Many key indicators are signaling a recession, says Bank of America. A decline in manufacturing activity, lowered earnings, and a steepening yield curve are just a few of the signs, says Bank of America, which forecasts a weakening jobs market. “Investors too optimistic on rate cuts and not pessimistic enough on recession,” BofA said. Economist James Rickards also says the financial crisis is far from over, calling the fallen banks mere casualties of Congress’ failure to raise the debt ceiling and increasing the risk of the U.S. Treasury going broke. “Gold is a good safe haven until the crossfire stops,” said Rickards. While investors seek haven in gold, talks of a U.S. CBDC continue to swirl. Historian Robert E. Wright warns that the government cannot constitutionally claim that CBDC is money, as Article I, Section 10 says that “no state shall… coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts.”
Business Insider/Matthew Fox
Bank of America shares 12 charts that show that the economy is about to enter a full-blown recession
Fears of an imminent recession have reached a fever pitch this year, with everyone from Wall Street market strategists to company CEOs warnings of a slowdown in the US economy.
But so far, no recession has materialized as the jobs market and consumer spending have remained fairly resilient.
But according to Bank of America, there are plenty of signals that suggest a recession has not been avoided. These are the 12 charts that indicate the US is on the verge of entering a full-blown recession, according to Bank of America’s Michael Hartnett.
Continue reading, here.
The Daily Reckoning/James Rickards
This Time Really Could Be Different
The new global financial crisis as exemplified by the successive failures of Silvergate Bank, Silicon Valley Bank, Signature Bank, Credit Suisse and the potential failure of First Republic Bank is well underway.
Here’s the key takeaway: Despite a brief hiatus after the UBS-Credit Suisse shotgun wedding on March 19, the crisis may be far from over.
Other big bank failures and continued stress on the system should be expected in the coming months. That financial crisis comes on top of an emerging recession as shown by shrinking world trade, declining manufacturing output, monetary tightening, continued inflation, declining housing prices and many more hard data points.
You can read the full article, here.
Goldseek/Robert E. Wright
Is Central Bank Digital Currency Unconstitutional?
The latest fad in monetary policy circles worldwide is CBDC or Central Bank Digital Currency, a government-created cryptocurrency exchanged on a blockchain.
Many fear that it would give governments complete control over individuals by allowing them to track, and even block, individual transactions and to impose taxes at will.
In the United States, though, “money” has a constitutional basis so firm that, despite its name, a US government CBDC would not be “money” or even “currency.”
You can read the full article, here.
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