The ECB Has a Huge Dilemma: Price stability or Bail Out Nations

Jul 20, 2022

Eurozone bond yields from ECB, current month from Investing.com, chart by Mish The spreads between German government bonds and those of the PIGS (Portugal, Italy, Greece, and Spain) have skyrocketed in recent weeks.  This comes while Eurozone inflation is at a record high 8.1 percent.  Eurozone Inflation courtesy of Trading Economics  Lagarde Tells Ministers ECB Plans for Limit on Bond Spreads On June 16, Bloomberg reported Lagarde Tells Ministers EC ...read more

Biden Ponders More Free Money and Rebate Cards to Address Gasoline Pain

Jun 29, 2022

Biden weighs a gas tax holiday, but not everyone in his administration agrees. Comment More Free Money  Please note Biden may soon back a gas tax holiday -- plus rebate cards -- to address pain at the pump The president said Monday he could make a decision as soon as this week on whether to support Congress instituting a pause on the federal gas tax of 18.4 cents per gallon, which experts have estimated could lower pr ...read more

Can the Government Even Pay the Rising Interest Expense on its Gigantic Debt as the Fed Pushes up Rates? Yes. Here’s Why

Jul 20, 2022

Higher rates eventually enforce a sort of discipline on the drunken party in government and even in the private sector. That would be a good thing. By Wolf Richter for WOLF STREET. There has been a lot of hand-wringing recently among the tightening deniers. They’re now saying, in their latest barrage, that the Fed can never raise its policy rates above x%, such as 2% or whatever, because the government can never pay those higher interest rates on its huge debt and will go bankrupt. And l ...read more

Metals Stocks: Gold prices slip, while recession fears drive copper to biggest weekly loss in a year

Jul 20, 2022

Gold and silver prices edged up for the session on Friday, but end lower for a second straight week, as copper posted its biggest weekly percentage loss in a year. What are prices doing? August gold  GC00, -0.05% GCQ22, -0.05% tacked on 50 cents, or less than 0.1%, to settle at $1.830.30 an ounce. Prices for the most-active contract lost 0.6% for the week, down a second week in a row. Thursday’s decline of 0.5% had pulled prices to $1,829.80, the lowest settlement in just over a week. ...read more

Cotton, Copper, Steel, Coal, and Natural Gas, What's Going On?

Jul 20, 2022

Let's check in on a basket of commodities to see what they have to say about the economy. Cotton futures courtesy of Trading Economics.  Cotton hit a high in May of 158. It's now down to 102 and the subject of financial debate on Twitter, some of them funny. Suggested Answers  Has anyone checked to see if cotton is a stablecoin? Speculators bid up cotton futures due to misguided conclusions about inflation and availability and are now unwinding en masse. Spandex i ...read more

Michael Saylor Fears a Bitcoin Crash and Begs the Government For Help

Jul 20, 2022

Laser-eyed Bitcoin speculator Michael Saylor blames regulators for the plight he is in. Michael Saylor's Twitter Profile Saylor Panics Fortune reports Bitcoin whale Michael Saylor urges governments to step in and regulate crypto’s ‘parade of horribles’.  The world’s largest public holder of Bitcoin called on regulators to finally tackle a laundry list of risky, immature crypto industry practices, or “parade of horribles,” that are unfairly weighing on t ...read more

UK, U.S., Japan and Canada to ban Russia gold imports - Reuters

Jun 28, 2022

Newly casted ingots of 99.99 percent pure gold are stored after weighing at the Krastsvetmet non-ferrous metals plant, one of the world's largest producers in the precious metals industry, in the Siberian city of Krasnoyarsk, Russia November 22, 2018. REUTERS/Ilya Naymushin Register now for FREE unlimited access to Reuters.com LONDON, June 26 (Reuters) - Britain, the United States, Japan and Canada will ban new imports of Russian gold as part of efforts to tighten the sanctions squeeze on ...read more

Metals Stocks: Gold and silver climb, while copper bounces after sharp selloff

Jul 20, 2022

Gold futures ended lower on Monday as the Group of Seven nations prepared to ban imports of the yellow metal from Russia. U.S. President Joe Biden tweeted on Sunday that the G-7 would “ban the import of Russian gold” and the U.K. government has informed the press that the U.S., U.K., Japan and Canada had agreed to the ban — although the resolution has yet to be formally adopted by the supranational institution. Members of the G-7 were meeting Monday in the southern German town of Garmisc ...read more