the path of inflation in the years to come.
Musk, the richest man in the world, however believes that the Fed's actions will cause another major economic issue: deflation. In short, the prices of most goods and services will go down. He just once again warned against an imminent arrival of deflation.
Analyzing crypto regulations, CBDC threats, and the impact of offshore platforms.
Jun 16, 2023 - 08:02:03 PDT
An API layer could facilitate a wide range of central bank digital currency payment scenarios, a Bank for International Settlements and Bank of England experiment has shown.
Jun 16, 2023 - 07:52:26 PDT
“This is probably one of the most challenging job markets we’ve seen since the 2008 financial crisis,” said Max Kemnitzer, managing director for banking and financial services at recruiter Michael Page in New York.
As it stands, though, sentiment remains low by historical standards as income expectations softened. A majority of consumers still expect difficult times in the economy over the next year.
Initial claims bottomed at 182,000 on September 24, 2022. Ignoring the pandemic years and recovery, initial claims are the highest since 264,000 on September 23, 2017.
The German multinational bank's top research team believes Washington has sparked a boom-bust cycle that now is nearing its end stage. In its house view, the recession slated to arrive as soon as October is the inevitable consequence of a series of aggressive rate hikes designed to extinguish the very flames of inflation that policymakers ignited through their own actions during the COVID pandemic. “Avoiding a hard landing would be historically unprecedented,”...
The trends in retail sales, Fed regional surveys and claims are recessionary, adding to the case that after a pause the next move from the Fed will be a cut, rather than another hike. Monthly or weekly data are fine if you want some trading volatility, but not helpful when trying to discern the path of the economy.
Fed, SEC Probing Goldman Sachs’ Role in Silicon Valley Bank’s Final Days: WSJJun 16, 2023 - 06:12:10 PDT
The U.S. Federal Reserve and the Securities and Exchange Commission are investigating Goldman Sachs Group's role in two deals with Silicon Valley Bank that preceded the latter's collapse, the Wall Street Journal reported on Thursday citing people familiar with the matter.
Regional Banks Scramble To Unload Commercial Real Estate Loans, Fearing New CrisisJun 16, 2023 - 06:09:28 PDT
The work-from-home trend has been taking its toll on office landlords and is now making its way through to banks’ commercial loan portfolios, leading some analysts to predict that more trauma could be on the way for regional banks this year.
Regional and small banks should fall under more monitoring to prevent future crises undermining financial stability, Ray McGuire, president of Lazard Ltd., said at a Bloomberg New Voices event in Washington.
"Monetary policy must continue to tighten to bring inflation to target in a timely manner," the IMF said in the report, which it presented to euro zone finance ministers and the ECB.