Paulson & Co. founder John A. Paulson says that investors are better off investing in gold than dollars right now. “There has been a significant increase in demand from central banks to replace dollars with gold, and we’re just at the beginning of that trend,” he explained. “Gold will go up and the dollar will go down, so you’d be better off keeping your investment reserves in gold at this point.” Meanwhile, billionaire real estate investor Sam Zell believes that we’re now paying for the Fed’s inflation mistakes. “The Fed screwed up by allowing zero interest rates to go on for too long. I think we’re just beginning to pay the price for that. When you spread out free money for years at a time, you create significant drag…And I just don’t see how the US can avoid an economic slowdown as that whole process comes to an end.”
Kitco News/Anna Golubova
Billionaire John Paulson: central banks are replacing dollars with gold, you are better off investing in precious metal than USD
Gold will increase in value while the U.S. dollar drops, said Paulson & Co. founder John A. Paulson. And that is the hedge fund manager’s outlook for this year, the next three years, and the next five years.
“There has been a significant increase in demand from central banks to replace dollars with gold, and we’re just at the beginning of that trend. Gold will go up and the dollar will go down, so you’d be better off keeping your investment reserves in gold at this point,” Paulson told journalist Alain Elkann in an interview.
With gold, Paulson sees the potential for appreciation and recommends playing the long game. He highlighted the de-dollarization trend and noted that with sticky inflation fears and new geopolitical tensions, gold is attracting new investors.
Continue reading, here.
Business Insider/Zinya Salfiti
The Fed ‘screwed up’ by letting zero interest rates go on for too long, billionaire investor Sam Zell says
The Federal Reserve’s mistake when it came to fighting record-high inflation was not acting fast enough and letting zero interest rates linger for far too long, according to real estate investor Sam Zell.
The billionaire told CNBC he’s not on board with the apparent market rethink on recession, that the US economy could avoid taking damage from the central bank’s aggressive interest-rate hikes.
“The Fed screwed up by allowing zero interest rates to go on for too long. I think we’re just beginning to pay the price for that,” Zell said in the interview Wednesday.
You can read the full article, here.
Fox Business/Louis Casiano
Congressional Budget Office says US could ‘run out of cash’ by summer if Congress doesn’t act
The U.S. will default on its debt sometime this summer if Congress doesn’t act and raise the $31.4 trillion debt limit, the Congressional Budget Office projected Wednesday.
“We project that, if the debt limit remains unchanged, the government’s ability to borrow using extraordinary measures will be exhausted between July and September 2023,” CBO director Phillip Swagel said Wednesday in a statement.
A report from the CBO released Wednesday further stated, “Currently, the statutory limit on the issuance of new federal debt is set at $31.4 trillion. On January 19, 2023, debt reached that limit, and the Treasury announced a ‘debt issuance suspension period,’ during which, under current law, it can take well-established ‘extraordinary measures’ to borrow additional funds without breaching the debt ceiling.”
You can read the full article, here.
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