Rich Dad Poor Dad author Robert Kiyosaki has reiterated his concerns about the U.S. economy, predicting investor losses amidst bank failures and a global economic crash. “For many years I have warned, ‘Buy gold, silver, bitcoin.’ We are not going in for a soft landing,” he stressed. Robert Kiyosaki Sees No Soft Landing Rich Dad […]
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US Treasury Secretary Janet Yellen Declares ‘Soft Landing’ Reached, Americans Recovering Optimism
Janet Yellen, U.S. Treasury Secretary and former Chairman of the U.S. Federal Reserve, believes that the recent improvements in the American economy show that the country has achieved a soft landing. For Yellen, the recent low figures of inflation and the strength of the labor market are signs of this scenario.
Janet Yellen Declares U.S. Economy Reached ‘Soft Landing’ Scenario
U.S. Treasury Secretary Janet Yellen believes that the U.S. economy has improved during the last six months, declaring that she feels that what they are seeing now can be described as a soft landing, which happens when the measures taken by the Federal Reserve, as interest rate hikes, slow down inflation without causing a recession.
According to Yellen, this is what the Federal Reserve has achieved, taking the latest labor markets and inflation numbers into account. Supporting her statements, Yellen explained that the labor market hadn’t slowed down, with 23 months in a row with the unemployment percentage under 4%, something not seen in 50 years, and 216,000 jobs added in December.
In an X post, Yellen stated:
The American people, workers, and businesses have helped put us on a path to a soft landing. The President’s economic agenda is giving them the tools they need to grow the economy, including historic investments in infrastructure, clean technology, and semiconductors.
Yellen also remarked on the advances that the economic apparatus of the U.S. had reached, achieving a steep inflationary decline during the last six months. However, he acknowledged that there is more to do on the inflationary front concerning housing and food prices, that have remained high. Also, she stated that polls have started to show that Americans are becoming more optimistic about their future.
Yellen’s recent remarks are consistent with her statements from December when she stressed that, even when there was always a recession risk, she didn’t believe it was particularly high at that moment, explaining that people would start feeling better about the economy gradually over time.
What do you think about Janet Yellen’s statements on reaching a soft landing scenario? Tell us in the comments section below.
Treasury Secretary Janet Yellen Discusses US Economy, Recession Risk, Soft Landing
U.S. Treasury Secretary Janet Yellen believes that inflation has come down meaningfully but there’s still further to go for the Federal Reserve to achieve its 2% inflation target. She noted that the central bank has two risks to manage. “One is that inflation doesn’t come down back to their target as they envisioned, and the other is that the economy becomes too weak,” she detailed.
Yellen Discusses U.S. Economy
U.S. Treasury Secretary Janet Yellen discussed the state of the U.S. economy in an interview with CNBC on Wednesday as the Federal Reserve left interest rates unchanged for the third consecutive time.
While stating that “Inflation has come down meaningfully,” Yellen cautioned: “There’s further to go for the Fed to achieve its 2 percent objective, but I think we’re on a path, and you can see a consistent pattern in inflation coming down over time.” The U.S. November Consumer Price Index rose 3.1% on an annual basis.
Regarding whether the U.S. economy will slide into a recession, Yellen said:
Well, I believe in any year, even if you knew nothing about the economy, there’s a recession risk that’s over 10%. So, there is always some recession risk. I don’t think it’s particularly high. Consumer spending, we have seen remain solid.
“Gradually over time, I think people will feel better about the economy,” Yellen emphasized while admitting that people have noticed that “the level of prices in some cases is higher than it was before the pandemic.” She mentioned: “They notice their bills, certain bills are higher. Rent would be a very good example. Apartment rentals, for example.”
Yellen also reiterated her view that the U.S. economy is heading for a soft landing, adding that she saw a reasonable chance that growth would continue in 2024. “I think there’s a reasonable chance we get it. I think that we’re on that path. My baseline is that we’ll achieve a soft landing,” the Treasury Secretary described.
Commenting on whether the Federal Reserve will cut interest rates next year, Yellen opined: “As inflation moves down, it’s in a way natural that interest rates should come down somewhat because real interest rates would otherwise increase, which can tend to tighten financial conditions.” She continued:
They have two risks to manage. One is that inflation doesn’t come down back to their target as they envisioned, and the other is that the economy becomes too weak … I’m going to leave that call to them.
What do you think about the statements by Treasury Secretary Janet Yellen? Let us know in the comments section below.
World Gold Council Anticipates Flat Performance In ‘Soft Landing’ Scenario
The World Gold Council (WGC) is anticipating a flat demand for the precious metal in the expected case of a “soft landing” scenario. However, the institution states that a recession is still not off the table, given that the U.S. Federal Reserve has managed only to pull off two soft landings in nine tightening cycles.
World Gold Council Examines Gold Demand in Various Scenarios
The World Gold Council (WGC) has released its 2024 Gold Outlook report, which examines the possible behavior of the gold markets for next year. According to the institution, the most likely scenario, expected by the markets due to the prediction of growth ahead, is a U.S. economy “soft landing,” forecasting that the Federal Reserve will be able to lower inflation without setting up a decline in the country’s economy.
Gold would not be favored in this scenario, as investors historically have favored bonds and stocks instead. However, a soft landing, albeit expected, is still not sure to happen. According to the report, a recession is still not off the table, given that seven of nine tightening cycles of the Fed have resulted in recession. The behavior of the labor market will be significant, as its situation has considerably worsened in recent months.
In this context, the WGC predicts a favorable outcome for gold investors, with markets taking a “flight to safety” approach. The report stated:
If a recession becomes a reality, weaker growth will help push inflation back towards central bank targets. Such an environment has historically created a positive environment for high-quality government bonds and gold.
In addition, the geopolitical events happening on the planet, including war, conflicts, elections, and above-trend gold purchases by central banks that have escalated historically during the last two years, might also boost gold’s performance as an investment asset in 2024.
How do you think gold will perform in 2024? Tell us in the comments section below.
Economist Peter Schiff: US Dollar Near ‘Historic Crash’ — ‘Forget Soft Landing, It’s Crash and Burn’
Economist Peter Schiff has warned that the U.S. dollar is “on the verge of a historic crash.” He stressed that there won’t be a soft landing for the U.S. economy, predicting a “crash & burn” scenario. Schiff highlighted the potential for increased inflation, rising interest rates, and elevated unemployment. “The economy is weaker than the Fed thinks and the result will be larger budget deficits and higher inflation,” he noted.
Peter Schiff’s Latest Economic Warnings
Economist and gold bug Peter Schiff is back with gloomy economic predictions in a series of posts on social media platform X. He wrote on Tuesday:
The U.S. dollar is on the verge of a historic crash. This will be a game changer for the Fed and the economy, as it will send inflation, interest rates, and unemployment soaring. Forget about a soft-landing. It’s crash & burn.
He added: “The U.S. dollar is toast. As inflation heats up, to avoid getting burned the world will turn to gold as the most viable alternative.”
On Wednesday, the economist explained on X: “The U.S. economy is already in recession. Though Q3 GDP grew by 5.2%, government spending contributed 5.5%. So without that spending, GDP would’ve contracted by .3%. Government spending borrowed money doesn’t reflect real economic growth. It will only lead to higher inflation.”
In another post on Wednesday, Schiff detailed: “Bonds are rallying on the Fed’s Beige Book acknowledgment that the economy is slowing. Bond investors should be careful what they wish for.” He continued:
The economy is weaker than the Fed thinks and the result will be larger budget deficits and higher inflation.
Schiff has consistently raised concerns about the U.S. economy and the fall of the U.S. dollar. In October, he stated: “The dollar will tank, taking the U.S. economy and the American standard of living down with it.” He cautioned that individuals holding U.S. dollars would face significant losses. Furthermore, the economist has warned of the potential for a severe recession, an inflationary depression, an “unprecedented” financial crisis, and a tragic ending. In September, he said a “massive crisis” will lead to a rush to exit the U.S. dollar.
What do you think about the statements by economist Peter Schiff? Let us know in the comments section below.
‘Soft Landing Is a Primary Objective’ — Federal Reserve Signals One More Rate Hike in 2023
Based on the U.S. Federal Reserve’s forecasts, it appears that the central bank is poised to enact an additional hike to the federal funds rate by the end of 2023. The news comes in the wake of the Federal Reserve’s decision to leave the interest rate unchanged during its recent gathering of the Federal Open Market Committee (FOMC). Jerome Powell, the chairman of the Federal Reserve, emphasized this week that the central bank’s strategy entails supporting “the policy rate and await further data.” He underlined the importance of maintaining a “restrictive policy” to achieve the desired goal of curbing inflation.
Powell: A Soft Landing Is What ‘We’ve Been Trying to Achieve for All This Time’
During the recent FOMC gathering, the U.S. central bank opted to maintain the status quo on interest rates. The FOMC’s official statement underlined the “sound and resilient” nature of the U.S. banking system, even in the face of tightened credit conditions affecting businesses and households nationwide. The central bank remarked, “Recent indicators suggest that economic activity has been expanding at a solid pace.”
Following the meeting, Jerome Powell, the Federal Reserve chairman, engaged with the media in a press conference to discuss the state of the U.S. economy. In a dialogue with numerous reporters representing various news outlets, Powell articulated his long-held belief in the feasibility of a “soft landing,” a conviction he has held since the emergence of inflation pressures. Powell further emphasized:
A soft landing is a primary objective. And I did not say otherwise. I mean, that’s what we’ve been trying to achieve for all this time. The real point, though, is the worst thing we can do is to fail to restore price stability, because the record is clear on that.
The U.S. central bank has unveiled its forward-looking projections, and Federal Reserve members have underscored the likelihood of the federal funds rate climbing to 5.6% by year-end. While approximately seven Fed officials voiced reservations about this rate hike, a consensus of twelve members is firmly in favor. Currently, the CME Fedwatch tool indicates that investors are foreseeing this increase materializing in December.
As of September 21, 2023, the Fedwatch tool registers a 68.6% probability of the rate holding steady, with a 31.4% chance of an upward adjustment at the forthcoming FOMC meeting in November. Two more Fed gatherings are scheduled for this year. Furthermore, following the Federal Reserve’s deliberations, the Bank of England and the Swiss National Bank have also elected to maintain the status quo on their interest rates. On Thursday, all four primary U.S. indices closed in negative territory, while the cryptocurrency market experienced a 1.4% dip over the course of 24 hours.
In the realm of precious metals, such as gold and silver, relative stability has prevailed following the FOMC meeting. Concurrently, lending rates in the United States have been facing substantial pressure, as reported by The Kobeissi Letter on Thursday, which noted that the “average interest rate on a 30-year mortgage rises to 7.59%, its highest since December 2000.”
“With interest rate cuts now no longer expected until September 2024, it is likely we see 8% mortgages soon,” Kobeissi posted to the social media platform X. “On top of the Fed holding rates higher for longer, US deficit spending is so large that .9 trillion in bonds are being issued over 2 quarters. This is flooding bond markets with supply and driving interest rates even higher. Currently, the median payment on a new home is nearing a record ,900/month. What’s the long-term plan here?”
What do you think about the Fed raising the federal funds rate one more time before the end of 2023? Share your thoughts and opinions about this subject in the comments section below.
Robert Kiyosaki Warns of ‘Crash Landing’ After US Rating Downgrade
Robert Kiyosaki, the renowned author of the bestselling book Rich Dad Poor Dad, has emphasized his concern about an impending crash of the U.S. economy after a prominent American credit rating agency downgraded the U.S. rating. “Brace for crash landing. Sorry for the bad news,” Kiyosaki said.
Robert Kiyosaki’s Crash Landing Warning
The author of Rich Dad Poor Dad, Robert Kiyosaki, has reiterated his warning about the U.S. economy heading for a “crash landing.” His cautionary message followed the decision by Fitch Ratings, one of the top three credit rating agencies in the U.S., to downgrade the U.S. debt rating from AAA to AA+.
Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries.
Kiyosaki tweeted Wednesday:
First shoe to drop. Fitch rating services downgrades U.S. credit rating from AAA to AA+. Brace for crash landing. Sorry for the bad news yet I have been warning for over a year the Fed, Treasury, big corp CEOs have smoking fantasy weed. Take care.
The famous author has been warning about an impending economic crash for quite some time. In May, he stated that he believes the U.S. economy is headed for a crash landing, rather than a soft landing or a hard landing as some economists have suggested. Last month, he said that a giant crash is coming and the end of the U.S. dollar is approaching. He emphasized that he still recommends gold, silver, and bitcoin, noting that these three investments are the best for unstable times.
This week, Kiyosaki said the U.S. economy is not strong and America is broke. He further predicts an increase in bank failures, attributing blame to the Biden administration and the Federal Reserve for destroying regional banks. Kiyosaki warned that regional banks are being wiped out due to Fed policies. Moreover, he anticipates that the BRICS nations (Brazil, Russia, India, China, and South Africa) will introduce a common currency that will kill the U.S. dollar.
What do you think about Robert Kiyosaki’s predictions? Let us know in the comments section below.
Robert Kiyosaki: US Economy Headed for Crash Landing, Financial Pandemic Started, Corruption High
Rich Dad Poor Dad author Robert Kiyosaki believes that the U.S. economy is headed for a crash landing. “I hope I am wrong yet that is what I believe,” he opined. The famous author also said a financial pandemic has started and corruption is high, reiterating his recommendation to buy gold, silver, and bitcoin.
Robert Kiyosaki Believes a Crash Landing Is Coming
The author of Rich Dad Poor Dad, Robert Kiyosaki, is back with more warnings about the U.S. economy. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries. Kiyosaki tweeted Thursday:
Soft landing? Hard landing? Or Crash landing? I say crash landing. I hope I am wrong yet that is what I believe.
“Corruption is high & leaders corrupt. Buy gold, silver, bitcoin. Still best insurance against corruption & incompetence,” his tweet continues. Kiyosaki has voiced his concerns many times regarding the corruption and incompetency within the U.S. government and the Federal Reserve, repeatedly emphasizing his lack of trust in them.
The renowned author issued a similar warning on March 13 about where he thinks the U.S. economy is headed. “Crash landing ahead,” he wrote on Twitter. “Bailouts begin. More fake money to invade sick economy. Still recommend same response. Buy more gold, silver, bitcoin.” His tweet followed the U.S. government bailing out collapsed banks. In a follow-up tweet, he stressed that regional banks are being wiped out, calling the Federal Reserve “criminal.”
Last week, Kiyosaki also cautioned that a crash is here, tweeting:
Financial pandemic started. Crash is now.
Multiple people have similarly stated that the U.S. economy is at risk of a crash landing, including Allianz’s analysts and economist David Rosenberg.
Moreover, Kiyosaki previously warned about hyperinflation and the death of the U.S. dollar. He believes that Fed rate hikes will crash the USD as well as stock, bond, and real estate markets. He also made predictions about the global economy, tweeting in March that the world economy is on the verge of collapse.
The acclaimed author has consistently advocated for gold, silver, and bitcoin. In February, he expressed his belief that these three investments are best for unstable times. He predicts that by 2025, the price of BTC will reach 0,000, while gold and silver will reach ,000 and 0 respectively.
Do you agree with Rich Dad Poor Dad author Robert Kiyosaki? Let us know in the comments section below.
Hedge Fund Mogul Stanley Druckenmiller Warns of ‘Hard Landing’ for US Economy
Billionaire hedge fund manager Stanley Druckenmiller has a dire prediction for the U.S. economy: a recession is looming, and it’s likely set to hit this June. Druckenmiller’s forecast comes as American consumer spending remains low, and is largely driven by credit card usage. Druckenmiller, a seasoned investment mogul, warns that it would be foolish to ignore the possibility of a “really, really bad” scenario unfolding.
Druckenmiller Cites Drop in Consumer Spending and Banking Industry Turmoil as Recession Indicators
At the 2023 Sohn Investment Conference in San Francisco, Stanley Druckenmiller sounded the alarm on the U.S. economy. While others may be optimistic about a “soft landing,” the seasoned hedge fund manager is bracing for impact, predicting a “hard landing” instead.
Druckenmiller, who has enjoyed 30 years of success in the hedge fund industry, cited the sharp drop in consumer spending and the recent banking industry turmoil as key factors behind his forecast. Druckenmiller’s warnings about the U.S. economy are echoed by other notable figures in the financial world.
Other famed investors, including Barry Sternlicht, David Rosenberg, and Jeffrey Gundlach, have also expressed concerns about a “hard landing” in the United States. At the Sohn conference, Druckenmiller elaborated on his prediction, citing rising unemployment, a 20% drop in business profits, and a surge in bankruptcies as key indicators of a recession.
However, he was quick to clarify that he doesn’t anticipate a crisis worse than the 2008 financial meltdown. Druckenmiller said:
I am not predicting something worse than 2008. It’s just naive not to be open-minded to something really, really bad happening.
Druckenmiller Remains Optimistic About Post-Recession Opportunities
While some experts, such as Goldman Sachs Global Investment Research and Wendy Edelberg of The Hamilton Project, are predicting a “soft landing” for the U.S. economy, Druckenmiller has an entirely different outlook. Druckenmiller is bracing for a recession, but he’s also optimistic about the future.
In fact, he believes that there will be “unbelievable opportunities” in the coming years, particularly in the field of artificial intelligence (AI). Druckenmiller sees the post-recession landscape as a fertile ground for innovative technologies and cutting-edge solutions “present themselves.”
Druckenmiller stated:
AI is very, very real and could be every bit as impactful as the internet — AI could eventually spawn 0-billion [in] companies.
At the Sohn Investment Conference, Stanley Druckenmiller didn’t mince words when it came to his opinion of the Federal Reserve’s current policy. Druckenmiller believes that the U.S. central bank has exhausted its resources in the fight against inflation and recession. “We basically wasted all our bullets,” he lamented.
What do you think about Stanley Druckenmiller’s predictions for the U.S. economy? Do you agree with his assessment, or do you have a different outlook? Share your thoughts in the comments section below.
US Economy at Risk of Crash Landing, Allianz Warns
Allianz, one of the world’s largest insurers, has warned that the U.S. economy is headed toward a crash landing. “We expect the economic momentum to deteriorate during the second half of the year on the back of rapidly tightening credit conditions, exacerbated by the banking crisis,” said the insurance giant’s analysts.
Crash Landing Ahead, Warned Allianz
Allianz’s research and analysis division published a report last week stating that the U.S. economy is “headed towards a crash landing.” Allianz is one of the world’s largest insurers with over 122 million private and corporate customers worldwide and more than 159,000 employees. It is headquartered in Munich, Germany.
“Negative confidence effects from the near-death experience in the U.S. banking sector and the unresolved energy situation in Europe will shape the rest of the year,” Allianz’s analysts began. While noting that the U.S. economy “picked up pace in early 2023,” they stressed that this revival will likely be “short-lived.” The analysts continued:
We expect the economic momentum to deteriorate during the second half of the year on the back of rapidly tightening credit conditions, exacerbated by the banking crisis.
Several major banks in the U.S. failed recently, including Silicon Valley Bank and Signature Bank. The Federal Reserve and the Treasury took steps to prevent a systemic crisis, including providing liquidity to the banking system, creating a new lending facility to provide short-term loans to banks, and insuring all deposits of both banks.
“We project a sizeable recession in the U.S. (‘hard landing’) at the end of the year due to increasingly entrenched negative confidence effects, with a slowdown in housing, manufacturing, and construction as interest rate hikes further increase borrowing costs and dampen investment,” the Allianz analysts further detailed in the report.
A number of people have similarly warned that the U.S. economy is headed toward a crash landing. Prominent economist David Rosenberg predicted a recession and a crash landing in March based on data from the Federal Reserve Bank of Philadelphia. Rich Dad Poor Dad author Robert Kiyosaki also warned of a crash landing as federal bailouts followed the banking crisis. Meanwhile, billionaire Barry Sternlicht anticipates a hard landing for the U.S. economy.
What do you think about the warning by insurance giant Allianz about a crash landing? Let us know in the comments section below.