https://dailyhodl.com/2023/06/04/us-dollar-to-remain-the-anchor-currency-for-central-banks-says-billionaire-chamath-palihapitiya/

Billionaire Chamath Palihapitiya remains firm in his belief that the US dollar will continue to reign as the world’s reserve currency despite the push by BRICS countries to move away from the USD.

In a new episode of the All-In Podcast, Palihapitiya says that while global demand for US government debt is in a downtrend, he highlights that central banks around the world are still gobbling up US dollars.

The billionaire shares a chart from the International Monetary Fund (IMF) showing that the US dollar accounts for 60% to 70% of central banks’ foreign exchange reserves since 1999.

“If you look at the IMF data… you can’t just look at US treasury securities. You have to look at actual absolute dollar reserves.

When you look at that over time, it hasn’t fluctuated that much. So for all the dopes that don’t understand how this sh** works, it’s not just securities. It’s actually also money and the actual amount of US dollar money hasn’t changed that much.”  

According to Palihapitiya, foreign central banks and governments will likely continue to accumulate US dollars in the future even though BRICS nations are actively finding ways to settle trades using an alternative currency.

“Foreign reserves are up. These guys are banking US dollars like nobody’s business… What I’m saying is that in general, the anchor currency for governments and central banks has been, will be and will likely be in the future the United States dollar.”

The billionaire also highlights that he sees the dollar reigning supreme even though BRICS and other nations are attempting to settle trades in yuan.

“I think you guys keep forgetting this key thing, which is the yuan is pegged to the US dollar, so it is a proxy dollar. 

If you really want to decouple, you have to first let this currency free float. They have no desire to let them do that, especially in a moment where they’re economically imploding internally. So again, you back to this circular argument where everything goes back to the dollar.”

BRICS, which was set up by emerging economies to create an alternative to US dollar hegemony, is currently made up of Brazil, Russia, India, China and South Africa.

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https://dailyhodl.com/2023/06/03/after-depositing-1000000000-apple-banking-customers-are-struggling-to-access-their-money/

After depositing more than $1,000,000,000 in a matter of weeks, Apple savings account customers say they are now struggling to withdraw their funds.

In mid-April, the iPhone creator teamed up with financial behemoth Goldman Sachs to allow Apple Card users to earn interest through a savings account.

The Wall Street Journal reports that some customers of Apple’s new product are experiencing multiple issues in accessing their funds.

Some say it took weeks before they were able to move money from their Apple savings account to another bank. Others claim that the funds do not show up in their Apple savings account or in the bank they were trying to relocate their deposits to.

The Wall Street Journal mentions the case of Kevin Smyth who said that he tried to transfer $10,000 from his Apple savings account to another bank last month.  According to Smyth, Goldman Sachs told him that his account was being reviewed for security purposes.

Says Smith,

“FYI people, Apple savings account isn’t ready for prime time. Do NOT move your money there. If you do, they will hold your money hostage with ‘security reviews’ if you dare try to withdraw/transfer to another account…

The post After Depositing $1,000,000,000, Apple Banking Customers Are Struggling to Access Their Money appeared first on The Daily Hodl.

https://dailyhodl.com/2023/06/03/us-banking-crisis-triggers-756000000000-flood-of-capital-into-cash-funds-report/

Financial titan Bank of America (BofA) says money market funds just witnessed a deluge of more than half a trillion dollars worth of capital.

According to a recent BofA investor note, money market funds have attracted $756 billion in investments this year amid the lingering banking crisis and the Federal Reserve’s aggressive rate hikes, per Reuters.

A money market fund is a type of mutual fund that seeks yield by investing in high-quality short-term debt, including those offered by the US government. Yields available on money market funds have skyrocketed this year due to the steep rise in interest rates.

According to the financial giant, the flow of capital into money market funds is nearing a level last witnessed about three years ago when investors panicked and redirected $917 billion into cash funds amid the Covid-19 pandemic.

While investors are pouring an immense amount of capital into money market funds, BofA’s investor note reveals that it comes at the expense of the stock market.

Citing numbers from financial analytics firm EPFR, BofA reveals that funds focused on the stock market saw their third consecutive weekly outflows to the tune of $3.9 billion

Bank of America’s chief investment strategist Michael Hartnett reportedly said in the investor note that the stock market could witness a major sell-off event in the coming weeks.

“We expect another bout of risk-off to return (in) late June.” 

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The post US Banking Crisis Triggers $756,000,000,000 Flood of Capital Into Cash Funds: Report appeared first on The Daily Hodl.

https://dailyhodl.com/2023/06/03/us-congressman-moves-to-stop-cbdc-dead-in-its-tracks-introduces-bill-to-block-federal-reserve/

A Congressman in West Virginia’s second district is introducing a new bill that would keep the Federal Reserve from carrying out experiments related to the use of a central bank digital currency (CBDC).

In a new press release, Congressman Alex X. Mooney introduces the “Digital Dollar Pilot Prevention Act,” which aims to close a loophole that would allow the Federal Reserve from running a pilot program designed to test the feasibility of issuing a CBDC.

“This bill would prohibit the Federal Reserve from establishing, carrying out, or approving a program intended to test the practicability of issuing a CBDC.” 

According to the press release, more than a dozen House Republicans have agreed to serve as original co-sponsors of the bill.

Says Mooney,

“Congress cannot give an inch when it comes to CBDCs. CBDCs would threaten the liberties of law-abiding Americans and are being used by authoritarian countries right now to crack down on dissent.

That’s why closing this pilot program loophole is so important – to prevent the Federal Reserve from bypassing the will of Congress. I am proud to introduce this legislation to do exactly that.” 

The press release also says that House Republicans have been clear in their stance that the Fed has no legal authority to issue a CBDC without the approval of Congress. According to the document, CBDCs raise major privacy and government surveillance concerns.

“Right now, China is circulating its CBDC as part of a ‘pilot’ program which will be used to monitor the transactions of its people and restrict banking access to government dissenters. Legislation is needed to ensure that the Federal Reserve cannot make an end run around Congress and issue a CBDC as part of any pilot program while stopping its current development dead in its tracks.”

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The post US Congressman Moves To Stop CBDC ‘Dead in Its Tracks’, Introduces Bill To Block Federal Reserve appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/28/brazils-new-president-says-brics-should-launch-global-currency-highlights-plan-to-boost-business-with-china/

Brazilian President Luiz Inácio Lula da Silva says he believes a group of five nations collectively known as BRICS should create its own common currency to compete on the global stage.

After attending the G7 meeting in Hiroshima, President Lula hosted a press conference touting the benefits of a common currency that does does not depend on the US dollar, reports Nikkei.

According to the report, Lula says Brazil is boosting economic ties with China and “hopes to create a common BRICS currency”.

Those views stand in contrast to the goals of the economically elite G7 nations, which are focused on “de-resking” without “decoupling” from China.

President Lula’s statements come about a month after he expressed initial support for a BRICS currency.

“Why can’t an institution like the BRICS bank have a currency to finance trade relations between Brazil and China, between Brazil and all the other BRICS countries? Who decided that the dollar was the [trade] currency after the end of gold parity?”

BRICS leaders have touted various views on a potential common currency, depending on the country.

Late last month, a top Russian lawmaker said that BRICS is already in the process of creating an alternative currency that would bypass the US dollar.

But South African Foreign Minister Naledi Pandor recently said the launch of a global BRICS currency is “a matter we must discuss and discuss properly”.

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The post Brazil’s New President Says BRICS Should Launch Global Currency, Highlights Plan to Boost Business With China appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/28/heres-whats-accelerating-de-dollarization-trend-according-to-macro-guru-lyn-alden/

Macro guru Lyn Alden is naming two big underlying foundations that are kicking the trend of de-dollarization into high gear.

In a recent interview on The Jay Martin Show, Alden says one reason why de-dollarization is accelerating is that other countries have lost trust in US government bonds.

According to the macro guru, the yields offered by US treasuries are lower than inflation, which motivated a number of countries to invest elsewhere.

“This past year you’ve seen a little more acceleration in de-dollarization, and there are, I think, two big underlying foundations for that.

So number one is that ever since the global financial crisis and a few years after that, a number of countries decided that (US) treasuries are probably not going to be attractive. And they don’t want to finance the US government at negative real yields.

For much of the 2010 decade, for example, T-bills were yielding less than inflation. Longer-duration treasuries were yielding roughly in line with CPI (consumer price index)… And they were underperforming other assets like equities and real estate and things like that. 

So a lot of these governments said, ‘We don’t really want to facilitate that.’” 

Alden also says that countries are moving away from the dollar out of fear that the US government may seize their reserves at any point.

According to Alden, other countries know that the status of their dollar reserves is at the mercy of a few politicians in Washington.

“The treasury and the dollar market, in general, is a permissioned ledger. So it’s a ledger that you can be cut off from. Your assets can be unilaterally seized. 

Obviously, it’s not done arbitrarily, but most countries around the world have had periods of time over the past 50 years where they’ve not been in the good graces of Washington (in) one way or another….

Basically, a lot of countries are saying, ‘Maybe, we shouldn’t have 100% of our reserves. Maybe, we should have 80% of our reserves in dollars and treasuries because a handful of people in D.C. can just snap their fingers and seize those funds.’”

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The post Here’s What’s Accelerating De-Dollarization Trend, According to Macro Guru Lyn Alden appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/25/central-banks-to-amass-over-48000000000-worth-of-gold-this-year-amid-us-dollar-weaponization-ubs/

Banking giant UBS says demand for gold from central banks around the world is likely to surge this year as countries back away from the US dollar.

In a new report, UBS says it expects central banks to accumulate 700 metric tons of gold worth $48.74 billion this year.

According to the financial titan, central banks are likely to continue stockpiling gold in the coming months due to persistent inflation and geopolitical concerns.

“Last year marked the 13th consecutive year of net gold purchases by global central banks and the highest level of annual demand on record dating back to 1950.

At 1,078 metric tons in 2022, central banks’ buying of gold more than doubled from 450 metric tons in 2021. Based on the 1Q23 data from the World Gold Council, central banks are on track to buy around 700 metric tons of gold this year, much higher than the average since 2010 of below 500 metric tons.

We think this trend of central bank buying is likely to continue amid heightened geopolitical risks and elevated inflation.” 

UBS also highlights that countries around the world are now hesitant to increase their US dollar reserves following the weaponization of the American currency.

Last year, Russia’s Finance Minister reportedly said that the US and its allies have frozen $300 billion worth of the European giant’s gold and foreign exchange reserves as part of the sanctions over the military conflict in Ukraine.

Says UBS,

“In fact, the US decision to freeze Russian foreign exchange reserves in the aftermath of the war in Ukraine may have led to a long-term impact on the behavior of central banks.” 

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https://dailyhodl.com/2023/05/21/settlement-incoming-pro-xrp-lawyer-details-outlook-following-latest-motion-in-ripple-lawsuit/

Attorney and XRP supporter John Deaton is weighing in on the possibility that a settlement could be in the works between payments firm Ripple and the U.S. Securities and Exchange Commission (SEC).

On Friday, Ripple filed a motion addressed to Judge Analisa Torres requesting a one-week extension to file public, redacted versions of the firm’s cross-motions for summary judgment and accompanying exhibits, which includes the Hinman documents.

On May 18th, Judge Torres ordered that documents relating to the highly contested “Hinman emails” be unsealed for public viewing.

The materials contain internal SEC deliberations about a speech given by former SEC Director William Hinman in 2018 when he said in his official capacity that both Bitcoin (BTC) and Ethereum (ETH) are not securities.

The delay in the ongoing lawsuit has sparked speculations that the SEC and Ripple are possibly using the time to hammer out the details of a settlement.

However, pro-XRP lawyer John Deaton believes that the unsealing of the Hinman documents is unlikely to stop the SEC from seeing the case through to its conclusion.

“A lot of comments about whether this delay is for settlement discussions. If the Hinman emails were going to lead to a settlement, it would’ve been before they turned them over to Ripple. In my opinion, the SEC has accepted that the Hinman emails are eventually going to be made public.”

Deaton says he believes SEC Chair Gary Gensler, who has been hostile to the crypto industry, is determined to take the years-long lawsuit to the end.

“I know many people hope I’m wrong because they want this over. I’ve been wrong before and I hope I’m wrong now. Hell, I’ll jump up and celebrate being wrong. But Gensler is moving forward full steam. How can he agree XRP is not a security but sue Coinbase claiming the others are?” 

In December 2020, the SEC sued Ripple for allegedly selling XRP as an unregistered security.

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The post Settlement Incoming? Pro-XRP Lawyer Details Outlook Following Latest Motion in Ripple Lawsuit appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/20/13-countries-formally-request-to-join-brics-as-economic-alliance-challenges-us-dollar-supremacy/

A total of 13 countries have now formally asked to join the global economic alliance known as BRICS.

In an interview with TV BRICS, African Ambassador Anil Sooklal says nations from Africa, Latin America and Asia are looking to become new members.

“So far, a number of countries (at least 13) from Africa, Latin America and Asia have applied or formally approached the BRICS leaders to become members of our association.

This is positive news for the bloc, as it demonstrates the confidence of the global south in the leadership of our association.”

Sooklal says BRICS, which is reportedly considering the launch of a global currency backed by gold, is now encouraging members to shift away from the US dollar and settle transactions in their own national currencies.

“In general, BRICS as a global association is based on three pillars – political security, economic and financial development, and social interaction among the member countries.

All three pillars are critical important for the creation of a global political architecture that is equitable and just, which is a stable safe environment for all. On the economic and financial side, we need a stable global financial architecture, a global financial arena. That is why we say that we need to trade in our own currencies.”

BRICS, which stands for Brazil, Russia, India, China and South Africa, is set to hold its yearly summit in August.

In addition to strengthening economic ties, Sooklal says leaders also plan to discuss sustainable development and green energy initiatives.

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The post 13 Countries Formally Request to Join BRICS As Economic Alliance Challenges US Dollar Supremacy appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/20/probability-that-us-banks-will-restrict-cash-withdrawals-is-rising-like-mercury-says-macro-guru-hugh-hendry/

Macro guru Hugh Hendry is expanding his views on the US banking system amid lingering turmoil in the financial sector.

In a new interview on Stansberry Research with Daniela Cambone, the hedge fund manager says the Fed’s tight monetary policy has increased the probability that banking customers could one day face restrictions on the amount of cash they can pull out.

“If we went back a year ago, the probability you would assign to that would be almost zero. And all I’m saying is that probability, like mercury, is rising.

Why is it rising? It’s rising because we have experienced, I call it the Fed folly. One can say factually that this Fed hiking is the fastest and of the greatest magnitude. They’ve never done this before…

We no longer live in an environment where it seems prudent to have all of your money in the banking system, and certainly not congregated around one lender.”

Although blanket limits on bank withdrawals are unknown in the US, such restrictions were implemented in Greece and Cyprus during the debt crisis of the mid-2010s.

Cash withdrawal limits are currently in place in Nigeria, where individuals are allowed to withdraw 20,000 naira, worth about $43 dollars, per week. Leaders in the economically-troubled nation say the move is designed to pull cash out of the system ahead of a planned move to a fully digital economy.

Hendry says America’s banking industry will likely witness further deposit flight as we now live in a world where a customer can pull out their funds with a press of a button.

He also points out that the Fed’s rate hikes over the past year have created an environment that makes it attractive for depositors to take their money out of banks and invest it in money market funds.

A combination of being stuck with these very uncompetitive rates and now the tyranny that money can just fly so quickly… The thing that’s pulling money out is the Fed’s offering too much via money markets. I mean you could go to the Fed directly.

So what’s the Fed doing? It’s encouraging more and more and more money to leave [banks].”

At time of writing, the average annual percentage yield (APY) for savings accounts stands at 0.25%. Meanwhile, money market funds offer as high as 4.75% APY, closer to the Federal Reserve’s 5% to 5.25% benchmark rate.

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The post Probability That US Banks Will Restrict Cash Withdrawals Is ‘Rising Like Mercury’, Says Macro Guru Hugh Hendry appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/17/american-cbdc-will-spark-massive-transfer-of-power-from-citizens-to-big-government-florida-governor-ron-desantis/

Florida Governor Ron DeSantis believes an American central bank digital currency (CBDC) would dramatically empower the government at the expense of personal freedom.

In a speech at Fort Myers Technical College, DeSantis warns that a US CBDC would give the government far more control over how people use their money.

According to the Republican Governor, a CBDC would allow the federal government to view people’s transactions and block purchases in real time.

“I think anyone with their eyes open could see the dangers that this type of an arrangement would mean for Americans who want to exercise their financial independence, who would like to be able to conduct business without having the government know every single transaction that they’re making in real time.” 

DeSantis says CBDCs go against the values upheld by a free society, and would catalyze a shift of power from the many to the few.

“Sometimes government will do things where they provide kind of a benevolent rationale for what they’re doing, but it’s really nothing more than a wolf in sheep’s clothing.

Well, I think with central bank digital currency, this is a wolf coming as a wolf. This is something that will be a massive transfer of power from individual consumers to a central authority.

And that’s just fundamentally antithetical to a free society.”

Last week, Governor DeSantis signed a law designed to ban the use of CBDCs in Florida.

The bill changes the state’s definition of money to state that “The term does not include a central bank digital currency.”

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The post American CBDC Will Spark Massive Transfer of Power From Citizens to Government: Florida Governor Ron DeSantis appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/16/brics-quest-for-new-world-order-is-increasingly-appealing-to-disgruntled-countries-ex-world-bank-executive/

A former World Bank senior vice president says that a BRICS-led global order is becoming increasingly attractive to a number of countries that have grievances against the US and its allies.

In a new article on Project Syndicate, Ana Palacio says that developing nations that feel left out are looking for an alternative worldview and institutional system.

According to the former World Bank executive, these nations are currently unhappy as they believe the West-dominated international order is designed to limit their economic growth and keep them from accessing technology that can improve standard of living.

“Developing economies are angry about the burdensome conditionality that has been imposed on them by Western-dominated institutions. They are sick of what they perceive as double standards on vital policy matters, such as the green transition.

They are unwilling to tolerate efforts to ‘constrain’ their economies through conservation demands or limits on technology sharing.” 

Palacio also says that the West’s “unwillingness” to change its approach in global governance is driving disgruntled countries to seek a new type of leadership – one that will consider their national interests.

“With the West’s pledges to pursue reform having come to nothing, potential alternatives – from development banks to currencies – look increasingly attractive to those who feel left out. The BRICS are attempting to build a new world order, ‘bric by bric,’ and the appeal of their cause among other disgruntled countries is growing.” 

Palacio highlights that at least 19 countries have conveyed their interest in teaming up with BRICS, including Argentina, Turkey and Saudi Arabia.

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https://dailyhodl.com/2023/05/15/value-of-bitcoin-becoming-more-obvious-as-people-realize-banks-are-risky-says-macro-guru-lyn-alden/

Macro guru Lyn Alden says that people are starting to understand the unique value proposition of Bitcoin (BTC) following the collapse of several regional banks this year.

In a recent MicroStrategy World Panel Session, Alden says that Americans are beginning to realize that banks are risky, which she highlights is something that the rest of the world already understands.

“I think people took for granted what a lot of the world doesn’t take for granted, which is that banks are risky, that there’s risk there, especially if you’re above certain insurance limits. Basically, you’re lending to the bank to invest in a variety of assets, and most of us don’t take the time to study the assets of the banks we operate in. Many of them are not public, so we can’t even do so if we wanted to.”

According to Alden, the current banking crisis is opening the eyes of many investors to the value of Bitcoin. The macro guru mentions a few of Bitcoin’s fundamental properties that make the crypto king an attractive storehold of wealth.

“So we’re seeing firsthand some of the risks that are just common throughout the world and the narrative of Bitcoin and basically being able to self-custody your own assets, having assets that can’t be diluted, having assets that are not someone else’s liability, I think are coming more to the fore. The narrative is obviously strengthened by some of these issues.”  

At time of writing, Bitcoin is trading for $27,204.

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The post Value of Bitcoin Becoming More Obvious As People Realize Banks Are Risky, Says Macro Guru Lyn Alden appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/14/us-debt-default-would-be-catastrophic-could-cost-american-dollar-reserve-currency-status-congressman-jim-himes/

The looming debt ceiling crisis could undermine the status of the US dollar as the world’s reserve currency, according to House Democrat Jim Himes.

In a recent CNN interview, Congressman Himes says the US has never been on the verge of defaulting on its debt before.

Himes says a failure to resolve the debt ceiling face-off could prove “catastrophic” for the prospects of the United States and the dollar.

“The United States has never really come close to defaulting on its debt before, so its hard for us to imagine what that might look like. But of course, it could be catastrophic. 

Frankly, the full faith and credit of the United States is the bedrock on which the global financial system is built. And if that comes into question, all kinds of things could happen. 

The US dollar, its position as the global reserve currency could be eroded. People may choose to invest in the United Kingdom or in the European Union rather than the United States.” 

Himes is not the only government official sounding the alarm on the debt ceiling crisis. Earlier this month, Treasury Secretary Janet Yellen said the US will plunge into an “economic calamity” if Congress fails to raise the debt ceiling.

Former Secretary of State Hillary Clinton also shares the same outlook, saying that the world could witness a “financial meltdown” if the US defaulted on its obligations.

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The post US Debt Default Would Be Catastrophic, Could Cost American Dollar Reserve Currency Status: Congressman Jim Himes appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/14/us-dollar-supremacy-remains-unchanged-as-187-countries-dont-want-their-own-currency-chamath-palihapitiya/

Billionaire Chamath Palihapitiya believes the US dollar’s supremacy remains unquestionable despite recent headlines featuring the trend of de-dollarization.

In a new episode of the All-In Podcast, Palihapitiya says that the devaluation of the dollar is not all bad news for the United States.

According to the billionaire venture capitalist, a weaker dollar actually boosts the country’s economy as it allows other nations to purchase US products at a discount.

“The position of the US dollar hasn’t changed. Again, you have to remember a lot of these foreign governments, 187 or whatever the number is of countries outside the United States, rely on the US dollar. They don’t want to own their own currency. 

Dollars do get inflated, but that increased purchasing power also actually drives the balance of power back to the United States because all of these folks all of a sudden find the ability to import a little bit cheaper, their economies get slightly better but the US dollar actually still does well. 

So there’s a complex set of interactions that are all relative.”

Palihapitiya also says that he believes the US government will likely not veer away from the path of long-term currency debasement. According to the billionaire, the best way to ride the trend of long-term dollar debasement is to invest in risk asset such as stocks and crypto.

“We are going to reinflate the money supply over the long term because it’s the only sustainable way that politicians can get elected and re-elected, and I think the best thing to do there is to own risk assets.” 

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The post US Dollar Supremacy Remains Unchanged As 187 Countries Don’t Want Their Own Currency: Chamath Palihapitiya appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/08/us-dollar-in-precarious-position-as-brics-members-join-forces-against-american-currency-senator-rand-paul/

Kentucky Senator Rand Paul says the government’s foreign and fiscal policies are pushing BRICS and other nations to gang up against the US dollar.

In a new Fox Business interview, Paul says the US is becoming increasingly isolated as outside powers team up to settle trades without using the dollar.

Paul says it’s not China and Russia – two of the largest members of BRICS. The Kentucky Senator says Iran, North Korea and Saudi Arabia are also finding ways to move away from USD.

“When you look at the determination of the world’s trade, quite a bit of it, more than we’ve had for quite sometime, is denominated in things other than the US dollar. 

I think our foreign policy has something to do with that, too. We pushed all of our adversaries farther and farther away from us and closer and closer together. It’s not just China and Russia being pushed together by foreign policy. Obviously, some of it is their own doing, and it’s a response to things they’ve done that we don’t like. 

But North Korea is in that basket as well. Iran is in that basket. But then we have some countries such as Saudi Arabia also being pushed together into this non-aligned or unaligned coalition that wants to denominate their trades in things other than the dollar.” 

Paul believes the dollar is clinging to its throne due to the government’s loose monetary policies. According to the Senator, nations are witnessing the devaluation of their dollar reserves as the government continues to debase the USD.

“So I think it is coming. Also if you treat your dollar like scrap paper and you continue to buy up enormous amounts of US debt, your dollar becomes worthless, too.

So for a variety of reasons – both foreign policy as well as fiscal irresponsibility – yes, the dollar is in a precarious position. And I think it is not an unfounded prediction to say, ‘Yeah, we could possibly lose our status as a reserve currency.’” 

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The post US Dollar in Precarious Position As BRICS Members Join Forces Against American Currency: Senator Rand Paul appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/07/us-banking-turmoil-now-bigger-than-2008-financial-crisis-but-real-storm-hasnt-hit-yet-economist-peter-st-onge/

Economist Peter St Onge says the current banking crisis is already larger than the turmoil witnessed about 15 years ago – and it’s far from over.

In a new video, St Onge says fallout in the banking sector has now eclipsed the Global Financial Crisis of 2008 in terms of assets wiped out.

St Onge says that investors should brace for more collapses even though the Federal Reserve is saying otherwise.

“Just hours after Fed Chair Jerome Powell told America the ‘US banking system is sound and resilient,’ it fell off a cliff as major regional lender PacWest collapsed over 50% in aftermarket. 

So paired with the collapse of First Republic last weekend, by assets, the 2023 bank collapse has now officially exceeded the 2008 collapse with apparently a lot more to come from this ‘very sound and resilient’ banking system of ours.”

The economist believes the collapse of First Republic and others is likely just the tip of the iceberg. Using the 2008 banking turmoil as reference, St Onge predicts that hundreds of banks will go under in the next 12 months as the economy feels the wrath of the Federal Reserve’s aggressive interest rate hikes over the past year.

“What’s scary here is that going by 2008, the early collapses are only the beginning, the screaming prelude to an extinction-level culling of banks crawling off to die.

In raw numbers, the 25 US banks that collapsed in 2008 were followed by a drum beat totaling 440 banks in the following four years. That’s a 110 (banks) per year, compared to two per year pre-crisis.  So we haven’t even begun to see what’s coming.

Interest rate hikes typically take 12-18 months to really hit the economy, and we’re barely six months in. So lining up against the 2008 crisis implies the real storm is not even hitting for another year. These are the first breezes of a coming hurricane.” 

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The post US Banking Turmoil Now Bigger Than 2008 Financial Crisis – But Real Storm Hasn’t Hit Yet: Economist Peter St Onge appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/07/republican-senator-john-kennedy-calls-banks-sophisticated-ponzi-schemes/

A Republican senator says that advancements in technology is exposing the fragility of the US banking system.

In a new CNBC interview, Louisiana Senator John Kennedy says banks today are no different than the scheme ran by Italian con artist Charles Ponzi over 100 years ago.

According to Kennedy, banks can only survive on the basis of trust, but not any other fundamental property.

“I just know the world is different now with technology and the way we can communicate so quickly. Banks exist on the basis of trust. They are really just, don’t take this the wrong way, sophisticated Ponzi schemes, and they work when everybody trusts each other. 

You get on that iPhone and start sending text messages and you have the herd panic and stampede, anybody can go broke. It’s breathtaking.”

Kennedy’s comments come as several regional banks witnessed their share prices fall off a cliff last week.

PacWest Bancorp, which provides business banking and treasury management to small and midsized businesses, saw its share price collapse 44% in the past week.

Western Alliance Bancorporation (WAL), an Arizona-based regional bank also dipped big, shedding nearly 27% off its share price over the same timeframe. Metropolitan Bank Holding Corp (MCB) is also down nearly 30% on the week, despite beating earning expectations just weeks ago.

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The post Republican Senator John Kennedy Calls Banks Sophisticated Ponzi Schemes appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/03/major-brics-countries-looking-to-integrate-national-payment-systems-amid-push-to-ditch-dollar-report/

Two of the largest members of BRICS are reportedly exploring how they can link their payment systems.

According to the Economic Times, India’s External Affairs Minister S Jaishankar and Russia’s Deputy Prime Minister Denis Manturov are analyzing how the two countries can create new payment avenues that could circumvent financial sanctions levied against Moscow.

Per the report, Jaishankar and Manturov agreed to determine how they can integrate India’s Unified Payment Interface (UPI) and Russia’s Faster Payments Systems (FPS).

The UPI is a mobile payment method which allows users to make real-time transfers, while the FPS is a service that enables users to transfer funds between banks using their mobile number.

The two government officials also agreed to look into adopting the Financial Messaging System of the Bank of Russia for cross-border payments in an effort to move away from the global interbank platform SWIFT.

BRICS is a group of economically-aligned nations that currently includes Brazil, Russia, India, China, and South Africa.

The recent talks between Russia and India come as BRICS moves to create a new global currency that doesn’t rely on the US dollar.

According to Anatoly Aksakov, Russia’s Chairman of the State Duma Committee on the Financial Market, negotiations about the details of the new currency are underway and the economic alliance might reach an agreement by the end of the year.

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The post Major BRICS Countries Looking To Integrate National Payment Systems Amid Push To Ditch Dollar: Report appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/02/us-recession-about-to-make-landfall-as-economic-growth-slows-sharply-economist-steve-hanke/

A widely followed economist says a recession is about to hit the US following a weak first quarter performance.

Steve Hanke tells his 628,600 Twitter followers that the country’s economic growth significantly slowed down in Q1 of 2023.

According to the Bureau of Economic Analysis (BEA), the economy grew 1.1% per annum in the first quarter of this year, compared to the growth of 2.6% per year witnessed in the fourth quarter of 2023.

Hanke says that the drastic downturn in economic growth is largely due to the Federal Reserve’s failure to control the money supply.

“US economic growth slowed sharply to 1.1%/yr in the first quarter of 2023 from the 2.6%/yr growth in the final quarter of 2022. Thanks to the Fed’s failure to pay attention to the growth in the money supply, a US RECESSION is about to make landfall.” 

Data from Yahoo Charts shows that in just a few years, money supply (M2) meteorically rose from $15.41 trillion in 2020 to $20.80 trillion at time of writing. During the same period, the Fed’s balance sheet more than doubled from $4.14 trillion to $8.56 trillion.

Earlier this month, the President of the Minneapolis Federal Reserve Bank reportedly warned that a recession is likely in sight as the banking crisis continues to apply pressure on the US economy.

Neel Kashkari said that the Fed’s tight monetary policies over the past year could be the catalyst that starts the contraction of the US economy.

“It could be that our monetary policy actions and the tightening of credit conditions because of this banking stress leads to an economic downturn.

That might even lead to a recession. We need to get inflation down… If we were to fail to do that, then your job prospects would be really hard.”

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The post US Recession About To ‘Make Landfall’ As Economic Growth Slows Sharply: Economist Steve Hanke appeared first on The Daily Hodl.

https://dailyhodl.com/2023/05/01/billionare-ray-dalio-predicts-us-government-will-turn-money-printers-back-on-to-fund-national-deficit/

Billionaire investor Ray Dalio believes that the US government will turn the money printers back on to save the country from defaulting on its massive debt.

In a recent interview with YouTuber Chris Williamson, Dalio says that the US government will likely resort to currency debasement to partially pay off its immense $31.45 trillion national debt.

According to Dalio, the Federal Reserve and its tight monetary policies have put the country in a position where the government must introduce a fresh round of fiscal stimulus to jump start the economy and keep the US from defaulting.

“So I think you’re in the part of the cycle where you’ve had the tightening and then the dominoes are beginning to fall. And I think that that’s going to produce more problems.

I think when it comes down to it, there’s just too much debt, and we’re adding to it too quickly… Either that debt will be paid off with hard money, in which case there’s not much printing and so on, or it will be paid off with printing a lot of money to make it easier to pay off. 

I think in the end, it’s always the case that they print a lot of money in and make it easier to pay off, but you have the reduced value of money.”

Should the US government take the route of devaluing the dollar, Dalio says the country could enter a period of stagflation, which is an environment marked by high inflation and economic stagnation.

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The post Billionare Ray Dalio Predicts US Government Will Turn Money Printers Back On To Fund National Deficit appeared first on The Daily Hodl.

https://dailyhodl.com/2023/04/30/brics-global-currency-could-dislodge-dollar-render-us-sanctions-impotent-ex-white-house-economist/

A former White House economic advisor says a coming BRICS-issued currency has the potential to topple the US dollar’s dominance in international trade.

In a new article on Foreign Policy, Joseph Sullivan says that a BRICS-issued money would enable its members – Brazil, Russia, China, India and South Africa – to turn their backs on the dollar and trade goods and services using the new currency, which he calls “the bric.”

According to Sullivan, who served during the Trump administration, the bric could usurp the “dollar’s place on the throne” as BRICS is composed of economic heavyweights in their respective regions.

The economist goes on to say that the bric could be the beginning of the end of the dollar’s reign.

“Is it realistic to imagine the BRICS using only the bric for trade? Yes.

For starters, they could fund the entirety of their import bills by themselves. In 2022, as a whole, the BRICS ran a trade surplus, also known as a balance of payments surplus, of $387 billion – mostly thanks to China.

The BRICS would also be poised to achieve a level of self-sufficiency in international trade that has eluded the world’s other currency unions.” 

As for the US government’s reliance on the dollar to keep other countries in line, Sullivan says the reaction of other nations following the financial sanctions imposed on Russia indicates that the weaponization of the USD will become increasingly ineffective.

Although Sullivan believes that the bric has the potential to dislodge the dollar, he says that it will still take time to dethrone the USD.

“The dollar’s reign isn’t likely to end overnight – but a bric would begin the slow erosion of its dominance.” 

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The post BRICS Global Currency Could Dislodge Dollar, Render US Sanctions Impotent: Ex-White House Economist appeared first on The Daily Hodl.

https://dailyhodl.com/2023/04/30/fed-triggering-terrible-global-calamity-as-nations-back-away-from-us-bonds-billionaire-ray-dalio/

Billionaire Ray Dalio warns that other countries are no longer lining up to purchase government debt after witnessing the crisis in the US banking industry.

In a new interview with YouTuber Chris Williamson, Dalio explains why the collapse of Silicon Valley Bank is just a symptom of a much larger problem instigated by the Federal Reserve.

According to the legendary investor, the historical rise in interest rates over the past year has dramatically devalued the bonds sold by the government to buyers such as banks, companies and other nations a few years ago.

Bond prices and interest rates tend to move in the opposite direction. When interest rates soar, the prices of older bonds plummet as they have to compete with newer bonds that offer higher yields.

Says Dalio,

“If you look at the Silicon Valley Bank issue, it’s not so much their issue as much as a worldwide issue… What’s a bank? A bank takes in deposits, and then it takes that money and invests it in things. So they bought a lot of government bonds that had a higher yield than they were paying out in the deposits.

There’s a tightness of monetary policy, and those yields went up and the bonds went down in value, and then the amount they have to pay out went up in value, and so they went broke. 

That is happening all over. That happens not only through banks. Banks as a whole did a lot of that, but insurance companies and so on all around the world.

The same sort of thing happened in Europe. The same sort of thing happened with (Japan), companies even buying US dollar bonds a lot.” 

According to Dalio, the Federal Reserve’s tight monetary policies have created a catastrophic environment for the US. The billionaire says that nations and other buyers are backing away from US bonds just as the government needs more money to fund the national deficit.

“If you were to mark those (bonds) to market, you would have a terrible calamity, but what’s going to likely happen is they don’t want any more of those bonds, and we’re going to have to sell more bonds because we’re going to have a deficit. So when you have a deficit, you have to pay for it through selling debt, and there’s a lesser demand for that debt.” 

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The post Fed Triggering Terrible Global Calamity As Nations Back Away From US Bonds: Billionaire Ray Dalio appeared first on The Daily Hodl.

https://dailyhodl.com/2023/04/29/us-banking-crisis-not-over-naive-to-think-first-republic-is-last-victim-j-p-morgan-asset-management-cio/

The chief investment officer at J.P. Morgan Asset Management says that the crisis in the country’s banking industry is not done claiming victims.

In a new Bloomberg Television interview, Bob Michele says that the banking crisis will not stop with troubled bank First Republic.

According to the Michele, regional banks are keeping their heads above water with the support of two key government programs.

He says that these banks could altogether shutter their doors if the government decides to pull the plug.

“Well, I think we have both [a banking problem and a First Republic problem]. And I think it’s somewhat naive to say that this is just limited to First Republic.

If you step back and think about it, this should never have happened. This (happened) in of the most heavily regulated, capitalized industry on the planet – banking. And the regional banking system I think is quite vital to the US.

So I think it is a crisis. I think the regional banks are heavily dependent on the FDIC (Federal Deposit Insurance Corporation). They’re heavily dependent on the Federal Home Loan Bank to get additional cash. We don’t know how they’re going to operate when those two programs expire.”

Earlier this week, shares of First Republic crashed 50% in a matter of hours after news erupted that customers of the San Francisco-based bank yanked out $100 billion worth of deposits in March.

The US government was expected to bail out the ailing bank but a report noted that officials are currently “unwilling to intervene in the First Republic rescue process.”

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The post US Banking Crisis Not Over, ‘Naive’ To Think First Republic Is Last Victim: J.P. Morgan Asset Management CIO appeared first on The Daily Hodl.

https://dailyhodl.com/2023/04/29/federal-reserve-is-destroying-regional-banks-and-will-nuke-american-economy-robert-kiyosaki/

Rich Dad Poor Dad author Robert Kiyosaki says the Federal Reserve’s tight monetary policies are annihilating the country’s regional banking sector, and the worst is yet to come.

In a new tweetstorm to his 2.4 million Twitter followers, the best-selling author questions the Fed’s intentions and continued interest rate hikes amid the collapse of Signature Bank, Silicon Valley Bank (SVB) and now First Republic.

Kiyosaki says the Fed’s actions blatantly support big banks while placing smaller regional banks at risk.

“WTF. What The Fed? Why is the Fed destroying regional banks across America? Regional banks are the heart and soul of the economy. The Fed via the repo market is killing regional banks. Is this intentional? Is a depression intentional? WTF is the Fed up to? Get out of regional banks…

By supporting only big banks like JPMorgan, WTFed is wiping out regional banks. Cruel. Regional banks are the heart and soul of America. Please support small banks and small businesses.” 

Kiyosaki says mass layoffs at Amazon are another example of an ongoing liquidity crunch that will severely damage the American economy.

“Even Amazon affected by WTFed. Without credit flowing Amazon is cutting 18,000 jobs. The ripple effect from WTFed will bring down USA.

Please take care. Be aware. WTFed wiping out regional banks… WTFed is not our friend. WTFed is the dark side.” 

Earlier this week, Kiyosaki said that America is in danger of witnessing hyperinflation, war and starvation as BRICS, which is made up of of Brazil, Russia, India, China and South Africa, is in a position to send their immense dollar reserves back to the United States.

Kiyosaki also says BRICS could crush the country’s middle class as he believes the alliance of nations is making moves to drive de-dollarization across the globe.

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The post Federal Reserve Is Destroying Regional Banks and Will Nuke American Economy: Robert Kiyosaki appeared first on The Daily Hodl.

https://dailyhodl.com/2023/04/26/us-dollar-suffering-stunning-collapse-losing-reserve-status-due-to-currency-weaponization-report/

The US dollar’s global supremacy is reportedly eroding at an exponential rate, with countries backing away after witnessing how America used USD to impose sanctions against Russia.

In a recent report Bloomberg report, Stephen Jen and Joana Freire of asset management firm Eurizon SLJ Capital reveal that in 2022, the US dollar’s market share in global reserves plunged 10 times its average speed of the past 20 years.

Considering the fluctuations in exchange rates, the dollar lost about 11% of its market share since 2016 and twice that amount since 2008.

Jen and Freire say in an investor note that countries located in Asia, Latin America, Africa, the Carribean and the Pacific Islands – collectively known as the Global South – are shedding their dollar reserves as they look for an alternative to avoid sharing Russia’s fate.

“The dollar suffered a stunning collapse in 2022 in its market share as a reserve currency, presumably due to its muscular use of sanctions. Exceptional actions taken by the US and its allies against Russia have startled large reserve-holding countries.” 

According to Jen and Freire, the dollar now accounts for 58% of global reserves, drastically down from 73% over two decades ago when the currency was considered as the “indisputable hegemonic reserve.”

Although the dollar’s dominance appears to be on the decline, Jen and Freire note that the USD’s status as the world’s reserve currency is unlikely to change in the near future as emerging economies continue to depend on the greenback to settle international trades.

However, the duo warns that the developing countries’ reliance on the US dollar is not “preordained,” and it is possible that more nations hop on the trend of de-dollarization.

“The prevailing view of ‘nothing-to-see-here’ on the US dollar as a reserve currency seems too innocuous and complacent. What needs to be appreciated by investors is that, while the Global South is unable to totally avoid using the dollar, much of it has already become unwilling to do so.”

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The post US Dollar Suffering ‘Stunning Collapse’, Losing Reserve Status Due to Currency Weaponization: Report appeared first on The Daily Hodl.

https://dailyhodl.com/2023/04/25/gold-is-replacing-us-dollar-as-american-currency-becomes-toxic-russias-deputy-foreign-affairs-minister/

A top Russian government official says a number of countries are drastically decreasing their dollar reserves while increasing their gold holdings.

In a new report from the Russian-state-funded news organization TASS, deputy minister of Foreign Affairs Alexander Pankin calls the US dollar “toxic” amid the world’s reserve currency’s growth over the past year.

Pankin says that a small group of countries have stockpiled gold in 2022 at the expense of the dollar.

“These trends show that the US dollar is becoming big, strong, but still toxic for everyday operations. It’s not a mainstream trend, but I believe it might become a trend.”

According to the Deputy Minister, Russia is in favor of diminishing the role of the US dollar in international trade. Pankin says that the dollar’s dominance on the global stage would contribute to increased volatility.

Earlier this month, Russian foreign minister Sergey Lavrov reportedly said that the trend of de-dollarization is now irreversible and poised to accelerate. Lavrov pointed out that members of the Common Wealth of Independent States, or countries formerly part of the Soviet Union, have seen their trade flows significantly grow without complying with the demands of the United States.

“We are starting to see a flight from the dollar. So far, it is not all that swift, but it is sure to accelerate. In fact, this trend is irreversible.” 

Reports also surfaced that BRICS nations – which is made up of Brazil, Russia, India, China and South Africa – are accumulating gold at a rapid pace as they begin to back away from the US dollar.

Last week, U.S. Treasury Secretary Janet Yellen said that Russia, China and Iran are working together to diminish the dominance of the dollar in the international settlement of oil.

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The post Gold Is Replacing US Dollar As American Currency Becomes ‘Toxic’ – Russia’s Deputy Foreign Affairs Minister appeared first on The Daily Hodl.

https://dailyhodl.com/2023/04/23/us-to-suffer-devastating-hyperinflation-war-starvation-as-brics-dumps-us-dollar-robert-kiyosaki/

Rich Dad Poor Dad author Robert Kiyosaki is issuing a dire warning to Americans, saying that the country is likely to witness one crisis after another as BRICS nations send their dollars back to the US.

In a new video on The Rich Dad Channel, Kiyosaki tells his 3.1 million subscribers that the US is now at risk of suffering hyperinflation, war and starvation as other major economic powers come together to defy the supremacy of the US dollar as the world’s reserve currency.

According to Kiyosaki, BRICS – which is made up of Brazil, Russia, India, China and South Africa – poses a major threat to the stability of American society as the alliance of nations could trigger hyperinflation by sending their massive dollar reserves back to the United States.

BRICS is reportedly in the early stages of developing a precious metal-pegged currency that does not utilize US dollars.

“Triffin’s dilemma meant that the US had to supply dollars to every central bank throughout the world. So we had to print probably quadrillions of dollars. And what happens is when the playground bully, the US, and the BRICS nations gang up against the bully, they say, ‘Take your dollars back.’

And when those dollars come roaring back into America, we have a thing called hyperinflation. And every time there’s hyperinflation, guess what happens? Dictators arise.” 

The Triffin dilemma suggests that the issuer of the global reserve currency faces the challenge of running an oversupply of its own currency as the country provides liquidity to the rest of the world.

Kiyosaki says that hyperinflation is just the tip of the iceberg should BRICS nations completely abandon the US dollar. He also predicts military conflict will contribute to a new American struggle to access the most basic needs.

“Out of all this chaos, and the dollar going bad, the dollar’s going to come back in trillions. Hyperinflation, war breaks out, starvation increases.” 

The best-selling author also warns that other countries are beginning to realize the the US dollar cannot be trusted.

“Ladies and gentlemen, if you don’t trust your money, that’s the problem. And the world is now waking up, that they don’t trust the money, but worst of all, Triffin dilemma’s going kick in, and trillions of dollars will come washing back on our shore. And you’re going to see hyperinflation like you’ve never seen before.”

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The post US To Suffer Devastating Hyperinflation, War, Starvation As BRICS Dumps Dollar: Robert Kiyosaki appeared first on The Daily Hodl.

https://dailyhodl.com/2023/04/23/coinbases-brian-armstrong-says-congress-needs-to-step-in-now-that-sec-has-caused-untold-harm-to-us-investors/

Coinbase CEO Brian Armstrong believes that the legislative branch of the government needs to step in and stop the U.S. Securities and Exchange Commission (SEC) from driving the digital asset industry out of the country.

Brian Armstrong tells his 1.2 million Twitter followers that Coinbase recently met with the SEC to push for a rule book that offers regulatory clarity for crypto players in the US.

According to Coinbase’s CEO, regulatory bodies must first enact policies before enforcing them, and not the other way around.

“Met with the SEC today. We’ll continue pushing for a clear rule book in the US for crypto regulations.

The US can’t afford to fall behind on this important technology to update the financial system.

Also important for regulators to set policy and THEN enforce it. Not start with enforcement before there are clear rules. At this point seems like Congress will need to step in.” 

Armstrong also says that Coinbase is committed to fighting the SEC’s approach of bringing enforcement actions against major crypto players without providing a clear set of rules that they could follow.

“Spent the day in DC meeting with members of Congress. We need regulatory clarity in the US for the centralized players in crypto for many reasons – consumer protection, national security, economic growth, etc. The SEC has caused untold harm to America with its policy of regulation by enforcement. We will fight to fix that.” 

Earlier this week, Armstrong met with MP Andrew Griffith, the United Kingdom’s economic secretary to the Treasury, as the crypto exchange appears to be setting its sights on the UK amid swirling regulatory uncertainty in the United States

Last month, the U.S. Securities and Exchange Commission (SEC) sent a Wells Notice to Coinbase, which said the regulator had made a “preliminary determination” to recommend filing an enforcement action against the crypto exchange for allegedly violating securities laws.

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The post Coinbase’s Brian Armstrong Says Congress Needs To Step In Now That SEC Has Caused Untold Harm to US Investors appeared first on The Daily Hodl.

https://dailyhodl.com/2023/04/22/us-dollar-at-risk-as-china-russia-and-iran-conspire-to-dump-usd-treasury-secretary-janet-yellen/

Treasury Secretary Janet Yellen says three of the largest players in international trade are conspiring to diminish the supremacy of the US dollar.

In a new CCN interview, Yellen says China, Russia and Iran are finding ways to move away from the dollar after witnessing how the United States used the world’s reserve currency to impose financial sanctions.

Yellen says that while the weaponization of the US dollar is a very effective tool in deterring bad behavior on the global stage, it could have the unintended consequence of countries coming together to circumvent the sanctions.

“So there is a risk when we use financial sanctions that are linked to the role of dollar, that over time it could undermine the hegemony of the dollar… But this is an extremely important tool we try to use judiciously and in circumstances, especially when we have the support of our allies.

It’s not just the United States. It’s a coalition of partners acting together to impose these sanctions. So it is a very effective tool. Of course, it does create a desire on the part of China, of Russia, of Iran to find an alternative.” 

Last year, Russia agreed to sell oil to China in exchange for yuan. In March, China broked a deal that saw the restoration of diplomatic ties between Iran and Saudi Arabia, two of the world’s largest oil producers.

Although Yellen says that the status of the US dollar as the world’s reserve currency could be threatened by the actions of some nations, she highlights that they will be hard-pressed to find an alternative that offers the same fundamental properties.

“The dollar is used as a global currency for reasons that are not easy for other countries to find an alternative with the same properties. The US Treasury market is the deepest, most liquid and safest asset. Dollars are widely used.

We have very deep capital markets and rule of law that are essential in a currency that is going to be used globally for transactions, and we haven’t seen any other country that has these basic infrastructure and institutional infrastructure that would enable its currency to serve a world like this.”

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The post American Currency Dominance at Risk As China, Russia and Iran Conspire To Dump Dollar: Treasury Secretary Janet Yellen appeared first on The Daily Hodl.