Gold has all the potential to go unprecedentedly high. But silver will be gold on
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The US dollar has skyrocketed in a monster rally this year, fueled by the Fed’s extreme hawkish pivot. Panicking over raging inflation, top Fed officials are aggressively hiking rates and starting to reverse years of epic monetary excesses. But resulting overcrowded dollar buying has left it extraordinarily overbought at precarious heights. As this lofty currency inevitably mean reverts lower, big gold-futures buying will be unleashed.
Fed Could ‘Break’ the Economy With Aggressive Rate Campaign: Head of Monetary Research at Moody'sJun 17, 2022 - 12:58:08 PDT
Moody's Analytics is not the only firm lowering its outlook and raising the odds of a recession after the Fed's super-sized interest rate hike this week. Bank of America raised the odds of a recession next year to 40%, while JPMorgan Chase strategists said the S&P sell-off suggests an 85% chance of a downturn.
Jun 17, 2022 - 12:56:38 PDT
Let's go over a timeline to see how inflation started and escalated. Let's also look at absurd excuses.
Housing Crash Imminent: As Mortgage Rates Explode Price Cuts Soar And Buyer Demand CollapsesJun 17, 2022 - 12:51:34 PDT
“The writing is on the wall that more supply is coming, no matter how you slice and dice the data,” Palacios said. “Builders are trying to get in front of that wave. We could have the double-whammy of the economy cooling and a lot of supply coming on. That’s not the best recipe to sell homes.”
Jun 17, 2022 - 12:49:31 PDT
As a result, the Fed may soon be forced to put its inflation-fighting goals on hold even as inflation remains well above its 2% target. If so, the markets may have a great deal of future inflation to discount into asset prices.
Fed’s Powell: A U.S. Digital Dollar Could Help Maintain International PrimacyJun 17, 2022 - 12:44:45 PDT
"A U.S. CBDC (central bank digital currency) could... potentially help maintain the dollar's international standing," Powell said in introductory remarks to a research conference held by the central bank on the international roles of the dollar. The Fed has just finished a four-month public consultation period soliciting opinions on the idea of a digital dollar.
Miller is clearly laying out the rules for a new, commodity-centric monetary system, one based on what Credit Suisse’s Zoltan Poszar called ‘outside money’ — commodities, gold, even bitcoin — rather than the West’s egregious use of ‘inside money’ — debt-based fiat and credit — to perpetuate old colonialist behavior well past its use-by date.
The usual anticapitalist response has been to place the blame on imagined "price gouging" or "greedflation." President Joe Biden has reportedly sent an "angry letter" to oil company execs for not bringing down gas prices. Never mind, of course, that the administration has been committed to crippling fossil fuel production for the duration.
Even after Admitting She Underestimated Inflation, Janet Yellen Still Doesn't Understand What It IsJun 17, 2022 - 12:28:16 PDT
According to the June 1, 2022, Financial Times, Janet Yellen, the US Treasury secretary conceded she was wrong last year about the path inflation would take.
The Fed Is Winging It: A 75 Basis Point Hike "Seemed like the Right Thing"Jun 17, 2022 - 12:26:10 PDT
The fact that the Fed was forced to hike the target rate by more than it had suggested was even possible earlier in the year is a reminder that the Fed and its economists are simply in a reactionary mode when it comes to the US economy's problem with mounting price inflation.
"The Fed is not even committed to bringing inflation back down to 2 percent very quickly. The median FOMC member currently projects inflation will remain above target through 2024. We had better get used to high inflation. We will likely be dealing with it for years."
"Washington's addiction to spending is hurting our economy and depleting our currency. Inflation is stealing every American's purchasing power and financial security," Paul said in a statement after the vote.
Biden's administration did nothing to shrink the deficit—and had "Build Back Better" passed, government spending would be even higher.
Jun 17, 2022 - 12:02:16 PDT
The Biden administration announced that it would send an additional $1 billion in military aid to Ukraine as the country continues to fight Russian forces.
Biden Hopes To Solve Inflation With Even More Inflation, Handing Out Gas Rebate CardsJun 17, 2022 - 11:59:12 PDT
On Wednesday, Biden said he was "doing everything in my power to blunt Putin’s gas price hike," repeating the party talking point that the crippling inflation - which began right after he took office, is the fault of Russian President Vladimir Putin for invading Ukraine.
Jun 17, 2022 - 11:52:34 PDT
Since the start of this year, both the stock market and the bond market have declined by more than 20 percent. That has involved the destruction of around $12 trillion, or 50 percent of GDP, in household wealth. The Fed’s decision to raise interest rates more aggressively and to drain market liquidity at a rapid pace runs at a time when markets are on their back feet, risks sending the markets ever lower.
Jun 17, 2022 - 10:47:02 PDT
In this Part 2 of our interview with macro analyst Stephanie Pomboy, she directly states that we are witnessing the bursting of the largest asset price bubble of our lifetimes.
Deflationary Tsunami On Deck: A "Tidal Wave" Of Discounts And Crashing PricesJun 17, 2022 - 09:04:12 PDT
As a result, Wilson concludes, "we are likely to see a tidal wave of discounts that carry us through December because 2022 inventory orders have already been placed."
Jun 17, 2022 - 08:34:23 PDT
We’ve got a line on The Federal Reserve. They don’t seem to care about housing and the mortgage market. Monthly mortgage payments are soaring as home prices soar AND mortgage rates soar…
Jun 17, 2022 - 08:27:23 PDT
Alarm! As The Federal Reserve tightens the monetary noose (Fed Chair Powell said Fed ‘acutely focused’ on returning inflation to 2%), the US economy is slowing. In fact, May’s Industrial Prod…