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Current economic indicators provide a mixed picture. On one hand, the country has experienced robust GDP growth, signaling a strong economy. The labor market remains tight with historically low unemployment rates, and job gains continue to be impressive. However, a persistent concern is elevated inflation, with the Consumer Price Index (CPI) inflation at 3.7% and core inflation at 4.1%.
The Federal Reserve’s approach to curbing inflation is rooted in their belief that they can reduce it to 2% by 2026. Their primary focus is on wage inflation, which they intend to address by rebalancing the labor market. In other words, they anticipate that by reducing job opportunities, wage inflation will naturally decrease. Continue reading
With investors turning to gold to hedge against inflation the price of the precious metal could soon rise again.
We’re witnessing history: 
History is starting to repeat itself. In 2008, bond prices crashed before stock prices did. Here in 2023, bond prices are crashing again. In fact, we are currently witnessing one of the greatest financial crashes in U.S. history at this moment. Of course most Americans have absolutely no idea that this is happening. Most Americans don’t know anything about the bond crash that is causing a tremendous amount of fear in the financial community right now, and that is because the big news networks aren’t talking about it too much. But it is serious. Since the peak of the market, 10 year bonds are
The gold market may not be able to break out of its neutral trading channel around $1,950 just yet, but
When Silicon Valley Bank and other banks failed earlier this year, the debate over the sustainability of fractional reserve banking resurfaced. Under fractional reserve banking, banks keep only a fraction of customers’ deposits in reserve. The difference is bank credit, such as government debt, mortgages, business loans, and many other kinds of loans. This practice leaves the bank open to a run, in which panicky depositors attempt to withdraw their funds from the bank en masse but the bank doesn’t have the cash on hand.
Banks have now reported having more than $309 billion in unrealized losses for the second quarter ending on June 30 alone.
Even as interest rates skyrocketed over the past 18 months, a good job market and strong consumer spending kept the US economy moving.
Banks are closing branches faster than they’re opening new ones. U.S. banks closed over 3,000 branches last year while opening just 1,000. JPMorgan Chase led in branch closures last year, shuttering 144 branches, while opening 133. The trend will likely continue as banks face staunch competition for deposits and younger customers from online banks, fintech firms and Big Tech. 






