Wall Street is worried about the building signs of stress in the markets and the financial system. Now experts are chiming in with their thoughts on where the rupture will come from. In case you missed it, one American politician is trying to bring back the gold standard. The Gold Standard Restoration Act looks to peg the U.S. dollar to gold to address the growing inflation threat, massive deficit spending, and instability within the U.S. monetary system. “The gold standard would protect against Washington’s irresponsible spending habits and the creation of money out of thin air,” Rep. Alex Mooney said.
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Wall Street is worried something is about to break in markets. Here’s where Jamie Dimon, Cathie Wood and 5 other top experts think the rupture will come.
Concerns that markets are near breaking point are gathering steam on Wall Street — and influential investors and experts like Jamie Dimon, Cathie Wood and Larry Summers have pointed to where a blow-up in the financial system could come.
Signs of stress in the system are piling up, from whipsaw moves in assets, to growing threats to economic stability, to runaway fears of distress at major banks like Credit Suisse. Political disarray in the UK has laid bare the risks in government bonds and pensions, usually seen as safe havens.
“We are seeing multiple standard deviation moves in things like the Swedish krona, in Treasurys, in oil, in silver, like every other day. These aren’t healthy moves,” Alpha Theory Advisors’ Benjamin Dunn told CNBC.
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High inflation darkens global economic outlook
Policy makers around the world see rising risks that the global economic slowdown could turn into a steeper slump due to strong inflation, high energy costs and climbing interest rates.
Another bad U.S. inflation report last week is likely to keep the Federal Reserve lifting interest rates at a rapid clip. That could help spur the U.S. dollar higher, further elevating the cost of imports and debt service for many countries. Key energy producers are crimping supply, feeding price pressures and slowing economic activity, particularly in Europe. New data from China showed consumer spending falling sharply, another sign of cooling economic growth.
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New bill introduced to bring the U.S. back to the gold standard to control gov’t spending and inflation
One American politician proposes bringing stability back to the U.S. economy and its currency by introducing a new gold standard.
Last week, U.S. House Representative Alex Mooney (R-WV) introduced the Gold Standard Restoration Act. The bill looks to peg the U.S. dollar to gold to address the growing inflation threat, massive deficit spending and instability within the U.S. monetary system.
“The gold standard would protect against Washington’s irresponsible spending habits and the creation of money out of thin air,” said Rep. Mooney in a statement.
“Prices would be shaped by economics rather than the instincts of bureaucrats. No longer would our economy be at the mercy of the Federal Reserve and reckless Washington spenders,” Mooney added.
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