Precious metals news

Data from the Federal Reserve reveals that large banks in the U.S. are experiencing the fastest decline in deposits in four decades. Since April 2022, deposits at the 25 largest commercial banks have plummeted by $921 billion, a decline of 7.88 percent. In contrast, small banks saw a decline of 4.5 percent, shedding only $243.37 billion. This data puts into perspective the misleading narrative that depositors were flocking to larger banks during the banking crisis earlier this year. The decline in deposits raises concerns about the overall health of the banking industry.

The latest JOLTS report reveals contrasting trends in the labor market. Job openings declined by 496,000 in May, with notable decreases in sectors like health care and finance. However, the number of voluntary quits surged by over 250,000, particularly in health care and construction. Additionally, hires increased by 107,000. The reliability of the data is questioned due to the record-low response rate of 31%. Careful analysis is needed to navigate the complexities of the evolving labor market.

Cash-strapped Americans are resorting to searching for "pawn shop near me" as a desperate measure to raise quick money amidst the current inflation crisis. The search trend has reached record highs, indicating that consumers may be selling off items purchased during the Covid boom. The nationwide interest in this trend is reflected in related searches for pawn shop services. The situation raises concerns about the effectiveness of current economic policies, as consumers face negative wage growth, depleted savings, and high levels of credit card debt. Companies and analysts have noted signs of a weakening consumer, further fueling worries about the state of the economy.

The United States is facing an unsustainable level of borrowing and mounting debt, with annual budget deficits projected to average around $2 trillion per year. Interest payments on the debt are set to surpass national defense spending by 2029, and the burden will continue to grow. The era of low interest rates is ending, making it crucial for leaders to chart a new course. While there is talk of reducing the deficit, meaningful action is lacking. Both parties must come together for larger changes that involve increased revenue and reduced spending. The debt ceiling should be eliminated, and compromises on revenue collection and entitlement programs will be necessary. Failing to make these choices comes at a steep price.

The official inflation rate of 4% doesn’t seem to match reality for a lot of people – and nowhere is that more evident than in the grocery store.

Initial jobless claims rebounded higher last week, with 248,000 Americans filing for unemployment benefits. Continuing claims, however, continued to decrease, reaching the lowest level since February 2023. The divergence between initial and continuing claims could indicate a rotation from high-paying to low-paying jobs.

ECB's balance sheet has decreased by €1.62 trillion, or 18%, since June last year, reaching its lowest level since March 2021. The reduction is attributed to the unwinding of QE, including loans to banks and bond purchases. The pandemic-era loan QT has unwound by €1.58 trillion, while bond QT is proceeding faster than expected, with holdings down by €105 billion. The ECB has hiked policy rates by 4 percentage points in 12 months, and inflation in services remains a concern, driving the rate hikes and balance sheet reduction.

Mortgage applications saw a decline of 4.4 percent from the previous week, as reported by the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending June 30, 2023. The seasonally adjusted Market Composite Index, which measures mortgage loan application volume, also decreased by 4.4 percent. However, on an unadjusted basis, the Index saw a 6 percent increase compared to the previous week. The Refinance Index decreased by 4 percent from the previous week and was 30 percent lower than the same week last year. The seasonally adjusted Purchase Index dropped by 5 percent from the previous week, while the unadjusted Purchase Index increased by 6 percent compared to the previous week but remained 22 percent lower than the same week last year.

The U.S. economy continues its downward spiral, leaving many Americans dissatisfied. Inflation is soaring, the cost of living is rising, the housing bubble is bursting, and the commercial real estate market is in disarray. While the Biden administration touts a low unemployment rate of less than 4 percent, the reality is much different. The Bureau of Labor Statistics classifies unemployed individuals as those actively seeking work, leaving only 6.097 million Americans in that category. Shockingly, 99.800 million working-age Americans are considered "not in the labor force," resulting in a total of 105.897 million unemployed individuals. This surpasses the numbers seen during the Great Recession. The government's claims of low unemployment are misleading, with the real rate estimated to be around 25 percent by John Williams.

Many older Americans are defying conventional wisdom by remaining heavily invested in the stock market instead of shifting to bonds to protect their nest eggs. They continue to take risks and maintain a strong interest in stocks, challenging the perception that it's primarily baby boomers who exhibit such behavior.

Goldman Sachs predicts a potential 20% or more stock market sell-off in the coming months due to an anticipated recession. They advise investors to prepare for losses and hedge their portfolios against the downturn. The market's recent narrow rally and elevated drawdown risk further amplify concerns.

The economy "will soon be one of the biggest threats to equity prices." US stocks could crash 25% as the Federal Reserve's aggressive rate hikes may trigger a recession by year-end, warns FS Investments' chief market strategist. The economy, previously not a concern, now poses a major threat to equity prices. Limited upside remains in the current rally, with potential downside of 20% to 25%. Higher borrowing costs and weakened job market could exacerbate the situation.

US Treasury yields rose while stocks declined as investors analyzed the minutes from the Federal Reserve's recent meeting. The yield on two-year Treasuries, a gauge of market expectations for interest rates, reached 4.94%, while the 10-year yield climbed to 3.93%. The inverted yield curve, a possible indicator of an impending economic downturn, has raised concerns. The Fed's decision to pause its rate-hiking cycle after 10 consecutive increases during the June meeting surprised the market. With the central bank forecasting two more rate hikes this year, there are concerns about their impact on economic growth and corporate profits. The next rate decision is expected in three weeks. Ed Hyman, founder and chairman of Evercore ISI, expressed his bearish outlook on the economy due to the yield curve, monetary contraction, and simultaneous rate hikes.

World stocks extended their decline for the third consecutive day due to concerns over another U.S. rate hike and escalating trade tensions between China and the United States. The 10-year U.S. Treasury yield reached a four-month high, signaling rising borrowing costs, while Europe experienced a broad-based fall in stocks, particularly in the travel and leisure sector. The inversion of the U.S. yield curve for a year has raised recessionary concerns, and the upward movement of Treasury yields further heightened market fragility. The renewed tensions between the U.S., Europe, and China added to the negative sentiment in the markets.

There seem to be plenty of new Digital Precious Metals Trading services popping up all the time.  However, this one advertises "Digital Gold & Silver Fully Allocated with Free Storage."  If that doesn't scare the hell out of you... the details in the update, certainly will...  

As the Western Empire crumbles, the Eastern & Southern Empire gains significance with over 30 countries wanting to join BRICS and the Shanghai Cooperation Organisation (SCO). The Eurasian Economic Union (EEU), consisting of ex-Soviet Union states, further strengthens this alliance. This enlarged group, representing 2/3 of global population and 1/3 of global GDP, will experience rapid growth. The US dollar's value diminishes, and gold emerges as a central asset. Weak leadership plagues the West, while the East prepares for a prosperous future. The shift towards commodity-backed currencies and the decline of sovereign debt present investment opportunities in the commodity market. The precious metals market, along with oil and uranium, holds potential for substantial growth.

Amid concerns about the future of the U.S. dollar and the rise of digital currencies, alternatives like gold and silver offer stability. A unique product called Goldback, made of laminated gold, could potentially emerge as a form of currency in times of monetary collapse. Cryptocurrencies like Bitcoin faced scaling issues and regulatory challenges, hindering their widespread adoption. As people prepare for potential scenarios, they are seeking alternatives to safeguard their financial independence.

High interest rates have a dual impact on the economy. On one hand, they help slow down bank lending and encourage holding onto the currency, reducing money supply growth and speculative attacks. However, in an environment of high sovereign debts and deficits, high interest rates can worsen deficit-driven inflation. This situation is currently observed in many developed countries, including the United States. While low interest rates are needed to prevent fiscal-driven money creation, they can also lead to excess bank lending and inflationary pressures. This dilemma forces governments to manage interest rates to balance national interests and liquidity requirements, resulting in the politicization of interest rates. Although interest rate increases have yet to fully affect the private and public sectors, their long and variable lag will eventually have disinflationary and inflationary consequences, respectively. The interplay between these forces creates somewhat stagflationary conditions, and future peri...

Federal Reserve Chair Powell's speech on "Financial Stability and Economic Developments" reveals a bleak reality. It highlights the failures of past interventions during the Great Recession, which brought misery to countless people despite massive government efforts. The speech also underscores the alarming levels of spending and expansion of the Fed's balance sheet during the 2020 recession, indicating a reliance on unsustainable measures. Powell's discussion of bank failures and the shifting of blame exposes a recurring pattern of denial and lack of accountability. This narrative suggests that future crises will likely result in further interventions, burdening the economy and perpetuating a cycle of failed policies.

Allow me to explain why we have not seen a recession yet despite the collapse in base money supply. We are witnessing the stealth nationalization of the economy. What does this mean? The stealth nationalization of the economy is burdening families and small businesses while leaving large corporations and governments unaffected. The decline in real disposable income, wages, and margins for SMEs is concealed by bloated government spending, masking the private sector recession. The rapid decline in global money supply and rising government indebtedness drain liquidity from the private sector. Central banks' rate hikes negatively impact families and SMEs, while large corporations remain relatively unscathed. Inflation persists due to governments' increased consumption of newly created money, maintaining imbalances. The current money supply slump and rate hike path are destroying the backbone of the economy, leading to stagnation without fiscal normalization.