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This Recession Indicator With a 45 Year Track Record Just Rolled Over...Jun 20, 2024 - 14:38:33 EDT
Dive into the stark realities of current U.S. economic policies with Alan Hibbard in this eye-opening analysis.
A Congressional Budget Office report projects that the U.S. national debt will exceed $56 trillion by 2034, up from just under $35 trillion currently. The growing debt is fueled by higher spending than tax revenues, with a $1.9 trillion deficit expected in 2024. Key contributors to the rising deficit include student loan debt cancellation, aid to Ukraine and Israel, and increased Medicaid costs.
Goldman Sachs Recommends Gold to Mitigate Inflation Risk from U.S. ElectionsJun 20, 2024 - 10:41:36 EDT
Goldman Sachs strategists suggest that gold can hedge against inflation risks linked to a Republican sweep in upcoming U.S. elections, citing potential higher import tariffs, reduced immigration, tighter Iranian oil sanctions, lower taxes, and possible influences on Fed policy. A Democratic sweep could also pose risks due to potential significant corporate tax increases.
Despite speculation that China's People’s Bank of China (PBOC) drove gold prices to an all-time high in May, its official gold reserves, though growing, are not exceptionally large compared to other countries. China's gold reserves constitute less than 5% of its total forex reserves. However, China remains the world's largest gold importer and producer, highlighting strong overall demand for gold.
Despite falling inflation and reduced consumer spending, the Federal Reserve decided not to lower interest rates on June 12, raising concerns about a potential recession. Historically, restrictive credit policies have led to economic downturns, hurting ordinary people reliant on credit. Policymakers should heed past lessons that deflation is more dangerous than inflation and consider low rates and increased government spending to benefit the economy and citizens.
Jun 20, 2024 - 10:18:28 EDT
The World Gold Council's 2024 survey reveals that central banks plan to continue increasing their gold reserves amid a complex geopolitical and financial environment. In 2023, central banks added 1,037 tonnes of gold, following a record 1,082 tonnes in 2022. The survey, conducted from February to April 2024, shows 29% of respondents intend to boost their gold holdings in the next year to rebalance their assets and address financial market concerns.
China's Energy Consumption Per Person Outstrips Europe, Led by Tech and RenewablesJun 20, 2024 - 10:11:36 EDT
China's per capita energy use surpassed Europe's for the first time last year, driven by technology and manufacturing demands. While China increased coal-fired generation, it also led in adding renewable energy capacity, reducing its carbon intensity. This shift highlights a global decarbonization challenge, as declining fossil fuel use in Europe may increase emissions in manufacturing-heavy regions like China and India.
Tether has introduced "Alloy," a new gold-backed asset, with its first token, aUSD₮, pegged to the U.S. dollar and backed by Tether Gold. This innovative product aims to provide price stability by combining the stability of the dollar with the value of gold. The system adjusts collateral values in real-time, and liquidates assets if gold's value drops too low, ensuring overall stability.
Yuan Hits Weakest Level Since November as China Loosens Currency ControlJun 20, 2024 - 09:56:48 EDT
China's central bank set the yuan's reference rate at its weakest since November, signaling a loosening grip on the currency as the dollar strengthens and traders expect prolonged high US interest rates. The yuan remains under pressure due to capital outflows and mixed economic data, while Chinese banks maintain their benchmark lending rates.
Gold prices reached a two-week high on Thursday due to weak U.S. economic data boosting expectations of Fed rate cuts later this year, along with global election uncertainties. Spot gold rose 0.3% to $2,333.69 per ounce, while U.S. gold futures remained steady at $2,347.30. Market expectations of the Fed's policy shift and persistent geopolitical tensions continue to support gold. Analysts maintain a positive outlook, targeting $2,500 per ounce by the end of 2024.
The Congressional Budget Office (CBO) has increased its 2024 US budget deficit forecast by 27% to nearly $2 trillion, highlighting significant federal borrowing. The deficit is now projected at $1.92 trillion, up from $1.69 trillion in 2023, due to additional spending and student-loan relief measures. The CBO also predicts faster growth and higher inflation, with the Federal Reserve expected to delay interest rate cuts until early 2025.
Gold prices reached a one-week high early Thursday, driven by expectations of a Fed rate cut due to signs of easing inflation and a slowing US economy. Geopolitical risks in Europe also supported gold, although a stabilizing US Dollar and rebounding bond yields kept the price below the 50-day Simple Moving Average.
China’s recent attempt to secure a rare earth minerals stockpile ended in failure when a competitor stepped in to snag the deal.Vital Metals, a mining firm based in Australia, announced Monday that minerals collected from its Saskatchewan-based Nechalacho Project will remain within Canadian borders.
GOLDMONEY SAGA CONTINUES: Buys Third Commercial Property Selling 95% Of Precious Metals HoldingsJune 20, 2024
While GoldMoney's head of Research, Alasdair Macleod, continues to hype $10,000-$15,000 Gold, his company is doing the exact opposite. Over the past year, GoldMoney has liquidated 95% of its precious metals holdings to purchase three commercial real estate properties...
We dive deep into the ultimate anti-fragile assets that can safeguard your wealth in these uncertain times: gold, silver, and Bitcoin.
China controls 80% of the solar silver supply chain, highlighting its dominance in the solar industry. This control spans from mining and refining to the creation and installation of solar panels. A recent report by Bank of America underscores this dominance, raising concerns amid Janet Yellen's trip to China. As silver is crucial for solar panels, the supply chain is critical to understanding future demand trends, with potential silver shortages predicted within five years due to increased consumption for net-zero energy applications.
Tether has launched Alloy, a gold-backed stablecoin developed by Moon Gold NA and Moon Gold El Salvador. This new digital asset combines the stability of gold with the convenience of digital currency, marking a significant step in asset-backed cryptocurrencies. Alloy aims to provide a secure, stable investment option amidst growing distrust in traditional financial systems and volatility in the cryptocurrency market, appealing to both traditional investors and crypto enthusiasts.
U.S. crude oil prices remained above $80 per barrel on Tuesday, continuing strong gains from Monday despite mixed economic data from China. West Texas Intermediate futures rose over 2% on Monday, driven by higher-than-expected retail sales in China, though industrial output and investment fell short. Analysts attribute the recent rally to speculators covering short positions and expect market tightening in the third quarter due to summer fuel demand.
US retail sales rose by 0.1% in May, missing expectations due to lower gasoline prices affecting service station receipts. This follows a revised 0.2% drop in April. Economists had forecast a 0.3% increase. The trend shows slowing sales growth as households focus on essentials amid higher prices and interest rates. Banks are tightening credit access, and while the labor market is still strong, job seekers are finding it harder to secure new positions quickly, and wage growth is slowing.
Falling Retail Sales Drive Treasury Yields Down, September Rate Cut LikelyJun 18, 2024 - 09:43:38 EDT
Treasury yields fell following weaker-than-expected US retail sales data, increasing expectations for Federal Reserve interest rate cuts this year. The two-year note's yield dropped by up to 6 basis points to 4.70%. Market odds of a rate cut by September rose to 68%, with a full cut anticipated by November. The weak retail sales and revised April figures indicate consumer fatigue, supporting recent Treasury rallies. Goldman Sachs' Lindsay Rosner noted that consumer spending may be slowing, suggesting potential rate cuts in September.