Duration risk hammered Silicon Valley Bank and seems to have been lost on many bankers, fixed-income investors and bank regulators.
In January 2022, when yields on U.S. 10-year Treasury bonds, 3.471% were still roughly 1% and those on German Bunds were -0.5%, I warned that inflation would be bad for both stocks and bonds. Continue reading
U.S. money supply is falling at its fastest rate since the 1930s, a red flag for the economy and financial markets.
Money supply has now been shrinking year-on-year since December, an unprecedented development in modern times that should make investors sit up and take notice – growth, asset prices and inflation could all weaken. Continue reading
The gold market will remain well supported and should eventually see a sustained break above $2,000 an ounce as the biggest banking crisis since the 2008 Great Financial Crisis is far from over, according to one esteemed economist.
In an interview with Kitco News, David Rosenberg, founder of Rosenberg Research, said that gold and bonds remain two of his top investments for 2023 as the banking crisis threatens to push the global economy into a deep recession. Continue reading
A word of advice to my fellow American: Be afraid. Be very, very afraid of the consequences of the soon-to-happen inevitable collapse of the American dollar as the benchmark international reserve currency.
Given that very soon the Russian ruble (which is backed by gold) and the Chinese yuan (which is backed by a basket of precious metals and commodities) will replace the U.S. dollar (which is merely a fiat currency – backed by NOTHING!), it would be worthwhile to briefly outline the force-able economic consequences for us Americans. Continue reading
BRICS is an acronym for Brazil, Russia, India, China, and South Africa. They are countries that want to free themselves from the dollar-based US hegemony.
The dollar may be the ‘world’s reserve currency,’ but chains are made to be broken. The BRICS countries want trade to be more free and fair. They do not wish to be yoked to a slave currency based on debt.
The money masters behind our debt currency, the US dollar, are able to counterfeit as much of it as they like in order to further their wealth and power. Citizens are required to pay it all back with interest, which ultimately we cannot do without counterfeiting ourselves and if we tried, we’d be tossed in prison. Even worse… Continue reading
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.
“Gold is unique among assets, in that it is not issued by any government or central bank, which means that its value is not influenced by political decisions or the solvency of one institution or another.” ~ Salvatore Rossi, Chief of the Central Bank of Italy, 30 Sept 2013
“SVB [Silicon Valley Bank] has a host of problems associated with its specialty: The startup scene that is now facing a mass-extinction event. Other banks don’t have that kind of exposure to startups.
What rattled folks today was that SVB lost $1.8 billion on the sale of $21 billion of “available-for-sale” securities. It sold them because it needed to raise liquidity and to “reposition” its balance sheet.
Its depositors are startups that once had a huge amount of cash on deposit at the bank that they’d obtained from venture capital investors. But those startups are burning cash like there is no tomorrow, and they aren’t getting new funding, and so they’re draining their deposits from the bank. And the bank has to fund those cash withdrawals.” ~ Wolf Richter, Between a Rock and a Hard Place as Banks Run Out Free Money, March 9, 2023 Continue reading
Archaeologists have discovered wooden defenses surrounding an ancient Roman military base for the first time in Bad Ems, western Germany. The fence, which is topped with sharpened wooden stakes similar to barbed wire, is the type of fortification mentioned in ancient writings, including by Caesar, but no surviving examples had previously been discovered. Continue reading
IRS ‘is developing new Biden-backed algorithm that’ll see more white and Asian people targeted for tax audits to boost racial “equity”
A conservative legal group is accusing the Biden administration of directing the Internal Revenue Service to audit more white and Asian Americans in an effort to boost ‘equity.’
The America First Legal Foundation, a nonprofit that seeks to fight executive overreach, filed a Freedom of Information Act request on Tuesday claiming that an executive order President Biden signed last week encourages the IRS to alter its algorithms to audit more white and Asian taxpayers — and fewer black taxpayers.
Though the Executive Order on Further Advancing Racial Equity and Support for Underserved Communities Through The Federal Government does not specifically mention audits, it directs federal agencies — including the IRS — to find ways to make their practices more ‘equitable’ to underserved communities.
Specifically, the order directs agencies to ‘prevent and remedy discrimination, including by protecting the public from algorithmic discrimination.’
America First Legal Foundation is now investigating how that could affect the IRS, seeking internal documents from the agency referring to its efforts to improve ‘equity’ amongst Americans.
Under federal law, the Treasury Department now has just 20 business days to respond to the request… (Continue to full article)
It seems like everywhere you go people are talking about Gold and Silver. Why would people care so much about what some people call a “barbaric relic”?
History
Gold and Silver are the only money used in the Bible – a six thousand year history. Worldwide, Gold and/or silver have been the foundation of every successful economy. Nations that adopted “fiat” currency – paper money backed by nothing, but enforced by the government – have failed. In fact, the lifespan of fiat currencies internationally has been an average of a mere 37 years. Closer to home, the Founding Fathers set Gold and Silver as the only Constitutional money. It took what many consider to be unconstitutional government action to change those provisions of the Constitution. Continue reading
