As the Fed continues its fight against inflation, two former Fed officials are warning Americans that a U.S. recession is the most likely outcome. Former New York Federal Reserve President William Dudley blames the Fed, saying the central bank’s rate hikes are inducing one. Chief Investment Officer for Wealth and Investment Management Darrell Cronk echoed their worries, saying Americans will withstand “a lot of pain” in the first half of 2023.

Ahed of the Herd via GoldSeek/Richard Mills
Rise of the Gold-Backed e-Yuan

The leading gold holders are some of the world’s most powerful nations, such as the US, Germany, Italy and France; they are keeping 60% of their foreign reserves as gold. This is a testament to the significance of gold in the central banking system.

Central banks bought 399 tonnes of gold in the third quarter, by far the most ever in a single quarterly period. According to the World Gold Council, they added another 31t of gold to official reserves in October, putting central bank holdings at their highest level since 1974.

Data compiled by the World Gold Council shows demand outstripping any annual amount in the past 55 years, with China and Russian being the largest accumulators of the precious metal in 2022 (Financial Times, Dec. 28, 2022).

The question I ask myself is, why do central banks keep adding to their massive hoards of gold bullion?

The easiest answer would be that last year the America and it’s Western alliance emasculated the Russian central bank (ROB) of its foreign currency reserves with little more than the stroke of a pen.

You can read the full story, here.

Fox Business/Kayla Bailey
Ex-Fed Chair Alan Greenspan sees a US recession as the ‘most likely outcome’

Former Federal Reserve Chair Alan Greenspan warned Americans that an economic recession is the “most likely outcome,” as the central bank continues to tighten monetary policy to fight inflation.

Former New York Federal Reserve President William Dudley reinforced Greenspan’s claims, saying that a U.S. recession is “likely” forthcoming because the Federal Reserve’s rate hikes are inducing one.

Chief Investment Officer for Wealth and Investment Management Darrell Cronk reacted, Wednesday, to the former Federal Reserve officials’ grim predictions for 2023, telling FOX Business’ “Making Money” guest host Lauren Simonetti he agrees that a recession is the “likely outcome” to the U.S.’s feeble economy.

Continue reading Craig’s full prediction, here.

Reuters via CNBC
Gold hits 8-month peak as bets of slower rate hikes dent dollar

Gold prices hit an eight-month high on Monday, as the dollar slipped on bets for slower U.S. interest rate hikes, while investors also cheered top bullion consumer China reopening its borders.

Spot gold rose 0.49% to $1,874.78 per ounce, its highest since May 9, 2022. U.S. gold futures gained 0.53% to $1,879.50.

The weaker dollar is likely the main factor lifting gold, and investors have also started slowly increasing their holdings in exchange-traded funds (ETFs), indicating positive sentiment in gold, UBS analyst Giovanni Staunovo said.

You can read the full article here, here.

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