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The price of gold slid in the last few days as a stronger-than-expected jobs report made a Fed interest rate cut less certain. Nevertheless, the yellow metal remains around $1,400 an ounce, and many experts stand firm in their predictions that gold could soar to far greater heights from here. The reason for the continued optimism is that even if a rate cut is not forthcoming it’s illogical to dismiss the wealth of data pointing to a significant economic slowdown in the near term. This could even include the possibility of a global recession. Former U.S. congressman Ron Paul has joined the chorus of those sounding the alarm that a financial crisis is closing in fast. His most recent thoughts on the subject begin our look this week at economic news of interest.
- In a recent Eurasia Review op-ed, former U.S. congressman Ron Paul pointedly accuses both Washington and the media of purposely ignoring a fast-approaching financial crisis that has the nation squarely in its sights. Paul cites a variety of dire threats to the nation’s stability, including the expectation that Social Security trust funds will run out of money by 2035. He also draws our attention to the massive $50-billion-plus deficit of the Pension Benefit Guaranty Corporation (PBGC), the federal agency that oversees federal bailouts of bankrupt pension plans. Paul says effectively that the only hope for the country now is for average Americans to “spread the word” on the seriousness of the problems at hand, because “the media and most politicians refuse to discuss” it.
- The housing market is growing weaker, and there’s greater confidence in that assessment with recent confirmation it’s no longer only select “bellwether” regions of the country that are slumping. Housing is in trouble everywhere, says Federal Reserve economist William R. Emmons. In his recent report on the St. Louis Fed’s district website, he said “data on single-family home sales through May 2019 confirm that housing markets in all regions of the country are weakening.” Emmons examined a variety of metrics in his analysis, including single-family home sales, and has determined that current housing activity and trends are “consistent with the possibility of a late 2019 or early 2020 recession.” For additional details, refer to the informative article at CNBC.com.
- If you think you’ve been hearing at least a little more in recent years about a possible return to the gold standard, you’re not wrong. Renewed gold-standard chatter began in earnest when President Trump said during the 2016 presidential campaign that “bringing back the gold standard would be very hard to do – but boy, would it be wonderful.” And since then, the president has put his money where his mouth is to some degree by promoting a string of “gold bugs” to fill open seats on the Federal Reserve’s Board of Governors. In fact, the latest nominee, economist Judy Shelton, may be the most enthusiastic of the group in her affection for gold. Just last year, Shelton called for a “new Bretton Woods conference” that would include serious consideration of a return to the gold standard, something she has said would “make America great again by making America’s money great again.” For a detailed look at how the “quiet campaign to reinstate the gold standard is getting louder,” refer to this eye-opening Quartz article.
- What would you think if someone told you the last 50 years of apparent prosperity in the United States wasn’t real? At first blush, it would be difficult to reconcile such a negative declaration with what certainly looks like an economically energetic nation. Dig below the surface, however, and it might just turn out there’s something to the idea the thriving America we see has bypassed a large number of her citizens. In fact, one of today’s most popular alt-financial bloggers says America has been gripped by a “concealed crisis of decline” for decades. For more insight, and to learn what steps you can take to offset the effects of the hidden crisis, read Augusta’s latest blog article here.
As noted at the top of this piece, the price of gold dropped a bit in the wake of slightly lowered expectations of an interest rate cut, the result of a positive bump in the jobs report and other positive economic news. But there are other factors suggesting we’re an economy that’s only growing weaker. In other words, whether or not a rate cut is imminent, the underlying softness of the domestic economy and the global economy is expected to persist for the foreseeable future. As a potentially sputtering economic engine threatens to stall portfolio growth, some will look to gold as a way to continue moving forward. Call Augusta Precious Metals at 800-700-1008 or visit Augustapreciousmetals.com.