Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Markets are largely in the green Friday but strategists warn there’s still a prospect US debt-ceiling negotiations break down over the weekend or result in draconian spending cuts that crimp global economic growth.
The three-year run of investors pouring cash into stocks has run out of steam, according to a note from Bank of America Corp.
Republican and White House negotiators are moving closer to an agreement to raise the debt limit and cap federal spending for two years, according to people familiar with the matter, as time grows short to avert a catastrophic US default.
Global Markets-Investors Hold Their Breath as U.S. Debt Talks Edge Towards DealMay 26, 2023 - 05:16:30 PDT
Global stock markets were muted on Friday, with investors holding their breath as the White House and U.S. lawmakers edged towards a deal on funding government spending to avoid an economy-shattering default. U.S. President Joe Biden and top congressional Republican Kevin McCarthy are closing in on an agreement that would raise the government's $31.4 trillion debt...
The debt ceiling "crisis" is coming to a head. We're pretty confident Republicans and Democrats will strike a deal and raise the debt ceiling. That's supposed to solve the problem. But Friday Gold Wrap podcast host Mike Maharrey says the solution is the problem. In this episode, he also offers some bullish perspective on silver.
Gold generates robust returns across economic cycles. Looking back over the past 50 years, gold prices increased by an average of nearly 11% per year[1], comparable to the returns from US equities and considerably better than US bonds. Gold consistently outpaces inflation, too[2]. In periods of high inflation – when consumer prices are increasing by 5% or more, – gold prices on average have gained over 20%[3] (Chart 1).
The United Arab Emirates has become a key trade hub for Russian gold since Western sanctions over Ukraine cut Russia's more traditional export routes, Russian customs records show. The records, which contain details of nearly a thousand gold shipments in the year since the Ukraine war started, show the Gulf state imported 75.7 tonnes of Russian gold worth $4.3 billion - up from just 1.3 tonnes during 2021.
In the elites’ vision, citizens will be confined to small towns or cities for extended periods. Travel will be tightly restricted. Appliances will be downsized with no consumer choice allowed. Taxes will be imposed on targeted activities to discourage use. Education will be turned to indoctrination to raise a generation who believe in the climate lies needed to gain support for these measures (that kind of indoctrination has been underway for some years).
Delinquency rates (those not paying for greater than 90 days) had fallen to a record low when the stimulus checks fell from the great money gods in the sky, but they are now accelerating higher as people struggle to make payments. This is yet more evidence that a recession is coming which will probably coincide with debt deflation.
House Speaker Kevin McCarthy (R-CA) and President Joe Biden have nine days left to reach a spending deal before the U.S. defaults on the debt and everything falls apart… or do they? Three weeks ago, Treasury Secretary Janet Yellen announced that the so-called X-date, when the U.S. would begin to default, would be Thursday, June 1st. As of last week, that projection was widely
The Economist magazine in a recent editorial painted a rather positive image of the American economy. After encountering setbacks, the American economy often registers a buoyant recovery. Despite competition from rivals, America has retained her position as the world’s top economy.
The Congressional Budget Office's (CBO) new ten-year budget projections estimate that debt will reach a record 119 percent of Gross Domestic Product (GDP) by the end of Fiscal Year (FY) 2033, and the reality could be far worse if lawmakers extend various provisions, based on new estimates from CBO.
The global influence of the dollar is facing several non-economic challenges, despite its continued status as the world’s “reserve currency”. This is a consequence of an increasingly fragmented international economic system. National security and geopolitics are supplanting economics in shaping national and international interactions.
Rivalry with China, fallout from Russia's war in Ukraine and wrangling once again in Washington over the U.S. debt ceiling have put the dollar's status as the world's dominant currency under fresh scrutiny. The dollar share of official FX reserves fell to a 20-year low of 58% in the fourth quarter of 2022, according to International Monetary Fund data.
If the government misses an interest payment, even by a few hours, its creditworthiness will suffer, possibly for a long time.
On Friday, June 2, millions of Americans are due a total of $25 billion worth of Social Security payments. And more than anything else, that may prove a decisive element in forcing an end to the partisan standoff over raising the federal debt limit.
House Republicans say raising the debt ceiling to avoid default is the only concession they will make. In return, they want a laundry list of GOP priorities.
Following the Minutes of the Federal Open Market Committee May 2–3, 2023, the market got some of the Fed's message of higher for longer. Here is the key sentence from the minutes: "Respondents expected the peak rate to be maintained through the January 2024 FOMC meeting."
Existing home sales slumped in April while new home sales soared (thanks to heavy incentives and price cuts) and this morning's pending home sales data was expected to rebound modestly after a sizable decline in March. However, pending home sales in April disappointed, unchanged from March and down 22.6% YoY...
As the US Federal Government and Federal Reserve head ever more into the abyss of destroying the value of the US dollar, continually breaching debt ceilings, creating asset bubbles, and intervening in and manipulating financial markets, there is an accelerating counter force emerging in the US that is the antithesis of this Federal Government and Federal Reserve madness.