U.S. mortgage rates here in the United States have just risen to their highest level in 21 years. Meanwhile, despite all the talk about how raising rates would somehow tame inflation, and that it was just temporary, and even transitory, inflation continues to rise. Moreover, by the Fed’s own admission, “inflation continues to outpace every projection they have made.” Moreover and overall, food inflation continues to outpace everything else. With energy inflation a close second.
As the U.S. Federal Reserve did a day earlier, the European Central Bank (ECB) added a quarter point to its key interest rate on 27 July, bringing it to 3.75 percent. It began raising the rate in July 2022, when it was -0.50 percent.
Being that not a single developed nation on Earth is going to implement any real cuts to spending, you can count on one thing happening, much higher global debt.
The true fear of an economic calamity on the near horizon was further clarified yesterday as gold once again illustrated its status as the world’s number one safe-haven asset.
Overall inflation has been falling in most countries in recent months as central banks have used higher interest rates to rein it back.
The central bank’s higher interest rates and the cost of cleaning up after floods and a cyclone sank New Zealand’s economy into a recession during the first three months of this year.
Eurozone banks must repay €476.8 trillion worth of COVID-era loans to the European Central Bank on 28 June.
There has been no other time in the history of the world where global debt has risen faster than it is rising today. Moreover, the big secret is this: no matter how much debt puppet governments pump into the system, via the REAL world government system which is world central banks, the amount of debt pulled into the system is never enough.
Meeting on 25 May, the governing board of Mexico’s central bank voted unanimously to hold its key interest rate at 11.25 percent, halting its fastest and steepest series of rate increases on record.
The Central Bank of the Republic of Turkey saw its foreign currency reserves dwindle by $9.5 billion from 1 April through 12 May and its gold stores shrink by $7.9 billion ahead of mid-May’s first-round presidential election, the Financial Times calculated from the bank’s data.