Strong investment demand and central bank buying mitigated a sharp drop in jewelry sales due to higher prices. Jewelry demand fell by 18 percent to a five-year low of 1,542 tonnes.
“We’re freaking doomed!” If you recognize that outburst you remember Mogambo and likely remember his total contempt for the federal reserve. How many economists will be leaving a parting message equally strong and important?
The bottom line is we should continue to be skeptical of government data. The people in power have a vested interest in making things seem better than they are.
Today the promises of Bretton Woods are fracturing on every front simultaneously. The US Navy cannot guarantee the Strait of Hormuz. US Treasuries, the foundational safe asset of the entire global financial architecture, now come with an asterisk...
I don’t doubt that the US could impose foreign exchange controls as the dollar gets weaker. The country is becoming socially, financially, economically, and politically unstable.
If oil started shipping out of Iran, it wouldn’t arrive here in time to stop oil supply from going critical later this month. That level of shortage is already a fait accompli.
Whether driven by war-related spending, monetary expansion, or a combination of both, Maharrey believes the conditions are in place for another major inflationary surge.
