Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Gold prices jumped nearly 2% on Friday, driven by a slide in U.S. Treasury yields and broader financial markets as worries over a fallout in the banking sector eclipsed a strong U.S. jobs report and drove safe-haven flows into bullion.
First and foremost, as to repealing precious metals sales taxes, bills in Mississippi and Kentucky are moving forward quickly. And they may well be heading to each state’s respective governor for signature later this month. Other full sales tax repeal bills are pending in Maine, Wisconsin, and Vermont – while Minnesota and Alaska are considering an expansion of their existing sales tax exemptions.
At a minimum, investors should expect increased market volatility as default talk grows louder. It may be a good time to reduce equity exposure and increase your cash allocation.
Mar 10, 2023 - 11:47:35 PST
Most of the last three decades, the Fed drove the after-inflation or “real” interest rate on 30-year mortgages steadily lower.
Bond traders lost no time re-instating bets that the Federal Reserve will cut interest rates before the year is out.
Congressman Tom Emmer believes a U.S. Government-controlled CBDC would be “weaponized” as a surveillance tool to “choke out politically unpopular activity” and restrict the financial rights of American citizens.
RIP Silicon Valley Bank: Shut Down by California Regulator, Taken Over by FDIC, Shareholders Bailed In, Insured Depositors t...Mar 10, 2023 - 11:16:27 PST
The bank survived the Dotcom Bust. But this bust is far bigger because the Free-Money bubble was far bigger. FDIC may not have a loss on this deal.
Bank Stocks Got Wacked: Between a Rock and a Hard Place as Banks Run Out Free MoneyMar 10, 2023 - 11:13:46 PST
Oh dearie, those bonds.
300 Billion Reasons Why SVB Contagion Is Spreading To The Broader Banking SystemMar 10, 2023 - 09:08:59 PST
So will Powell let America's small, regional banks risk failure as a result of his rate hikes (an outcome the likes of JPMorgan would find quite beneficial as it will make them even bigger), or will the Fed chair step in the way he did in 2019 even if it means gambling with runaway inflation? The right answer to that question could make some traders extremely rich.
Four Biggest U.S. Banks Lose $47 Billion in Market Value
JPMorgan lost about $20 billion in market value Thursday.
Bank of America lost roughly $15 billion.
Wells Fargo's market capitalization was down $8.5 billion.
Citigroup's was down $3 billion.
‘Excessive’ Biden Budget Plan Would Cause National Debt to Hit Nearly $51 Trillion by 2033Mar 10, 2023 - 08:00:09 PST
The federal debt as a share of US gross domestic product (GDP) would swell to a record 110% by 2033.
This has only happened 4 previous times in last 150 years. Each time a Depression with double-digit unemployment rates followed. Contracting money supply + inflation is a nasty combination.
Because it means there are fewer dollars floating around in the system to pay for the higher prices. At some point the system "breaks" & a deflationary crash occurs.
Highest Personal Income Tax Rate Since 1986. Biden’s budget calls for a top combined federal tax rate of about 45%, the highest since 1986 when “Walk Like An Egyptian” was the number one song and the first Top Gun movie was released.
Mar 10, 2023 - 07:12:52 PST
Biden's plan to raise taxes might help reduce the deficit, but the costs will be felt by every American earner who tries to save for retirement.
Central Bank Digital Currency is the most comprehensive, far-reaching, authoritarian social control mechanism ever devised. Its “interoperability” will enable the CBDCs issued by various national central banks to be networked to form one, centralised global CBDC surveillance and control system.
Yellen Shrugs As India's Oil Deals With Russia Threaten Petrodollar DominanceMar 10, 2023 - 07:08:17 PST
Remember when Janet Yellen exclaimed proudly that there would never be another financial crisis "in our lifetimes" in 2017, only to see the repo crisis and the reaction to COVID lockdown policies prompt the biggest response by The Fed ever.
Mar 10, 2023 - 07:05:38 PST
Ah, memories! I still remember the 2000s housing bubble and subsequent financial crisis and bank bailout from 2008/2009 like it was yesterday. And I remember Representative Barney Frank (D-MA) claiming that the Dodd-Frank legislation would end bank bailouts. I laughed out loud when I heard Mr. Frank utter those preposterous words.
Silicon Valley Bank Financial in Talks to Sell Itself After Attempts to Raise Capital Have FailedMar 10, 2023 - 06:37:07 PST
SVB is a major bank for venture-back companies, and cited cash burn from clients as one reason it was looking to raise additional capital.
Gold jumped on Thursday as the dollar retreated, after data showed U.S. jobless claims grew more than expected last week, providing some hope to investors that the Federal Reserve's interest rate hikes could be less aggressive than feared.
February Payrolls Come In Hot At 311K - Record 10th Beat In A Row - But Unemployment Rate Unexpectedly RisesMar 10, 2023 - 05:50:55 PST
If the already jittery market needed another reason to be very confused today, it got it moments ago when the BLS reported February jobs data and which -on one hand - came in hotter than expected at the headline level, with some 311K jobs reportedly created in February, which while was a drop from last month's downward revised 504K, was well above the 225K consensus and was also above the whisper number of 250K.