RE: Massive uncertainty and will gold shine7 Oct 2024 00:10
Yes, its massive uncertainty from one perspective, but now there is also massive predictability.
BREAKING: The US Financial Conditions Index has dropped to its lowest level since Q1 2022.
Financial conditions posted their largest year-over-year decline in 3 years and are back down to pre-interest rate hike levels.
Since October 2023, the Financial Conditions Index has loosened at its fastest pace since March 2020, when the Fed cut rates to near zero.
Effectively, restrictive Fed policy and interest rate hikes since March 2022 have been undone.
This comes as markets price-in another 75+ basis points of rate cuts in 2024 alone.
Is the Fed moving too quickly again? another Fed FU?
48% of all US homes for sale had been on the market for at least 60 days in August, the highest for any August since 2019.
The money printing has continued unabated, hitting new highs, and withthe US following Israel into war on several fronts, and we wont mention Russia nor China, what do governments do?
According to economic commentary provider The Kobeissi Letter, the total money supply in the U.S., the Euro Area, Japan, and China recently hit a new record of $89.7 trillion, with $7.3 trillion of that added in just the past year.
“This marks the largest increase in 3 years and a similar jump to the initial pandemic response seen in the first half of 2020,” analysts at The Kobeissi Letter said. “In the US alone, the amount of money in circulation has surged $410 billion year-over-year, to $21.2 trillion.”
To help put these figures in perspective, the analysts noted that “at the beginning of 2020 the US money supply was 27% below current levels,” which points to one thing: “Global money printing is back.”
“Since the pandemic, global money supply has skyrocketed,” they said in a follow-up post. “In fact, the US Dollar has lost 25% of its purchasing power over the last 4 years alone!!! Clearly, inflation was not ‘transitory.’” Tranistory was annice concept, but more of an ideology than reality!!!
And with the U.S. pledging financial support (+battleships, cruisers, 40,000 troops, ammunitions galore etc etc) for multiple conflicts around the globe while also dealing with a failing infrastructure at home (not to mention climate issues) and unsustainable interest payments on its debt, the upward trajectory of M2 and debt show no signs of slowing.
“US public debt has jumped $345 billion over the last 3 days hitting another record of $35.7 trillion,” The Kobeissi Letter stated on Thursday. “Since June 2023, federal debt has surged by a MASSIVE $4 trillion, or 14%.”
good days for gold, CEY and Anglo
the gnome
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