If you’re skeptical about a digital version of U.S. currency becoming reality, we have news for you. Two weeks ago, a former Commodity Futures Trading Commission chairman announced that he’d formed a foundation to help create a digital dollar. He made the announcement at the World Economic Forum in Davos, Switzerland. Now, Fed board member Lael Brainard confirms they are “conducting research and experimentation” on bringing the digital dollar to life. Still skeptical a digital dollar is on the way? Is your retirement portfolio protected against the impact of this change? This week’s Touchpoint kicks off with more on the Federal Reserve’s forward movement toward a digital national currency.
- Speaking at Stanford University Wednesday, the Federal Reserve’s Lael Brainard seemed to confirm Fed efforts to create a digital dollar. Brainard is a Fed Board of Governors member. She said the central bank is “conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC [central bank digital currency].” Brainard added that “digitalization has the potential to deliver greater value and convenience at lower cost.” Cynics might suggest she left out a couple of other important potential features. For example, a digital dollar offers no way for users to defend themselves from the government tracking their spending. Another concern is that all currency would remain inside the banking system at all times. Visit Yahoo Finance for more on what Brainard had to say.
- Experts from the realms of business, economics and money management have been warning of an impending recession for some time. Many savers have chosen to disregard the dire predictions, however. They point to low unemployment and still-soaring markets for validation of their continued optimism. But what if the learned minds at the Massachusetts Institute of Technology sounded recession alarms? Would that prompt savers to take the threat more seriously? Collaborative research by MIT and State Street Associates concludes there’s a 70% chance we’ll sink into recession within six months. The researchers created a recession-indicating index. It’s based on specialized analysis of four pieces of bellwether economic data, including industrial production, non-farm payrolls, stock market return and slope of the yield curve. They examined data all the way back to 1916. According to the research, whenever the index has risen above 70%, the chances of a recession striking within the following six months also climbed to 70%. The index is now at 76%. For more, click over to CNBC.com.
- Concern continues to mount over just how great the eventual economic impact of the coronavirus may be. The death toll in mainland China is now over 900, and officials confirmed the first U.S. fatality. On Friday, fears renewed that the virus’s effects on the worldwide economy could be substantial. Global financial markets responded by dropping sharply. Market strategist Sven Henrich wrote about this in CNN Business. He said an “extended outbreak … could tip the current aging business cycle into a global recession.” His concern centers on the potential economic impact of the virus emerging from China, the world’s second-largest economy. Henrich noted the country reported its weakest annual growth in nearly 30 years. Knowing that, he said, “China cannot afford another major setback like the coronavirus.” Neither can the rest of the world, as markets are making all too clear.
- When it comes to keeping your retirement portfolio safe, you’d be hard-pressed to find a better safe haven asset than gold. Time and again, gold has demonstrated its safe-haven “mettle” by strengthening when both economic and noneconomic troubles threaten global stability. But one need not dig deep into history to find proof of gold’s ability to safeguard against many threats. Gold’s surges during recent economic challenges and crises also suggest it may be the most valuable of safe havens. Wondering how best to protect your retirement portfolio? Don’t miss the latest blog article from Augusta Precious Metals.
Exciting Ways to Protect Your Retirement Savings for the Duration
Are you ready for a digital dollar – an America where all national currency is digital? What about the multitude of other current threats to the dollar and market stability, including recession and global pandemic? Is your portfolio equipped to thwart the effects of the digital dollar and all those threats?
If not, it could be time to call Augusta Precious Metals at 800-700-1008 or visit Augustapreciousmetals.com. Contact Augusta and find out why there’s no substitute for physical gold and silver when it comes to asset-based portfolio protection. You’ll also find out if you’re eligible to attend the dynamic and highly informative Augusta Profit & Protect Web Conference. This live presentation is hosted by our lead economic analyst and Harvard Business School member Devlyn Steele. You’ll learn why the odds are stacked against American retirement savers ever reaching their lifelong financial goals. A digital dollar is just the beginning. You also will learn how you can put the odds of retirement success back on your side with simple precious metals strategies.