The federal government charted a surprising budget surplus in August.
But don’t be fooled. The feds didn’t miraculously fix their deficit problem.
The Biden administration continued to spend money at an unsustainable pace last month. The surplus was merely a function of the reversal of student loan forgiveness.
Chinese gold demand improved on multiple fronts in August.
China ranks as the world’s biggest gold market.
In July, the mainstream financial media breathlessly reported that consumer spending was “holding up” based on better-than-expected retail sales. But how did consumers manage to spend all of that money?
They borrowed it.
After a pause in June, American consumers went back to charging up their credit cards in July.
After returning to net gold buying in June, central banks continued to add to their gold reserves in July.
Globally, central banks reported net purchases of 55 tons in July, according to the latest data compiled by the World Gold Council.
Silver is fundamentally a monetary metal and its price tends to track with gold over time. But it is also an important element in technology and industry. Industrial use makes up more than half of the demand for silver.
We’re seeing new uses for silver in technology all the time. The most recent issue of Silver News from the Silver Institute highlights some of these new developments.
I’ve been saying that the government job numbers seem wonky. Looking at the monthly revisions bears this out. Every month this year, the Bureau of Labor Statistics has revised the nonfarm payroll numbers from previous months lower.
President Biden might be optimistic about the economy. Federal Reserve Chairman Jerome Powell might be optimistic about the economy. But the average American?
Not so much.
The federal government has added $1.3 trillion to the national debt in just three months.
When the fake debt ceiling fight ended and Congress suspended the federal government’s borrowing limit for two years in June, the national debt stood at $31.46 trillion. As of Aug. 26, the debt had surged to $32.81 trillion.
And with the Biden administration running massive deficits month after month, there’s no reason to think the borrowing is going to slow down anytime soon.
Since price inflation took off in the wake of pandemic-era stimulus, Americans have blown through their savings and run up their credit cards to make ends meet. Now they’re starting to have a hard time paying those credit card bills.
The number of Americans rolling credit card debt from month to month is now higher than the number of people paying their bills in full for the first time ever.
The financial crisis precipitated by rising interest rates continues to bubble under the surface.
Earlier this month, Moody’s cut the credit rating of 10 small and midsize banks. It also placed six large banks on review for potential downgrades and revised 11 more banks from a stable outlook to a negative outlook.
This week, S&P Global followed Moody’s lead and downgraded the credit ratings of five banks. It also lowered the outlook for several others
