Gold falls slightly on dollar strength. Inflation continues to come down, but the data shows signs of an impending wage-price spiral.
The Fed is headed for an annual operating loss for the first time in 108 years. They will soon be forced to print the money to cover their expenses. A conundrum, indeed!
Central bankers shoot for “subliminal” inflation – not enough to notice on a day-to-day basis, but enough to cause dramatic changes over the long run.
Inflation appears to have peaked and markets are partying across the board. But if we examine the risks of global debt, is the optimism justified?
Because the entire global financial system was built on gold. Today, the gold price sends important signals about the economic health of the world’s most powerful nations.
Gold was up 11% last month as crypto and the U.S. dollar faltered. Economic hardships on the horizon may trigger the yellow metal’s next meteoric rise.
The Fed can fix monetary policy, but cannot fix deglobalization, public debt, or fiscal spending. They can’t fix the reasons we own gold.
Should the Fed pay attention to the IMF’s warnings about global financial risks and deteriorating market conditions? Probably, but more red-hot inflation data means their hands are tied.
Rising interest rates reveal the consequences of exorbitant debt and leverage. When the free money disappears, what remains tends to flow into real assets.
The current pace of rate hikes has no modern precedent. With recessionary red flags popping up everywhere, what will it take for the Fed to reverse course?
Inflation and money supply indicate that gold has room to run. How long can rising interest rates and dollar strength suppress the price?
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