Precious metals news

The steady drumbeat of warnings that the American economy is careening toward a recession finally struck a nerve on Wall Street.

A new study from the Bank for International Settlements (BIS) titled, “Dollar debt in FX swaps and forwards: huge, missing and growing,” has created a stir because it claims that there is $65 trillion of hidden debt in the FX markets. The main reason for this conclusion is because FX swaps and forwards are not recorded on balance sheets in the same way as other derivatives. This is true, but can we question whether an FX forward is, in fact, a debt?

That's how things fall apart: insiders know but keep their mouths shut, outsiders are clueless, and the decay that started slowly gathers momentum as the last of the experienced and competent workforce burns out, quits or retires.

As most central bankers, led by the Fed, raise rates to dampen demand, they lead us into the next financial crisis. By ITM TRADING a Sponsor of Wolf Street: The cheap money trade is over, at least …

President Joe Biden Thursday announced a $36 billion bail-out of financially troubled pension plans covering some 350,000 union members, including many truck drivers.

With long-term inflation expectations (those 3-Years ahead or more) peaking more than a year ago, and even shorter inflation expectations - at least according to the NY Fed Survey of consumers - now sliding after hitting a record high 6.8% in June and dropping alongside 2Y breakevens which recently hit the lowest level in 2 years...

Gold prices slipped on Monday as investors stayed on the sidelines awaiting the U.S. inflation data and the Federal Reserve's rate-hike decision later this week.

One of history’s greatest ironies is that gold detractors refer to the metal as the barbarous relic. In fact, the abandonment of gold has put civilization as we know it at risk of extinction.

The Federal Reserve is sowing the seeds for its central bank digital currency (CBDC). It may seem that the purpose of a CBDC is to facilitate transactions and enhance economic activity, but CBDCs are mainly about more government control over individuals.

Most dangerously of all, they're starting to make their own central bank digital currencies.

"The only jobs protected are those in the politically favored companies whose inefficiencies are protected from competition at the expense of other domestic jobs lost and higher prices on consumers."

To get rid of ballooning inventories amid spiking cancellations & plunging sales, builders try to sell to rental operations, but they pulled back too.

We find a good rubbernecking spot.

TARGET2 is the real-time gross settlement (RTGS) system owned and operated by the Eurosystem. The Target2 Lead Chart is courtesy of the ECB. It shows Target 2 creditor and debtor nations. Tartget2 is one of the fundamental flaws of the Eurozone.

Even the Fed Funds Rate is Inverted with the 30-year long bond. The inversions will strengthen next week.

First, the US Treasury 10Y-2Y yield curve has been inverted (a precursor to recession) for 116 straight days). Second, the likelihood of recession in 2023 is 100%. Third, with the forecast of core inflation at a still numbing 6.1%, The Fed seems dead set on raising their target rate by 50 basis points to 4.50% on Wednesday.

Blackrock has a grim presentation on investing in 2023. Particularly with regards to The Federal Reserve and their ability to stave-off a recession (comin’ at you!). Central bankers won’t ride to the rescue when growth slows in this new regime, contrary to what investors have come to expect. They are deliberately causing recessions by overtightening policy to try to rein in inflation. That makes recession foretold. We see central banks eventually backing off from rate hikes as the economic damage becomes reality. We expect inflation to cool but stay persistently higher than central bank targets of 2%.

What can we expect from gold and silver in 2023? Part of effectively answering that question is to look at the context of what took place this year. Nothing happens in a vacuum, after all.

But there is one factor that will overshadow all the others in producing a deflationary bust: a strong U.S. dollar. It is only because the dollar has been in a steep correction since September that Bloomberg et al. can breathe...

Recessions do tend to become amplified when you are rapidly raising interest rates after you are already in the recession.