As the dollar collapses, Richard (Rick) Mills believes that gold will be the real anchor to the world’s monetary system. He explains why in the article below. In other news, Americans have had enough of high inflation. Sadly, some experts think it’s here to stay for a bit longer. Steve Hanke, professor of Applied Economics at Johns Hopkins University, told Kitco News, “I anticipate, as I have anticipated for some time, that we will have what they call ‘elevated inflation’, between 6% and 9% through 2023, maybe going into early 2024. The reason for that is that no matter what the Fed does, actually, now, there’s such a huge monetary overhang waiting to come out the monetary inflation overflow valve in the ‘monetary bathtub’, that it’ll just keep feeding the inflation.”

 

Ahead of the Heard via GoldSeek/Richard Mills
5 Reasons Why Gold Will Anchor the World’s Monetary System

Since the end of WWII, the US dollar has been used as the world’s reserve currency, accounting for about half of global trades, loans and debt, helping to anchor the international monetary system. However, another war, one of the biggest this century, could spell the end of the dollar’s dominance.

Western sanctions against Russia, as punishment for its invasion of Ukraine, have left us pondering the fate of the dollar, which comprises 16% of Russia’s foreign reserves, and the future of the monetary system as a whole.

Could we see the dollar’s sphere of influence weaken? Possibly, and this is a popular view. There’s also no shortage of speculations as to what will happen to the monetary system, and which other currency could rise up the ranks.

Read the full story, here.

 

Kitco News/David Lin
Nothing can fix inflation now, ‘economic stupidity’ is underway by the Fed, Biden – Steve Hanke

The Consumer Price Index (CPI) was released by the Bureau of Labor Statistics on Wednesday, with April’s reading reported at 8.3%. This was slightly lower than March’s 8.5%, but still higher than the consensus estimates of 8.1%.

Steve Hanke, professor of Applied Economics at Johns Hopkins University told David Lin, anchor for Kitco News, that this modest month-over-month decline should not be interpreted as a normalization of consumer prices.

On the contrary, inflation is here to stay, he said.

“I anticipate, as I have anticipated for some time, that we will have what they call ‘elevated inflation’, between 6% and 9% through 2023, maybe going into early 2024. The reason for that is that no matter what the Fed does, actually, now, there’s such a huge monetary overhang waiting to come out the monetary inflation overflow valve in the ‘monetary bathtub’, that it’ll just keep feeding the inflation,” Hanke said.

You can read the full story, here.

 

Reuters via CNBC
Gold gains as dollar, Treasury yields weaken after U.S. inflation data

Gold gained on Thursday as the dollar and Treasury yields slipped after U.S. consumer price data suggested inflation might have peaked in April, allaying some concerns of more aggressive Fed rate hikes.

A weaker dollar makes gold attractive for overseas buyers, while lower Treasury yields reduce the opportunity cost of holding zero-yield bullion.

Continue reading, here.

 

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