Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at the impact of rising interest rates on Federal debt obligations — the current national debt and long-term obligations.
Precious Metals:
Just as I predicted, the platinum-to-gold ratio is narrowing. Platinum just bumped up over $1,000 per Troy ounce. If you haven’t done so already, you should consider doing some ratio trading out of gold and into platinum. I have concluded that the ratio is headed back below 1-to-1. That is the historic norm for platinum, both in good economic times, and in recessions. – JWR
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Avi Gilburt: Sentiment Speaks: Have We Begun A 20-Year Bear Market Already?
Economy & Finance:
Most folks look at rising interest rates, and simply opine on how that will affect the number of people who qualify for home loans. But much more importantly, and not widely publicized is this: How much the Federal government is paying in interest on its debt obligations. This FRED chart says it all. See that “hockey stick” spike at the right end of the chart? That simply isn’t sustainable. Within two years, Uncle Sam will be shelling out more on interest payments each year than they do the entire national defense budget. Ponder that. – JWR
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H.L. sent us this: MMT Alert! US Debt At $10.7 Trillion In Q4 2008, Now At $30.6 Trillion, +186% In 14 Years (M2 Money UP +162.5%) US Unfunded Liabilities At $172.4 TRILLION!
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A Wolf Street video: “The Math No Longer Works”: Sky-High Mortgage Rates Pop Housing Bubble.
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H.L. sent this: Six Myths About Student Loan “Forgiveness”.
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The S&P 500 saw a big rally on Thursday, rising 5.5%. But it is still down 17% for the year-to-date.
Commodities:
US NatGas Futures Jump As Frigid Weather Set To Swoop Across Country.
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OilPrice News had this: IEA Chief: OPEC+ May Have To Rethink Its Decision To Cut Oil Production.
Inflation Watch:
Ooph! Banks Tightening Lending Standards As M2 Money Collapses.
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Over at Mises Wire: Inflation in Pakistan: Follow the Money.
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Inflation Huge Miss: Core CPI Slides From 40-Year-High, Real Wages Tumble For 19th Straight Month.
Forex & Cryptos:
Dollar Is Down, But Not Out, as Fed Prepares for More Rate Hikes.
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Up, up, up, all around the world: Another Central Bank Rate Hike in Serbia.
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At Zero Hedge: After FTX’s Collapse, Expect Crypto Armageddon To Continue.
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Reader C.B. sent this, with the comment: “So much for not being able to track crypto transactions”: Department of Justice reveals massive $3.36B crypto seizure.
Provisos:
SurvivalBlog and its Editors are not paid investing counselors or advisers. Please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail or via our Contact form.) These are often especially relevant because they come from folks who closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News items from local news outlets that are missed by the news wire services are especially appreciated. And it need not be only about commodities and precious metals. Thanks!