Gold has all the potential to go unprecedentedly high. But silver will be gold on
Site:
Precious metals news
Gold rose slightly on Monday as a retreat in U.S. Treasury yields offset headwinds from a relatively firm dollar, which, along with looming interest rate hikes, earlier pushed bullion to a more than three-and-a-half-month low.
Meantime, the Indian gold ETFs witnessed net inflow of 2.1 tonnes in April this year, primarily driven by rising gold price and safe-haven demand. United States Gold News
China increasingly sees the war in Ukraine -- and the roles of the United States and its NATO allies in backing Kyiv against Moscow -- as a reflection of future tensions to come between the military bloc and Beijing in the Indo-Pacific.
May 16, 2022 - 12:46:39 PDT
If you’ve been paying any attention at all to the stock market over the past several days, you are aware that stocks have been rapidly declining.
When politicians break the economy, they hurt us in the short term but also create future opportunities to do harm in the name of undoing the damage they inflicted.
"Just like drinking, expansionary monetary policy can provide a temporary (or transitory) high at first (faster real output growth and reduced unemployment). However, the ill effects come later (in an inflation “hangover”)." ~ Gary M. Galles
Even by Washington standards, the Biden Administration’s recent request for $33 billion for military aid to Ukraine was shocking. Surely a coalition...
After those four economic reports we will have a better look at where recession stands.
There has been a lot of confusion about that 1.4% quarter-over-quarter drop in “real” GDP. So let me just go through what didn’t cause it, and then what caused it. What caused it was a freak event, and this freak event is likely to start unwinding in Q2. We’re already seeing some evidence of it.
Housing Bubble Getting Ready to Pop, Used Cars Already Popped, and Inflation Goes GlobalMay 16, 2022 - 12:17:38 PDT
Summary: I invite Wolf Richter to join us for this episode, and he gives a complete run-down on the housing market—which is up 20-30%, and subject to fluctuate even more due to interest rates. We’re seeing that the current inclination (from the perspective of the courts) is to not foreclose on a property. In consideration of how prices have changed the housing market, a relatively small number of mortgages are affected by the price increase. Tune in for more expert knowledge on what to expect in this sector.
May 16, 2022 - 12:14:05 PDT
Rising mortgage rates and slowdown in housing make it pretty clear we've seen the peak in lumber prices for this cycle.
The Fed used to pay interest on excess reserves. Now it pays interest on all reserves. The difference is actually moot.
May 16, 2022 - 12:11:21 PDT
A free money trial is underway in Chicago. Expect an obvious failure to be touted as a huge success.
May 16, 2022 - 12:10:05 PDT
Neither the Fed nor the ECB is diverse where it matters. Rather, they are all group-think charlatans.
It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments.
Federal Reserve Policies Aimed at Creating Price Stability Bring About Economic InstabilityMay 16, 2022 - 11:20:22 PDT
For most economists and politicians, the role of central bank authorities is to make the economy as stable as possible. What do they mean by economic stability?
Former Federal Reserve Chair Ben Bernanke said the central bank erred in waiting to address an inflation problem that has turned into the worst episode in U.S. financial history since the early 1980s.
After more than a decade of chained stimulus packages and extremely low rates, with trillions of dollars of monetary stimulus fuelling elevated asset valuations and incentivising an enormous leveraged bet on risk, the idea of a controlled explosion or a “soft landing” is impossible.
Fresh off his trip to Kiev, wandering the streets of a supposed war zone with America's adopted "hero" Zelensky, Senate Minority Leader out-hawked Biden's hawks, demanding the Russia be named a "State Sponsor of Terrorism." Does he even understand what the term means? Also today: Sen. Paul brutalized for just suggesting we keep track of the billions we send to Ukraine.
May 16, 2022 - 09:30:10 PDT
Given the historical truth that trade is easily the greatest catalyst for peaceful relations among the people who populate countries, it should be said that Russia’s currency decision is a good one, and one that the growth and peace loving around the world should cheer.