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Tag Archives: Key Gold Headlines

The Fed Is Back in the Treasury-Buying Business!

Has QE4 already started?For the first time since October 2014, the Federal Reserve has bought a significant number of US Treasurys. Over the past two weeks, the Fed purchased $14 billion in US bonds.Up until 2 weeks ago, it had been 250 weeks since the central bank bought a meaningful number of US Treasurys. After ending QE3 in 2014, the Fed held its Treasury holdings stable at around $2.6 trillion until it began its balance sheet reduction efforts in late 2017. The Fed sold off Treasurys...

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Bank of England Governor: Dollar “Too Dominant” as Reserve Currency, Needs to Be Replaced

During a recent interview on , Peter Schiff said investors should stay away from the dollar, not only because of the looming recession, but because its days as a reserve currency could be numbered.Is this just hyperbole, or could the US dollar really fall off its throne? America’s enemies would certainly like to see it happen. And increasingly, so would its friends.Recently, Bank of England Governor Mark Carney said the dollar is “too dominant” and called for its replacement as the reserve...

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How Long Can Over-Leveraged Consumers Prop Up the Economy?

Earlier this week, Spencer Schiff wrote an article noting the importance of consumer spending to the US economy and the consequences that will follow if Americans suddenly tighten up their wallets.  Schiff isn’t alone in his concern. A mainstream economist sounded a similar warning during a recent CNBC interview.In his article, Spencer pointed out the US economy’s dependence on consumer spending.The recent emergence of widespread economic weakness leaves consumer spending, which makes up...

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Mine Output Fell Sharply in 3 Top Silver-Producing Countries in H1

Mine output fell significantly in three of the world’s top silver-producing countries through the first half of the year.Peru’s silver production fell 10%, mine output in Mexico fell 4%, and silver production in Chile was down 7%, according to data released by government agencies in those three countries.According to the data compiled by SRSrocco, in total, mine output in Peru, Mexico and Chile was off by 373 tons through January through June. (Mexico’s data was from January-May.)Chile,...

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Gold Serving as a Lifeline for Indians During Credit Crunch

Gold has become a lifeline for Indians in the midst of a severe credit crunch.When the state-run lender refused to extend Babasaheb Mandlik credit, he used his wife’s gold jewelry as collateral for a loan in order to buy cotton seeds before the summer sowing season window closed.According to , Mandlick owns a small 8-acre cotton farm in western India. He pledged 70 grams of gold in return for a 150,000 rupee loan (about $2,105). Without the gold, he wouldn’t have been able to plant this...

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Uncle Sam Is Spending Like We’re In Recession; What Happens When We Really Are?

Last week we got the updated federal budget deficit numbers. At $867 billion, the 2019 fiscal year budget shortfall has already eclipsed last year’s deficit of $779 billion.The out of control spending and spiraling deficits are concerning enough on their own terms, but they become absolutely horrifying when you consider that these budget shortfalls are happening during an economic expansion. You would normally expect numbers like this during a major recession.That raises an important...

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Yield Curve Inverts Flashing Recession Warning; Stocks Plunge

The yield on the 10-year Treasury fell below the yield on the 2-year for the first time in 12 years, stoking recession fears and tanking stock markets.Yield curve inversions have preceded all nine recessions since 1955.  This was the first time the 10-year Treasury yield has dropped below the 2-year yield since June 2007 – the cusp of the Great Recession.We saw other yield curves invert earlier in the year. In March, the yield on 10-year Treasurys fell below the yield on 3-year bonds for...

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China Adds 10 More Tons of Gold to Its Hoard

China bought gold for the eighth straight month in July, adding another 10 tons to its rapidly growing hoard.The recent purchases boosted the People’s Bank of China’s gold reserves to 62.26 million ounces – about 1, 945 tons.  China has added about 94 tons of gold to its stash over the past eight months.The Chinese continue to add gold to their reserves in an effort to reduce their exposure to the dollar. As one analyst told , “It is important for the country to diversify away from the US...

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The Fed Has the US Economy on Life Support

The Federal Reserve has the US economy on monetary life support and managing editor Brian Maher says it will never again breathe on its own. As hedge fund manager Kyle Bass put it, the economy is trapped within the inescapable tractor beam of zero percent interest rates.As we have all learned, once an economy falls into the tractor beam of zero rates, it’s almost impossible to escape them… Growth numbers are going to come down and real growth might go to zero. We’re probably never going...

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2019 Federal Budget Deficit Already Above 2018 Number

The federal government continues to spend America into a black hole and has already topped last year’s budget deficit with two months left in the fiscal year.The US budget deficit in July came in at $120 billion thanks to a surge in spending, according to data released by the Treasury Department.Uncle Sam spent $371 billion in July. That was 23% more than the government spent in July 2018. The Treasury brought in $251 billion. That number was up 12% compared to July 2018.The total budget...

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