Nothing to see here! Central Banks are buying a lot more gold. Under Bidenistas, nations worldwide are de-dollarizing or planning it. The US days of the dollar as the reserve currency are ending.
The problem is gold is no bargain either.
Additionally, the debt-to-income ratio on FHA loans is 44%. That’s not good.
Here’s a chart of Central Bank gold purchases back to 1950.
Even during the historically high inflation in the 1980s, Central Banks did not purchase gold.
There’s a clear shift in sentiment over the last 10 years.
Follow us @KobeissiLetter for more analysis as this develops. pic.twitter.com/xudIZ2i6DE
— The Kobeissi Letter (@KobeissiLetter) April 7, 2023
Texas is looking to go to the gold standard, but the economy is great. Just ask Joe Biden.
Is the Gold Standard Coming Back in Texas? Legislators Propose Gold-Backed Digital Currency
This may be legal. The US Constitution does provide that states can “coin” #gold. The courts would have to recognize a digital gold currency as a “stable coin” within that. pic.twitter.com/FQMrzb4acQ
— Wall Street Silver (@WallStreetSilv) April 7, 2023
Down payments on FHA loans are under 5% while monthly payments take nearly 50% of income.
These loans have massive balances outstanding while wage growth is not outpacing inflation.
Foreclosures are likely next.
Follow us @Kobeissiletter for more analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) April 7, 2023
We also don’t save any longer, we can’t afford to, and the money blown to help the economy was a disaster. By the way, does anyone know how much gold is in Fort Knox? It hasn’t been audtied in a very long time.
Here is a chart visualizing this data.
The massive spike in 2020 was due to $4 trillion in stimulus which was printed and handed out.
This money quickly disappeared as inflation soared.
Again, there’s no such thing as “free” money.
Follow us @KobeissiLetter for more analysis. pic.twitter.com/QD321J1oOp
— The Kobeissi Letter (@KobeissiLetter) April 5, 2023
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