Gold has all the potential to go unprecedentedly high. But silver will be gold on
Site:
Precious metals news
Jul 5, 2022 - 08:32:48 PDT
Once consumers and businesses fall, tax revenues will also plummet, taking government debt to new highs. Even Keynesians should be worried about letting inflation run wild because the result would be that governments face an even worse fiscal crisis when the private sector slumps.
In fiscal year 2020, at the height of covid stimulus mania, Congress managed to spend nearly twice what the federal government raised in taxes.
Gold fell on Tuesday pressured by rate hike expectations and a stronger dollar, and dipped below a key support level of $1,800 an ounce.
Dow Falls More Than 400 Points as Wall Street Grapples With Recession FearsJul 5, 2022 - 06:32:24 PDT
Stocks were lower on Tuesday morning after the major averages finished another losing week.
Jul 5, 2022 - 06:29:24 PDT
Recession occurs when GDP declines two quarters in a row.
Raising interest rates to tame demand isn't the right solution, as high prices have been driven mainly by supply chain shocks, one analyst said.
The euro sank to its weakest since late 2002 versus the dollar on Tuesday, as a jump in natural gas prices reignited worries about the euro zone economy and data showed business growth in the region slowed sharply in June.
Zimbabwe's central bank said it would start selling gold coins this month as a store of value to tame runaway inflation, which has considerably weakened the local currency.
The European Central Bank should be cautious about deploying tools to contain the borrowing costs of weaker nations, Bundesbank President Joachim Nagel said.
One of the world’s worst inflation crises closed in further on another grim milestone in Turkey, and government efforts to help the population cope with the fallout only threaten to make it worse.
(The yen sinking to even deeper lows. Short sellers driving Japanese bond yields through the central bank’s target. Stocks on a rollercoaster ride and credit investors running for the sidelines.
You can add the World Bank to the growing chorus sounding recession alarm bells. In its latest outlook, World Bank president David Malpass said "for many countries, recession will be hard to avoid."
The rapid rise of the US dollar since the start of the year is a double-edged sword for American multinational companies, pushing some of them to decide whether to hedge or reposition their activities abroad to avoid fallout. For an importer, the surge in the greenback against the euro, yen or British pound is a plus, because it makes the products they buy cheaper. But for a US export company, products sold in dollars have become more expensive,...
Bank of America, Credit Suisse and Goldman Sachs are among banks that could collectively lose billions on buyout loans they agreed to provide when demand was high
We are facing an extraordinary moment of uncertainty regarding the future inflation (and interest rate) outlook.
We’re halfway through the year, but markets are beginning to fear we’re not even halfway through the bad news 2022 has in store.
Losses are blowing holes in balance sheets and pushing firms in the industry to near bankruptcy
2s5s Inverts For First Time Since COVID Lockdowns As Fed-Rate-Trajectory TumblesJul 5, 2022 - 06:01:54 PDT
With the US away yesterday, the rest of the world decided it was time to buy stocks and sell bonds. But now that Uncle Sam is back - all of that is reversed...
Euro Crashes To 20 Year Low As Recession Reality Trounces ECB Rate Hike DelusionsJul 5, 2022 - 05:59:29 PDT
We have long mocked the ECB for making the typical European mistake codified over a decade ago by Jean-Claude Trichet, when it launches rate hikes right into a recession (and after that, debt crisis).
The themes of mounting recession risks and declining price pressure - leading to lower rates - are apparent in JP Morgan’s consolidated manufacturing PMIs for June. The overall manufacturing PMIs showed a falling headline figure, and more depressed new orders. Rapidly improving price data and Supplier Delivery Times (SDTs) undercut inflation fears. In more detail: