Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. In this column, JWR also covers hedges, derivatives, and various obscura. Most of these items are from JWR’s “tangibles heavy” contrarian perspective. Today, we look at Lebanon’s ongoing banking crisis. (See the Economy & Finance section.)
Precious Metals:
Wyoming Senate Votes to Hold, Invest, and Receive Tax Payments in Gold and Silver.
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Central Bank Gold Reserves Chart Second-Highest Increase Since 1950 In 2022.
Economy & Finance:
Reader Joe M. sent this: Lebanese banks close doors to customers to protest ruling. Here is a pericope:
“Lebanon’s battered commercial banks on Tuesday closed their doors to customers in protest of a recent court ruling that forced one of the country’s largest banks to pay out two of its depositors their trapped savings in cash.
The Association of Banks in Lebanon, which lobbies for the banks, released a statement calling the action an “open-ended strike” and criticized the court ruling, claiming it was detrimental to all depositors, because the banks cannot afford to pay out everyone else’s savings in full.
The demise of the banks is part of Lebanon’s economic meltdown and unprecedented financial crisis that erupted in 2019 following years of corruption and mismanagement by the country’s rulers. Over three quarters of Lebanon’s population of 6 million has been plunged into poverty, and the Lebanese pound lost about 97% of its value against the dollar.
In an effort to avoid folding amid the crisis, the banks imposed informal capital controls, restricting cash withdrawals from accounts. Also, people with accounts in dollars are allowed only to withdraw small sums in Lebanese pounds, at an exchange rate far lower than that of the black market or the exchange rate used for buying and selling most goods.
This prompted some overseas depositors, locked out of their savings, to launch lawsuits to pressure banks to release their savings in full. In Lebanon, others opted to break into banks and forcefully take their own money, which led the banks to go on strike in September 2022 and close down amid security fears.”
Joe’s Comments:
“This article highlights the serious risks of trusting fractional reserve lending banks. The banks will not / can not give the depositors their money. People weren’t pleased. Although it’s in Lebanon, it can (will?) happen anywhere. Indeed, you can hear the echoes of some of the article’s comments in our current inept government’s doings.”
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Apple suffers 1st quarterly sales decline in nearly four years.
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Over at Zero Hedge: US Consumers Hit A Brick Wall: December Credit Growth Craters As Interest Rates Soar.
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Biden to Quadruple Buyback Tax. A quote:
“Democrats imposed a 1% stock buyback tax on January 1. Now, just 37 days later, President Biden wants to quadruple the tax, the burden of which hits every American with a 401k, IRA, or union pension.”
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Reader C.B. sent us this: US tech giant Dell to cut 5% of its global workforce.
Commodities:
Reader D.S.V. suggested this, at WND: U.S. corn farmers sound alarm: Most catastrophic problem ever faced headed for crop.
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Oil Break Below $80 May Test OPEC’s Resolve.
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Aluminum Price Outlook Remains Bearish.
Inflation Watch:
Fed’s Waller sees no sign of ‘quick’ decline in inflation.
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One symptom of the high cost of living… A lot of this can be attributed to “gas and groceries” purchases: U.S. credit card debt jumps 18.5% and hits a record $930.6 billion.
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Gas prices have jumped for five straight weeks and are ‘unlikely’ to drop soon, experts say.
Forex & Cryptos:
Currency Volatility: Will a Strong US Dollar Return?
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Digesting the Powell and Biden Speeches and Other Central Bank Decisions.
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UK Is “Likely” To Need Digital Currency, Says BoE & Treasury.
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Bitcoin in Nigeria is 60% more expensive, but there’s a catch.
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Visa reportedly testing USDC settlements on Ethereum.
Tangibles Investing:
Economist who called 2008 housing crash predicts another 15% drop in home prices.
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Provisos:
SurvivalBlog and its Editors are not paid investment 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. Thanks!