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Daily Dispatches

Debt ceiling jitters drive up cost of insuring against U.S. default

Section: Daily Dispatches

By Kate Duguid, Lauren Fedor, and Colby Smith
Financial Times, London
Thursday, April 13, 2023

The cost of buying insurance against a U.S. government default has shot to its highest level in more than a decade, in an early sign of market concerns about the political impasse in Washington over the debt ceiling.

Amid a stalemate between the White House and congressional Republicans on raising the federal borrowing limit, the price of five-year credit default swaps -- the most widely traded form of debt insurance -- reached its highest since 2012 this month.

Bloomberg columnist admits and contrives a rationale for dollar imperialism

Section: Daily Dispatches

4:20p ET Thursday, April 13, 2023

Dear Friend of GATA and Gold:

An opinion column by Tyler Cowen of Bloomberg News today offered an awfully contrived rationale for U.S. dollar imperialism and exploitation throughout the world. But Cowen's acknowledging that imperialism and exploitation was service enough.

In his column, "What De-Dollarization? The Dollar Rules the World" --

Veronique de Rugy: The Fed has more than a credibility problem

Section: Daily Dispatches

By Veronique de Rugy
Creators Syndicate, Hermosa Beach, California
Thursday, April 13, 2023

I have heard some people say that the Federal Reserve has a credibility problem. The agency missed the biggest inflation spike since the 1980s, was slow to start rolling back pandemic policies, and failed to spot the risks that some banks, such as Silicon Valley Bank, were facing. Instead of instilling confidence and stability, the Fed's policy communication has at times been so unclear and confused that it has only served to exacerbate market volatility.

JPMorgan has made deep cuts to metals business after nickel crisis

Section: Daily Dispatches

By Alfred Cang, Jack Farchy, and Eddie Spence
Bloomberg News
Thursday, April 13, 2023

JPMorgan Chase & Co. has cut dozens of base metals clients and slashed bankers' bonuses, as the business remains under harsh internal scrutiny in the wake of last yea's nickel crisis.

Brazil's Lula calls for end to dollar trade dominance

Section: Daily Dispatches

By Joe Leahy and Hudson Lockett
Financial Times, London
Thursday, April 13, 2023

Brazil's president, Luiz Inácio Lula da Silva, has called on developing countries to work toward replacing the U.S. dollar with their own currencies in international trade, lending his voice to Beijing's efforts to end the greenback's dominance of global commerce.

Alasdair Macleod: It's all hotting up

Section: Daily Dispatches

By Alasdair Macleod
GoldMoney, Toronto
Thursday, April 13, 2023

Increasing numbers of national governments are abandoning the U.S. sphere of influence. Opportunities from trade with Asia compare favourably with rising currency and banking risks in a dollar-centric world.

Against an imploding banking system in long-established financial markets, China's renminbi looks like a safe haven. Thanks to a savings-driven economy, China's consumer price inflation remained very low, when those of the western alliance soared. 

Tim Price: Financial regime change is coming

Section: Daily Dispatches

By Tim Price
Price Value Partners, London
Saturday, April 1, 2023

"The governor of the Bank of England has dismissed the prospect of an imminent financial crisis, describing last week's dumping of European bank shares as investors 'testing out' lenders and insisting the world is not 'at all in the place' it was before the 2008 crash."

-- The Financial Times, "BoE Governor Andrew Bailey Dismisses Chances of Financial Crisis," March 29, 2023.

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Lawrence Reed: The other date that lives in infamy

Section: Daily Dispatches

By Lawrence W. Reed
via Gold Newsletter,  Metairie, Louisiana
Wednesday, April 12, 2023

December 7, 1941, will forever be remembered in the words of Franklin Delano Roosevelt, as "a date that will live in infamy." Another infamous date is April 5, 1933 -- the day that FDR ordered the seizure of the private gold holdings of the American people.
By attacking innocent citizens, he bombed the country's gold standard just as surely as Japan bombed Pearl Harbor.

... Dispatch continues below ...

Craig Hemke at Sprott Money: Waiting for the specs to get back into gold

Section: Daily Dispatches

By Craig Hemke
Sprott Money, Toronto
Wednesday, April 12, 2023

There's a notion going around that somehow Comex gold is overbought and in some sort of exuberant speculative bubble just because price is near all-time highs. Let's dispel that myth today.

I'm sure you’ve seen this idea bandied about by permabears and others with an axe to grind. The Comex gold price is near an all-time high, so surely it's a bubble that's about to pop. As if every cab driver and shoe shiner is suddenly investing in gold and gold miners.

Newmont seems to think gold will be going up

Section: Daily Dispatches

Newmont Raises Newcrest Bid to $19.5 Billion

From Bloomberg News
via Yahoo News, Sunnyvale, California
Tuesday, April 11, 2023

U.S. gold giant Newmont Corp. has sweetened its record bid for Australian rival Newcrest Mining Ltd., bringing closer the prospect of a new precious metal behemoth.

The revised takeover offer, valued at A$29.4 billion ($19.5 billion), comes two months after Newcrest rejected Newmont's earlier $17 billion all-stock deal. Shareholders and analysts alike say the transaction looks much more likely to move forward following the boosted bid.