Gold Standard News Daily

5.16.24 - Inflation remains stubbornly high

Gold last traded at $2,378 an ounce. Silver at $29.67 an ounce.

EDITOR'S NOTE: Inflation and its higher costs have become the new norm. Despite the assurances given by the Biden administration of approaching relief, the harsh reality of how much more everything costs is undeniable.

How it started... How it's going: Home, energy, car bills way up thanks to inflation -Fox Business

By Chris Pandolfo

Home, energy, car and childcare costs have all increased since President Biden took office and there is no end in sight as inflation remains stubbornly high.

The latest consumer price index (CPI) report showed inflation eased slightly in April, rising only 0.3% when economists had expected a 0.4% increase. President Biden welcomed news that core inflation "fell to its lowest level in three years," but acknowledged "we have a lot more to do."

"Prices are still too high — so my agenda will give families breathing room by building two million new homes to lower housing costs, taking on Big Pharma to lower prescription drug prices, and calling on grocery chains making record profits to lower grocery prices for consumers," Biden said in a statement.

He also criticized Republicans, claiming that GOP-supported tax cuts and spending reductions for Social Security and Medicare "would send inflation skyrocketing" — although Republicans have put forward no serious proposal to limit entitlement spending.

CPI is a broad measure of how much everyday goods like gasoline, groceries and rent cost. Contained in the Labor Department's report are figures for so-called core prices, which exclude the more volatile measurements of gasoline and food in order to better assess price growth trends. Biden celebrated that core prices only rose 0.3% in April and 3.6% from the same time last year — the lowest reading since 2021.

However, price increases at slower rates are still price increases, and Americans face far higher costs today than when Biden assumed office in January 2021. READ MORE

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5.15.24- Is $27,000 gold a real possibility?

Gold last traded at $2,389 an ounce. Silver at $29.74 an ounce.

BRICS: Billionaire Makes Major US Bank Failure Prediction -Watcher.Guru

Banks have been under strain for some time now. Account closures, deposit seizures, bank failures ... the list goes on. Another billionaire is weighing in on the discussion and urging preparation for what could be a wave of failures.

by Joshua Ramos

With the BRICS bloc embracing de-dollarization and encouraging a global economic shift, one notable billionaire has made a major US bank failure prediction. Indeed, real estate investment mogul and CEO of $115 billion Starwood Capital, Barry Sternlicht, has urged preparation for widespread failures in the coming year.

Speaking to CNBC, Sternlicht predicted that the United States would witness one bank failure every week. Specifically, he stated that the more than 4,000 regional and community banks in the country would be at risk due to high interest rates and inflation. All the while, the US debt crisis is nearing, with the greenback facing lessening prevalence internationally.

Over the last several years, the increasing relevance of the BRICS alliance has been a massive geopolitical development. It has seen the global south get a renewed voice amid the collective’s pursuit of a multipolar world. However, their initiatives have greatly affected the West, with the US dollar being abandoned through BRICS trade activity throughout the year.

However, that BRICS action isn’t all that should be concerning, as a billionaire has made a major US bank failure prediction. Additionally, the aforementioned Barry Sternlicht has forecasted a host of bank failures to take place in the coming year.

“I think people are looking for these cracks, and you’re going to see the cracks develop now. You’re going to see a regional bank fail every day, or not—every week, maybe two a week,” Sternlicht said in an interview. READ MORE

$27,000 Gold -Daily Reckoning

There have been several predictions as to where gold may be heading. Most of the bulls have been echoing price points from $2,500 to as much as $3,000 by year's end. Not hard to believe given the challenges we're facing in today's economy. This prediction is truly next level, read more to see why Mr. Rickards think it's possible.

by James Rickards

I’ve previously said that gold could reach $15,000 by 2026. Today, I’m updating that forecast.

My latest forecast is that gold may actually exceed $27,000.

I don’t say that to get attention or to shock people. It’s not a guess; it’s the result of rigorous analysis.

Of course, there’s no guarantee it’ll happen. But this forecast is based on the best available tools and models that have proved accurate in many other contexts.

Here’s how I reached that price level forecast…

This analysis begins with a simple question: What’s the implied non-deflationary price of gold under a new gold standard?

No central banker in the world wants a gold standard. Why would they? Right now, they control the machinery of global currencies (also called fiat money).

They have no interest in a form of money they can’t control. It took about 60 years from 1914–1974 to drive gold out of the monetary system. No central banker wants to let it back in.

Still, what if they have no choice? What if confidence in command currencies collapses due to some combination of excessive money creation, competition from Bitcoin, extreme levels of dollar debt, a new financial crisis, war or natural disaster? READ MORE

The US dollar has become so weaponized that central banks are snapping up politically-neutral gold -Business Insider

If you've been considering whether or not you should be buying gold, the answer is most likely yes. Central banks are turning to gold as they consider the dollar to now be "weaponized". Don't let that weapon be used against you; instead, defend yourself against it - which is precisely what gold can do.

by Huileng Tan

Gold prices are on a tear recently thanks to strong buying by central banks — a signal that the precious metal is increasingly seen as a geopolitical hedge.

Last week, a top International Monetary Fund official pointed to gold's role in a potential fragmentation of the global economic and financial order.

"After years of shocks — including the COVID-19 pandemic and Russia's invasion of Ukraine — countries are reevaluating their trading partners based on economic and national security concerns," said Gita Gopinath, an IMF deputy managing director

In particular, some countries are rethinking their heavy reliance on the US dollar in their international transactions and foreign reserve holdings, she said.

Gold prices are on a tear recently thanks to strong buying by central banks — a signal that the precious metal is increasingly seen as a geopolitical hedge.

Last week, a top International Monetary Fund official pointed to gold's role in a potential fragmentation of the global economic and financial order.

"After years of shocks — including the COVID-19 pandemic and Russia's invasion of Ukraine — countries are reevaluating their trading partners based on economic and national security concerns," said Gita Gopinath, an IMF deputy managing director

In particular, some countries are rethinking their heavy reliance on the US dollar in their international transactions and foreign reserve holdings, she said. READ MORE

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5.14.24 - BRICS Done with the Dollar

Gold last traded at $2,356 an ounce. Silver at $28.60 an ounce.

EDITOR'S NOTE: If there was still a question as to whether or not the de-dollarization movement had legs, several billions in non-dollar transactions answers it once and for all. This once-thought-to-be Putin-driven temper tantrum is gaining traction, and credibility, amongst a growing number of nations by the day.

BRICS Ditches US Dollar, Settles $4 Billion Trade in Local Currencies -Watcher.Guru

by Vinod Dsouza

BRICS members India and Russia ditched the US dollar and settled payments worth $4 billion in local currencies. Russian exporters purchased Indian-made arms and equipment for defense purposes and cleared the payment using the rupee. The US dollar played no role in the cross-border trade making local currencies the sole beneficiary of the transactions.

The BRICS alliance kick-started the de-dollarization agenda and is moving in the direction of using local currencies for cross-border transactions. Read here to know how many sectors in the US will be impacted if BRICS ditches the dollar for trade.

The Russian exporters held $8 billion in reserves in India’s special Vostro bank account for global exchange of trade settlement. Now, 50% of the funds have been used to settle arms payments in the rupee with India. Another $4 billion is parked in the account and a new trade settlement could be initiated in the coming months. The development gives the local currencies of BRICS a boost in the global market and not the US dollar.

On the other hand, India is also settling local currencies for its BRICS counterpart Russia through the special Vostro accounts. “Indian exports are also being settled from the Russian funds from the Vostro account,” said an official on the condition of anonymity.

Russia and India’s intent of using local currencies for trade falls in line with the BRICS de-dollarization initiative. The goal is to move away from the US dollar and make local currencies the beneficiary of all transactions. This would strengthen local currencies and give a boost to their native economies making businesses thrive and creating more jobs.

We will have to wait and watch how both the BRICS countries plan to settle another $4 billion from the Vostro account. The US dollar is the only currency that receives a hit as developing countries settle trade in local currencies. READ MORE

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5.13.24 - Nebraska Ends Income Taxes On Gold

Gold last traded at $2,338 an ounce. Silver at $28.26 an ounce.

EDITOR'S NOTE: The world of money has been changing more quickly than Superman in a telephone booth. Gold and silver are finally being viewed once again as real money; as our founding fathers intended. State governments are also calling into question the legitimacy of digital money, as they should. Now more than ever, diversification is a sound financial strategy.

Nebraska Ends Income Taxes On Gold And Silver, Declares CBDC’s Are Not Lawful Money

by Jp Cortez

With Gov. Jim Pillen’s recent signature, Nebraska has become the 12th state to end capital gains taxes on sales of gold and silver.

LB 1317 is the fourth major sound money bill to become law this year, as state lawmakers across the nation scramble to protect the public from the ravages of inflation and runaway federal debt.

Under the new Nebraska law, any “gains” or “losses” on precious metal sales reported on federal income tax returns are backed out, thereby removing them from the calculation of a Nebraska taxpayer’s adjusted gross income (AGI).

Supported by the Sound Money Defense League, Money Metals Exchange, and in-state advocates, Nebraska’s sound money measure passed out of the unicameral legislature’s Revenue committee unanimously before being amended into a larger bill.

Sponsor Sen. Ben Hansen said upon news of the formal enactment of his legislation:

"Gold and silver are the only forms of currency mentioned in our Constitution and with that comes the people’s ability to use it as such without penalty from the government. Saving, and using, gold and silver is our right and one of the only checks and balances to our federal government’s unending devaluation of our paper currency." READ MORE

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5.10.24 - A $700 Billion Black Hole?

Gold last traded at $2,360 an ounce. Silver at $28.18 an ounce.

EDITOR'S NOTE: Wall Street is touting a robust and healthy economy; given their vantage point, that argument can be made. If looked at from another perspective - one that takes in the entire picture - the outlook is far more grim. Buy Now, Pay Later (BNPL) may be a godsend for cash-strapped consumers who need to purchase essential goods, but it's a symptom of a much larger problem - a problem being overlooked by economists since this debt isn't reported to credit agencies. Add to this that the US savings rate went down again this month to 3.2%. Americans are no longer planning for the future, either by choice or by force. What will this mean for the overall economy and for the long term stability of our currency?

‘Phantom debt’ from ‘buy now, pay later’ schemes is a $700 billion black hole that economists aren’t accounting for -Fortune

by Eleanor Pringle

Wall Street is generally convinced the economic health of the U.S. consumer is remarkably better than expected after COVID, but one analyst has pointed out there's a gaping hole in the picture.

He calls it "phantom debt"—spending on "buy now, pay later" (BNPL) platforms, which often goes unrecorded by credit agencies.

Big bank CEOs have continually expressed their shock and delight at how well consumers are apparently faring.

JP Morgan Chase CEO Jamie Dimon recently said the consumer is in "pretty good shape" while the economy is "booming."

Meanwhile, Bank of America CEO Brian Moynihan has encouraged Jerome Powell to be "mindful" of relying too heavily on consumers to prop up the economy, as they will eventually reach their breaking point.

While Citi CEO Jane Fraser has pointed out the "cracks" beginning to appear at the bottom end of the income ladder, a Wells Fargo analyst has also flagged a personal finance feature that is largely overlooked by the sector: people purchasing products—contributing to stronger sales for brands—but without paying the full balance at the time of sale.

Instead, payment for these products is taken in installments over a longer period of time—some of which come with service fees or with fluctuating repayment options depending on an individual's perceived credit reliability.

The problem with this, for economists at least, is that the larger BNPL platforms often decline to share their customers' purchasing patterns with some or all credit bureaus, concerned that their customers' activity may ultimately bring down their credit score. Afterpay, for example, shares none of its data with credit agencies, while Klarna shares its data with U.K. credit bodies.

BNPL lenders may also report some but not all of their data. For example, in the U.K., BNPL providers are required to share a customer's credit and repayment history for products with a short repayment window or multiple smaller payments across various accounts.

This black hole of information between BNPL lenders and credit agencies across the world is why Wells Fargo senior economist Tim Quinlan has coined the term "phantom debt," per Bloomberg, saying experts have been “lulled into complacency about where consumers are" as a result.

“People need to be more awake to the risk of BNPL,” Quinlan added. READ MORE

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5.9.24 - Are weekly bank closures a possibility?

Gold last traded at $2,345 an ounce. Silver at $28.32 an ounce.

EDITOR'S NOTE: While the Fed may act like bank failures were a 2023 problem that is behind us, Billionaire Barry Sternlicht sees a different future and he has been warning about it for quite some time. All banks will continue to struggle with rising loan losses, small and regional banks will be hard pressed to absorb them.

Billionaire Barry Sternlicht predicts weekly bank closures as the real estate sector battles high interest rates and inflation - Business Insider

by Erin Snodgrass

Billionaire Barry Sternlicht offered an ominous prediction about America's regional banks amid a coming commercial real estate reckoning.

The Starwood Capital Group CEO told CNBC on Tuesday that he thinks real estate's primary lenders — regional and community banks — could soon be bearing the brunt of high interest rates and inflation.

"You're going to see a regional bank fail every day, or not — every week, maybe two a week," Sternlicht said.

There are more than 4,000 regional and community banks throughout the US, many of which may not have the cash flow to handle major loan losses on real estate debt.

Problems have been pummeling the entirety of the real estate sector, but commercial real estate, in particular, has been struggling due to the rise of remote and hybrid work, leading to more and more vacancies.

Sternlicht has been ringing the warning bells for more than two years, calling the situation an "existential crisis" in a January Bloomberg interview. Earlier this year, he predicted $1 trillion of losses on office properties alone. In the Tuesday interview, Sternlicht said Fed Chair Jerome Powell's ongoing rate hikes will continue to have consequences in the real estate sector for the foreseeable future.

"He's got a hard task with a blunt tool, and the consequence is the real estate markets are taking it on the chin because rates rose so fast. We could have handled this, but we couldn't handle it this fast," Sternlicht said. "The 1.9 trillion of real estate loans, that's a fragile animal right now." READ MORE

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5.8.24 - BRICS Stockpiling Gold in Massive Numbers

Gold last traded at $2,308 an ounce. Silver at $27.32 an ounce.

Stocks are primed to tumble into a bear market as bullish investors have driven equities to 1929 extremes, famed fund manager says -Yahoo! Finance

At the risk of sounding like a broken record, another investor, John Hussman, sees trouble ahead and is again comparing the extremes we are witnessing now to the ones that came before the 1929 crash. Hussman believes we could see a 65% loss in value.

by Jennifer Sor

The stock market's extreme bull run is about to come to an end, as overly optimistic investors have driven equities to the most extreme valuations in nearly a century, according to legendary investor John Hussman.

The Hussman Investment Trust president sounded another bearish warning on stocks this week, pushing back against the strength in equities so far in 2024. The S&P 500 has broken a series of record highs this year, and has regained momentum in recent days after a lackluster month in April.

But the rally has largely been driven by a "certain impatience and fear of missing out" among investors — and market internals are looking "unfavorable,", Hussman said in a note.

His firm's most trusted valuation measure for stocks, which is the ratio of nonfinancial market capitalization to corporate gross value-added, is showing that the S&P 500 is priced at its most extreme levels since 1929, right before the market collapsed 89% peak-to-trough.

Hussman's firm is expecting the S&P 500 to underperform Treasury bonds by 9.3% a year for the next 12 years, based on his firm's internal metrics. That's the worst 12-year performance the metric ever predicted — even worse than in 1929 when market internals suggested that the S&P 500 would underperform Treasury bonds by 6% annually over the following 12 years.

"Statistically, the current set of market conditions looks more 'like' a major bull market peak than any other point in the past century, with the possible exception of the 1929 peak," Hussman said. "That's no assurance that the market will plunge, nor that it can't advance further. Still, given the combination of extreme valuations, unfavorable market internals, and dozens of other factors that cluster among the most 'top-like' in history, we're just fine with a risk-averse, even bearish outlook." READ MORE

BRICS Continues Stockpiling Gold in Massive Numbers -Watcher.Guru

The BRICS' voracious appetite for gold is great for the price of the yellow metal, but it's terrible news for the future of the dollar. This is just another part of their strategy to de-dollarize the globe. These nations see more trouble ahead for the US economy and are shoring up their holdings with gold to protect themselves against it.

by Joshua Ramos

The BRICS economic alliance has continued its ongoing strategy of stockpiling gold in increasing quantities. Indeed, the collective has sought to increase its gold holdings, with China currently on a 17-month purchasing streak.

The increased holdings of the metal by the collective should only increase its value. Throughout the year so far, gold has been surging in price. It most recently reached an all-time high last month, when it reached $2,431. Those prices should only increase as central banks show no sign of slowing down their purchasing practices.

Throughout the last year, the BRICS economic alliance has driven a global shift. Specifically, this has been rooted in collective de-dollarization practices, which have manifested more so in its diversification efforts. Subsequently, many of those have been shared by other central banks.

Yet, that doesn’t appear to be slowing down any time soon, as the BRICS bloc continues to stockpile gold in record numbers. Additionally, the acquisition strategy of these countries may only increase amid these efforts.

China, in particular, has been leading gold demand, which has equated to increasing prices. Speaking to the New York Times, Metalsdaily.com chief executive Ross Norman discussed the nation as the catalyst for increasing gold prices this year. READ MORE

Federal Reserve is giving your money away and it could destroy more than your wallet -Fox Business

Billionaire Investor Stan Druckenmiller recently summed up his feelings on Bidenomics and the Fed rather succinctly, "If I was a professor, I'd give them an F." It's a sentiment many of us share. It's seems hard to believe that the President and the Fed truly have no idea what they are doing, but here we are.

by Paul Mueller

Federal Reserve Chair Jerome Powell spoke May 1, trying to project an image of calm optimism. But, very much like the Wizard of Oz, the Fed doesn't want you to pay attention to the real issue behind the curtain: Fed officials are enabling profligate government spending that is driving our economic woes – including the new, weaker-than-expected jobs report and uptick in unemployment.

To put it bluntly, the Federal Reserve has lost its way. Officials don’t know why inflation has jumped back up this year or what will happen in the coming months. They left their interest rate target unchanged because of this uncertainty. While Powell mentioned "uncertainty" in his remarks, it would be more honest if Fed officials admitted that they really don’t know what’s going on.

The Fed has enabled reckless government borrowing – which has shackled us and our children with a mountain of debt that becomes more costly every year. The Federal Reserve began increasing its balance sheet after the 2008 financial crisis, meaning they increased the money supply to make borrowing cheaper and easier. This enabled the government to spend like a drunken sailor and suffer no consequences. In that time, the federal debt grew to an unbelievable $23 trillion! READ MORE

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5.7.24 - One Final Rally?

Gold last traded at $2,313 an ounce. Silver at $27.26 an ounce.

EDITOR'S NOTE: Another economist is sounding the alarm on a monumental US market crash. Adding to this pressure, the BRICS nations are rapidly de-dollarizing and buying up gold as fast as they can to protect themselves from a potential US market crash. That strategy may prove beneficial for the BRICS but devastating for the US economy.

BRICS: Economist Predicts One Final Rally Before the Markets Crash 50% -watcher.guru

by Vinod Dsouza

Speculations of a recession have been looming large since 2022 as economists have been repeatedly warning about an upcoming market crash. According to economists, the crash could be more severe than the 2008 economic crisis and replicate the worst recession since 1929. If the market crashes, BRICS will benefit as the US economy will suffer the consequences of their own making. The uncontrolled debt of $34.4 trillion is spiraling leading to other developing countries ditching the US dollar for global trade.

On the heels of the BRICS alliance looking to dominate the world’s financial sector, a macroeconomist shared his views that the US markets could rally one last time before tanking 50% or more. This time around, not all countries will be affected if the US economy crashes as developing countries are increasingly accumulating gold in their reserves. BRICS countries have been the largest buyers of gold since 2022 and are safeguarding their economies from a potential US market crash.

US macroeconomist Henrik Zeberg warned that the American markets could replicate the Great Depression of 1929 in 2024. He listed the observations pointed out by the Game of Trades, which shows similar chart patterns that led to previous market crashes. The BRICS alliance is hoping for the US market to crash to further strengthen its de-dollarization agenda. READ MORE

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