Precious Metals News
Anyone who thinks that interest rate damage to the banks' bond portfolios will not add further stress to the financial system has not being paying attention to the estimated size of the banking system's bond portfolio losses as a result of falling bond values.
The national debt will nearly double in size over the next three decades. At the end of 2022, the national debt grew to about 97% of gross domestic product. That figure is expected to skyrocket to 181% at the end of 2053.
Markets Insider: Jeffrey Gundlach Warns of 'Demons on the Horizon' for Stocks, Predicts a Dollar Disaster and Recession Next Year
"I think the dollar will weaken tremendously in the next recession. That's going to be the wake-up call where we realize the United States is bankrupt, that we cannot honor our liabilities."
Investors have yet to break even from January 2022, and are still realizing losses of roughly 8% for a 60/40 portfolio. Real losses, which take into account inflation, are much worse, with investors having roughly 15% less than they did at the beginning of 2021.
Business Insider: US Debt Risks a 'Slow-motion Collision' With the Fight Against Inflation, Goldman Sachs Says
"Ultimately this risks a slow-motion collision between inflation targeting and high debt loads, where a loose fiscal stance skews inflation risk and thus interest rates to the upside until a fiscal correction arrests the process."
Republicans like Emmer say a CBDC would enhance the surveillance state, which is why Communist China is among the first countries to establish one. Governments can use CBDCs to gain unfettered access to private citizens' financial data.
CNBC: Jamie Dimon Says It's a 'Huge Mistake' to Think Economy Will Boom with So Many Risks Out There
"Businesses feel pretty good because they look at their current results," Dimon said. "But those things change, and we don't know what the full effect of all this is going to be 12 or 18 months from now."
Market Watch: Why the 'Abnormally Large' U.S. Deficit is a Worry 'Big Time' for Stocks and Bonds, Says Yardeni
It's "highly unusual" for the federal deficit to be rising when the economy is growing and the unemployment rate is near record lows. By contrast, the deficit "always widens during economic recessions."
Markets Insider: The S&P 500 Could Crash Nearly 50% as a Brutal Recession Takes Hold, Veteran Technical Analyst Warns
Berg said he anticipated that a brutal recession, and potentially a banking crisis, could tank the S&P 500 by more than 20% to below its October low - and could even pull it down by 45% or more to its pandemic low of below 2,500 points.
The PBOC's buying spree is the longest since a 10-month run that ended in September 2019. Beijing's appetite for bullion remains persistent.