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Apr 24, 2023 - 09:32:47 PDT
The Biden administration’s claims of deficit reduction come in stark contrast to the president and his team, having added $4.8 trillion to the deficit through 2031.
Apr 24, 2023 - 09:31:22 PDT
This is life under Joe Biden. Record sovereign risk, record high debt, near 40-year highs in inflation, a hot war in Ukraine with Russia, failure of DOJ/FBI to do anything about the content of Hunt…
On Basco Island South of Taiwan, U.S. Military Prepares for Conflict With ChinaApr 24, 2023 - 09:28:14 PDT
The drills, part of the largest-ever annual military exercises with the Philippines, focus on defending the Bashi Channel, a key transit point for the Chinese and American militaries.
Inflation in assets inevitably leads to a burst of bubbles. In the period when central banks were glad to see limited consumer price increases despite large increases in the money supply, they created massive inflation in assets. Throughout the quantitative easing era, bond prices spiked, equity valuations soared, house prices increased significantly above affordability levels, and...
Apr 24, 2023 - 09:14:47 PDT
A lending squeeze is a "very significant wild card [with] a downside risk that we are very, very focused on," top economist Nathan Sheets said.
Why Washington and Wall Street Are Worried About the ‘De-dollarization’ ThreatApr 24, 2023 - 09:13:14 PDT
A "de-dollarization" mania is gripping Washington and Wall Street.
The Russian Foreign Minister, Sergey Lavrov is on a Latin American tour and has been meeting with the Brazilian President and Foreign Ministers. Catching up with his Bolivian counterpart Rogelio Mayta in the Venezuelan capital Caracas, Lavrov and Mayta have introduced a new trade transaction system to drop the US dollar and Euro and carry[.....]
Back before clocks went digital, you could say “a stopped clock is right twice a day” and even youngsters would know what you meant. A mechanism could be nonfunctional but occasionally correct.
Eventually, the inflationary credit emitted by the Fed works its way through the global economy and comes home to roost in the form of reduced domestic output and rising prices. In this regard, there is no more powerful tell than the round trip of the PCE deflator for durable goods during the past 28 years. As shown in the chart below, prices for durable goods, which are now mostly...
Apr 24, 2023 - 08:50:00 PDT
"Tighter liquidity could exacerbate the ongoing shift to more restrictive credit conditions, weighing on US growth," Fitch Ratings said.
Currently, investors have little to no interest in owning gold (which is a bullish contrarian sign in my book). As my friend Callum Thomas recently pointed out, assets in gold ETFs like GLD are a tiny fraction of those invested in equity ETFs like SPY. However, there’s a good chance that the deteriorating fiscal situation will over time light a fire under investor appetites for precious metals relative to financial assets, just as it did two decades ago. And that’s exactly the sort of thing that could power another major bull market for the precious metal. Got Gold?
Apr 24, 2023 - 06:43:19 PDT
Central bankers who manage trillions in foreign exchange reserves are loading up on gold as geopolitical tensions including the war in Ukraine force them to rethink their investment strategies. An annual poll of 83 central banks, which manage a combined $7tn in foreign exchange assets, found that more than two-thirds of respondents thought their peers would increase their gold holdings in 2023.
Gold prices held in a tight range on Monday as market participants continue to focus on the U.S. Federal Reserve's interest rate strategy in their fight against surging inflation.
Zimbabwe will soon introduce a gold-backed digital currency meant to stabilize the local unit from its continued depreciation against the dollar, state-run Sunday Mail reported, citing central bank governor John Mangudya.
Bolivia's lower house of Congress passed a bill early Friday to purchase gold from miners in an attempt to boost the central bank's foreign reserves as fears over a shortage of dollars rippled through the country.
It's A "Defund-The-Global-Police" Moment, Jen Says De-Dollarization Is Happening At A "Stunning" PaceApr 24, 2023 - 06:35:59 PDT
Over the last few weeks, it has seemed you can't turn a page, blink at a pixel, or hear a news report without some form of de-dollarization headline shrieking at you. From Brazil to Saudi Arabia, and from India to Argentina, and increasing number of nations are 'reportedly' shifting away from the dollar hegemon.
Apr 24, 2023 - 06:27:51 PDT
The government has until the summer to strike a deal.
Defense expenditure increased by 3.7% in real terms to reach a record high of $2.24 trillion in 2022, said the Stockholm International Peace Research Institute.
Apr 24, 2023 - 06:24:21 PDT
Investors are underestimating how high euro zone borrowing costs will rise, the head of Belgium’s central bank has warned, insisting he will only agree to halt interest rate rises once wage growth starts to fall.
Mike is back today with an important update on the conflict between Russia and Ukraine.