Economist’s “News and Views” Friday 9-27-2024
Currencies BLOWING UP - Expect $3000/oz Gold Soon | Tony Greer
Liberty and Finance: 9-26-2024
Tony Greer discussed the current state of the gold and silver markets, emphasizing gold's strong performance amid ongoing fiat currency instability.
He pointed out that Western central banks' relentless currency creation is driving investors toward gold as a safe haven, predicting it could reach $3,000 per ounce by mid-2025.
Greer also expressed a cautious optimism about the stock market, noting that recent economic volatility has led to a potential resurgence in tech stocks and cyclicals, suggesting the S&P 500 could rally significantly.
He contrasted the investment behaviors in gold and silver, advocating for a focus on gold due to its stability and historical value as a hedge against inflation.
INTERVIEW TIMELINE:
0:00 Intro
1:15 Gold market
4:28 S&P 500 update
11:06 Recession
13:20 Stock market valuation
15:45 Silver vs gold
21:14 Commodities outlook
CHINA Sell Off 39% of US Treasury: What's Next?
Fastepo: 9-26-2024
The U.S. government continues to regard Treasury securities as stable and secure investment options, especially during economic uncertainties.
Despite this, there are growing concerns about the national debt, which has escalated to over $35 trillion as of mid-2024. This figure has doubled in the last 15 years, highlighting a trend of increasing government expenditure and debt accumulation.
The U.S. government's rising debt poses several long-term economic risks, notably due to the increasing cost of servicing this debt amidst rising interest rates. These higher rates make debt servicing more expensive, potentially leading to inflation and increased borrowing costs, which could crowd out private investment and necessitate higher taxes or reduced government spending.
Compounding these concerns is the U.S.'s reliance on foreign investment to fund its national debt.
Notably, China, which was once the largest foreign holder of U.S. debt, has reduced its holdings significantly, from a peak of $1.316 trillion in 2013 to about $749 billion by mid-2024.
This reduction is part of a broader trend of decreasing foreign ownership of U.S. debt, driven by geopolitical shifts and policy changes both in the U.S. and abroad.
Such a reduction in foreign investment could force the U.S. to offer higher interest rates to attract new investors, thereby increasing borrowing costs further.
This is How The Fed Just Ruined Your Life - George Gammon Goes Off
Daniela Carbone: 9-25-2024
In this insightful interview, George Gammon discusses the Federal Reserve's recent moves and the narrative they want us to believe. Are we heading for a hard landing, or can the Fed really control the economy?
George argues that despite the Fed's attempts to orchestrate a "soft landing," history shows that they often lag behind the curve.
Daniela Cambone dives deeper with George on the Fed’s decision-making, the realities of the labor market, and the significance of the inverted yield curve.
Tune in as they break down complex economic indicators and what they mean for the future of the economy.
CHAPTERS:
0:00 Fed’s Huge Mistake
4:30 More Rate Cuts Needed
8:30 Economic Downturn
13:00 Powell & Elections
18:00 Recession
24:00 Gold Safe Haven
33:00 Future Outlook