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The silver market is on the brink of a significant shift due to an impending silver shortage. Despite current price setting mechanisms, the fundamental law of supply and demand is expected to ultimately dominate, potentially leading to a dramatic increase in silver prices. The market awaits this pivotal moment, which could redefine silver's value and market dynamics.
World Gold Council Says Geopolitics and Central Banks Could Keep Gold Demand Hot in 2024Dec 11, 2023 - 11:55:56 PST
Gold prices hit a record high, surpassing $2,100 per ounce, driven by geopolitical tensions and strong central bank buying. These factors, alongside the potential for a global recession, position gold as a key investment hedge, with its demand expected to remain robust into 2024. The World Gold Council anticipates continued strong central bank purchases, further supporting gold's positive market trend.
The U.S. faces dire financial challenges, including massive federal budget deficits and significant payments to the Treasury due to Federal Reserve balance sheet losses. The situation is exacerbated by $212 trillion in unfunded promises, with debt reaching 200% of GDP. This unsustainable fiscal path, influenced by Modern Monetary Theory's approach of unchecked money printing, raises serious concerns about the future affordability of these vast obligations.
Latest NY Fed Survey: Year-Ahead Inflation Expectations Tumble To Lowest Since April 2021Dec 11, 2023 - 11:38:52 PST
The NY Fed's November survey indicated a decline in 1-year inflation expectations, the lowest since April 2021, while 3 and 5-year forecasts remained steady. This drop is mainly attributed to decreasing gas prices. The survey also showed a record high average full-time job offer, but Americans are less willing to move, possibly due to high mortgage rates. Despite these trends, there is a positive outlook on household finances, with increased optimism about future financial situations and a lower likelihood of missing debt payments.
In 2023, optimism for Fed rate cuts contrasts with the rarity of economic soft landings. The substantial money supply increase in 2020 led to persistent inflation, despite recent declines in money supply and rate hikes. This ongoing inflation suggests a continued devaluation of currency, reinforcing gold's appeal as a stable investment, evidenced by significant central bank purchases. The situation reflects central bank policy failures and foreshadows the likely impact of monetary contraction and the risks of monetary debasement in 2024.
President Joe Biden, in a rare move, commented on Federal Reserve policy, citing the strong jobs report and easing inflation as reasons to avoid further interest rate hikes. Speaking in Las Vegas, Biden's remarks break with the traditional presidential practice of not influencing the Fed's decisions, especially as he faces reelection challenges amid economic concerns from voters.
The upcoming CPI report, against a backdrop of fleeting landlord concessions, points to a precarious housing market situation. Despite a recent surge in housing supply leading to temporary rent incentives, particularly in Sunbelt regions, these reductions are likely short-lived, with potential for significant future rent hikes. This unstable trend in the housing market casts a shadow of uncertainty over broader inflation prospects, suggesting a possibly negative economic outlook.
In 2023, out of a total of 2.552 million job gains, government jobs have contributed significantly, accounting for 636,000. This figure includes civilian government employees but excludes military personnel, and employees of intelligence agencies like the CIA and NSA. Postal service jobs are included in these statistics.
Dec 11, 2023 - 06:08:35 PST
The recent surge in gold prices to a record $2,135 per ounce is attributed to factors like increased central bank investments in bullion and expectations of rate cuts. Mark Bristow, CEO of Barrick Gold Corp., links the consistent rise in gold prices over the past five years to a "decade of free money," and expects the demand for gold to keep growing.
Dec 11, 2023 - 06:03:55 PST
Amidst a financial strain, money-market funds saw a massive $290 billion inflow, while banks faced a substantial $53.7 billion deposit outflow, signaling a troubling trend. Small banks are increasingly dependent on Federal Reserve's emergency funds due to reserve constraints. This situation is compounded by soaring mortgage rates, exacerbating housing affordability issues.
Rapid Fed Liquidity Reduction Signals Possible Early Halt to Balance Sheet UnwindDec 11, 2023 - 06:00:42 PST
Markets anticipate the Federal Reserve may end its balance sheet reduction earlier than expected, introducing new uncertainty about its normalization process. Wall Street banks surveyed by the New York Fed expect this to happen when reverse repo balances reach $625 billion, with quantitative tightening likely ceasing in the third quarter of next year.
Dec 11, 2023 - 05:48:12 PST
"Rich Dad Poor Dad" author Robert Kiyosaki warns that America's increasing debt, which rose by $240 billion in November, poses a significant risk to the country. According to U.S. Treasury data, the national debt escalated to $33.878 trillion by the end of November, marking a $2.46 trillion increase from the previous year. In an interview with Fox Business, Kiyosaki criticizes America's continual money printing, asserting it undermines the nation's financial stability.
Javier Milei, after his unexpected election victory, has committed to implementing strict austerity measures in Argentina. In his inauguration speech in Buenos Aires, the 53-year-old leader emphasized his intention to radically change the nation's economic course. His plan includes deep spending cuts aimed at reducing Argentina's massive public debt and combating soaring inflation, currently over 140%.
Dec 11, 2023 - 05:23:18 PST
As global inflation concerns persist, central bankers from major economies, including the US Federal Reserve, the Eurozone, and the UK, face critical year-end decisions. With recent signs of softer inflation and economic slowdown, these banks are under pressure to consider shifting towards monetary easing. This situation challenges their earlier stance of maintaining higher rates for longer, as investors increasingly anticipate rate cuts in early 2024.
In 2024, central banks are expected to pivot from aggressive interest-rate hikes to reducing borrowing costs, marking a significant shift in monetary policy. The crucial factor will be whether upcoming inflation data allows for a swift enough policy change to mitigate the effects of previous tightening and prevent a severe economic downturn.
Consumer Borrowing Slows; Is the "Resilient" American Consumer Running Out of Gas?December 11, 2023
The "resilient" American consumer seems to be running out of gas.Americans are still running up credit card debt but at a much slower pace. Meanwhile, borrowing for big-ticket items has cratered.Total consumer debt rose by $5.2 billion in October, according to the latest data from the Federal Reserve. That was a relatively small 1.2% increase.
In November, China's consumer prices fell by 0.5% year-on-year, marking the steepest decline in three years and deepening deflation concerns. This drop, exceeding forecasts and previous months' trends, compounds existing economic challenges, including a property sector crisis, weak trade, and a slow recovery from prolonged Covid restrictions, amidst a backdrop of subdued consumer demand and historically low economic growth targets.
According to the latest non-farm payroll report from the Bureau of Labor Statistics (BLS) the US economy added 199,000 new jobs in November and the unemployment rate dropped to 3.7%. This was widely viewed as a "strong" jobs report. According to one mainstream analyst, the November employment data "portrays an economy that is easing toward a soft landing and is not on the brink of a recession."Peter Schiff wasn't as impressed. He called it "just another hyped-up jobs report."
While I have been quite "Negative" on the entire Green Energy Industry, there is a short-term benefit that we can't overlook. Due to the massive ramp-up of wind and solar power over the past decade, we've cut a great deal of potential coal and natgas supply...
Due to additional information & the excellent comments, I have provided a New Gold Market Update for All Members. This includes the Dec 8th video update and one for today, Dec 10th. Gold holders need to understand the present short-term lure of the Bond Markets to attract massive investor dollars....