News

Russia Suspends US Inspections Of Its Nuclear Arsenal Under New START Treaty While the world is creeping closer toward a DefCon 1 exchange with every passing day, should Russia launch tomorrow there will be no way of knowing just how many warheads and ICBMs Putin is letting loose (not that he needs all that many). The reason is because on Monday, Russia informed the US that it is temporarily suspending American inspections of its nuclear weapons sites under the 2010 Treaty on Measures for the Further Reduction and Limitation of Strategic Offensive Arms (New START). "On August 8, […]

France Looks To Keep Nuclear Power Plants Running Despite Heatwave By Tsvetana Paraskova of OilPrice.com French authorities have allowed five nuclear power plants in France to continue operations and discharge hot water in rivers even during another heatwave as the country looks to keep its electricity generation stable and conserve natural gas for the coming winter. Power giant EDF has warned that it might have to reduce nuclear power generation this summer because of environmental regulations as the water levels of rivers are low and water temperatures high. Water from […]

Marko Kolanovic Says It's Time To Shift Away From Stocks To Commodities Heading into August, we had over 7 full months where every. single. week, JPM's equivalent of Goldman's Abby Joseph Cohen, the resident in-house permabull  (and one time value-added quant) Marko Kolanovic, would tell the bank's sellside clients to just keep buying stocks no matter how much the market crashed the day, week or month before... or was about to crash. We even charted it two months ago, showing his weekly invocations to what was left of JPM clients with actual disposable income, to buy stocks. […]

"We Can't Let Them Do This": Taibbi Talks With Russell Brand Authored by Matt Taibbi via TK News, Had a long, enjoyable discussion with the inestimable Russell Brand last week, part of which is shown in his free preview above. It’s been amazing to watch his show expand since we last spoke, a testament to many things I think, two in particular. He obviously has unique wit and enviable communications skills, which can take anyone far in a YouTube-driven media landscape, but his secret sauce is the easy, accepting vibe of his politics. When talking about issues he focuses on […]

Dalio's US-China Conflict Gauge Is Off The Charts By Ye Xie Bloomberg Markets Live commentator and reporter Ray Dalio’s take on US-China tensions over Taiwan contains some alarming warnings. While the founder of the world’s largest hedge fund wrote that an all-out war is still considered “improbable,” a gauge he uses to track the conflict between the two countries has surged to a record and is comparable to previous major wars. He warned that the tit-for-tat escalation could easily get out of control, as has often happened in history. As far as markets are concerned, […]

Cruz To 'Wait And See' Whether Trump Runs In 2024 Before Deciding On White House Bid Authored by Frank Fang via The Epoch Times (emphasis ours), Sen. Ted Cruz (R-Texas) speaks at the Conservative Political Action Conference held at the Hilton Anatole in Dallas, Texas, on Aug. 5, 2022. (Brandon Bell/Getty Images) Sen. Ted Cruz (R-Texas) said he, like everyone else, is going to “wait and see” whether former President Donald Trump is going to run in 2024, before making his own decision about a possible bid for the White House. “Everyone is going to wait and see what Donald […]

Watch: Italian Army Detonates WWII Bomb Found In Dried Up River The Italian Army detonated a World War II bomb uncovered by fishermen on the drought-stricken Po River. "Fishermen found the bomb on the bank of the River Po due to a decrease in water levels caused by drought," Colonel Marco Nasi told Reuters.  Army specialists defused the 240 kg (530 pounds) U.S.-manufactured bomb found on Po's river bank near the northern village of Borgo Virgilio, close to the city of Mantua, last week.  About 3,000 people in the surrounding area were told to evacuate during the […]

Fourth "Discovery Of Human Skeletal Remains" At Lake Mead Since May Since May, the fourth set of human remains has been discovered at Lake Mead as water levels recede amid a severe drought.  The National Park Service tweeted rangers received an emergency call reporting the "discovery of human skeletal remains" at Swim Beach in Nevada on Saturday. 🚨 ALERT: National Park Service rangers received an emergency call reporting the discovery of human skeletal remains at Swim Beach at Lake Mead on Saturday, August 6. Read the full news release here: https://t.co/XoGXPxeXgf 📸: […]

Biden And Pelosi Give Wrong 'Facts' About 'Assault Weapon' Ban Authored by Emily Miller via The Epoch Times (emphasis ours), U.S. President Joe Biden delivers remarks at an event in Washington on July 11, 2022. (Chip Somodevilla/Getty Images) President Joe Biden and congressional Democrats are trying to reinstate the federal assault weapon ban that was in effect for 10 years because—they claim—it reduced gun crime. The bill, which just passed the House, will soon get a vote in the Senate. In the effort to get it passed, Biden and House Speaker Nancy Pelosi (D-Calif.) made […]

US To Join Military Drills Near India's Disputed Border With China Authored by Dave DeCamp via AntiWar.com, The US will participate in war games with the Indian military in an area of India that is less than 62 miles away from the country’s disputed border with China, known as the Line of Actual Control (LAN). The drills will be held from October 18-31 and will be the eighteenth iteration of annual exercises between the two militaries known as Yudh Abhyas, which is Hindi for "war practice." They will be held in the Auli area of the Indian state of Uttarakhand in the […]

Norway To Limit Electricity Exports, 'Cannot Rule Out' Rationing Norway on Monday announced that due to an 'uncertain and demanding situation' over sky-high electricity prices - caused by low water levels at hydroelectric stations (in what they refer to as a "weather-dependent power supply"), as well as the "dramatic situation in Europe" regarding Ukraine, the government will be limiting electricity exports "when the water level in the reservoirs drops to very low levels." Photo: alxpin/iStock Norway has notably been referred to as the "battery of Europe" thanks to its ability […]

DeSantis Slams 'Weaponized Federal Agencies' For Raid On Trump's Mar-A-Lago Update (2053ET): Florida Governor Ron DeSantis (R) came out with a blistering response to the Monday FBI raid on former President Donald Trump's Mar-a-Lago residence, reportedly in connection with materials Trump brought with him after leaving office. "The raid of MAL is another escalation in the weaponization of federal agencies against the Regime’s political opponents, while people like Hunter Biden get treated with kid gloves," said DeSantis. "Now the Regime is getting another 87k IRS agents to […]

China’s Economy Slumps Further, Raising Fears Of Layoffs Authored by Alex Wu via The Epoch Times (emphasis ours), This aerial photo shows cargo containers stacked at a port in Lianyungang in China's eastern Jiangsu province on May 9, 2022. (STR/AFP via Getty Images) Both official and independent data show that China’s economy has slumped further in the second quarter of the year, with manufacturing slowing down unexpectedly and a downturn in the real estate sector intensifying. This has raised fears of a wave of layoffs in the second half of the year adding to already […]

Are Bonds Really A Buy By Russell Clark of the Capital Flows and Asset Markets Substack Every time I open twitter these days, I see someone saying “Here comes deflation and its time to buy bonds!” and then providing some graph to back up the view. Typically it will involve the price of commodities, or perhaps some variation of PMI that leads core inflation. I think they a probably wrong - and I say that with about 90% confidence. At some point bonds will be a buy, but not today. So why is everyone a bond buyer? I think its mainly psychological. When the Federal Reserve […]

New Patent May Reveal Russia's Next-Generation Bomber Design New patent details have emerged of what could be the first basic design concept behind Russia's next-generation stealth bomber intended by Moscow to replace the aging fleet of Soviet-era aircraft, according to The War Zone.  The patent drawings show what appears to be technology related to an engine intake duct awarded to Russian aerospace and defense company Tupolev. It may provide the first glimpse at the company's long-in-development PAK DA stealth bomber.  "The intake is shown from the front, top, and side. […]

Ron Paul: Pelosi's Taiwan Trip Exposes US Policy As Dangerous, Deadly, & Dumb Authored by Ron Paul via The Ron Paul Institute, House Speaker Nancy Pelosi’s "surprise" trip to Taiwan last week should be "Exhibit A" as to why interventionism is dangerous, deadly, and dumb. Though she claimed her visit won some sort of victory for democracy over autocracy, the stopover achieved nothing of the sort. It was a pointless gesture that brought us closer to military conflict with zero benefits. As Col. Doug Macgregor said of Pelosi’s trip on a recent episode of Tucker Carlson […]

Semiconductors Emerge As Battleground In US-China Race Authored by Jessica Mao via The Epoch Times (emphasis ours), 300-millimeter wafers are pictured in a machine for coating with gold in a clean room during the mass production of semiconductor chips at the Bosch's semiconductor plant in Dresden, eastern Germany, on July 12, 2022. (Photo by Jens Schlueter/AFP via Getty Images) As every aspect of modern life becomes more and more digitized, not just the economies of nations but their sovereign influence will rely more and more on the command of technology. Although the United […]

Today one of the top money managers in the world discussed gold, war and a doomsday clock approaching midnight. The post Gold, War And A Doomsday Clock Approaching Midnight appeared first on King World News.

CBS Censors Own Documentary After Ukraine Outraged CBS has censored its own documentary investigative reporting after an avalanche of pushback from supporters of Ukraine and its military. The segment highlighted that tons of weaponry shipped from the United States to the country's military has gone missing, and sounded the alarm as billions in dollars more have been pledged by the Biden administration. "CBS partially retracted a documentary in which it said that shipments of weapons to Ukraine from the US had been going missing," Insider reports Monday. "CBS tweeted on […]

Markets In A World Of Pain As Most-Shorteds Squeeze Higher While TSY Curves Invert To Grotesque Levels It was a wasted day in the market, one where stocks ground higher overnight and hit session highs just after the open, before a concerted wave of VWAP selling pushed stocks back to flat for the day... ... with tech shares hit the hardest as buybacks appeared to be oddly missing today... ... while Nvidia's unexpected earnings preannouncement and guidance cut which sent the stock 6.30% lower, its biggest one day drop since early June did not help... ... as staples, […]

I'll point out here that Goldman Sachs, up until late last year, had no derivatives in the COMEX futures market in any of the four precious metals. But they did show up in the last two OCC Reports. Now they have a $5.96 billion position, virtually all in silver -- and Ted thinks they're long silver in the OTC market.

Gold broke higher as investors focus on U.S. inflation numbers this week that could influence the Federal Reserve's next rate hike.

Venezuela central bank weighs strategy after court defeat Queen Elizabeth II sent Maduro diplomatic correspondence

Bullion is hovering near a four-week high as the fallout from U.S. House Speaker Nancy Pelosi’s visit to Taiwan keeps markets on edge, the article explains.

The exercises kicked off as an angry Beijing protested the visit to Taipei earlier last week by House Speaker Nancy Pelosi.

Singapore Prime Minister Lee Hsien Loong on Monday warned of the scope for miscalculations over tensions in the Taiwan Strait, which he said were unlikely to ease soon amid deep suspicion and limited engagement between the United States and China.

Select looks at the possible reasons behind this new trend of working longer and retiring later.

Yes, Krugman should return the prize. He no longer believes in the free trade ideas that earned him the prize.

Are 55 and older workers propping up the U.S. economy? The data is rather persuasive that the answer is yes. The chart of U.S. employment ages 25 to 54 years of age and 55 and older reveals a startling change.

Raining Taxpayer Money: Ukraine Gets $1BN More In Arms, Plus $4.5BN For "Budget Needs" In what's looking to be endless weapons transfers to Ukraine, the US Defense Department on Monday unveiled yet another $1 billion in additional security assistance to the Ukrainian military. Acting Pentagon spokesman Todd Breasseale in a press briefing described it as "the single largest package using the president's drawdown authority, including munitions for long-range weapons and armored medical transport vehicles..." AFP via Getty Images That's right, it just won't end... "The package […]

Economic War is Inflationary. We are at Economic War.

The ugliest year ever for US corporate-bond investors is expected to get uglier -- and they only have the Federal Reserve to blame.

Hedge Funds "Confused, Baffled" And Steamrolled By Squeezes As Meme Stock Frenzy Returns For those who made a killing last week after buying and then (hopefully) selling such names as Hong-Kong's recently IPOed, zero revenue AMTD Digital (ticker HKD), which exploded 32,000% to surpass $400BN market cap before plummeting, we have some good news: the most-shorted, meme stock mania is back, as is FOMO. As we first reported last week in "Explosion In Retail Buying Revealed As Source Of Latest Market Meltup", the retail mania that characterized the market for much of H1 2021 is back. […]

"Looks Like A Battlefield": Third Fuel Tank At Major Cuban Storage Facility Ignites Cuba struggled for a fourth day Monday to contain a massive blaze at a fuel depot in the northern part of the country. The depot supplies the largest power plant in the communist country -- there are no indications yet if crude supplies to the thermoelectric plant have been disrupted.  Cuban Army helicopters circled the Matanzas industrial complex on Monday, dumping water on the blaze with specialized buckets, though efforts to contain the blaze appear to have failed as a third tank caught […]

Biggest investors in single-family houses: “We need to be patient and allow the market to reset.”

Daily Briefing: "Listen to What the Market Is Saying" If last week’s events in and around Taiwan illustrate Asia’s growing geopolitical importance, today’s announcement by SoftBank that it lost $23 billion in the second quarter also make it the home to “the world’s largest dumb retail investor,” as Weston Nakamura put it. Weston joins Maggie Lake at the top of today’s Daily Briefing to talk about SoftBank and to preview Wednesday’s release of the U.S. Consumer Price Index. With the New York Federal Reserve’s monthly survey of consumer expectations showing […]

Readers will recall that according to Jerome Powell's own presser, the Fed's first 75bps rate hike in more than two decades was erroneously prompted by an abnormally higher preliminary UMich 5-10 year inflation print (which was subsequently revised lower in the final number).

The US housing market is simply unaffordable for millions of Americans. To illustrate the problem, here is a chart of the Case-Shiller National home price index less CPI YoY graphed against Average…

The current US Treasury 10Y-2Y yield curve just slipped further into reversion at -40.299 basis points, screaming impending recession. Oddly, The Federal Reserve has been leaving its balance sheet of Agency Mortgage-backed Securities (MBS) in tact (green line).

Another Travel Weekend From Hell: 950 US Flights Canceled, And Thousands More Delayed Another wave of turbulence rocked the US airline industry as hundreds of cancellations and thousands of delays made air travel an utter nightmare on Sunday.  The flight-tracking website FlightAware reported 950 flight cancellations and more than 7,700 delays across, into, and out of the US on Sunday.  Chicago O'Hare International Airport recorded the most cancellations and delays yesterday, with 12% of all flights canceled and over 40% of flights delayed. The reason for air travel […]

The BLS will release its next CPI report on Wednesday, August 10. Here's an advance look at two key components.

Et. Tu? CNN Takes Aim At Hunter Biden, Airs Roger Waters Calling Joe 'War Criminal' After doing everything in their power to help Joe Biden win the 2020 election - including the yellowest of journalism to downplay the NY Post's credible report on Hunter Biden's evidence-filled laptop - CNN appears to have gone against their child-sniffing commander-in-chief. During a Sunday segment of CNN's "Reliable Sources," host Brian Stelter admitted that the Hunter Biden laptop story is not "just a right-wing media story," and that it could impact Joe Biden's chances for reelection in […]

The laughably-named "Inflation Reduction Act" will double the size of the IRS - making it larger than the Pentagon, State Department, FBI, and Border Patrol...combined! And that will save money?

Marxism is threatening democracies across the globe—not just America—warned Britain’s Nigel Farage during a Saturday speech to conservatives in Dallas, Texas.

As Democrats pat themselves on the back after the Senate finally passed their massive tax, climate, and healthcare bill - the "Inflation Reduction Act" which Senate Majority Leader Chuck Schumer called "one of the most significant pieces of legislation passed in a decade," Bloomberg has compiled a list of winners and losers.

“A new analysis from researchers at the Wharton School of Business concludes that the ‘Inflation Reduction Act’ wouldn’t reduce inflation at all.

Perhaps not coincidentally, the makeup of the Democratic Party has recently been trending toward high-earning professionals.

Tucked away in the hilariously-named “Inflation Reduction Act” that Joe Manchin has been working on with Chuck Schumer is one significant bit of spending that has been mostly flying under the radar. The measure would fund a massive expansion of the Internal Revenue Service to the tune of eighty billion dollars.

The passage of the so-called "Inflation Reduction Act" over the weekend brings the total amount of spending in the pipeline by Congressional Democrats to around $3.5 trillion since President Joe Biden took office, with the imposing tally coming as Americans struggle with an inflationary cost-of-living crisis.

Today one of the greats in the business noted signs of capitulation are everywhere in the gold market. The post SPROTT: Signs of Capitulation Everywhere In The Gold Market appeared first on King World News.

Since the creation of the US Federal Reserve over a century ago, every major financial market collapse has been deliberately triggered for political motives by the central bank. The situation is no different today, as clearly the US Fed is acting with its interest rate weapon to crash what is the greatest speculative financial bubble in human history, a bubble it created. Global crash...

Governor Andrew Bailey says he is 'helpless' in face of surging inflation.

Former PM has warned of a financial timebomb awaiting families as Labour plans a major intervention to address crisis.

Brits are using cash as a way to manage their budgets as inflation in the country is expected to peak at over 13% in October.

The Bottom Line: You Want to Own Gold Now. Once we apply a similar 550% (monetary base expansion) appreciation to gold's price of around $800 in 2008, we arrive at a gold price target of approximately $5,000. This mark is the level gold could reach within the next several years

"The Fed has been so late in responding… its forward guidance right now is almost meaningless," El-Erian said.

About 69% of Americans think the US economy is getting worse, the highest since 2008, according to an ABC News/Ipsos poll.

With winter looming, U.S. distillate inventories falling, and a ban on Russian crude coming into effect, diesel markets will only get tighter...

It is one of the country’s worst economic crises in decades, and that is saying something for Argentina.

Central banks around the world continued raising interest rates this week. Australia, Brazil, India and the UK were among those hiking by 50 basis points, while Romania went for 75 basis points and Madagascar for 90 basis points.

THE European Central Bank (ECB) injected 17 billion euros (S$23.8 billion) into the Italian, Spanish and Greek debt markets between June and July, while allowing its portfolio of German, Dutch and French debt to fall by slightly more, going by calculations by Financial Times based on ECB data.

Japan wants bolder financial and financial stimulus to grab “a once-in-a-lifetime alternative” from international inflationary pressures to finish its battle on deflation, in line with a Financial institution of Japan board member who just lately left the central financial institution.

The climate and tax package passed by the Senate on Sunday will unlock some $370 billion in funding for clean energy and accelerate a historic shift in how the world is powered. Along with a parallel initiative in Europe, the bill could trigger private investments that reach into the trillions.

The package would pump billions of dollars into energy and healthcare programs over the next 10 years, including $430 billion in new spending.

U.S. stock futures edged higher early Monday as investors approached the final stretch of earnings season and braced for a busy week of inflation data.

Today one of the greats in the business warned that the US Fed has created 50% more money out of thin air in the past 2 years than ever existed in the previous 256 years unleashing inflation hell that is rippling throughout the entire world. The post INFLATION HELL: US Fed Created 50% More Money Out Of Thin Air In 2 Years Than Ever Existed In The Previous 256 Years appeared first on King World News.

Have the near-term odds of a Fed pivot dropped? Yes, concludes financial advisor Lance Roberts. The Fed is hiking interest rates to destroy demand. Most experts think the Fed will continue until it either tames inflation or it "breaks something" and is forced to reverse course.

The man who has become legendary for his predictions on QE and historic moves in currencies and metals warned King World News that this fall we will see riots, food shortages, massive inflation, social unrest, higher gold prices and collapsing stock markets. The post Greyerz – This Fall Will See Riots, Food Shortages, Massive Inflation, Social Unrest, Higher Gold Prices And Collapsing Stock Markets appeared first on King World News.

After a week that saw the price of gold and silver rally, despite the pullback on Friday, this could turn out to be the mother of all short squeezes in the gold market. The post This Could Be The Mother Of All Short Squeezes In The Gold Market appeared first on King World News.

Here is an important gold and silver update revealing that managed money remains net short gold. The post GOLD & SILVER UPDATE: Managed Money Remains Net Short Gold appeared first on King World News.

According to the commodity expert, the run-up gold has had in 2022 is just the beginning. With the logic of finite supply behind it and a technical setup indicating a boom in price, it seems as if the next leg up in gold price could be inevitable.

There is no good reason to not believe in gold’s future. It’s soon going to be the key globally. We’re going to see a rush to buy gold unlike anything we’ve seen. Leverage with the miners will be off the chart. The strength in the dollar will not last. That’s when we’ll see gold explode and never come back.

Inflation at a 40-year high and rising interest rates worldwide are creating a lot of stress in financial markets and pushing the global economy into a recession and potentially creating a sovereign debt crisis. According to one fund manager, the macroeconomic backdrop is creating a perfect storm for gold prices and gold mining stocks.

The fluctuating exchange rates between the dollar and all other currencies, however, should not distract from one important thing: the purchasing power of all currencies, including the dollar, has been declining year after year. This is reflected in the continued rise in the price of gold.

Paper, considered as a material whereof to make money, has none of the requisite qualities in it. It is too plentiful, and too easily come at. It can be had anywhere, and for a trifle....Paper money appears at first sight to be a great saving, or rather that it costs nothing; but it is the dearest money there is.... The only proper use for paper, in the room of money, is to write promissory...

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

The energy-related parts of the bill are expected to cost $369 billion. That’s an increase of more than 20 percent over the cost estimates published just a few weeks earlier. (Talk about inflation!) In short, this deal may be a long way from becoming law. But whether it becomes law or not, it shows again that the Washington Swamp will always deliver to special interests.

The Biden administration's next security assistance package for Ukraine is expected to be $1 billion, one of the largest so far, and include munitions for long-range weapons and armored medical transport vehicles, three sources briefed on the matter told Reuters on Friday.

Amid talks of a food shortage, the U.S. Securities and Exchange Commission (SEC) proposes adding more regulation on the agriculture sector. It could put significant financial burden on small, family-owned farms and could lead to lower food production in the United States.

The economy added a much higher than expected 528,000. This follows a much higher than expected 372,000 jobs in June. But the discrepancy between jobs and employment is amazing.

"Politics is compromise. Half a loaf is better than no loaf at all. Price stability is the half-loaf of monetary policy rules. It seems foolish to go hungry simply because haute cuisine is unaffordable."

"Americans should be alarmed. The bill has the potential to handcuff innovation in one of the most critical and successful sectors of the American economy."

The real economy is faltering and stagflation has embedded, paving way for the worst inflation and falling real growth since the 1970s.

Brent Johnson, portfolio manager at Santiago Capital, returns for Part 2 of our interview with him to lay out the 4 assets he favors most given the strong US dollar. Cash, gold, productive land & blue-chip US equities are the assets he would "go to war with" -- though in the near term, he recommends waiting for the current bear market to bottom out before loading up on equities.

And the “sizzling” jobs report isn’t feeling any love in the bond market where the US Treasury yield curve (10Y-2Y) deepened its inversion to -37.593 basis points, a drop of -1.331 BPS. Note that the 10Y-2Y curve falls below 0% just prior to every recession.

With inflation climbing to multi-decade highs and price pressures broadening out, the International Monetary Fund (IMF) has warned that there's now a "substantial risk" that high inflation becomes a more permanent fixture and that expectations around future rates of inflation could become unmoored and drive a wage-price spiral.

Some economists — including former Treasury Secretary Larry Summers — say Powell is being much too optimistic about the Fed’s ability to tame prices without pushing unemployment much higher. The implication: The Fed chief, who has sought to elevate the central bank’s focus on boosting the labor market, may be forced to accept millions of job losses and a significant recession to curb inflation.

After more than a decade of mostly losing out, the Internal Revenue Service may finally get the cash infusion it's long wanted in the economic package that Democrats are working furiously to push through Congress before their August break.

Arizona Senator Kyrsten Sinema - the lone Democrat holdout on the Biden administration's revamped reconciliation bill - has finally signed off on it, after Democrats agreed to preserve the so-called carried interest loophole that allows investment managers (like her former bosses) to shield the majority of their income from higher taxes.

How higher mortgage rates—and frustration—are changing the playbook for sellers.

Housing will be another big bust this quarter. And durable goods rate to follow housing. Manufacturing rates to be negative. Hopes for the quarter rest solely on consumer spending and falling inflation. But don't count on strong retail sales. Add it all up and you have a third quarter of negative GDP.

Something very odd emerges for the second month in a row when looking at the July payrolls report.

The Household survey “only” shows 179k jobs and still shows job losses last month. The divergence continues to grow between the Establishment and the Household (as well as JOLTs data and Unemployment Insurance Claims).

What the Fed did in details and charts.

Stock futures fell Friday after the July jobs report was much better than expected, showing a strong labor market that will likely mean more interest rate hikes from the Federal Reserve.

While we are digging through the number, the report will certainly surely will boost expectations for a 75 basis point rate hike at the Fed’s September meeting, because as Bloomberg notes, "this is not at all what the Fed wanted to see. The job market if anything is getting even hotter, not cooling." The only thing that could reverse the narrative is if next week's CPI print comes in far below expectations. Developing...

Around the world, central banks have been caught out by the surge in global inflation, leaving interest rates too low for too long. But the RBA has been blunter than most in admitting its mistakes, with its own governor saying its forecasting was “embarrassing”.

Australia's central bank on Friday warned inflation was heading to three-decade highs requiring further hikes in interest rates that would slow growth sharply, making it tough to keep the economy on an "even keel". In its quarterly Statement on Monetary Policy, the Reserve Bank of Australia (RBA) jacked up its forecasts for inflation, downgraded the outlook for growth...

China is halting cooperation with the United States in a number of areas, including dialogue between senior-level military commanders and climate talks, in retaliation for House Speaker Nancy Pelosi's visit to Taiwan, it said on Friday.

Global bond funds obtained their biggest weekly inflow in nine months and purchases in money market funds also surged in the week to Aug. 3, as investors favoured safety due to worries about the risk of global recession.

The chance of “widespread civil unrest” occurring in the UK as a result of people being unable to afford to pay their bills due to the cost of living crisis is “inevitable,” according to one campaigner.

Just days after it was reported that Credit Suisse was handing out hundreds of millions to retain talent, the firm is now reportedly mulling mass layoffs, with "thousands of roles globally" at risk of being cut.

In contrast, the leading western central banks — the Federal Reserve, the European Central Bank and the Bank of England — did not target or worry about money and credit, while actively promoting a major expansion to offset the impact of lockdowns and supply chain interruptions on general activity. Each of them continued the money creation drive well into the recovery and have ended up with inflation nudging double figures.

Stock futures were lower early Friday ahead of the key July jobs report.

A day of reckoning is coming, look at these shocking inflation numbers, plus what will it take to crash this market? The post Day Of Reckoning, Look At These Shocking Inflation Numbers, Plus What Will It Take To Crash This Market? appeared first on King World News.

The liquidity drain is still ahead as bulls and bears battle. The post The Liquidity Drain Is Still Ahead As Bulls & Bears Battle appeared first on King World News.

2022 has seen the worst inflation in 4 decades, stubbornly persistent supply chain shortages, a contracting economy that may already be in recession & one of the worst first halves of the year for financial markets. And yet the US dollar is the strongest it has been in 20 years.

Gold prices finished 1.7% higher on Thursday to reclaim a footing above the key $1,800 mark, as investors focused on the chances of the U.S. economy slipping into a recession. December gold closed up 1.7% to settle at $1,806.90 an ounce on Comex, the highest finish for the most-active contract since June 30, according to FactSet data.

Investors are worried that the actual amount of physical silver available in LBMA vaults may be much less than projected...

Call it the dominant factor. Of course, a low-entropy input to this growth was that the dollar had a stable definition from the late 18th century through the first third of the 20th as 1/20.67 of a gold ounce. Love or hate the gold standard, it cannot be denied that it personified dollar-price stability. And with the dollar stable, inflation wasn’t a problem. Substantial growth, but no inflation. Please keep it in mind given the modern discussion of “inflation.”

Forbearance and pandemic cash run out. But a lot of fun was had by all.

He highlighted the Federal Reserve tightening monetary policy into a slowing economy. The International Monetary Fund’s recent forecast shows all major areas of the global economy are slowing, calling conditions “gloomy and uncertain.”

From the mid-June lows, stocks have soared on the back of various narratives from 'peak inflation' to 'Fed pivot imminent' - flip-flopping to 'bad news is great news' and sending the Nasdaq up 20% as bond yields plunge under the threat of recession (whether you say the word or not).

Despite an unprecedentedly fast rate-hiking cycle, and FedSpeak dedicated to a hawkish bias, the market's belief in its own self-deception that we are past 'peak inflation' and/or that a 'Fed Pivot' is imminent has - somewhat incredulously - pushed US financial conditions back to their 'easiest' levels since before The Fed started hiking rates in March...

Gold is breaking out priced in euros as the credit crisis continues. The post Gold Breaking Out Priced In Euros As Credit Crisis Continues appeared first on King World News.

In the midst of a recession, with inflation eating away an average of $6,800 in purchasing power from the incomes of families with two workers, the so-called Inflation Reduction Act would impose tax increases, manipulative federal subsidies, and price controls on every American family. The bill would deepen the growing recession, continue to depress household incomes, and will continue to increase prices.

Every year, $400 billion ends up in dumpsters, and because it cuts into corporate profits, companies can treat it as tax deductible.

Shelters across the U.S. are reporting a surge in people looking for help, with wait lists doubling or tripling in recent months. The number of homeless people outside of shelters is also probably rising, experts say. Some of them live in encampments, which have popped up in parks and other public spaces in major cities from Washington, D.C., to Seattle since the pandemic began.

The director of the nation’s largest network of food banks is seeing support dwindle as need rises: “You’re in the middle of a battle, and people are leaving the field.”

Buy-Now-Pay-Later (BNPL) Lenders Face Tougher Reality.

The money-printing binge that started in 2008 has turned the Fed into a money-printer, not an inflation fighter. This money-printing continued even in 2021, as inflation had already begun to rage. And this created the Fed’s rock-solid credibility as an inflation arsonist.

Bankrate’s 30-year mortgage rate index rose to 5.57% after rising above 6% in June 2022. Mortgage rates are up 92% under the team of Biden and Fed Chair Powell as The Fed tries to extinguish the inflation fire cause by 1) excessive Fed stimulus, 2) Biden’s anti-fossil fuel policies and 3) Biden/Congress’ reckless spending.

The results speak loudly. The Fed blew a DotCom bubble, a housing bubble, and an everything bubble each time hoping to make up for an alleged lack of inflation.

Despite the problems with GDP, looking at the debt to GDP ratio shows something troubling, making the comparison between now and then even more difficult to support:

In spite of the fact that real wages are going down, the cost of living is soaring, and new jobless claims are heading up at a rapid pace, and the savings rate has collapsed, what really matters to the White House, it seems, is the "technical definition" of recession. Never mind the fact that the US economy has contracted for the past two quarters, according to the federal government’s...

“We probably have another leg down as the Fed continues to raise rates,” he wrote. “I expect rates to go much higher and that means a number of companies will be in trouble and the glamorous tech stocks with no earnings and dependent on more and more cash inputs will be in trouble.” Mobius added that he won’t feel comfortable calling a bottom until he sees “complete surrender”.

Gold climbed to nearly a one-month high on Thursday buoyed by a pullback in the U.S. dollar and Treasury yields, as investors awaited Friday’s July employment report report which may influence the Federal Reserve’s path of interest rate hikes.

Argentina’s new Economy Minister Sergio Massa pledged Wednesday night to stop printing money that helps fuel runaway inflation, outlining his strategy to turn around the country’s deepening crisis.

Latin America's most steady economy in the last three decades suffers a slump. Locals are turning to crypto for protection.

Brazil’s central bank raised its key interest rate by half a percentage point and left the door open for a smaller boost in September as it shifts its focus to the outlook for inflation more than a year ahead.

Top Senate Democrats recently proposed a new $21 billion emergency supplemental funding bill to prepare for the next phase of the pandemic and other emerging diseases.

Confidence hits all-time low in CNBC/SurveyMonkey Small Business Survey, as weak sales outlook and inflation worry a Main Street that says recession is here.

Amid a growing wave of corporate layoff announcements, the number of Americans filing for first-time jobless benefits rose to 260k last week (moving its 4-week average to the highest in 8 months). More problematically, continuing claims is now starting to roll notably higher at 1.416mm - the highest since April.

Get ready for rate cuts as auto bubble has burst and US economy slows. The post Get Ready For Rate Cuts As Auto Bubble Has Burst And US Economy Slows appeared first on King World News.