News
ZeroHedge: UK Inflation Comes Out Lower. But Was This Just the Warm Up?
The UK reported a welcome decline in inflation to its lowest since September 2021, exceeding analysts' predictions. This news comes as the Federal Open Markets Committee convenes to discuss US interest rates, with the outcome to be announced later today. While no change in rates is anticipated, the Committee’s projections on future rate changes, known as 'dot plots', are highly anticipated and could signal significant market cues.
Powell Says Recent Inflation Numbers Haven’t ‘Really Changed the Overall Story’
Fed Chair Jerome Powell said Wednesday that the January and February consumer price index and the January personal consumption expenditures price index were “quite high, but there's reason to think that, at least for the first month of the year, that “seasonal effects” were at play. “We don't want to be completely dismissive of it,” Powell said. “I always try to be careful about dismissing data that we don't like—so you need to check yourself on that.”
Morgan Stanley Warns De-Dollarization Could Spell Trouble for US Stocks
Lisa Shalett, the Chief Investment Officer at Morgan Stanley Wealth Management, is highlighting the potential risks to US stocks from the increasing trend of de-dollarization. She notes that the US dollar's dominance in global trade and its status as a primary reserve currency are being challenged, putting structural pressure on the dollar that could negatively impact US equities. Shalett advises investors to brace for a shift in the US dollar regime, citing factors such as the surge in gold and bitcoin prices, the termination of Japan's yield curve control, and deteriorating US-China relations. These developments threaten to reverse the benefits the US has enjoyed from the dollar's strength, including low import inflation and affordable energy costs, which have been fundamental in supporting high liquidity and financing for US deficits and debt.
The Ticking Debt Bomb: How to Safeguard Your Investments from the Inevitable
According to Wharton Professor Kent Smetters and insights from notable hedge fund managers Mark Spitznagel and Ray Dalio, the US is on the verge of a severe economic downturn, potentially culminating in the worst stock market crash since 1929 due to an unsustainable debt trajectory. Federal spending has significantly outstripped tax revenue, a trend exacerbated by the global financial crisis and further intensified during the pandemic. To hedge against an economic downturn, Smetters recommends buying bonds that adjust for inflation.
Texas Fraudster Faces Justice for $10 Million Digital Currency Crypto Scam
According to U.S. Attorney's Office, Northern District of Illinois, a 52-year-old from Houston, Texas, has been charged with federal fraud for leading a digital currency scheme swindling investors out of over $10 million. From 2018 to 2023, Dunlap and associates falsely marketed the Meta-1 Coin, claiming it was backed by an art and gold portfolio valued at approximately $44 billion. The indictment reveals Dunlap manipulated the Meta-1 Coin's market price using automated software, inflating its trading volume on a fabricated exchange platform. If convicted, he faces four counts of mail fraud and was arrested in Virginia, with orders for his removal to Chicago for trial.