Precious metals news

US regional banks are struggling to compete for deposits, and the situation is getting worse. Larger banks like JPMorgan Chase, Wells Fargo, and Citigroup have acknowledged the mounting pressures they are facing, which spells trouble for their smaller counterparts. Rising interest rates have forced regional banks to pay more on customer funds, while the value of their bond assets has plummeted. Some regional banks have already failed, while others are desperately trying to secure funding as depositors withdraw their cash. The prospect of further rate hikes and stricter regulations only adds to their woes. Deposits are dwindling, deposit costs are skyrocketing, and the shift away from non-interest-bearing accounts is intensifying. Additionally, regional banks are highly exposed to the struggling commercial real estate sector, which further compounds their challenges. The future looks grim for regional banks, as profitability and earnings continue to suffer.

How can the United States become "Energy Independent" if it continues to export a significant amount of its domestic shale oil production??  Good question.  Unfortunately, the amount of U.S. oil exports this year is forecasted to reach a new high, making a bad situation worse...

United States presidential candidate and Florida Governor Ron DeSantis continues to express his opposition to central bank digital currencies (CBDCs), firmly opposing the implementation of a digital dollar in the country. During the Family Leadership Summit on July 14, DeSantis vowed to ban CBDCs in the United States if elected as president. He emphasized that on his first day in office, he would put an end to the concept, stating, "Not happening in this country." DeSantis has consistently been a critic of a digital dollar. In May, he enacted a bill in Florida that prohibits the use of federal CBDCs as a form of currency. He also banned the use of foreign CBDCs, arguing that it would result in an extensive transfer of power from consumers to centralized authorities. Central bank digital currencies have been a subject of debate within the crypto community. Critics argue that they pose threats to individual privacy and may lead to excessive government control, while others see them as a means to drive adopt...

The introduction of Central Bank Digital Currencies (CBDCs) is overshadowing discussions about traditional currency changes like the penny or new dollar coins. CBDCs, digital versions of a country's physical currency issued by central banks, aim to support financial services and replace much of the physical currency. The Federal Reserve's FedNow service, launching soon, will enable instant payments and operate 24/7. While it won't be a consumer-facing app, it will allow banks to move money instantly. Over 50 financial institutions, including JPMorgan Chase and Wells Fargo, are early adopters. FedNow's implementation is optional for banks, but it promises faster and easier money management for individuals. However, concerns about privacy arise as every transaction will be recorded. The war on cash and the shift toward digital currencies favor big businesses over small ones, leading to potential long-term ramifications. Skeptics of government control and high-tech advancements worry about the erosion of per...

Russia's announcement of a new gold-backed trade currency at the BRICS meeting in Johannesburg on August 22-24, 2023, has been largely overlooked by mainstream media. However, the significance of this development should not be underestimated. China and Russia are working to consolidate their trade partners into a formidable bloc and provide a superior alternative to the US dollar. The groundwork for the new currency has been laid, and it is more advanced than commonly believed. Both countries aim to destabilize the dollar and escalate the financial war against the US and NATO. The proposed gold-backed currency for BRICS will weaken the dollar and benefit nations like Iran. The move away from fiat currencies to gold has been evolving for some time, with a shift of bullion from the West to the East. Central banks in Asia have been accumulating gold reserves, signaling their intention to secure currency values. The deteriorating relationship between Russia and the West, along with the conflict in Ukraine, ha...

The International Monetary Fund (IMF) has acknowledged the use of the Chinese Yuan as a currency for debt repayment, signaling a potential shift away from the U.S. dollar. Argentina recently paid off a portion of its debts to the IMF, equivalent to $1.1 billion, in Chinese currency. IMF spokesperson Julie Kozack confirmed that the renminbi (RMB) is one of the five freely usable currencies accepted by the IMF for settling obligations. While negotiations regarding Argentina's $44-billion program are ongoing, Kozack denied receiving a letter from China indicating the use of a swap line with the Chinese Central Bank for IMF dues repayment. The Argentine Central Bank previously signed a deal with China to renew a swap line, increasing freely accessible funds from 35 billion yuan to 70 billion yuan. Argentina's move to incorporate the yuan as a currency accepted for deposits in savings banks and checking accounts, along with Brazil's agreement to conduct trade and investments in their own currencies, demonstrat...

During an official visit by India's Prime Minister Narendra Modi to the United Arab Emirates (UAE), the two countries have taken steps to reduce their reliance on the U.S. dollar. They have signed an agreement allowing trade settlement in Indian rupees instead of dollars, aiming to eliminate the costs associated with currency conversions. Additionally, they have agreed to establish a real-time payment link to facilitate cross-border money transfers, further promoting seamless transactions and greater economic cooperation. India, as one of the world's largest importers and consumers of oil, has traditionally paid for UAE oil in dollars. However, with this new agreement, India could potentially make its first rupee payment for UAE oil to Abu Dhabi National Oil Co (ADNOC). This move aligns with India's previous announcement to settle global trade in rupees, showcasing its efforts to reduce dependence on the dollar. The Reserve Bank of India has stated that the central banks of India and the UAE will link Ind...

The analysis explores the impact of the dollar wars and Western sanctions on various countries, highlighting the negative consequences for those challenging the dominance of the U.S. dollar. It emphasizes the potential role of gold as an alternative and its significance in countering the influence of the dollar. The first two dollar wars targeted Iraq and Libya, both major energy powers that threatened the petrodollar by seeking to sell oil in currencies other than the dollar. These actions led to military intervention and devastating outcomes for these countries. Gold played a role in both cases, with Saddam Hussein and Muammar Gaddafi challenging the legitimacy of the dollar and proposing alternative currencies backed by gold. Russia, as another energy powerhouse, indirectly faced a dollar war through the conflict in Ukraine. To reduce its reliance on the dollar, Russia began liquidating its holdings of U.S. Treasury bonds and pursued trade agreements using national currencies, including gold-backed agr...

For the past decade, Zoltan Poszar has arguably been the world's foremost expert in the ugly nuances and arcanery in world money-markets (and more recently, on how the financial and physical markets overlap on the geopolitical chessboard). However, his insights paint a bleak picture of the global economy. Poszar claims that we are witnessing a shift away from US dollar dominance towards a multi-polar world, ushering in the era of "Bretton Woods III." He discusses the concept of de-dollarization, the resurgence of gold as a monetary asset, and the utilization of central bank digital currencies (CBDCs) to construct an alternative financial system. Poszar highlights the growing focus in the West on reducing reliance on Chinese supply chains and striving for self-sufficiency. Conversely, countries in the East seek to extricate themselves from the Western financial system, reducing their exposure to the US dollar and Western financial institutions. He suggests that the rise of CBDCs could facilitate direct set...

Three banking giants and an additional financial institution are being hit with a mere multimillion-dollar fine, which pales in comparison to their immense net worth, for their involvement in a global billion-dollar fintech scam. The Monetary Authority of Singapore (MAS) has fined DBS, OCBC, Citibank Singapore, and Swiss Life for flagrant violations of anti-money laundering and anti-terror financing laws related to the notorious $2.1 billion Wirecard AG scam. These financial institutions, collectively managing a staggering $992 billion in assets, have been found guilty of a litany of failures. They neglected to conduct proper investigations into large transactions, failed to maintain customer due diligence, and neglected to ascertain the source of wealth for high-risk customers. This abysmal display of compliance and oversight has contributed to the perpetuation of the fraudulent scheme. Wirecard, the disgraced German payments firm, came clean in June 2020, acknowledging that the purported $2.1 billion ca...

The war's relentless continuation, now spanning almost 17 months, is exacting a heavy toll on the global economy, leading to heightened anxieties among policymakers regarding resurgent inflation and faltering growth. Against this backdrop, the G-20 nations are convening to discuss critical issues, including regulations for cryptocurrencies and strategies to secure additional climate financing. Pressing demands will be placed on the World Bank and the International Monetary Fund (IMF) to bolster their balance sheets and address the dire consequences of climate change and potential future pandemics. These meetings build upon discussions held in Paris recently, where commitments were made by 40 world leaders to facilitate easier access to funds for financially stressed developing countries. However, the key meetings face major challenges and negative undertones. As the G-20 president this year, India has struggled to achieve consensus among member nations, particularly concerning language related to the ongo...

The dollar is currently experiencing a significant decline, marking its worst slump since November. This decline has led many strategists and investors to believe that a turning point for the world's primary reserve currency is imminent, with potentially far-reaching consequences for global economies and financial markets. Several factors contribute to the dollar's weakening position. Signs of cooling inflation have bolstered expectations that the Federal Reserve will soon halt its interest rate hikes, which has dampened investor confidence in the currency. Moreover, there is a growing belief that rate cuts are inevitable in the future, with market consensus suggesting they may occur in 2024. Steven Barrow, head of G-10 strategy at Standard Bank, argues that the dollar's decline will extend over multiple years, attributing it to a shift from the Federal Reserve's tightening cycle to an easing cycle. He believes that this shift will not only drag the dollar down but also exert downward pressure on other cu...

With three months left, the fiscal 2023 budget deficit has already eclipsed the massive 2022 shortfall.
The US government ran a $227.77 billion deficit in June, pushing the total fiscal 2023 shortfall to $1.393 trillion, according to the Monthly Treasury Statement for June.

Can the Federal Reserve navigate a narrow path and slay price inflation while steering the economy to a soft landing?
During an interview on CNBC Squawk Box, financial analyst Jim Grant expressed his doubts.
He compared Jerome Powell's task to Captain Chelsey Sullenberger's when he was forced to land a US Airways plane on the Hudson River after an inflight emergency, nothing Powell is "no Sully."
Grant went on to explain that even if things don't look so bad right now, rivets are popping in the economy.

Get ready for higher Oil Prices and weaker Natgas prices, as this disconnect will continue for the next several months.  Also, some interesting signs are taking place in the Silver Market that will likely lead to much higher prices in the coming quarters and years ahead...

It's official: The BRICS group of nations is set to introduce a new gold-backed currency at their highly anticipated upcoming summit in August. This news has sparked growing euphoria surrounding the potential of a gold-backed currency, leading to a surge in the entire precious metals complex, with many metals recording impressive double-digit gains in just the past few days. This exciting development could be just the beginning of a larger trend. As tensions with Western economies continue to escalate, Russia and other BRICS countries, including Brazil, India, China, and South Africa, are strategically working to reduce the dominance of the U.S. dollar. The announcement adds momentum to the "de-dollarization" movement, which has gained significant traction, particularly since the West imposed substantial sanctions on Russia after its invasion of Ukraine. The roots of the "de-dollarization" movement can be traced back to the period following the pandemic stimulus measures. The massive money printing progra...

Gold, silver, and PM (precious metals) stocks experienced a significant breakout as the value of the dollar declined, signaling the beginning of a major devaluation and the realization of its loss of reserve currency status. The BRICS nations are preparing to introduce their own CBDC (central bank digital currency) backed by gold, further contributing to the decline of the dollar. This development, although anticipated for some time, has finally caused the dollar to break down. The PM sector, along with commodities in general, is entering a strong and enduring upswing, still in its early stages. The decline of the dollar has been the catalyst for the recent breakout in the PM sector. Yesterday, the dollar index plummeted by a staggering 1.2%, breaking out of the bearish Pennant pattern it has been stuck in since late January. In contrast, the Canadian dollar, like many other currencies, has strengthened against the US dollar. This appreciation began in the middle of last month and is expected to benefit C...

Why Gold Continues to Outperform: Defying conventional economic reasoning, gold has maintained its value and even surpassed the performance of stocks and bonds. Despite its role in practical applications such as jewelry and dentistry, gold's supply remains substantial? One would expect a surplus to result in a significant drop in gold prices, but that has not been the case. Looking at historical data, it becomes evident that incorporating gold into investment portfolios has proven beneficial, particularly for retirees and those saving for retirement. Over the past century, a balanced portfolio with gold has yielded higher average returns, lower volatility, and fewer periods of stagnant growth compared to portfolios without gold. This trend has persisted in recent years, despite gold's decreasing relevance in today's financial landscape. Analyzing data from the NYU Stern School of Business, which tracks asset values dating back to 1928, reveals that a portfolio consisting of 60% stocks, 30% bonds, and 10% ...

Cities are not immune to decline, as their fortunes are tied to the availability and affordability of resources. Over the course of history, cities have risen and fallen based on economic factors and the balance between costs and benefits. While cities have traditionally offered opportunities and excitement, they have also faced challenges such as overcrowding, unsanitary conditions, and hazards. The rise of cities can be attributed to agricultural surpluses enabling specialized labor, leading to increased productivity, trade, commerce, and the development of government services and cultural institutions. However, cities have also been plagued by infectious diseases, conflagrations, and crime, which necessitated constant influxes of new residents to offset high mortality rates. As economies transitioned to industrialization and later to post-industrial knowledge-based economies, the functions and costs of cities evolved. The expansion of financialization and globalization favored certain cities, while com...

They aren’t hiding the fact that the climate change agenda is part of the “Great Reset” agenda anymore. Government leaders and think-tank power brokers convened at the Summit for a New Global Financing Pact in Paris, aiming to tackle poverty and reduce planet-heating emissions. However, the discussions quickly veered toward international centralization of power and the formation of a global consortium. The convergence of narratives reveals a concerning shift, with central banks and international institutions prioritizing carbon taxation and global warming over pressing issues like stagflation and economic collapse. This suggests that the climate change agenda is now openly intertwined with the "Great Reset" agenda. French President Emmanuel Macron advocated for a "public finance shock" to combat global warming and promote equity among nations, criticizing the current system's inability to address global challenges. The narrative of weather disasters intensified by global warming was emphasized, despite la...