The Dawn of Gold

The Dawn of Gold

August 14, 2020 Jordan 0

Many believe July 2020 was one for the gold history books, but it wasn’t even a top 10 move in gains for gold historically. Gold’s big move to an all-time U.S. dollar high last month was the 23rd-best spot monthly return.

New Unemployment Claims Drop Below 1 Million

New Unemployment Claims Drop Below 1 Million

August 14, 2020 Jordan 0

The number of Americans filing for unemployment benefits fell to 963,000 last week, the U.S. Department of Labor reports. The number for the week that ended on August 8 is the lowest since governments began imposing COVID-19 lockdowns in mid-March. It marks the first time the weekly total has been less than a million since then.

Beyond The (Benefits) Cliff: The Wile E. Coyote Moment For The US Consumer

Beyond The (Benefits) Cliff: The Wile E. Coyote Moment For The US Consumer

August 14, 2020 Jordan 0

Just over a month ago, we argued that rapid and record fiscal stimulus had been a critical driver of the initial V-shaped recovery in consumer spending and therefore that several benefits cliffs could endanger this momentum if government support was removed prematurely (see: “Look Out Below”: Why The Economy Is About To Fly Off A Fiscal Cliff”). The first of those cliffs was hit at the end of July, with the failure to pass additional legislation leading to the expiration of the Federal Pandemic Unemployment Compensation (FPUC) benefits, which have provided qualifying unemployed individuals an additional $600 per week.

Disastrous Economic Situation

Disastrous Economic Situation

August 13, 2020 Jordan 0

The virus-induced recession has resulted in deep economic scarring that will be seen for years. Tens of millions of Americans remain unemployed, broke, and hungry. US bankruptcies of large companies are on pace to hit a 10-year high, with even more devastation seen among smaller firms.

Central Bank Balance Sheets To Hit $28 Trillion Next Year

Central Bank Balance Sheets To Hit $28 Trillion Next Year

August 12, 2020 Jordan 0

As noted earlier, silver is crashing as much as 15% today, a plunge which if it had spread to stocks would prompt a panic at the Fed and an injection of at least several trillion. The fact that precious metals do not need a rescue from the Fed – and in fact anything the Fed does do will only send them higher – is probably worth its own take, but for now we will simply look at how we got here, where we are going and update details on the balance sheets of the Federal Reserve, European Central Bank (ECB), Bank of England (BoE), Bank of Japan (BoJ), Reserve Bank of Australia (RBA), and Bank of Canada (BoC) balance sheets, as well as on the programs implemented by each central bank.