Gold has all the potential to go unprecedentedly high. But silver will be gold on
Site:
Precious metals news
Hot Economy, Rising Inflation: The Fed Has Never Successfully Fixed a Problem Like ThisApr 18, 2022 - 11:52:43 PDT
Central bank says it is possible, but many factors are out of its control; ‘they are strikingly behind’.
In Hot Economy, Rising Inflation the WSJ notes The Fed Has Never Successfully Fixed a Problem Like This. That link is not paywalled for those who wish to read.
Housing Sellers Drop Asking Price as Demand Slip and Mortgage Payments Rise.
Apr 18, 2022 - 11:42:39 PDT
On March 31, president Biden announced release from the Strategic Petroleum Reserves to lower gas prices. Relief was short lived.
Apr 18, 2022 - 11:39:03 PDT
The strength and number of inversions peaked around April 1. Inversions are now mostly gone.
The reasoning that we are trading worthless dollars, currency, or paper for goods is a bit misleading. It might be more accurate to say we are trading away jobs, wealth, and even our future. Making your rivals stronger at your expense has always proven to be a mistake in the long run. The question we should ask is whether free trade is really a win-win?
Sen. Chris Coons (D-DE) said on the weekend talk shows that it's time to start talking about sending US troops to directly fight Russia in Ukraine. Thus to defend Ukraine's borders, this member of the Senate Foreign Relations Committee openly calls for that launch of what would be WWIII. Coons is joined by plenty of Republican Members calling for direct conflict with Russia, including disgraced neocon Rep. Adam Kinzinger.
RAGING INFLATION Coming From The Mother of All Bubbles (Bubble Update #1)Apr 18, 2022 - 10:43:04 PDT
Join Mike Maloney in the first of his 4 part ‘Bubble Update’ series, as he examines the latest data from ‘The Mother Of All Bubbles’.
Apr 18, 2022 - 09:41:02 PDT
Former Federal Reserve Bank of Richmond President Jeffrey Lacker said that supply chain snarls were “more of a symptom than a cause” of surging inflation, with the key factor driving up prices being massive government spending on pandemic emergency programs that caused demand to balloon against a backdrop of squeezed supply.
Prices were surging long before Russian troops entered Ukraine. Furthermore, Putin did not stop exporting food and gas; it was the Biden administration and Congress that imposed sanctions, making US consumers suffer additional price increases. The blame for the economic effects lies with the US government, not Russia.
History suggests that the Federal Reserve will face a difficult task in tightening monetary policy enough to cool inflation without causing a U.S. recession, with the odds of a contraction at about 35% over the next two years, according to Goldman Sachs Group Inc.
This year’s aggressive change of direction by central banks is nearing the end of the era of negative-yielding debt, causing total bonds with a below-zero interest rate to fall by $11 trillion.
The fastest inflation in decades and the resulting rush by central banks to raise interest rates are stoking recession fears in financial markets -- worries that are being compounded by the impact of aggressive coronavirus lockdowns in China and the war in Ukraine.
U.S. housing sales are heating up again this spring, but the highest mortgage rates in more than a decade threaten to cool the sales pace that has gripped the market for nearly two years. Home sales rose last year to the highest level since 2006 as the Covid-19 pandemic changed consumers’ housing priorities and remote work enabled people to move farther from work.
Several Million U.S. Workers Seen Staying Out of Labor Force Indefinitely: WSJApr 18, 2022 - 08:43:06 PDT
Several million workers who dropped out of the U.S. workforce during the Covid-19 pandemic plan to stay out indefinitely because of persistent illness fears or physical impairments, potentially exacerbating the labor shortage for years, new research shows.
The World Bank just slashes its forecast for global economic expansion this year, blaming Russia’s invasion of Ukraine for their outlook shift.
Something snapped. Ten-year Treasury yields jumped another 12 bps this week, with a two-week gain of 44 bps. At 2.83%, 10-year yields ended the week at the high since December 2018. Thirty-year Treasuries yields surged 20 bps this week (2-wk gain 48bps) to a three-year high 2.92%. Benchmark MBS yields rose another eight bps this week to 3.98%, with a stunning 191 bps y-t-d spike. Thirty-year mortgage borrowing rates jumped 28 bps this week to reach 5% for the first time since February 2011, having jumped 189 bps so far this year.
Apr 18, 2022 - 08:10:51 PDT
Mohamed El-Erian, Allianz and Gramercy advisor and president of Queens' College, Cambridge, joins CNBC's 'Squawk Box' to discuss inflation, markets and more ahead of the open.
After 13 long years of declining interest rates and stagnant incomes for the bottom 90%, we've finally reached debt saturation: after dropping to near-zero, interest rates are now rising, pushing the cost of debt service higher, while wages are losing purchasing power (a.k.a. inflation), so there's less disposable income left to service debt.
Gold futures rose Monday as U.S. traders return from a three-day weekend, with little prospect for a quick end to Russia's invasion of Ukraine in sight.