💵🌐 - World central banks’ gold holdings now reflect 27% of total foreign reserves, the highest share in 29 years

At the same time, foreign holdings of US Treasuries as % of reserves have declined to ~23%, the lowest since the 2008 Financial Crisis, per Crescat Capital.

In other words, global central banks now hold more gold than Treasuries for the first time since 1996.

This trend began a decade ago and accelerated in 2022 after G7 economies froze Russian foreign exchange reserves.

🔗 The Kobeissi Letter

‼️🇺🇸💵 - There’s now $22.1 trillion circulating in the U.S. economy. That’s more than at any point in history even during the peak of the COVID stimulus era.

After shrinking for the first time in 90 years in 2023, M2 is now growing again. In fact, it just rose 4.8% year-over-year in July, the fastest rate since early 2022.

So why is the money supply growing again? It’s not the Fed hitting the printer. It’s a combo of:

• Massive government spending
• The Treasury draining its cash reserve
• The Fed stepping back from aggressive tightening

We’ve seen this before. In 2020, M2 exploded upward. Inflation didn’t show up immediately, it lagged. But when velocity finally picked up in 2021, inflation surged.

So what’s happening now is what economists call fiscal dominance. That’s when government spending becomes so large and persistent, it overshadows whatever the central bank is trying to do with interest rates or the money supply.

🔗 Stock Market News

‼️🇺🇸💵 - Is PPI inflation set to rise further?

The Philly Fed Prices Paid Index jumped 8 points in August, to 66.8, the highest since May 2022.

This index measures changes in the prices that manufacturers pay for raw materials and supplies.

The metric has been in a strong upward trend over the last 12 months.

Historically, Philly Fed prices paid have led PPI finished consumer goods prices, one of the main components of PPI.

This now signals a further increase in PPI inflation over the next several months all as rate cuts are coming.

Producer-level inflation pressures are building.

🔗 The Kobeissi Letter

❓🇺🇸💵 - The Soviets went nuts on money printing in the years before the collapse.

🔗 Balaji

❓🇺🇸💵 - The U.S. is repeating Soviet mistakes

"It took some time for the official numbers to catch up with reality. The regime’s official numbers had long understated even the moderate levels of price inflation in earlier periods, but after the mid-80s, the gap between official inflation and estimated real inflation grew considerably.

Efremov summarizes the divergence, noting that in 1988 official inflation was 0.6 percent but 6 percent in the real marketplace. By 1989, official inflation was 2 percent, but it was really 8 percent. In 1990, it was 5.3 percent, but really 20 percent. And then the wheels started to really come off in 1991, with 96.3 “official” inflation that was really 200 percent.

The Soviet Union collapsed shortly thereafter, and the new regime did not issue falsified inflation numbers anymore. Instead, the real inflation rate in 1992 was estimated to be more than 2,300 percent. Hyperinflation continued for three more years until the old Soviet ruble finally ceased to exist."

🔗 Balaji

❓🇺🇸💵 - Former U.S. Treasury Secretary says inflation calculated using pre-1983 methods peaked at 18%

US retail investors bought 50-70% of UST issuance last 3 years at 2y, 3y, 5y, 7y, 10y, 20y, & 30y tenors, all at ylds <5%.

“If you don’t know who the sucker at the card table is, it’s you.”

🔗 Luke Gromen

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New food recall issued as 'do not eat' warning covers multiple products
https://www.msn.com/en-ie/food-and-drink/recipes/new-food-recall-issued-as-do-not-eat-warning-covers-multiple-products/ar-AA1M0B53

Radioactive metal at an Indonesia industrial site may be linked to shrimp recall
https://apnews.com/article/shrimp-cesium137-radioactive-recall-7391f5767076afc6731b8c8f4f35e084

2 Food Recalls You Need to Know About This Week
https://www.msn.com/en-us/foodanddrink/foodnews/2-food-recalls-you-need-to-know-about-this-week/ar-AA1M0ySv

Endico Potatoes Inc. recalls frozen vegetables over listeria
https://www.newsnationnow.com/us-news/recalls/endico-potatoes-inc-recall-frozen-vegetables-listeria/

Potato Salad Recall Update As Risk Warning Issued for 5 States
https://www.newsweek.com/potato-salad-recall-update-risk-warning-issued-5-states-2124607

130,000 pies recalled in several states: FDA
https://www.yahoo.com/news/articles/130-000-pies-recalled-several-220735616.html