Precious metals news

Credit card debt is a key indicator of how healthy U.S. households are financially. The average credit card balance is $10,170 per household - 56% have more credit card debt than last year. - 57% believe it will take over a year to clear their debt. - Over 25% would accrue debt for non-essential spending. - 45% feel stressed due to their credit card debt. - 85% think they manage their finances better than the government. - Over 33% would do anything to be free of credit card debt.

The U.S. housing market is alarmingly unaffordable for most potential buyers. Following the pandemic, housing prices soared. Yet, in 2022, mortgage rates spiked to over 7%, compounding the issue. Expert analysis reveals that for housing to be deemed affordable, U.S. incomes would need a staggering 55% hike or a substantial reduction in prices or mortgage rates.

US speculative-grade companies face increased refinancing and default risks due to sustained high interest rates and limited credit access, says Moody’s Investors Service Inc. Debt maturing between 2024 and 2028 for junk-rated firms is at $1.87 trillion, a 27% rise from last year's predictions. This rise in maturities, amidst unfavorable economic and credit conditions, amplifies the companies' refinancing and default threats.

"Hotter than expected."
This seems to be a recurring theme when it comes to price inflation.
The September CPI data gave us another variation on that tune. And it should once again remind us that the Federal Reserve is nowhere near its 2% target.

An important error in statistical analysis is that mathematical economists have lost sight of what their beloved statistics represent —none more so than with GDP.
In this analysis, I explain why GDP is simply the total of accumulating currency and credit which is wrongly taken to reflect economic progress — there being no such thing as economic growth, only the growth of credit. Once that point is grasped, the significance of this basic error becomes clear, and the fiat currency paradigm is revealed for what it is: a funny money game that will go horribly wrong.

The federal government's annual deficit for 2023 appeared to be $1.7 trillion, but due to irregularities involving President Biden's now-overturned student debt cancellation plan, the real deficit for 2023 is closer to $2 trillion. This marks an increase from 2022 and reignites debates in Washington over the expanding deficit, exacerbated by factors like lower tax receipts and higher interest rates.

First-time jobless claims in the U.S. held steady at 209k, with un-adjusted claims dropping to a year low of 175k. Ohio saw the largest decrease in claims, while California and Texas experienced a surge. Continuing claims rose slightly to 1.702 million. Seasonal distortions could affect these numbers in the coming months. WARN Act data, indicating potential future layoffs, suggests an increase in claims may be imminent.

Mike has discovered a critical indicator during his in-depth research.

An upsurge in labor protests is marked by widespread strikes across various major industries. A common thread marks most: protests originate in blue-collar jobs, where wages historically lag behind productivity and corporate profits. Labor unrest in the U.S. reached a peak this year, with 453,000 workers engaging in 312 strikes, the most since 2019. Rising inflation, social disparity, and increasing living costs highlight deepening societal fractures, threatening the foundation of the U.S. economy.

Social Security benefits will rise by a mere 3.2% in 2024, a significantly smaller increase compared to the previous year's 8.7% due to easing inflation. Despite the increase, concerns persist about the program's financial stability. Reports indicate that by 2033, the Social Security trust fund will only be able to pay 77% of scheduled benefits. Efforts to bolster the program have stalled, leaving beneficiaries uncertain about future adjustments and the program's long-term viability.

Higher interest rates have hurt bank deposits, and the outlook remains bleak. Investors brace for disappointing bank earnings tied to deposit costs. Despite rate hikes, banks may face further increases, especially if the Federal Reserve sustains elevated rates. A notable gap between deposit costs and federal-funds rate, along with a shift towards interest-paying accounts, exacerbates banks' challenges. Historical comparisons highlight worsening conditions.

September's inflation rate outpaced expectations, with a 3.7% annual increase. Core inflation matched forecasts. Rising shelter and energy costs were primary contributors. Real hourly earnings decreased due to inflation. The Federal Reserve remains divided on addressing inflation concerns, while wholesale prices also rose, exceeding the Fed's target.

Amid growing global political and economic uncertainties, factors such as escalating public debt, geopolitical tensions, the "weaponization" of the US dollar, and waning US dollar credit pose significant challenges. Bolstering gold reserves serves as a strategic move to mitigate these risks, stabilize reserve assets, and fortify the financial system's resilience.

Gold and silver prices showed resilience on Wednesday, marking their fourth consecutive gain. Gold, particularly, rebounded impressively after a series of declines, with December delivery rising by $12 or 0.6%, closing at a near two-week high of $1,887.30 an ounce.

Paper money allows governments to print without needing taxes, reducing reliance on citizens. The Song Dynasty's overprinting led to hyperinflation and collapse. Today's global economies show similar risks with increasing inflation. The proposed solution is tangible asset-backed currencies like gold or Bitcoin, aligning government and citizen interests for stability and prosperity.

David Webb's book, "The Great Taking," claims there's a 50-year plot by central bankers to confiscate assets, including securities and debt-financed properties. With the decline of paper share certificates, most assets are only seemingly owned, making them vulnerable in a crisis. He warns of a designed financial crash that will enable this asset seizure. Webb advises being debt-free and holding tangible assets, especially physical gold or silver, to protect oneself.

The Federal Reserve's recent Minutes indicated a hawkish stance with a probable rate increase. However, Bloomberg Intelligence suggests a more neutral position. Since the hawkish announcement, the dollar has strengthened, and bonds have dropped in price. The minutes suggest a balanced view on upcoming policy decisions, leaning towards a pause in the November meeting unless significant CPI data changes arise.

Central banks globally are buying gold in record amounts to diversify from the dollar. State Street Global Advisors reports that these purchases reached 387 metric tons in the first half of 2023 alone, after an unprecedented 1,083 tons the prior year. This shift is partly attributed to the de-dollarization movement, led by nations like China and Russia, aiming to lessen the dollar's dominance in global trade. This move is also a response to the U.S. using the dollar's supremacy to enforce economic sanctions. The trend is anticipated to persist due to ongoing economic and geopolitical risks.

Billionaire Ray Dalio sounded the alarm in a Fox Business interview, asserting that the Federal Reserve's stubborn stance on maintaining high interest rates is pushing them into a precarious financial situation. Highlighting the global trend, he pointed out that central banks are hemorrhaging money. Dalio ominously predicts that the U.S. Federal Reserve, in a desperate move, will be forced to print money to counterbalance these significant losses.

House prices are set to plummet for the first time in a decade, claims a former Oppenheimer analyst who was dubbed the 'Oracle of Wall Street.' Meredith Whitney, known for her Wall Street predictions, anticipates a decline in U.S. house prices for the first time in a decade. The ageing Baby Boomer population downsizing and current high mortgage rates contribute to this trend. Recent data shows an uptick in reduced home listing prices, hinting at a market shift.