Gold has all the potential to go unprecedentedly high. But silver will be gold on
Site:
Precious metals news
Things are rough in the US economy, and the FDIC seems to be making plans to handle further collapse. How? By helping themselves to YOUR money that you have on deposit, safely (you thought) tucked away in your bank account.
"Fed officials will likely continue tightening, and to a greater extent than previously projected. Their overreaction will not undo the damage of acting too late. It will make matters worse." ~ Nicolas Cachanosky
Hence, it is nonsense to argue about whether the economy and stock market will have a soft landing or one that doesn’t land at all. Both views are incorrect. The time to get back into a crash position in your portfolio is drawing near. We will rely on our proprietary Inflation/Deflation and Economic Cycle Model to try and get the timing correct.
Mar 6, 2023 - 07:31:19 PST
Much of the Fed report is truly Geek stuff and incomprehensible formulas. But the conclusions and many snippets ring home.
Some markets are already deep into it, others just started. A sobering trip from the free-money decade in la-la-land, back to normal.
If oil heads strongly higher, the market and the Fed will price in still more interest rate hikes, and Elizabeth Warren and President Biden will scream about big oil profits.
Emerging markets investing veteran Mark Mobius says China is restricting capital outflows.
The Paul Volcker Narrative Imagines an Economy That Doesn’t Exist, and That Never Has: ForbesMar 6, 2023 - 07:16:25 PST
This truth came to mind while reading a passage by investor Jim Rickards. Writing about Paul Volcker’s time as Federal Reserve Chairman, Rickards wrote that Volcker “applied a tourniquet [on inflation] and twisted it hard. He raised the federal funds rate to 20% in June 1981, and the shock therapy worked.” Please think about what Rickards imagines Volcker did versus the happy...
Core US Factory Orders Jump More Than Expected In Jan, Aircraft Orders PlungeMar 6, 2023 - 07:14:37 PST
Following the ugly flash durable goods print (de-bound from Boeing bounce in Dec), US Factory Orders for January were expected to drop 1.8% MoM (after a 1.8% MoM rise in Dec). In fact, the headline print fell 1.6% MoM (better than expected). That leaves US Factory order YoY growth at its weakest since Feb 2021.
Mar 6, 2023 - 07:11:53 PST
The last US debt crisis occured in 2013 when Congress finally raised the debt ceiling … and kept on borrowing and spending, But if you thought that a debt crisis would scare Congress (and the…
Gold holds steady after snapping a run of four straight weekly losses.
So, why would risk premiums and indicators remain sanguine in the face of a yield spike and hawkish reassessment of Fed rate policy? Phrased differently, what is holding back “risk off” dynamics? A Friday evening Bloomberg headline: “Blaring Bond Alarms Are Falling on Deaf Ears in the Stock Market.”
Mar 6, 2023 - 05:46:04 PST
Interest rates are an important driver of the economy and financial markets. And what has happened to the S&P 500 index since The Federal Reserve started raising their target rate on May 4, 2023 to fight surging inflation?
The three-month London interbank offered rate for dollars, a major global lending benchmark, surpassed 5% for the first time in more than 15 years on Monday.
US banks are being forced to do something they haven’t done for 15 years: fight for deposits.
The euro zone's economic recovery is tentative and fragile, several indicators suggested on Monday, adding to signs that even if a recession may have been avoided, no upturn is in sight.
Christine Lagarde has warned that underlying price pressures will remain “sticky in the short term” and signalled that further interest rate rises from the European Central Bank are very likely as “inflation is a monster that we need to knock on the head”.
In some of the world’s most vulnerable developing nations, the situations on the ground are dire. Shortages of dollars are crimping access to everything from raw materials to medicine. Meanwhile governments are struggling with their debts as they chase rescue packages from the International Monetary Fund.
San Francisco Federal Reserve Bank President Mary Daly on Saturday sounded a clear warning on the inflationary threat, and signaled that the U.S. central bank may raise interest rates further, and keep them there longer, than has been expected.
The Treasury Department is preparing a new program that could prohibit U.S. investment in certain sectors of adversarial nations, the Wall Street Journal reported on Friday citing copies of reports provided to lawmakers on Capitol Hill viewed by the newspaper.