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World Economic Forum 2024 Global Economic Outlook: What Are The Chief Economists Predicting For Our Future?

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World Economic Forum 2024 Global Economic Outlook: What Are The Chief Economists Predicting For Our Future?

2024 has been a year of elections as many countries worldwide have been gearing up for the polls. Nevertheless, as the campaigns and debates gain momentum, it's essential to remember that the popular vote has never chosen the individuals who wield the most significant impact on our daily lives. The World Economic Forum (WEF) is a prime example of this phenomenon. The WEF's ‘experts’ have been diligently crafting their newest economic prediction, which will inevitably have far-reaching implications that will affect everyone, regardless of our individual opinions.

This article analyzes the latest report from the WEF's chief economists, who express cautious optimism regarding the global economy's future. Despite their hopeful outlook, they anticipate various challenges ahead. However, a critical flaw in their analysis is the failure to recognize that the policies they promote often have adverse consequences for the general population. Ultimately, the WEF and its partners have overlooked a crucial aspect of the larger issue: their own role as a contributing factor to the problem.


Source: World Economic Forum

The Economists’ View, Full Of Surprises Or Not

This article summarizes the "Chief Economists Outlook: May 2024" paper authored by numerous leading economists worldwide. This publication, updated quarterly, presents the collective views of these experts. The document commences with a brief overview, indicating that most economists anticipate a more robust global economy than the previous edition. 

For perspective, in January, about 56% of economists thought the global economy would be weak. However, the latest data shows that only 17% share this belief. Not surprisingly, almost 100% of economists believe that geopolitics and politics will cause volatility. The elites appear to be particularly apprehensive about the possibility of a second Trump presidency.

It’s also not surprising that economists' prevailing view is that the US economy will maintain its strength while the EU's economy will weaken further. Surprisingly, they forecast that certain central banks, such as the European Central Bank, will cut interest rates, whereas others, like the Federal Reserve, will hold rates steady. 

It’s also surprising that economists predict a global economic recovery in the next few years. It’s surprising because there’s a strong correlation between GDP and energy production, and many countries are not pursuing the best energy policies. The WEF is partially responsible for this situation. 

According to the WEF's economic experts, these subpar energy policies are expected to boost economic growth miraculously. Ironically, their research reveals the actual sentiment on the ground, where numerous countries are skeptical about these policies' ability to stimulate economic growth. It's no surprise: they're unlikely to deliver.

Politics And Geopolitics

The paper's initial section reveals a prevailing consensus among WEF economists as “a mood of cautious optimism.” While many experts anticipate a thriving economy, the outlook is predicated on the assumption that political and geopolitical factors will not pose a significant threat to economic growth. The Middle East and Eastern Europe are currently the most pressing concerns regarding global hotspots. As we've witnessed, any intensification of the conflict between Israel and Hamas, along with its proxies, could have an even greater impact on oil prices.

The widespread use of oil in various industries would trigger a broad-based price surge, prompting central banks to maintain or increase interest rates to manage supply-side inflation effectively. The practical effect would make existing debts more costly and borrowing more challenging, ultimately leading to a slowdown in economic activity. It's worth noting that the economy already relies heavily on debt.

In Eastern Europe, the increasing tension is not primarily driven by economic factors as it is unlikely to cause additional disturbances to supply chains and similar aspects. Instead, the primary concern is that the situation could destabilize the region by casting doubt on the legitimacy of its institutions, both in the eyes of Europeans and other international actors. This is particularly relevant in light of the EU's consideration of releasing $300 billion in assets it seized from Russia to Ukraine.

It's worth noting that this move could have significant implications for the global financial system, potentially leading other countries to reassess their investments in Europe and European assets. To mitigate this risk, the EU has only released the profits generated by the seized assets rather than the assets themselves. However, the US is reportedly urging the EU to utilize the underlying assets to support Ukraine, and the EU is understandably cautious, given the potential for negative consequences.

In a related development, the US has been urging the EU to impose stricter measures on China. Taiwan is another potential hotspot that could trigger market instability. Notably, Taiwan is responsible for manufacturing most of the world's microchips, and any disruptions to its production or trade could have catastrophic consequences. It's intriguing that China has been escalating its hostilities towards Taiwan, suggesting it may not depend on Taiwan's unique microchip production capabilities.

Geopolitical experts speculate that China may have gained the capability to produce advanced chips independently, raising concerns about potential implications for Taiwan. Such action doesn't necessarily have to take the form of a full-scale invasion; a trade blockade would be sufficient to cause economic disruption. The fact that the US and EU are hastening to establish their own chip-making facilities suggests that such disruptions could be unavoidable.

On the political stage, a surge in nationalist parties has been unfolding globally, a trend that has been anticipated for some time. During difficult times, individuals often point fingers at the wealthy and immigrants. This sentiment seems true across various nations and challenges the globalist-focused economy because nationalist parties prioritize the interests of their citizens, for better or for worse. As highlighted in this article, globalism is failing, which will be painful in the short term. It will initially cause inflation to increase while asset prices remain high; wages will eventually follow. 

The economists surveyed by the WEF anticipate that inflation will persist, and they attribute this to housing and energy rather than nationalism. Specifically, housing prices have increased due to globalist policies restricting construction and accelerating immigration, while globalist policies concerning energy have led to increased expenses across the board. According to the WEF's experts, prices may surge by 30% if tensions in the Middle East intensify.

They also note that a significant portion of global trade, 20-40%, occurs between geopolitically unaligned countries, which poses a challenge for European and Asian economies. Hopefully, the WEF’s economists' forecast regarding the Middle East isn't an accurate prophecy.


Source: World Economic Forum

Unpredictability, Complexity, ESG

In the document's second section, economists from the WEF expand on the “challenging Global landscape.”  They highlight how international conflicts, domestic strains, technology, and high interest rates have led to an unpredictable environment for everyone. For those unaware, investors generally dislike uncertainty more than any other factor. Investors don't mind a world war so long as it's certain because they can price it in and plan. 

So far, the impact of this unpredictability has been relatively subdued, likely due to investors' assumption that the money printer will be turned back on. However, from the WEF and its economists' standpoint, the problem is not unpredictability; it’s complexity. The above factors contribute to this complexity, posing challenges for the WEF central planners' decision-making. In reality, they shouldn't be making these decisions in the first place.

WEF economists are concerned about the growing divergence between the data reported by governments and the actual experiences of individuals. In their own words, they quote, “The emergence of divergence between modestly encouraging economic data and stubbornly gloomy public sentiment.”  This disparity has been described as a "challenge" by the WEF's economists, who have refrained from advocating censorship to address the issue in the name of misinformation, disinformation, etc. If this challenge continues, though, don't be surprised to see such censorship. 

Adding fuel to the fire, the WEF's economic experts appear oblivious to the underlying reasons behind this growing disparity. They attribute it to simply being a matter of inequality and uncertainty, which barely begins to address the issue. It's becoming increasingly clear to many that the system is unfairly skewed in favor of the WEF itself. A prime example of this bias is a section in the report outlining the factors that will supposedly influence business decisions, as the WEF's economists dictated. This section of the paper outlines the factors affecting business decisions as perceived by the WEF's economists, which provides a telling example.

To clarify, businesses were not directly questioned; instead, a panel of academic experts was consulted to provide insights into businesses' perspectives. The responses were unsurprisingly disconnected from reality. For instance, WEF economists believe that typical businesses consider geopolitics in their day-to-day decision-making. In fact, most companies focus more on inflation and labor issues rather than geopolitics. 

Interestingly, the study's authors rank labor as one of the least significant factors for businesses, which contradicts many businesses' actual priorities. This disconnect may explain why ordinary individuals are pushing back on the policies of those in power.

It's intriguing that the WEF's economists discovered that corporations are increasingly issuing as many bonds as possible. They believe these companies are apprehensive about what lies ahead, which suggests that they are concerned about the future and are borrowing heavily to prepare for future challenges.

In a more optimistic light, the WEF's research revealed that a majority—75%—of top business leaders harbor doubts about ESG principles, while nearly a quarter have rejected them altogether. This finding is noteworthy, especially considering that ESG has gained widespread traction in recent years, largely thanks to the efforts of influential asset managers such as BlackRock.

The WEF's economists then pivoted to another pressing issue: fiscal and monetary policy. Fiscal policy encompasses government spending and taxation, while monetary policy involves central banks and interest rates. As previously mentioned, the WEF's economists predict that interest rates will decrease in the EU while remaining relatively stable in the US and other regions.

Previously, central banks worldwide had aligned their monetary policies to mirror the actions of the Fed. This was done to avoid potential repercussions such as Japan's significant yen depreciation when central banks implemented divergent interest rate strategies. The European Central Bank faces a similar risk with the euro, as it may not be sustainable for the ECB to maintain elevated interest rates for an extended period. Oddly enough, economists at the WEF anticipate a trend towards more constrained fiscal policies, as governments apart from the US seem restricted in their ability to increase spending. 

The projection for Europe is particularly surprising, considering the EU's strong commitment to funding ESG-related initiatives. What's most peculiar is that the paper's authors are puzzled by the expectation that the EU will reduce its spending. The discrepancy between monetary and fiscal policies in the Eurozone is believed to be a contributing factor. If not managed carefully, this could lead to the euro's collapse. That's why the ECB hastened the rollout of a digital euro to oversee the European economy.


Source: World Economic Forum

WEF Predictions, Policies  

In the third section of the report, the WEF economists offer their projections for the future of the global economy. These predictions focus on the long term, specifically the next five years, which makes sense as it aligns with the WEF's goals it’s trying to achieve by 2030. Notably, the WEF's economists observe that global growth has slowed since the turn of the century.

They are significantly concerned about the possibility of a further deterioration in this global slowdown. This anxiety stems from the fact that almost 25% of the economists at the WEF think that the world will not be able to reach its pre-pandemic annual growth rate of 4%. This pessimistic outlook could be driven by varying perspectives on how much technologies such as AI can enhance productivity, with half of them expressing doubt about its significant impact.

The realization is striking, as the WEF has been optimistic about technologies such as AI due to their implicit promise to replace the populace and preserve the world's marvels exclusively for the privileged few. They still believe AI will drive growth, but not to the extent they initially anticipated.

A notable observation is the disparate way the WEF's economists perceive the impact of advancements like AI on developed and developing nations. Their perspective suggests that developed countries will reap the most significant benefits. In contrast, developing countries will only experience limited and incremental improvements as if this disparity was intentionally designed into the system.


Source: IPSOS

In 2022, an alarming headline emerged stating that, based on a survey conducted by the WEF, individuals in developing nations have a strong affinity for the metaverse. This assertion appears counterintuitive, suggesting a concerning implication that the WEF may be aiming to keep these countries in their place. This sentiment is also reflected in the WEF economists' paper.

Consider the following quote: 

“There was a lack of consensus on the role of other industries, including mining, supply chain and transport services, manufacturing, fossil fuel energy and materials, retail and wholesale of consumer goods, and financial professional and real estate services in global growth.” 

Consider that mining, manufacturing, and fossil fuel industries are the foundation for many developing nations. Notably, WEF economists hold differing views regarding these industries, even though they are essential for the advancement of developed countries. After all, artificial intelligence relies on hardware.

The paper's concluding section focuses on the crucial aspects of policy priorities that will foster economic growth in the next five years. The WEF economists emphasize the significance of these policies, which are likely to be adopted by most countries, given the significant influence the WEF wields over government decision-making processes.

It's a bitter irony that the WEF's economists claim that the global economy could have grown by an additional 50% if capital had been allocated more efficiently in recent years. What's striking is that they seem oblivious to the fact that their own policies have created an environment that encourages this misallocation of resources. This oversight raises severe concerns about the kind of misguided policies we can expect from the WEF and its political cronies. The nature of these policies will likely vary depending on whether they are aimed at developing or developed economies.

Developed countries will prioritize education, infrastructure, improved financial access, and institutional development. While this may seem positive in theory, in reality, education can lead to indoctrination, infrastructure can result in dystopian technologies such as digital IDs, access to finance can mean giving control of your money to a single entity like Black Rock, and more institutions can translate to more unaccountable and unelected organizations influencing domestic affairs.

The economic policies advocated by the WEF economists are similar for developing countries, with a minor variation: innovation. While innovation is a crucial factor in developed countries, it supposedly has less impact in developing countries. At first glance, this might seem like an anomaly, but it actually reveals a more profound truth.

The economists at the WEF emphasize that implementing trade protectionism would have adverse effects regardless of a country's economic situation. In other words, don't you dare put the well-being of your population above our profits. Observing the outcomes for countries that choose this approach will be intriguing.

Economists' Trustworthiness: A Call for Critical Thinking

It is necessary to acknowledge that economists may not always tell the truth when delivering information to different audiences. Therefore, it is wise to approach the content of this paper with caution, as economists are known to provide misleading information to the general public. Nevertheless, the statements made by the WEF economists hold some truth. The global landscape is facing growing instability due to geopolitical and political challenges. However, the underlying concern goes beyond this surface-level analysis, pointing to the inherent instability of centralization.

Visualize the process of stacking coins one on top of the other. Initially, the stack is steady, but with each additional coin, the stability decreases. Adding supports can temporarily enhance stability, but the more coins you stack, the greater the instability, leading to an inevitable collapse. This illustrates that instability is a fundamental characteristic of centralization. It's easy to overlook that centralized systems, such as those developed by organizations like the World Economic Forum, have been in development for decades.

As their rigid structures have grown increasingly fragile, those in power have tightened their grip, but the populace has reached their breaking point. The positive development is that a growing number of people recognize that the challenges they encounter are a direct result of the systems established by influential organizations like the WEF rather than being caused by scapegoats like immigrants, the wealthy, or politicians themselves. The downside is that the WEF is aware of this growing awareness and is unlikely to take it lying down.

Censorship has been on the rise, and although there are still some areas where individuals can express themselves freely and gather peacefully, these spaces are being threatened from multiple directions. Legal action, regulations, market manipulation, and infiltration by WEF-affiliated entities applying the usual totalitarian tactics contribute to this trend. The irony is that as these tactics become more brazen, they risk fueling a growing distrust of institutions, potentially leading to a breakdown in social order and widespread chaos.

Let's not be naive; the World Economic Forum would seize this opportunity, and some believe it's actively working to bring it about. The WEF has explicitly advocated for a global reset since the pandemic outbreak. Although its efforts have been unsuccessful so far, it's unlikely to give up. The only way to achieve a reset is to dismantle the current system, and we may be inadvertently playing into the hands of those planning a deliberate collapse.

Speculation aside, the answer to the current problem is establishing a new framework composed of decentralized organizations crafted for and by the average person. This is the vision that the cryptocurrency sector strives to realize, and it's why the World Economic Forum has been attempting to insert itself into the process. Thankfully, those committed to creating decentralized platforms and institutions are not the type that would ever collaborate with the WEF, no matter the reward. Countless individuals are dedicating their time and effort to this endeavor, and if you wish to effect genuine change, consider joining them.

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

Tim Moseley

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Cryptos stocks and gold see gains as markets respond positively to increased odds of Trump presidency

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Cryptos, stocks, and gold see gains as markets respond positively to increased odds of Trump presidency

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

Financial markets saw a positive start to the week as the attempted assassination of former President and current Republican Presidential nominee Donald Trump dominated headlines, overshadowing the return of earnings season, which included reports that Goldman Sachs recorded a profit surge of 150% amid investment banking strength.

“The likelihood of Donald Trump regaining the presidency reached a record high on Saturday, according to data from Polymarket, following an incident at a Pennsylvania rally,” said analysts at Secure Digital Markets. “Traders on the platform now assign a 70% probability to his success in the upcoming November election.”

“While the incident involving Trump, the Republican presidential candidate, has the potential to heighten political tensions in the U.S., investors speculated it could boost Trump's and the Republican Party's standing in the polls ahead of the November election,” they said. “Additionally, investors are focusing on the upcoming second-quarter earnings reports, which could serve as a new catalyst for a market that has reached record highs this year.”

Monday’s earnings reports provided an additional boost to stocks as the report from Goldman Sachs improved sentiment, with investors taking the growth in profits as a sign that Wall Street is recovering from a two-year drought.

BlackRock, the world's largest asset manager, reported that their assets under management climbed to a record of $10.6 trillion in the second quarter, which also boosted sentiment. Notably, BlackRock is currently the largest public holder of BTC through its iShares Bitcoin Trust ETF (IBIT), which now holds over 300,000 BTC.

At the closing bell, the S&P, Dow, and Nasdaq all finished in the green, up 0.28%, 0.53%, and 0.40%, respectively.

“The cryptocurrency market experienced a significant rally on Monday, with BTC surging by up to 5% to exceed $63,000,” analysts at Secure Digital Markets said. “This rise comes amidst growing optimism for the digital asset sector under a potential Trump presidency. Since hitting a low on July 5th, BTC has increased by over 17% in just 10 days, returning to positive territory.”

BTC/USD Chart by TradingView

“Although Trump has yet to outline specific plans for cryptocurrency regulation, he is now perceived as a supporter of the sector despite his previous skepticism,” the analysts said. “Trump is scheduled to speak at a major annual Bitcoin conference later this month.”

According to Sam Callahan, senior analyst at Swan Bitcoin, the market currently sees Trump as a more positive influence on prices than Biden.

“More broadly, asset prices seem to be viewing a Trump victory as a favorable outcome due to his policy promises around tax cuts and less regulation,” he said. “When you couple this with the Republican Party's recent pro-Bitcoin policy stance, it's easy to understand why Bitcoin is reacting positively to the increased likelihood of a second Trump presidency.”

“One potential catalyst that I will be keeping a close eye on is Trump's upcoming speech at the Bitcoin Conference,” Callahan said. “If Trump speaks about Bitcoin's potential as a treasury reserve asset, this could be a milestone moment for Bitcoin adoption in the U.S.”

“Trump has consistently been seen as the pro-crypto candidate,” said Pat Doyle, Blockchain Researcher at Amberdata. “The market's response to the recent failed assassination attempt underscores strong investor confidence in Trump's prospects for winning the upcoming election. Polymarket currently places Trump's odds of victory at 71%, indicating significant market support for his candidacy. This positive sentiment is reflected in Bitcoin's price movement.”

“Additionally, a Trump victory would likely result in the replacement of key figures such as SEC Chair Gary Gensler, along with other regulators who have taken a stringent stance against cryptocurrencies,” Doyle noted. “This potential shift in regulatory approach could foster a more favorable environment for the crypto market.”

Another factor at play is the growing chorus of Democrats calling for Biden to step down, which Doyle said would have a significant impact on the crypto market.

“Looking ahead, the primary election-related catalyst that could significantly impact the market is the potential resignation of President Biden,” he said. “Such a development could be perceived positively by crypto investors, anticipating a shift in regulatory dynamics. Other scheduled events, including national conventions and presidential debates, will likely have a more subdued impact on the market.”

While the recent events surrounding Trump have been cited as the reason for the positive move in crypto on Monday, renowned trader Peter Brandt noted that the Bitcoin price action has demonstrated its “often-repeated Hump…Slump…Bump…Dump…Pump chart construction” – meaning the July 5 pullback to $53,500 was really just a bear trap, and Bitcoin has been recovering since then.

At the time of writing, Bitcoin trades at $63,785, an increase of 5.7% on the 24-hour chart.

Sea of green in the altcoin market

It was a breakout day for the altcoin market as all but 5 tokens in the top 200 recorded gains.

Daily cryptocurrency market performance. Source: Coin360

SATS (1000SATS) was the biggest gainer with an increase of 25.4%, followed by an increase of 24.8% for Worldcoin (WLD), and a climb of 22.2% for Mog Coin (MOG). XDC Network led the losers, falling 4.4%, while Zcash (XEC) lost 2.4%, and Stellar (XLM) declined by 2%.

The overall cryptocurrency market cap now stands at $2.33 trillion, and Bitcoin’s dominance rate is 53.7%.

Kitco Media

Jordan Finneseth

Time to Buy Gold and Silver

Tim Moseley

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Trump Safe After Apparent Shooting Incident At Pennsylvania Rally

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Trump Safe After Apparent Shooting Incident At Pennsylvania Rally

Former President Donald Trump is confirmed safe after an apparent shooting at his campaign rally in Butler, Pennsylvania.

Trump was addressing the crowd when the sound of gunshots interrupted the event.

Secret Service agents quickly secured Trump, who had blood near his right ear.

Trump was escorted off the stage and is being checked at a local medical facility.

The U.S. Secret Service has declared the incident an "active Secret Service investigation.

Trump Safe After Apparent Shooting Incident At Pennsylvania Rally teaser image

Former President Donald Trump is "fine" following an apparent shooting at his campaign rally in Butler, Pennsylvania, on Saturday, his campaign confirmed.

"President Trump thanks law enforcement and first responders for their quick action during this heinous act," campaign spokesman Steven Cheung said in a statement. "He is fine and is being checked out at a local medical facility. More details will follow."

According to the AP, a shooter and an attendee were killed.

Trump, the presumptive Republican nominee for the upcoming election, was addressing the crowd about border crossing numbers when the sound of gunshots disrupted the rally. Trump reached for his right ear, where blood appeared to be visible, before dropping behind the lectern. Secret Service agents quickly swarmed him as attendees screamed, and Trump was escorted off the stage.

The U.S. Secret Service stated that the incident is now an "active Secret Service investigation" and confirmed that "the former president is safe."

Footage from the event showed Trump, with blood near his right ear, fist-pumping at the crowd before leaving the stage. The rally, attended by several thousand people, was immediately declared a crime scene by local law enforcement, who began vacating the fairgrounds shortly after.

According to the White House, President Joe Biden, who was in Delaware at the time, has been briefed on the incident.

"I’m grateful to hear that he’s safe and doing well," said President Biden on a post on X. "I’m praying for him and his family and for all those who were at the rally, as we await further information. Jill and I are grateful to the Secret Service for getting him to safety. There’s no place for this kind of violence in America. We must unite as one nation to condemn it."

Former President Barak Obama wished Trump a quick recovery.

"There is absolutely no place for political violence in our democracy. Although we don’t yet know exactly what happened, we should all be relieved that former President Trump wasn’t seriously hurt, and use this moment to recommit ourselves to civility and respect in our politics. Michelle and I are wishing him a quick recovery," said Obama in a statement on X.

Details about the shooter and the motive remain unclear as the investigation continues.

Kitco Media

Neils Christensen

Tim Moseley

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Discover the Ultimate Guide to Skyrocketing Traffic to Your Website Without Spending a Dime

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Discover the Ultimate Guide to Skyrocketing Traffic to Your Website

Ah, the quest for website traffic—the digital equivalent of summoning a crowd to your virtual doorstep! 🚀 Let’s dive into some strategies that won’t cost you a dime but can make your visitor count skyrocket. Whether you’re a seasoned webmaster or just dipping your toes into the vast ocean of the internet, these tactics can help you attract more eyeballs to your site

Discover the Ultimate Guide to Skyrocketing Traffic to Your Website Without Spending a Dime!

Discover the Ultimate Guide to Skyrocketing Traffic to Your Website

THE “UPSIDE DOWN” GUEST POST:

Guest posting is indeed similar to crashing a cool party, where you have the opportunity to make a memorable impression. However, the challenge lies in the fact that many attendees often overlook the author bio section, missing out on the chance to connect with the guest writer on a more personal level. It's a situation that can feel disheartening for writers who invest time and effort into creating valuable content. One way to shift the attention back to the author is to strategically integrate helpful resource sections throughout the post.

These sections not only provide additional value to the readers but also offer a platform to link back to relevant content, including the author's own work. By doing so, guest writers can effectively guide a portion of the event's traffic towards their own platform, ultimately expanding their reach and influence. It's like adding an extra layer of excitement to the party, creating a buzz that resonates beyond the initial gathering. With this approach, the guest post becomes a mutually beneficial exchange, enriching the experience for both the host and the visitor.

OVERHAUL & UPGRADE OLD BLOG POSTS:

Dust off those ancient blog posts. Find one that’s outdated (like a flip phone in a smartphone world). Update it, add fresh screenshots, sprinkle in new strategies, and eliminate the old fluff. Then, hit the “publish” button. Boom! Traffic boost. 🚀 You can also consider revisiting the content to incorporate relevant external links, embed engaging multimedia, and optimize it for search engines. Moreover, crafting a compelling new introduction and conclusion can further enhance the post’s appeal. A comprehensive update like this not only revitalizes the post but also reinforces your authority in the subject matter, enticing both new and returning visitors.

USE “CLICK TO TWEET” LINKS:

Want your content to spread like wildfire on social media? Create tweet-worthy snippets within your articles to captivate your audience with compelling sound bites. Head over to ClickToTweet.com, craft a tweet that encapsulates the essence of your message, and get a special link that encourages sharing. When readers click, they’ll effortlessly share your brilliance with their followers, helping your content reach a wider audience. It's as easy as pie! 🐦

AFFILIATE PROGRAMS:

Start an affiliate program and take advantage of the power of word-of-mouth marketing. By incentivizing others to promote your products or services, you can tap into a vast network of potential customers. As a result, your reach expands exponentially, and you benefit from increased brand visibility. Additionally, the affiliate promoters gain the opportunity to earn commissions for their efforts, creating a mutually beneficial arrangement. This collaborative approach fosters a sense of partnership and community, ultimately contributing to the success of all parties involved. 🤝

Discover the Ultimate Guide to Skyrocketing Traffic to Your Website Without Spending a Dime!

Discover the Ultimate Guide to Skyrocketing Traffic to Your Website

BUILD AN OPT-IN LIST:

Collecting email addresses from interested folks is a crucial part of building a strong community around your content. Once you have their contact information, you can nurture them with valuable and relevant content, keeping them engaged and interested in what you have to offer. As you continue to provide them with useful information, you can establish a strong and trusting relationship with your audience. Then, when you have something exciting to share, such as a new blog post, event, or product launch, you can easily reach out to them and keep them informed. This direct line of communication allows you to keep your audience in the loop and make sure they don't miss out on anything important. Leveraging email marketing effectively can be a powerful tool in growing and maintaining your online presence. 📧

LEVERAGE SOCIAL MEDIA:

Be a social butterfly and watch your content soar across platforms like Facebook, Twitter, and LinkedIn. By sharing your content across multiple platforms, you can reach a wider audience and increase engagement. Social media is a powerful tool for expanding your reach and connecting with people who share your interests. Embrace the opportunity to spread the love and make meaningful connections with your audience. So, don't hesitate to let your content take flight and reach new heights! 🦋

ANSWER QUESTIONS ON QUORA AND REDDIT:

People love answers, and there are countless platforms where you can share your expertise and provide valuable insights. Becoming a helpful guru on Quora and relevant subreddits can establish you as a go-to source for information in your niche. By dropping knowledge bombs and subtly integrating links to your site, you can drive traffic while offering genuine value to users seeking answers and guidance.

Engaging with the community, sharing experiences, and offering detailed explanations can further solidify your position as a knowledgeable and trusted resource. Embracing these platforms allows you to not only showcase your expertise but also connect with a wide audience that actively seeks the valuable information you have to offer. It's a great way to establish authority, build relationships, and drive traffic to your website. 💡

CREATE A BRANDABLE VIRAL EBOOK:

Everyone loves free stuff, especially when it's valuable and relevant to their interests. By creating an engaging eBook that is directly related to your niche, you can capture the attention of your audience and provide them with valuable knowledge and insights. Make sure to make the eBook shareable across various platforms, allowing it to easily reach a wider audience.

Once your eBook starts circulating, it has the potential to spread like gossip at a family reunion, reaching new readers and potential customers who are eager to learn from your expertise and share the valuable content with others. Embracing the power of a well-crafted eBook can significantly enhance your brand's visibility and establish you as an authority in your field. 📚

SUBMIT YOUR WEBSITE TO DIRECTORIES:

Old-school but effective. Find relevant directories and submit your site. Think of it as the Yellow Pages of the internet. Directories can help improve your website's visibility and boost its search engine rankings. By submitting your site to these directories, you can increase the chances of potential customers finding your business. Furthermore, being listed in directories can also enhance your website's credibility and authority within your industry. Embracing this traditional method can still bring modern benefits to your online presence. 🗂️

PARTICIPATE IN FORUMS:

Joining forums related to your niche can be an excellent way to expand your network and establish your expertise. By actively participating in discussions, sharing valuable insights, and engaging with other members, you can build relationships within your industry.

This type of engagement not only helps you gain visibility and credibility, but also provides opportunities to subtly promote your website or blog by including relevant links in your forum posts. Just like attending a digital cocktail party, forum participation allows you to socialize, network, and make connections in a virtual setting, creating a positive and lasting impression within your niche community. Cheers to expanding your online presence! 🥂

RECYCLE CONTENT FORMATS:

Turn your blog posts into YouTube videos, TikTok snippets, or SlideShare presentations and reach a wider audience across various platforms. By repurposing your content into different formats, you can cater to diverse preferences and consumption habits, enhancing the accessibility and appeal of your valuable insights.

Whether it's engaging visual storytelling on YouTube, bite-sized and impactful content on TikTok, or professional presentations on SlideShare, the possibilities are endless. Embrace the versatility of your content and extend its reach, ensuring that your awesome content resonates with audiences far and wide. 🔄

  1.  

Remember, Rome wasn’t built in a day, and neither is a bustling website. Consistency is key. So, go forth, my digital trailblazer! May your traffic explode like confetti at a surprise party! 🎊

https://rtateblogspot.com/2024/03/09/unleash-your-potential-maximizing-your-success-with-markethive/

Tim Moseley

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Gold price could return to all-time highs in the coming days’

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Gold price could return to all-time highs ‘in the coming days’

old price could return to all-time highs ‘in the coming days’ teaser image

(Kitco News) – Hotter-than-expected producer prices weren’t able to cool down the gold market. Prices look to end their second week above $2,400 an ounce, with analysts looking for a potential move to a fresh all-time high.

Gold prices ended the week in neutral territory compared to last week; however, they remain down nearly 1% from their all-time highs.

August gold futures last traded at $2,421 an ounce, unchanged on the day and only 90 cents down from last week.

While Friday’s Producer Price Index did take some momentum away from gold, the precious metal was able to hold critical support at $2,400 an ounce. For some analysts, this is a strong indication that gold’s consolidation phase is coming to an end.

Gold is seeing fresh bullish momentum following relatively dovish comments from Federal Reserve Chair Jerome Powell, coupled with weaker-than-expected inflation in the Consumer Price Index. Core CPI, which excludes volatile food and energy prices, rose 3.0% in the last 12 months. Annual inflation rose at its slowest pace since April 2021.

Meanwhile, in his two days of testimony on Capitol Hill, Powell warned Congress that risks to the economy are balanced. “Elevated inflation is not the only risk we face,” Powell said in his prepared remarks.

Robert Minter, Director of ETF Strategy at abrdn, said that these two factors have given gold the invitation it has been waiting for to rally.

Minter added that with a slowing labor market, the Fed needs to act now before it is caught even farther behind the eight ball.

“There is a strong case for a September rate cut,” he said. “If you look at how high consumer debt is, it's not going to take much labor market stress to cause real problems in the economy. I don’t think we are going to see a recession, but that all depends on the Fed. They are a little late, but not fatally late, to do something.”

According to the CME FedWatch Tool, markets see more than a 90% chance of a rate cut in September.

Naeem Aslam, Chief Investment Strategist at Zaye Capital Markets, said that at this point, a September rate cut is a done deal. Although next week will see the release of some important economic reports, some market analysts don’t expect any of the data to materially change market expectations, which should continue to support gold’s new momentum.

Carsten Fritsch, Commodity Analyst at Commerzbank, is also looking for gold to hit an all-time high next week.

“An interest rate cut in September is now almost fully priced in, and another one by the end of the year. The price of gold could therefore return to its all-time high from May in the coming days,” he said in a note Friday.

Although all eyes are currently on the Federal Reserve, economists will shift their focus next week to the European Central Bank, which will announce its interest rate decision Thursday. Markets are expecting the ECB to keep rates unchanged after cutting in June.

However, the question remains if the central bank will keep the door open for another rate cut in September.

While a dovish stance will weaken the euro against the U.S. dollar, creating a potential headwind for gold, analysts note a bigger trend in the marketplace. Falling global interest rates are bullish for gold as opportunity costs drop.

This week, the World Gold Council noted that investment demand picked up in Europe last month, coinciding with the rate cut

In North America, the biggest report on the docket is the June retail sales data. Economists note that any further weakness in consumption will add to Fed rate cut expectations.

 

Weekly Economic Data to Watch

Monday: Empire State Manufacturing Survey, Powell speaks at the Economic Club of Washington DC

Tuesday: U.S. retail sales

Wednesday: U.S. housing starts and building permits

Thursday: ECB monetary policy decision, weekly jobless claims, Philly Fed survey

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Neils Christensen

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Tim Moseley

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Gold Surges Past 2400 as June CPI Reveals Declining Inflation

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Gold Surges Past $2400 as June CPI Reveals Declining Inflation

The Bureau of Labor Statistics' latest Consumer Price Index (CPI) report, released today, shows a significant decline in inflationary pressures for June. This marks the first decrease in prices since early 2020.

According to the report, “The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent on a seasonally adjusted basis, after being unchanged in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 3.0 percent before seasonal adjustment.”

June's CPI dropped by 0.1%, following May's unchanged reading. This decline brought the annual headline inflation rate to 3%, its lowest in a year and considerably below May's 3.3% year-over-year figure. The results surpassed economists' expectations, as FactSet consensus estimates had predicted a 0.1% monthly increase and a 3.1% annual inflation gain.

This report provides the Federal Reserve with the additional evidence of waning inflation that Chairman Powell emphasized as a necessary component needed to begin cutting interest rates during his recent congressional testimonies. The data suggests that the Fed is getting closer to reaching its goal of bringing inflation to its 2% target.

Skyler Weinand, chief investment officer at Regan Capital, suggests that this favorable CPI report could pave the way for the Federal Reserve to implement interest rate cuts as early as September, with a potential second cut in December, provided inflation continues to trend downward.

Many analysts, including the author, believe that another positive inflation report in August could prompt the Fed to ease its restrictive monetary policy with at least two, possibly three, rate cuts this year. This aligns more closely with the Fed officials' projections from the March FOMC meeting, which anticipated three rate cuts in 2023. The most recent "dot plot," however, had scaled back expectations to one or two cuts.

The impact of the CPI report on market sentiment regarding rate cuts was immediate and significant. The CME's FedWatch tool now forecasts a 92.7% probability of a rate cut at the September FOMC meeting, with an 84.6% chance of a 0.25% cut and an 8.1% likelihood of a 0.50% reduction. Only a 7.3% probability remains for maintaining the current benchmark rate.

The gold market responded positively to this news. Spot gold (Forex) is currently trading at $2,413.92, representing a substantial daily gain of $42.79 or 1.8%. Gold futures for August delivery also saw significant increases, reaching $2,421.90 as of 5:20 PM ET, up $42.20 or 1.77%. The August contract touched an intraday high of $2,430.40.

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Gary Wagner

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Tim Moseley

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Gold Futures Rise as Powell Remains Cautious on Rate Cut Timing

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Gold Futures Rise as Powell Remains Cautious on Rate Cut Timing

Federal Reserve Chairman Jerome Powell's recent testimony provided little insight into the timing of potential interest rate cuts, leading to a modest gain in gold futures. Powell's remarks, spanning two days of testimony, emphasized the Fed's data-dependent approach and the need for more evidence of sustained inflation reduction before initiating rate cuts.

Powell expressed optimism about the U.S. economy achieving a "soft landing," where inflation targets are met without significantly increasing unemployment. This scenario, once deemed improbable when inflation peaked at a 40-year high in 2022, now appears more feasible. However, Powell remained cautious, stating he was not yet prepared to confirm inflation's sustainable downward trajectory to the Fed's 2% target.

The Chairman's testimony highlighted the Fed's commitment to making decisions based on incoming economic data. While acknowledging inflation's decline from recent highs, Powell emphasized the need for further progress before considering rate cuts. He refrained from providing specifics on the timing or number of potential rate reductions this year.

Investors have now shifted their focus to upcoming inflation reports. The June Consumer Price Index (CPI) report, due Thursday, is expected to show inflation continuing to decline to an annualized rate of 3.1%, down from May's 3.3%. Friday's Producer Price Index (PPI) report is anticipated to reveal a slight increase of 0.2% for June, up from May's 0.1% rise.

Powell's cautious stance and expectations of cooling inflation have contributed to a weakening dollar index. The CME's FedWatch tool indicates a 95.3% probability that the Fed will maintain current interest rates at this month's FOMC meeting. However, there's a 73.3% chance of a rate cut at the September meeting, with a 70% likelihood of a quarter-point reduction and a 3.3% possibility of a half-point cut.

The dollar index dipped 0.11% to 104.994, while gold futures for August delivery rose by $11.80 or 0.50%, reaching $2,379.70. This uptick in gold prices reflects investors' response to Powell's testimony and the anticipated inflation data.

As the market digests Powell's remarks and awaits crucial economic reports, the precious metals sector remains sensitive to shifts in monetary policy expectations and inflation trends. The coming days will be critical in shaping market sentiment and potentially influencing the Fed's future decisions on interest rates.

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Gary Wagner

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Global gold ETFs see second consecutive month of inflows North America still lags

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Global gold ETFs see second consecutive month of inflows; North America still lags

The gold market is starting to see a turn of fortunes as investment demand picked up in June, according to the latest report from the World Gold Council.

On Tuesday, analysts from the World Gold Council reported that global gold-backed exchange-traded funds saw their second consecutive month of inflows in June. According to the report, global holdings increased by 17.5 tonnes, valued at $1.4 billion last month.

“Inflows were widespread, with all regions seeing positive gains except for North America, which experienced mild losses for a second month. In general, lower yields in key regions and non-dollar currency weaknesses increased gold’s allure to local investors,” the analysts said.

 

However, even after two months of inflows, the market still has a deep hole to dig out of. The WGC said that year-to-date, global gold ETFs have lost $6.7 billion, their worst H1 since 2013.

European investors continued to lead the way in the gold market. Analysts note that it is not surprising that demand has picked up in the region as central banks, including the Swiss National Bank and the European Central Bank, have started easing interest rates. Even the Bank of England has struck a dovish tone, with economists looking for a rate cut in August.

“Lowering yields were a key contributor to the region’s inflows. Additionally, falling equities and political uncertainties related to elections in the UK and France, which sparked notable inflows there, also pushed up investor interest in gold,” the analysts said.

European-listed funds saw inflows of 17.9 tonnes, valued at $1.42 billion.

However, North American demand continues to drag down the market. The report said that North American ETFs saw outflows of 8.2 tonnes, valued at $573 million.

“The dollar strength and continued equity rally may have drawn investor attention away from gold despite falling Treasury yields,” the analysts said. “Nonetheless, flare-ups in geopolitical risk prompted sporadic inflows, partially offsetting larger outflows during the month.”

Although North American gold demand remains lackluster, analysts note that it can easily turn around if the Federal Reserve starts to ease interest rates. Markets see a roughly 70% chance of a rate cut in September.

Looking at other regions, Asian demand remains a solid pillar within the gold market. Asian-listed funds have seen inflows for the last 16 consecutive months. The region saw inflows of 7.2 tonnes, valued at $560 million.

“Similar to previous months, Asian inflows were mainly driven by China, which added $429 million in the month. Among factors that kept Chinese investor interest in gold elevated, we believe persistent weaknesses in stocks and the property sector, as well as continued depreciation in the RMB, were highly relevant. Japan also witnessed its 16th consecutive monthly inflow in June, primarily supported by a weakening yen,” the analysts said.

Other regions saw inflows of 0.7 tonnes, valued at $37.4 million.

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Neils Christensen

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Tim Moseley

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German Gov’t Accelerates Sell-Offs

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German Gov’t Accelerates Sell-Offs With $900M BTC Unloaded In Just 8 Hours — Deeper Price Pullback Ahead?

By Brenda Ngari – July 8, 2024

The German government cannot stop selling Bitcoin (BTC).

Germany has made a series of transfers in recent hours since ZyCrypto reported that the government had sent $27 million in assets to Coinbase and Bitstamp, bringing the total BTC amount moved by the government over the last 24 hours to a five-figure amount.

The sell-offs come despite crypto-friendly German lawmaker Joana Cotar urging it to “refrain” from liquidating the remaining Bitcoin holdings. Cotar issued her statement to the German government on July 4, stating that the preeminent crypto could help the country diversify its treasury assets and promote innovation while also serving as a hedge against inflation.

Germany’s Biggest Bitcoin Sale

The German government has made waves in the crypto market today with massive transfers.

According to blockchain data platform Arkham Intelligence, the authorities have dramatically ramped up the amount of seized Bitcoin that it is sending to crypto exchanges and market makers, with at least 16,309 BTC (equivalent to over $900 million) transferred on July 8 in the space of just 8 hours.

The latest transfers include $200 million worth of Bitcoin sent to market makers Flow Traders and Cumberland DRW and additional deposits to Coinbase, Bitstamp, and Kraken. Germany has made multiple smaller transfers in recent weeks, but this is the largest single-day string of transfers witnessed thus far. With the deposit of funds to exchanges suggesting sell-offs, the actions of the German government have wreaked havoc on the crypto market.

According to CoinGecko data, Bitcoin’s price fell 3% to as low as $54,320 shortly after the blockchain transactions. Later, the foremost cryptocurrency rebounded slightly, trading at $56,129 as of press time.

Dreaded BTC Sell-Off

The latest transfers leave the wallets of the Eurozone’s biggest economy with just 23,788 BTC (worth $1.33 billion), down from a peak of almost 50,000 BTC ($3.5 billion).

The German Federal Criminal Police Office (BKA) seized 49,857 BTC from the operators of the piracy website Movie2k.to. in January this year when Bitcoin was valued at around $46K.

The pending coin stockpile suggests further price turbulence if the sell-offs continue. Last week, Tron founder Justin Sun offered to purchase BTC from the German government off-market to minimize the adverse impact on the spot price. At the moment, it remains unclear just how serious the popular crypto founder really was.

DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

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BlackRock Proposes Its New Retirement Plan Using Your Money: How Will This Impact Your Finances? Discover Your Options

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BlackRock Proposes Its New Retirement Plan Using Your Money: How Will This Impact Your Finances? Discover Your Options.

In mid-2019, BlackRock demonstrated its prophetic capabilities by forecasting the financial and monetary implications of the pandemic before it had even occurred. Considering the company's stature as the world's largest asset manager, some may argue we should heed its insights. 

Recently, CEO Larry Fink released his yearly correspondence with investors, offering subtle hints about potential future developments and BlackRock's strategies. This article breaks down the key takeaways from the letter, providing insight into what it may imply for individual investors and the market at large. We also explore how you can alleviate concerns and secure your financial future. 

To begin with, Larry Fink's yearly correspondence with investors has a distinct tone from his annual address to corporate leaders. BlackRock holds significant stakes in many of the world's largest corporations. Fink's letter to CEOs served as a guide for corporations, outlining what actions they should take. However, this year's letter has yet to be released.

Similarly, BlackRock's CEO, Larry, writes an annual letter to its investors outlining its key objectives. The letter being discussed today is an overview of this annual communication. Notably, the initial section of Larry's letter is particularly striking, bearing the title “Time to rethink retirement.” It's worth noting that this topic is especially relevant, as numerous countries globally are increasing the retirement age due to fiscal constraints stemming from a shortage of taxpayers to fund pension systems.


Source: BlackRock

The Capital Markets

Inspired by his parents' financial struggles in retirement, Larry founded BlackRock to help others build a comfortable nest egg. In his letter, he highlights the importance of investing in capital markets to achieve this goal. Capital markets encompass a wide range of financial instruments, including stocks, bonds, and private investments, providing opportunities for individuals to grow their wealth over time.

Influential investment firms like BlackRock are expanding their reach into multiple areas, including purchasing single-family residences that are subsequently leased to individuals. This trend has sparked concerns about the escalating cost of housing.

In the second portion of his letter, Larry provides a concise overview of the evolution of capital markets in the United States, highlighting two primary methods of wealth accumulation: saving funds in a bank or investing. He attributes the country's impressive performance since the 2008 economic downturn to the size and complexity of its capital markets. Notably, Larry takes pride in his role as one of the creators of mortgage-backed securities, which were instrumental in causing the 2008 financial crisis.

In hindsight, it's not entirely unexpected given Larry's academic background in political science and business administration, which didn't exactly prepare him to be a market expert. Nevertheless, Larry emphasizes that a crucial lesson learned is that a robust banking system alone is not enough to drive economic growth; a country also needs thriving capital markets. He observes that this realization is gaining traction globally, and Larry shares that he has been engaged in discussions with governments worldwide on this topic.

He details his extensive travels last year, visiting 17 countries where he engaged in discussions with top government officials, including presidents and prime ministers. According to him, these leaders are eager to expand their financial markets, and conveniently, BlackRock is poised to assist without any underlying motives, of course. What's alarming, however, is that Larry discloses that Indian authorities are discontent with the widespread practice of Indians using gold to save and store personal wealth. Instead, they want to see this wealth funneled into the banking system, and Larry is likely keen to see it flow into BlackRock's coffers.

In any case, it implies that governments view gold as a threat. Larry appears to share this viewpoint, pointing out that gold has not performed as well as the Indian market and that investing in gold does not contribute to the Indian economy. So, will we see restrictions on gold in the countries Larry advises, citing economic vulnerability as the reason?

Larry proceeds to uncover BlackRock's ultimate objective. He asserts that investing in capital markets is not just desirable but essential for two key reasons. Firstly, it is the sole means of financing retirement plans, and secondly, it is the only way to develop infrastructure that aligns with environmental, social, and governance (ESG) principles. In essence, this constitutes the endgame.

For those who may not be aware, Environmental, Social, and Governance (ESG) is a concept promoted by influential financial institutions such as BlackRock and major banks like Bank of America. ESG's ultimate goal is to support the United Nations' ambitious sustainable development goals (SDGs), which envision global adoption of dystopian technologies like CBDCs, digital IDs, and smart cities by 2030. 

Retirement And Demographics

In the third section of his letter, Larry raises concerns about how individuals can financially support their retirement, given the increasing life expectancy. By now, you'll know the answer is to give all your money to BlackRock. Case in point, Larry notes a joint venture BlackRock has with an Indian retirement firm that invests in digital infrastructure. In other words, you will own nothing and be happy, and BlackRock will use your retirement savings and investments to make it happen. It appears BlackRock is making big bets on India, presumably because its workforce population will be one of the last to peak sometime around 2050. 


Source: BlackRock

In a surprising turn, Larry shifts the conversation to the United States, likely to address potential concerns about BlackRock's increasing involvement in India. With a hint of irony, Larry acknowledges that the financial difficulties younger generations face directly result from policies implemented by his generation, the Baby Boomers.

As you may have anticipated, BlackRock has devised a solution to rescue the next generation. Following a stark warning that the US Social Security fund will be depleted by 2034 and recommending a delayed retirement age, Larry proposes three methods to address our financial future.

The first approach is to compel employees to allocate a segment of their salaries towards investments in the capital markets, which would be managed by firms such as BlackRock. According to Larry, the U.S. will implement similar legislation next year, mandating companies with 401K plans to automatically register new employees into the program.

This ties into BlackRock's second strategy for securing our financial futures: exerting influence over how we utilize our retirement funds. In essence, BlackRock aims to manage the savings you've set aside for your golden years, effectively gaining control over how you spend them during retirement. 

The silver lining is that BlackRock's proposal is a product with no legislative backing or hints of a looming obligation. However, the concern is that a similar law could be proposed in the future. If baby boomers were to withdraw too much of their retirement funds, the entire capital markets system could collapse, a risk highlighted by prominent macroeconomic experts like Mike Green.

Larry refers to BlackRock's plan as a “revolution in retirement” and believes it will dispel fear and instill hope. Earlier in his letter, Larry implied that the third way to fix our financial future is to fix the demographic problem, meaning having more kids or at least increasing immigration. But no, all Larry said was what was mentioned a few moments ago: raise the retirement age. 

Larry’s stance might be related to his belief that machines can replace humans. During a recent World Economic Forum discussion panel, he explicitly stated, “Countries will rapidly develop robotics and AI and technology, and the social problems that one will have in substituting humans for machines are going to be far easier in those countries that have declining populations.” 

It would seem that BlackRock's interests align with declining populations. This is unsurprising, given that a shrinking population is ESG-friendly: fewer people mean fewer emissions. If this notion disturbs you, Larry doesn't seem to understand why. Per his letter, “There's so much anger and division, and I often struggle to wrap my head around it.” Perhaps he needs to reflect on his role in the matter. 


Source: SigmaEarth

Infrastructure And ESG

In the fourth part of his letter, Larry discusses the ESG-aligned infrastructure that BlackRock aims to develop using your retirement funds. He states, "The future of infrastructure is a public-private partnership,” meaning BlackRock is partnering with your government. Larry asserts that this partnership is crucial for financing infrastructure projects as governments are burdened with significant debt and cannot undertake it independently.

He points out that the US government's debt is increasing rapidly and that fewer and fewer governments are buying US Government debt. Interestingly, a lack of financial support was the main reason why the precursors to the SDGs, the Millennium Development Goals (MDGs), ultimately failed.

Larry then goes one step further, saying, “More leaders should pay attention to America's snowballing debt. There's a bad scenario where the American economy starts to look like Japan's in the late 1990s and early 2000s when debt exceeded GDP and led to periods of austerity and stagnation.” 

Larry argues that there is an alternative solution to addressing the national debt beyond cutting taxes and spending. He suggests that if the US economy grows significantly, it could enable the US to repay its debt. However, he fails to note that this growth will simultaneously cause inflation. 

To drive growth in the U.S., Larry suggests focusing on energy investments, particularly in unreliable forms of electricity. Ironically, the current high costs directly result from inadequate investment in dependable energy sources, which can be attributed to the emphasis on ESG considerations. Asset managers like BlackRock have played a significant role in this underinvestment, exacerbating the issue.

Larry's admission that oil and gas will remain essential for “a number of years” is a gross understatement, considering they supply half of the world's energy needs. Surprisingly, Larry praises Germany as a model for effective energy policy despite the country shutting down its final nuclear power plant last year. This decision coincided with Germany's struggling economy, which faced challenges from high energy expenses due to sanctions and renewable energy sources.

Larry highlights Texas as an example of a state struggling with energy issues, attributing the problem to growing demand rather than its shift towards unpredictable renewable energy sources. Ironically, he discloses that BlackRock is investing in initiatives that further increase dependence on these intermittent sources. Moreover, Larry outlines a series of investments BlackRock is making to facilitate a “fair energy transition,” which is primarily focused on maintaining warm homes during winter while seemingly downplaying the importance of other energy-related concerns.

Luckily, Larry discloses that BlackRock is allocating more resources to dependable energy sources than to less dependable ones. This is because the company's clients are driving this demand. It's worth noting that several individuals and institutions had previously threatened to withdraw their investments due to BlackRock's ESG policies, and some actually followed through on those threats.

However, this is just the tip of the iceberg regarding BlackRock's double standards. Larry asserts that renewable energy sources reduce a nation's reliance on foreign powers, but this claim is misleading. The reality is quite the opposite. China supplies 90% of the necessary materials for these renewable energy sources, so every green energy infrastructure depends on the Chinese Communist Party (CCP). This raises questions about who truly holds influence within BlackRock.

BlackRock’s Plans

Larry outlines BlackRock's strategic trajectory in his letter, detailing the company's partnership with Global Infrastructure Partners (GIP), a leading international infrastructure investment firm with which he appears to have personal connections. Additionally, Larry intends to expand his travels and engage with more leaders globally, promoting BlackRock's strategy as the optimal choice. While he doesn't explicitly state it, his comments imply that BlackRock's growth in assets under management is attributed to foreign sources, thanks to his lobbying efforts.

If you weren't aware, BlackRock's portfolio has surpassed a staggering $10 trillion in value and is still growing. To offer a sense of scale, this would make BlackRock the third-largest country by GDP. Furthermore, this immense wealth would be sufficient to acquire nearly half of the US equity market, although BlackRock already wields significant control through its substantial voting shares. According to Larry, the company plans to maintain its investment strategy, which includes early-stage ventures.

Looking ahead, Larry emphasizes that “Our strategy remains centered on growing Aladdin, ETFs, and private markets, keeping alpha at the heart of BlackRock, leading in sustainable investing, and advising clients on their whole portfolio.” For those who may not know, Aladdin is BlackRock's proprietary trading platform.

Larry mentioned that moving forward, BlackRock's primary focus on the private market will be ESG infrastructure. In terms of ETFs, they plan to increase ETF adoption further and launch new ones, particularly highlighting Bitcoin ETFs. This shift hints at the possibility of more crypto ETFs in the pipeline, including those for Ethereum. Additionally, Larry highlighted that BlackRock will increasingly prioritize fixed income, specifically government bonds, now that interest rates are “near long-term averages.”


Source: BlackRock

BlackRock's move is noteworthy as it indicates that the company anticipates that interest rates will remain stable, which goes against the views of those who predict rate decreases. Following a boastful mention of BlackRock's impressive 90-fold increase in stock value over the past 25 years, Larry highlights the company's acquisition of GIP, an ESG infrastructure firm, and the subsequent appointment of its CEO, who happens to be a friend of Larry's, to BlackRock's board. Who needs crony capitalism when you've got nepotism disguised as ESG?

In all seriousness, Larry concludes by asserting that BlackRock is merely a tiny component of a broader, global phenomenon that he believes is improving the lives of ordinary individuals. However, in reality, this phenomenon primarily enriches the wealthy elite. Larry credits the capital markets and their investors for making this possible, but he fails to mention that a staggering 93% of all stocks are concentrated in the hands of the top 10% of the population.

What Does All This Mean for The Markets And You?

What implications does this have for you and the financial markets? It is crucial to understand that these are distinct entities. One viewpoint is that BlackRock's decision-makers seem alarmingly out of touch with the real world, which is a daunting prospect considering the vast amount of assets they control. The fact that they're holding up Germany as a model for other countries to emulate in terms of energy policy is either a staggering display of ignorance or a cynical ploy, with most people leaning towards the latter interpretation.

Regardless of the circumstances, the outcome remains consistent: wealth becomes increasingly concentrated among the affluent, while the disadvantaged fall further behind. This phenomenon frequently occurs in economies with centralized planning, and BlackRock's most significant mistake stems from this approach. The asset manager assumes that centralized control is the sole means of addressing issues and fostering prosperity to the extent that it collaborates with governments, introduces initiatives such as CBDCs, and limits access to gold, all in the name of economic growth.

This action is not a method for addressing issues and fostering economic growth. Instead, it seems more like a strategy to avoid the collapse of a financial Ponzi scheme. Despite their shortcomings, governments have significantly less debt than banks and asset managers.

Globally, there is a staggering $315 trillion of outstanding debt. Still, the liabilities stemming from complex financial instruments held by banks and asset managers are projected to be exponentially higher, reaching the quadrillions. These instruments are contingent upon the appreciation of underlying assets; if these assets fail to increase in value, the entire derivatives debt structure will collapse, triggering a catastrophic financial meltdown.

Upon closer examination, BlackRock's proposals all boil down to a single premise: entrusting them with your money and allowing them complete discretion over managing it, including determining when it will be returned to you.  The ESG narrative may merely be a ruse to convince people that by handing over their money to BlackRock, they'll be contributing to the greater good. What's particularly unsettling is that Larry appears to have successfully duped many in the US and is now shifting his focus to international markets, where numerous countries eagerly seek investment opportunities, making them vulnerable to his influence.

It's clear that BlackRock's assets under management (AUM) increase whenever Larry travels, and it’s not an exaggeration to label it as deceitful when it leads to insufficient energy infrastructure that financially benefits BlackRock and other venture capitalists. The collapse of Sri Lanka, which previously held the highest ESG score, serves as a cautionary tale. Despite this, BlackRock continues pushing forward with its investments, making the average person worse off. 

This has significant implications for the market landscape. Essentially, poorly conceived ventures will continue to attract excessive investment if they align with ESG criteria. What's particularly irritating is that BlackRock is channeling its ESG investments into startup ventures and private companies, making it challenging for us regular folk as investors to tap into these lucrative opportunities, likely by intentional design.

One approach to capitalizing on BlackRock's ESG fixation may lie in cryptocurrency. A similar trend has emerged in the AI sector, where many companies remain privately held, limiting investment opportunities for the general public. As a result, AI-related cryptocurrencies have become a viable alternative, serving as indirect investment vehicles for those seeking to benefit from AI's growth and development.

It's worth noting that a specific area of crypto, known as ReFi or Regenerative Finance, has garnered attention. While some crypto experts have raised doubts about the legitimacy of certain projects within this niche, they align with ESG criteria. If BlackRock's ESG trend experiences a resurgence, many of these projects could rapidly gain traction. 

Final Thoughts

The reality is that primary energy is scarce due to inadequate investment from BlackRock and similar entities, and the emerging alternatives, except nuclear power, are insufficient to bridge the gap. As this reality becomes apparent, BlackRock will likely face significant investment withdrawals unless its strategy is altered. However, with Larry at the helm, a change in direction appears unlikely, making divestment a probable outcome.

Hopefully, we won't witness another asset manager arising, proclaiming to be the solution to all of humanity's problems. The truth is that most people simply want to be left alone to live their lives without interference. The idea of being "saved” by a grandiose plan or product is unrealistic and ignores the diversity of individual preferences and values. Instead of imposing a one-size-fits-all solution, providing people with the tools and resources they need to live well and make their own choices is more productive.

A Perfect Opportunity For Individual Investors Is Here

Standing out as a beacon of hope against the forces of globalization and corruption is Markethive, a pioneering platform that has been empowering entrepreneurs for years. As a trailblazer in the marketing sphere, it has conceptualized and executed innovative, high-impact strategies tailored to its users. With its sights set on the future, Markethive has transformed into a groundbreaking decentralized ecosystem rooted in blockchain technology and fueled by its cryptocurrency, Hivecoin. Additionally, it aims to expand its offerings by establishing a decentralized crypto exchange. (DEX)

Markethive is actively seeking individual investors to support its mission and vision of becoming a prominent decentralized social media, marketing, and broadcasting ecosystem. According to crypto experts, this is an upcoming crypto narrative in the next bull market. This is significant as it will pay huge dividends in the mid-to-long term for everyone, particularly those participating in the Entrepreneur One Upgrade, which includes the Incentized Loan program. By focusing on its path and purpose, Markethive remains dedicated to providing economic empowerment and identity to all, especially those lacking it.

Markethive is a grassroots project built for the people, by the people, and is of the people that empowers individuals by allowing them to become stakeholders. Markethive is revolutionizing how we approach social media, broadcasting, inbound marketing, and eCommerce, providing a comprehensive system for long-term success, financial autonomy, and a strong community bond. So take advantage of this chance to claim your spot in this pioneering network, where you can positively impact the world and build a lasting legacy of wealth.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

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