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The Financial System Is Contrived To Its Core The Truth Is Out And You Need To Know

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The Financial System Is Contrived To Its Core. The Truth Is Out, And You Need To Know

Many individuals struggle to keep pace with the increasing cost of living, primarily influenced by a financial system not operating fairly. Or, to put it bluntly, the economic system is rigged. Corporations, governments, and those in positions of authority face immense amounts of debt in the trillions that cannot realistically be repaid. Their choices are either to default and face severe consequences or to reduce the value of this debt through inflation and manage it through regulations. Unfortunately, they have opted for the latter, to the detriment of the collective society.

This article exposes the financial system's flaws, highlighting three key factors contributing to its dysfunctional state. First, a disconnect between money and currency leads to a distorted view of their true value. Second, the time value of money is manipulated, creating an unfair advantage for specific individuals and institutions. Lastly, the ease of access to credit in a credit-driven economy has created an unsustainable cycle of borrowing and debt. These factors combined have rigged the financial system, creating an unequal playing field for all participants.

The article also sheds light on the reasons behind your struggle to keep up with the increasing cost of living and offers practical tips on adapting and staying ahead of the game despite these challenges.

1: The Disconnect Between Money and Currency

In today's world, currency and money possess distinct characteristics, though often used interchangeably. In essence, money represents a store of value, maintaining its worth over time. On the other hand, Currency does not retain its value, depreciating with time. One prime example of money is gold, acknowledged as a valuable store of wealth for centuries.

The value of gold has remained consistent over time, making it an excellent store of value. When pricing assets like houses and cars in gold terms, their prices have remained relatively stable in recent decades. However, when pricing them in currency terms, their prices have increased dramatically in recent years.


Source: Boomerang Capital Partners

In the past, money and currency were synonymous, with currencies representing money. For instance, the US dollar was once backed by gold, and other global currencies were tied to its value. This system ensured that receiving payment in a currency meant receiving something that maintained its worth over time.

However, in 1971, a significant shift occurred when President Richard Nixon decided to “temporarily suspend” the conversion of US dollars to gold. This move allowed governments and central banks to increase the money supply without being constrained by the need to back it with gold reserves. As a result, the supply of US dollars has grown exponentially since the 1970s, as illustrated in the chart below.


Source: Reddit

According to fundamental economic principles, the greater the quantity of a commodity, the lower its worth. Hence, the rising prices of items such as houses and cars are not due to increased value. Instead, a decrease in the value of currencies is driving this trend. The rise in the amount of currency in circulation is known as inflation, and we are often led to think of it as beneficial for both individuals and the economy. This is because inflation encourages spending.

Individuals tend to increase their spending when the value of their currency is depreciating, which, in theory, can stimulate economic expansion and prosperity. However, in practice, inflation harms the ability to preserve currency value, incentivizing overconsumption. Moreover, official inflation measurements have been underestimating the actual inflation rate for years.

The primary issue with the disconnect between currency and money is that individuals continue to receive their income in currency rather than actual money. To make matters worse, people are being misled into believing that the currency they receive has the same value as it did in the past, with the notion that it's equivalent to gold.

The persistent inflation is why it's challenging to maintain a decent standard of living and achieve financial stability. Your earnings are declining in value while you're attempting to purchase goods that are actually valuable, such as real estate or vehicles. This paradox between money and currency may leave you questioning why currencies have any value at all in today's world.

The answer is basically because the government says so. That's why currency is now more often referred to as fiat currency. The Latin word “fiat” translates to “let it be done”. The English dictionary definition of fiat is “an arbitrary order or decree.” However, this is only one aspect contributing to the perception that the financial system is rigged.

2: The Manipulation Of The Time Value Of Money. (TVM)

The second factor involves the manipulation of the time value of money (TVM). In this context, the time value represents the cost of borrowing money over a specific timeframe. Typically, the interest rate increases as the borrowing period extends. This is because the lender foregoes potential opportunities that could have been pursued with the loaned money during that time.

For instance, imagine you need to borrow money for a decade. Lenders might be willing to lend it to you if you agree to pay them a 50% premium at the end of the ten years. This is because ten years is a significant amount of time, and they could have earned a comparable return by investing their money elsewhere.

However, suppose you're looking to borrow money for a short period, precisely one year. In that case, lenders might be more willing to approve your request if you agree to pay an additional 5% interest at the end of the term. This is because one year is considered a relatively short time frame. While they could have potentially earned more interest by investing the money elsewhere, it's often more straightforward and less risky for them to just grant the loan.


Source: Investopedia 

Combining all these loans and their individual interest rates on a graph would result in what is known as the yield curve, a line that inclines upward and to the right. Essentially, the yield curve indicates that the longer the duration of the loan, the greater the interest rate that must be paid. This is where the situation can become somewhat intricate;

If you're looking to borrow a substantial amount of money for an extended period, you may encounter lenders who require a higher interest rate due to the increased risk involved. For instance, if you want to borrow $1 billion for ten years, lenders might demand an additional 100% interest on top of the initial amount, effectively doubling the total amount you'd need to repay. This is because providing such a significant loan over an extended period involves opportunity costs and entails considerable risks, with the primary concern being the possibility of defaulting on the repayment.

Lenders typically charge a higher interest rate to offset the risk of lending. The yield curve may be steeper and begin at a higher percentage based on the loan amount under normal circumstances. However, in today's market, borrowing for a short period can be more expensive, and some larger loans may have lower interest rates than smaller loans with similar repayment terms.

It may seem surprising, but the primary reason for this is largely attributed to central banks. Typically, loan interest rates are influenced by the balance between the availability of lending and the desire for borrowing. When there is a high demand for loans and a limited supply, interest rates tend to be high, and conversely. However, central banks can manipulate interest rates manually, disrupting the natural market dynamic.

The caveat is that they can manually set the interest rates on shorter debt durations. Before the 2008 financial crisis, this was the only action they took. In response to the 2008 crisis, central banks took the unprecedented step of manipulating longer-term interest rates for the first time in modern history. They did this by buying long-term government debt, which lowered interest rates for similar debt durations.

Until the 2008 financial crisis, central banks only controlled short-term interest rates. They could manually set the interest rates on shorter debt durations. However, in response to the crisis, central banks took the unprecedented step of manipulating longer-term interest rates by purchasing long-term government debt, which lowered interest rates for similar durations of debt. This was a significant departure from their traditional role and marked a new era of monetary policy.

To put it differently, central banks manipulated the time value of money across all time frames, making borrowing cheaper to stimulate economic growth. However, this approach has led to inflation instead of a quicker recovery. By keeping interest rates artificially low, more currency is created out of thin air, not only by governments and central banks but also by individuals and organizations.

As we now know, the value of currency depreciates as its supply increases. Unfortunately, this devaluation has occurred four more times since 2008, thanks to the manipulation of money's time value across all time frames. This has led to higher inflation and continued to make borrowing artificially cheap—but only for those with access to credit.

3: Access To Credit (in a Credit Driven Economy)

In a credit-driven economy, the third factor contributing to the rigged financial system is the disparity in access to credit. The intention behind manipulating the time value of money was to facilitate borrowing for all, thereby promoting economic growth. However, this manipulation had an unintended consequence: instead of making credit more accessible to everyone, it only became easier for select individuals and institutions to borrow, leading to inflation.

These individuals and institutions utilize their funds for various purposes, including acquiring valuable assets such as stocks and real estate. This demand leads to a significant increase in the prices of these assets while the value of the currency used to purchase them depreciates. As a result, the average person can only keep up by borrowing more currency to buy the remaining valuable assets, thereby increasing their prices even further.

Initially, the various green indicators may appear to signify economic expansion due to their upward trends. Yet, upon further examination, it becomes evident that inflated asset prices have mainly fueled this growth due to low-cost borrowing practices implemented since 2008 rather than genuine economic expansion. Consequently, there has been limited actual economic growth during this period.

For instance, the actual economic output in G20 nations has shown minimal growth since 2008, indicating a reliance on credit. Succeeding in this credit-driven economy largely hinges on your capacity to take on increasing amounts of debt, yet this is becoming more challenging.


Source: X

There are various factors at play, which can be categorized into two main groups: formally established financial regulations and informal norms. The Dodd-Frank Act stands out as a significant example of official financial regulation enacted in response to the 2008 financial crisis. 

Although lengthy at over 2,000 pages, the Dodd-Frank Act has essentially created challenges for small banks in providing small loans to small businesses and individuals. As a result, small businesses and individuals now face increased difficulty demonstrating their creditworthiness to secure larger loans, while small banks find it harder to function effectively.

Small banks play a significant role as the primary lenders to small businesses. If small banks are unable to provide small loans to these businesses, there will be a decrease in both small banks and small businesses. This could lead to a situation where large banks and shadow banks become the primary sources of funding for small businesses.

Shadow banks, such as Blackrock, have established their own set of rules and regulations that individuals and institutions must adhere to. One example of this is the ESG investment ideology, which has become a powerful tool for manipulating the value of money. Compliance with Blackrock's ESG standards can result in more favorable loan terms, including lower interest rates, while non-compliance may lead to less favorable loan terms.  

The rising prominence of Environmental, Social, and Governance (ESG) criteria in financial decision-making is poised to surpass the influence of traditional financial regulations. This shift is expected to gain momentum as ESG considerations become more widespread and affect individual decision-making. Notably, ESG criteria do not originate from the private sector but were introduced by unaccountable and unelected international organizations.

A concerning aspect of the situation is that credit accessibility is now being influenced not only by commercial banks and shadow banks but also by central banks purchasing corporate debt in response to the pandemic flash crash in 2020. Similar to purchasing government debt, buying corporate debt results in decreased interest rates on that debt. The selective nature of central banks' purchases, favoring certain corporations over others, created an unfair advantage for those chosen corporations as they could access credit at even lower rates.

The prevailing sentiment among macro analysts is that the extent of your credit access is directly linked to your financial standing. In other words, individuals or organizations with substantial wealth or size are more likely to enjoy better terms regarding credit, thus perpetuating their advantageous position and facilitating further growth.

Suppose you're struggling financially or running a small organization. In that case, you may find it increasingly difficult to obtain credit in the future unless you conform to the standards set by powerful financial institutions like BlackRock. Even if you manage to secure credit, it will likely come with less favorable terms than those enjoyed by larger entities, further widening the gap between you and them in an economy that relies heavily on credit.


Image by Markethive.com

Maintaining Financial Stability in a Biased Economic System

Our main question is: How can we stay abreast of this rigged financial system? In this unfair financial climate, it's essential to comprehend the mechanisms at play. Let's be clear: this system has little to do with the traditional concept of capitalism. Instead, we're dealing with a system where currency and money have been decoupled by government intervention, in which currency is losing its value. Central banks manipulate the time value of money, and unaccountable and unelected international organizations control credit access, all while insulating from accountability and democratic oversight. 

The situation becomes increasingly complex when considering the significant influence of corporations on government decision-making through lobbying efforts, that the commercial banks technically own the central banks, and governments overseeing various unaccountable and unelected international organizations. As previously stated, the financial system is rigged as these entities collectively hold hundreds of trillions of dollars in debts they cannot repay.

The establishment needs currency to decouple from money so that it loses its value. It also needs the time value of money to be low and regulate access to credit, as uncontrolled borrowing could lead to a chain reaction of defaults, jeopardizing its entire system. This is why there is a strong interest in Central Bank Digital Currencies (CBDCs), as they offer the potential to centralize control over the currency.

In light of these details, it's essential to recognize that heavily indebted entities are attempting to manipulate the financial system to avoid defaulting on their debts. They're trying to achieve this by controlling the currency supply and sparking inflation. To illustrate, imagine them filling a swimming pool while simultaneously regulating its size. They’re not trying to drown us or are targeting us per se. These entities are primarily focused on safeguarding their own interests.

Attempting to stay afloat by treading water will eventually lead to drowning. This places the responsibility on us to discover a method to exert less effort and remain buoyant, figuratively speaking. Unfortunately, staying afloat is no easy feat. A simple solution would be to receive payment in money rather than currency, but that's not a realistic expectation. You won't likely find someone willing to pay you in money for long, as it would be too costly for them.

This leaves the other two factors: Unless you work at a central bank, you won't be able to fix the time value of money and bring interest rates back to reality, and if you tried, you could be fired or worse. That's because all those entities can't afford higher interest rates due to their debts, at least on paper. In practice, they can afford these higher interest rates so long as they have access to credit. 

Accessing credit can be challenging and restrictive in terms of compliance unless you're a large institution or a wealthy individual. Even if you manage to secure credit, relying on borrowed money to purchase assets may not be a sustainable or effective strategy for achieving financial success.

Analysts suggest that we might be moving towards a time of increased interest rates. In such a scenario, this floating device would become ineffective. This is particularly relevant for individuals who have borrowed money to purchase a property for rental purposes, leverage that property to secure additional loans for more rental properties, and so forth. You are likely acquainted with someone who has engaged in such financial strategies. This method has been a primary means of economic progress since 2008.

If interest rates remain high over an extended period, it may lead to a chain reaction of forced selling, as the cost of servicing debt becomes unsustainable. This downward spiral could cause asset values to plummet, triggering even more sell-offs. In such a scenario, only two factors can help maintain financial stability, and they are closely interconnected.

One strategy is to increase the amount of currency you receive, while another is to invest that currency in assets (money) that maintain value, such as Gold, Bitcoin, or otherwise. The main challenge with the first approach is to increase your income without accumulating excessive debt, preferably none at all. With the growing emphasis on ESG (Environmental, Social, and Governance) considerations, securing financing for a small business may become increasingly difficult without meeting strict compliance requirements.

The biggest challenge with the second issue is that governments may impose restrictions on people's ability to access money as they become more aware of the declining nature of the currency. This could lead to difficulties exchanging money for currency when needed. 

As individuals become more aware of the manipulation within the financial system, collective adaptation and progress will be facilitated. This awareness leads to the emergence of economies that value money as a legitimate form of currency once more.  It seems inevitable that this shift will occur over time. The likelihood of this transformation happening is high, and there may be truth to the idea of reverting to a gold standard or building a new monetary system backed by Bitcoin, the crypto industry’s gold standard, fitting for this digital age, resulting in a parabolic shift in adoption and value for cryptocurrency, so be sure to be positioned accordingly. 

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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US Core PCE rises 03 in February in line with expectations

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U.S. Core PCE rises 0.3% in February, in line with expectations

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Gold investors, with nothing else to do, can at least breathe a sigh of relief as inflation pressures rise in line with expectations.

Friday, The U.S. Department of Commerce said its core Personal Consumption Expenditures price index increased 0.3% last month. The data rose in line with economist expectations.

However, as a sign that inflation pressures aren’t going away, the report also noted an upward revision for January, with core inflation rising by 0.5%.

For the last 12 months, consumer price pressure continued to ease, rising 2.8% in February. Although inflation is still well above the Federal Reserve’s target of 2%, it continues to trend lower.

The report said headline inflation rose 0.3% last month, a tick lower than expected. Economists were looking for a 0.4% increase. For the year, headline inflation rose 2.5%, in line with consensus projections.

Markets are closed for Good Friday, so there has been no reaction to the latest inflation data.

With inflation pressures rising in line with expectations, investors could start to focus on a growing imbalance in the economy as consumers spent more than they made last month.

The report said wages increased less than expected last month, rising 0.3%. According to consensus forecasts, economists were looking for a 0.4% increase. Meanwhile, personal consumption jumped 0.8% in February. Economists forecasted a 0.5% increase.

According to some economists, the in-line inflation data could support the Federal Reserve's plan to begin its easing cycle in June, even as inflation remains elevated.

Last week, the Federal Reserve signaled it wanted to cut interest rates three times this year, even as inflation was holding around 2.4%.

An impending pivot in the U.S. central bank’s aggressive monetary policies has emboldened gold investors in recent days. Thursday, during the final trading day in March and the first quarter, June gold futures rose to a new all-time high of $2,256.90 an ounce and settled the session at $2,234.40 an ounce.

In an interview with Kitco News, Darin Newsom, Senior Market Analyst at Barchart, said that inflation could be one factor in why the gold market has been able to defy fundamental and technical logic.

Gold’s rally on Thursday came despite resilient strength in the U.S. dollar, which closed the session near a six-week high above 104 points.

“Gold could be telling us that inflation will stay around for a while. And that there's a real there's a real threat geopolitically,” he said.

Some analysts have also noted that gold doesn’t actually need a rate cut to maintain its upward trajectory. While higher inflation could keep the Federal Reserve from cutting rates this year, it is unlikely they will raise interest rates. This environment would still push real interest rates lower, which should weigh on the U.S. dollar, supporting gold prices.

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Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

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The One Reason Why Cardano Bulls Are Seriously Banking On 3 ADA Explosion Despite Price Downturn

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The One Reason Why Cardano Bulls Are Seriously Banking On $3 ADA Explosion Despite Price Downturn

By Newton Gitonga – March 29, 2024

Cardano (ADA) has been experiencing a prolonged period of stagnation, hovering just above the $0.65 support level, while other cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) witnessed significant surges.

Despite this apparent setback, ADA proponents remain undeterred, expressing optimism about an imminent rally that could potentially propel the coin to the coveted $3 mark.

In a Saturday post, a vocal ADA supporter known as “Crybaby” reflected on the current market sentiment, drawing parallels to previous market cycles. He highlighted the scepticism and doubt among ADA holders as other cryptocurrencies surged, reminiscent of a similar scenario. However, ‘Crybaby’ remained steadfast in his belief in ADA’s potential, emphasizing the resilience of the ADA community and predicting a substantial price surge shortly.

“With the recent hype of BOME and SOL price hike. Exponentially increasing of trash talk towards $ADA. I can see that the teleportation portal on Cardano is about to be ready. Real soon. Be ready with your space suit. We’re about to be chilling with zero gravity soon.” Wrote the investor, echoing the sentiments of other ADA supporters.

Elsewhere, renowned crypto analyst Ali Martinez further echoed this sentiment, pointing out similarities between the current ADA price action and historical patterns observed from 2018 to 2021. Notably, Martinez suggested that ADA could consolidate within the $0.55 to $0.80 range before experiencing a surge to $1.70.

Moreover, the growth of the Cardano ecosystem has served as an additional catalyst for optimism among ADA supporters. Addressing concerns about scaling Cardano, Charles Hoskinson, the founder of Cardano, reassured the community in a recent video, emphasizing the robustness and scalability of the Cardano network. With over 2,300 days of uninterrupted uptime and a commitment to decentralized principles, Cardano appears well-positioned to overcome scaling challenges and drive further adoption.

While skeptics may question ADA’s ability to compete with other leading cryptocurrencies, proponents remain resolute in their belief in the project’s long-term potential. Despite the current price downturn, many ADA holders view this consolidation phase as a necessary precursor to a significant price rally.

ADA was trading at $0.65 at press time, reflecting a 0.11% drop in value over the past 24 hours. The daily chart shows ADA’s price has encountered significant resistance within the $0.76-$0.80 range. A breakthrough and sustained closure above $0.80 would signal a resurgence in bullish momentum for Cardano, potentially driving its price towards $0.90 and beyond.

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 Newton Gitonga and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Bitwise Submits Filing For Spot Ethereum ETF Joining Other Firms In Race For SEC Approval

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Bitwise Submits Filing For Spot Ethereum ETF, Joining Other Firms In Race For SEC Approval

By Brenda Ngari – March 29, 2024

Bitwise has applied to list a spot Ethereum exchange-traded fund (ETF) in the U.S., even as questions continue to swirl around when the Securities and Exchange Commission might give such investment vehicles the regulatory blessing. Bitwise already manages the fourth largest spot Bitcoin ETF by assets under management, holding over $2 billion in BTC.

Bitwise Joins ETH ETF Bandwagon

Bitwise has taken a significant step toward introducing a spot Ethereum ETF. The company filed an S-1 registration form with the Securities and Exchange Commission on March 28, followed by a 19b-4 form barely an hour later. If approved, the Bitwise Ethereum Trust will be listed on the New York Stock Exchange. The proposed product intends to give investors direct exposure to the industry's largest altcoin by market cap and may stake a portion of the fund's assets via trusted staking providers to earn more rewards. Bitwise is one of the now-11 issuers of spot Bitcoin ETFs. The financial giant's BITB spot ETF has collected roughly $2 billion in assets after only 2 1/2 months.

Bitwise's ether ETF filing sparked optimism in the crypto community about a potential spot ETH ETF approval in May. However, senior Bloomberg ETF analyst Eric Balchunas was quick to stress that the likelihood of said approval is still super low.

Balchunas noted that there are now just seven weeks before the May 23 deadline, and the SEC hasn't gone back and forth with potential issuers over spot ETH ETFs, a contrast to the lengthy discussions that happened before BTC ETFs were greenlighted in mid-January.

SEC Uncertainty On Whether ETH Is A Security

The SEC has repeatedly shelved decisions on multiple high-profile Ethereum spot ETF applications in recent months, including those from BlackRock, Grayscale, Fidelity, Invesco, and Galaxy Digital. Moreover, a Bitwise executive recently forecasted that spot ETH ETFs are unlikely to get the SEC's nod this summer. “Spot Ethereum ETFs will gather more assets if they launch in December versus if they launch in May,” Bitwise's Chief Investment Officer Matt Hougan posited. “TradFi needs more time to digest the Bitcoin ETFs.” The Ethereum Foundation was recently embroiled in an investigation by an unknown “state authority” that was later alleged by Fortune to be an effort by the SEC as it attempts to categorize Ethereum as a security. Notably, the SEC has so far refused to clarify its stance on whether ether is a security or not. Now, the regulator might be forced to actually define Ethereum, which could have a huge impact on the crypto sector in the U.S. However, BlackRock CEO Larry Fink believes that it would still be possible to launch a spot-based ETH ETF even if the Commission were to label Ethereum a security.

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

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Gold appears unstoppable as it hits record highs above 2250 capping off a solid month and quarter

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Gold appears unstoppable as it hits record highs above $2,250, capping off a solid month and quarter

The gold market continues to be an unstoppable juggernaut as it closes out the month and quarter near a record high, solidly above $2,200 an ounce.

Analysts note that gold’s performance on Thursday, which wraps up a shortened trading week ahead of the Easter long weekend, is even more impressive when compared to the U.S. dollar Index, which is trading near a six-week high above 104 points.

Gold prices last traded at $2,241 an ounce, up 2.7% from last week. For the month, gold is up 9%, and for the quarter, the precious metal is up 8%.

Gold’s further push into blue sky territory also comes ahead of important inflation data. Although markets are closed for Easter, it is not a recognized government holiday, so the U.S. Bureau of Economic Analysis will be releasing its Personal Consumption Expenditures (PCE) Index. According to consensus estimates, economists expect inflation to have risen 0.3% in February.

Some analysts have said that gold is attracting new momentum because inflation is less of a threat than it was. Last week the Federal Reserve signaled that it still looks for three rate cuts this year even as they see inflation holding above its 2% target.

Darin Newsom, Senior Market Analyst at Barchart said that the gold rally is a signal that investors are worried that the Federal Reserve won’t be able to get inflation under control as it starts to cut interest rates.

He added that he also sees gold well supported as a geopolitical risk hedge.

“Geopolitical fears are still out there and will only continue to grow as we approach the November U.S. election,” he said. “If the Fed starts cutting rates, bond yields will fall, which makes gold a more attractive safe-haven.”

At the same time, some analysts note that the U.S. dollar is losing its grip on the gold market as U.S. government debt continues to spiral higher.

“Gold is not expensive. The truth is that the U.S. dollar is cheap as the government floods the global economy with it,” said Julia Khandoshko, CEO at the European broker Mind Money, in an interview with Kitco News.

Although the Federal Reserve has been tightening its balance sheet as part of its aggressive monetary policy, some analysts have noted that the nation’s money supply continues to grow.

David Kranzler, precious metals analyst and creator of the The Mining Stock Journal said in a comment on social media that the U.S. The Monetary Base, as measured by Money Zero Maturity (MZM), is up nearly 10% since March 2023.

“Gold smells a massive money-printing program coming at some point. In fact, low-grade money printing has already occurred,” he said.

MZM represents money readily available within an economy for spending and consumption. and includes M2 money supply, less the time deposits, plus all money market funds.

Regardless of what is driving gold at its record highs, Adam Button, Chief Currency Strategist at Forexlive.com said that he expects this is only the start of the rally.

Despite gold’s historic rally, Button said that the precious metal sector continues to be ignored in the broader marketplace. He added that the mining sector, while off its lows is still significantly undervalued compared to gold prices.

“This quiet rally is extremely encouraging for gold investors,” he said. “This is not an exhausted bull market. The time to sell is when everyone is talking about gold and the miners are taking off.”

Although Button is bullish on gold, he added that investors should wait for a pullback before jumping in. He pointed out that there appears to be some initial support at $2,150 that could attract some buyers.

Ole Hansen, Head of Commodity Strategy at Saxo Bank said that he expects the gold market to have further upside potential. He added that it's more than just momentum that is pushing gold prices higher.

“Gold’s continued ability to withstand headwinds from dollar and yield movements is nothing but impressive and it highlights a market that continues to attract demand making it a relatively easy task for hedge funds to defend their huge long positions,” he said. “My main concern during the past couple of weeks has been the risk of weakness forcing a cascade of long liquidation, but with prices now above $2,200 that risk continues to fade.”

Although gold is ending a shortened trading week on a strong note, next week does present new risks. The economic calendar next week will focus on the U.S. labor market with March’s nonfarm payrolls report on Friday as the highlight.

The week also features a solid lineup of central bank speakers including Federal Reserve Chair Jerome Powell, who will be speaking at Stanford's Business, Government, and Society Forum.

Some analysts have said that stronger employment numbers, coupled with stubborn inflation may force the Federal Reserve to push back the start of its approaching easing cycle.

“Macro traders certainly still have scope to add to their gold length — but only if rates market expectations notably firm. This places the onus on upcoming data to corroborate the Fed's outlook for three cuts this year, but continued strength in the data with little change in tone from the FOMC also raises the risk of a buyer's strike in Treasuries, leading to higher rates that could mechanically weigh on the yellow metal through the re-accumulation of macro trader short acquisitions,” said commodity analysts at TD Securities.

Economic data for the week

Monday: ISM Manufacturing PMI

Tuesday: JOLTS job openings

Wednesday: ADP nonfarm employment change, ISM Service Sector PMI, Powell to speak

Thursday: Weekly jobless claims

Friday: Nonfarm payrolls

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Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

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There is a new way to lose weight through alternative medicine

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There is a new way to lose weight through alternative medicine

alternative medicine

There is a new way to lose weight through alternative medicine.

When it comes to losing weight, there’s no magic solution. To lose weight and maintain it, you need to be active every day and make changes to your eating habits. Alternative medicine practices can help improve flexibility, boost energy, and potentially reduce body weight.

Not to be too specific, but one of the most popular topics on late-night TV is losing weight. When you’re flipping through channels after 11 PM, you’re bound to come across ads for weight loss pills and diet supplements. Each of these ads claims to help you lose unwanted pounds and get rid of stubborn belly fat forever.

To tell you the truth, if these drugs were effective, the United States of America would not be the most overweight nation in the worldwide rankings.

On the other hand, there are many types of alternative medicine that can help with weight loss. These methods can make you more flexible, boost your energy, and as a result, help you lose weight. While there’s no miracle alternative medicine, following these principles can help you reach your goals.

alternative medicine

LET’S TAKE YOGA AS AN EXAMPLE

Let’s use yoga as an example. The gentle stretching in yoga can help reduce stress, which may decrease the likelihood of overeating due to feelings of sadness or frustration. Acupuncture uses specific points in the ear that can help reduce cravings. Detoxifying teas and herbs can contribute to a sense of well-being, which may lead to a reassessment of unhealthy food choices. In this view, alternative medicine can be a beneficial approach to weight loss.

DETOXIFYING TEAS,

Detox teas, energy pills, and vitamins are the most common alternative medicines for losing weight. However, for safe and long-term weight loss, we should focus on healthy eating and regular exercise. There is no quick fix for weight loss. In reality, we need to change our eating habits and exercise regularly to lose weight and keep it off.

NEVERTHELESS

Nevertheless, in order to prepare you ready for weight loss, here are some detoxifying teas and fascinating supplements that are being offered by alternative medicine.

The turmeric, ginger, and lemon, along with the juice of half a lemon, should be brought to a boil in two cups of water. Each of these ingredients should be around a half teaspoon. You should drink it first thing in the morning as a detoxifier before starting your diet.

The content you provided is already simple and easy to understand.

When you visit a local food co-op or herbalist, they can offer you many different types of alternative teas and advice on nutrition. They can also connect you with a trusted homeopathic doctor who will assess your needs and figure out what specific nutrition you require.

THE ALTERNATIVE MARKET

The alternative market has recently seen the introduction of two dietary supplements: bovine cartilage and shark cartilage. Despite the fact that both have been utilized for a considerable amount of time outside of the United States and Britain, they are currently popular in health food stores.

When it comes to losing weight, hypnosis is a popular form of alternative treatment. It helps change your behavior without relying solely on willpower.

The way hypnosis works is by exploring the unconscious factors that lead you to keep thinking and eating in ways that make you gain weight. Hypnotists believe that if they can ease the underlying cause of obesity, the patient will naturally start losing weight as a result. Unlike expensive spa visits and over-the-counter weight loss medications, hypnosis is a more cost-effective alternative. It can help you release worries that keep you from eating healthily and allow positive energy to flow through you. This will motivate you to continue with a new way of eating and exercise.

Tim Moseley

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Mysterious Whale Suddenly Transfers 2000 BTC Mined in 2010 Now Worth Over 140 Million

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Mysterious Whale Suddenly Transfers 2,000 BTC Mined in 2010, Now Worth Over $140 Million

By Arnold Kirimi – March 28, 2024

Bitcoin’s mysterious early adopters continue to make waves in the cryptocurrency space as an unidentified individual or entity recently consolidated 2,000 BTC mined in 2010 into a single wallet.

This move, highlighted by developer mononautical on X, underscores the remarkable value appreciation of Bitcoin over the past 14 years, with the 2,000 BTC now worth a staggering $140 million.

This significant transfer of wealth from the early days of Bitcoin mining is a testament to the foresight and patience of these early adopters, who have held onto their coins through volatile market cycles and exponential price increases.

Consolidation of 2,000 BTC Mined in 2010

The consolidation of 2,000 BTC mined in 2010 into a single wallet marks a notable event in Bitcoin’s history. This move involves the transfer of 40 sets of mining rewards, each consisting of 50 BTC, into one wallet.

The sheer size of this transaction underscores the value of Bitcoin’s long-term holding strategy, with Satoshi-era adopters now reaping the rewards of their patience.

Developer mononautical, upon noting the consolidation, commented on the remarkable journey of these early mined coins, which have seen their value skyrocket from a few hundred dollars to $140 million.

This long-term holding strategy highlights the belief early adopters had in the potential of Bitcoin, even during its early days when its value was highly volatile and uncertain.

While some have raised concerns about a compromised key generation or the possibility of a security breach, mononautical clarified that the miner remains unidentified. This suggests that the consolidation may have been a strategic move by the miner, rather than a result of compromised keys.

The fact that the transfer went straight to an over-the-counter (OTC) desk further supports this notion, as it indicates a deliberate decision to liquidate the holdings through official channels.

It’s a familiar phenomenon in the world of cryptocurrency to see long-dormant addresses become active again. Recently, this trend was observed in the Bitcoin market when an address, previously inactive and ranked as the fifth richest in Bitcoin holdings, suddenly showed signs of activity.

This particular address had been funded with 94,500 BTC back in 2019, valued at $6.05 billion at the time. After lying dormant for years, the Bitcoin from this address was recently split and moved to new addresses.

As reported by ZyCrypto, a Bitcoin wallet that remained inactive for over 13 years and nine months recently became active again, reawakening after nearly a decade and a half. This wallet, dating back to Bitcoin’s early days, holds 50 BTC, which was relatively small in value when last used but has since surged to over $3.3 million in today’s market.

Impact on Market Liquidity

The consolidation of these old Bitcoin holdings has broader implications for the cryptocurrency market, particularly in terms of liquidity. CryptoQuant founder and CEO Ki Young Ju noted that the consolidation indicates a “sell-side liquidity crisis waking up old Bitcoin.”

This suggests that the movement of these long-dormant coins is contributing to a tightening of the Bitcoin supply available for sale, which could potentially drive up prices.

It’s not unusual for early cryptocurrency adopters to resurface after long periods of dormancy. This trend was

The consolidation of these old Bitcoin holdings comes at a time when the cryptocurrency market is experiencing significant growth and adoption.

The introduction of spot Bitcoin exchange-traded funds (ETFs) in the U.S. has led to a surge in demand for Bitcoin, further reducing the available supply for sale. As a result, Bitcoin’s liquid inventory has reached its lowest level ever, indicating a potential supply crunch in the market.

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 Arnold Kirimi and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Currency risks will drive gold and silver sky-high by year-end BMO Capital Markets

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Currency risks will drive gold and silver sky-high by year-end – BMO Capital Markets

While gold and silver prices may continue to consolidate in the near term, the rally in the precious metals sector is only getting started, according to commodity analysts at BMO Capital Markets.

In a report published Wednesday, the Canadian bank announced a significant upgrade for its gold and silver price projections for the next three years, with the high-water mark in the final quarter of 2024. The bank’s commodity analysts see gold prices averaging this year around $2,169 an ounce, up 11% from its previous forecast.

At the same time, they see gold prices averaging next year around $2,100 an ounce, a 12% increase from December’s estimates. Gold prices are expected to average around $2,000 an ounce in 2026 and $1,950 in 2027, an increase of 8% and 3%, respectively from the December estimates.

Looking at silver, BMO sees the white metal averaging around $25.60 an ounce this year, up 13% from the December forecasts. The price is expected to average around $25.30 an ounce next year, up 11% from the previous estimate. Finally, prices are expected to average $24 in 2026 and $23.50 in 2027, an increase from the previous estimate of 8% and 3%, respectively.

This year, BMO sees gold prices averaging around $2250 an ounce in the fourth quarter, a 13% increase from the previous estimate. At the same time, silver prices are expected to average the final quarter of the year around $28 an ounce, a 22$ increase from December’s forecast.

June gold futures last traded at $2,214 an ounce, up 0.67% on the day.

The commodity analysts said that gold’s consolidation near its recent all-time highs is an indication that the precious metal is forming a new base and investors are getting comfortable with higher prices.

They added that they remain bullish on the precious metal as a hedge against rising currency risks worldwide, and noted that gold’s all-time highs also coincide with Bitcoin’s move to record highs above $73,000 per token.

“Given no politician is likely to be elected by promising to spend less in a year loaded with elections across key democracies, there is certainly a chance that later in the year we may see further currency concerns supporting precious metal performance as a new era of elevated fiscal spending across global economies gathers traction,” the analysts said in the report. “While we see some consolidation in the current range through mid-year, we expect further sequential gains in H2 as the U.S. rate cut cycle starts to gather pace and geopolitical tensions rise as the U.S. election nears. This could be one of the rare years where both macro and retail investors increase exposure to precious metals.”

While gold regains its luster as a risk hedge, BMO also said they expect the market to remain well supported by “price-insensitive central banks.”

The bank also reiterated its call for Chinese demand to dominate the marketplace.

“China’s households accumulated strong savings over the pandemic, and even over the past two years ~35trn RMB was added. However, these households have had somewhat of a dilemma as to where to put this money, something often termed the ‘ugliness contest’ for Chinese investors,” the analysts said. “Historically, money might have been invested in property as a default position; however, as has been widely discussed this sector continues to face major structural issues which are impacting buyer confidence. With this, gold exposure has become a necessity for Chinese portfolios, as they continue to expect disinflation and income uncertainty.”

Meanwhile, BMO explained that silver will remain well-supported by industrial demand and weak supply growth.

“Historically, money might have been invested in property as a default position; however, as has been widely discussed this sector continues to face major structural issues which are impacting buyer confidence. With this, gold exposure has become a necessity for Chinese portfolios, as they continue to expect disinflation and income uncertainty,” the analysts said in the report.

“Recent weeks have seen vast lay-offs at the world’s largest solar manufacturer, Longi Green Technology, while there have been a number of news articles around poor utility return on solar installations in Europe,” they added. “This has led to some fears of a wider solar industry slowdown; however, we see this as a cyclical element of overinvestment and higher interest rates.”

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

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ADA at 10 Price In View As Cardano Surpasses Ethereum ETH Other Top Blockchains In Developer Activity

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ADA at $10 Price In View As Cardano Surpasses Ethereum (ETH), Other Top Blockchains In Developer Activity

By Arnold Kirimi – March 24, 2024

Cardano (ADA) has emerged as a leader in developer activity, surpassing Ethereum (ETH) and other major blockchain networks. The surge in GitHub commits reflects Cardano’s commitment to innovation and growth, positioning it as a frontrunner in the competitive blockchain landscape.

GitHub commits are updates or modifications made to a project’s code on the GitHub platform using the Git version control system.

Each commit represents a specific change to the codebase, like adding features, fixing bugs, or enhancing performance. Commits include a message explaining the changes, aiding collaboration and progress tracking in software development.

Impressive GitHub Commit Numbers

IntoTheBlock reports that Cardano’s ADA is currently the cryptocurrency with the highest development activity and weekly engagements, surpassing major cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC). Following ADA, Avalanche (AVAX) takes the third spot, with Litecoin (LTC) ranking fourth.

Between March 11 and 17, Cardano recorded an impressive total of 978,780 commits on GitHub, showcasing its proactive approach to advancing its platform. In comparison, Ethereum, a leading blockchain platform, trailed behind with 407,170 commits during the same period.

This significant lead in GitHub activity underscores Cardano’s dedication to attracting developers and enhancing its ecosystem.

The rise of Cardano’s developer activity also sheds light on the broader trend of increasing engagement across layer-1 (L1) blockchain protocols. Avalanche (AVAX) recorded 315,770 commits, demonstrating a strong commitment to innovation and growth.

Similarly, Litecoin (LTC) and Tron (TRX) showed notable developer engagement, with 84,110 and 79,380 commits, respectively. Despite these efforts, these networks still lag behind Cardano in terms of overall developer activity.

Developer engagement is a critical metric for evaluating a blockchain protocol’s potential growth and evolution. High-commit counts indicate an active developer community working on decentralized applications (dApps) and improving the network’s capabilities.

This continuous development work is essential for enhancing the functionality and resilience of the blockchain network over time.

Cardano Price Performance vs. Developer Activity


ADA/USDT Price Chart: TradingView

Despite Cardano’s strong developer activity, its price performance has not mirrored this success. ADA has been trading below the $1 mark since April 2022 and is currently priced at $0.63, reflecting a 0.18% surge in the past 24 hours. Despite the positive GitHub commit data, ADA has experienced a decrease of 20.66% over the past week.

However, several analysts have recently expressed optimism about the asset, forecasting a new record high in the coming days. For instance, X user Ali Charts drew parallels between the coin’s current performance and its past bull cycle, suggesting a potential “parabolic” surge to reach as high as $10.

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 Arnold Kirimi and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Silver can still outperform gold even as prices fall 1 below 2450 – MKS

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Silver can still outperform gold even as prices fall 1% below $24.50 – MKS

Silver continues to underperform within the precious metals market and has been unable to hold gains above $25 an ounce even as gold prices hold near their record highs.

Despite the disappointing price action, many analysts remain optimistic that silver will have its turn to shine in the spotlight.

Even with higher volatility, Nicky Shiels, head of metals strategy at MKS PAMP, said silver is building a solid floor above $23.50 an ounce. She added that she sees potential for the white metal to reach $28 an ounce this year.

The bullish outlook comes as gold prices hold solid support above $2,150 an ounce; spot silver has fallen to a one-week low, last trading at $24.36 an ounce, down more than 1% on the day. The gold/silver ratio remains elevated and is above 89 points.

However, with inflation expected to remain stubbornly elevated for longer than forecasted, Shiels said that she expects the ratio to start falling.

“US growth has exceeded expectations as the Fed manufactures a soft landing while ROW / global growth is ‘stable’ish.’ With expected easier G-10 monetary policy now collectively tolerating a ‘higher for longer’ inflation regime, high beta cyclical commodities like Silver should outperform & the ratio should rerate lower,” she said in a note published last week.

Last week the Federal Reserve signaled that it was still on track to lower interest rates three times this year even as inflation remains above its 2% target.

Along with easing interest rates, Shiels noted that silver remains well supported by strong supply and demand fundamentals as demand continues to outpace supply.

She pointed out that India has once again become a robust source of demand for the physical metal. Quoting the nation’s trade data, Sheils said that in the first two months of the year, India has imported about 3,000 tonnes of silver.

“While that buying pace may subside, we don’t foresee a dramatic scale back in purchases at $25/oz+ prices,” she said.

At the same time, analysts expect healthy industrial demand to push the silver market into another deficit this year. According to research from the Silver Institute, global silver demand is expected to reach 1.2 billion ounces in 2024, the second-highest level on record.

Shiels noted that ongoing demand for silver has pushed above-ground stocks held with the London Bullion Market Association to record lows of 814 million ounces.

Meanwhile, the supply of silver continues to dwindle. Sheils noted that silver production from Mexico and Peru, the world’s top two producers, has dropped to its lowest level in 14 years.

“Mexico & Peru together are producing 25% less vs 2016 levels, helping drive the drawdown in above-ground stocks as a substitute,” she said.

As to what will drive investors back into silver, Shiels said that she expects investment demand to pick up as central banks start to cut interest rates. The Federal Reserve is likely to embark on its easing cycle with a cut in June. She added that geopolitical uncertainty ahead of the U.S. elections can also create some safe-haven demand for silver.

“Trying to time investor engagement is tricky, but as is the case with gold, it’s usually a FOMO trade, so a technical breakup & above $26 (a relatively sticky area) should attract the momentum crowd,” she said.

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

The Artist that came out of the Winter