U.S. GDP Surges 2.8% in Q2, Outpacing Expectations as Inflation Eases
Published: Thursday, 25 July 2024 11:45 | 
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The U.S. economy grew at an annualized rate of 2.8% in the second quarter, surpassing economists' expectations of 2% and improving from the first quarter's revised 1.4% growth.
This stronger-than-anticipated performance, coupled with easing inflation, suggests a robust economic outlook for the period. However, economists like Oren Klachkin of Nationwide predict this may be the best quarter of the year, with future growth likely to cool as consumer spending and business investments slow.
The data has prompted speculation on when the Federal Reserve might start cutting interest rates, with markets anticipating a possible rate cut by the end of September.
Elon Musk Sounds Alarm on U.S. Fiscal Health as Debt Interest Consumes Tax Revenue
Published: Thursday, 25 July 2024 11:37 | |
| Elon Musk has warned that "America is going bankrupt" in response to a report highlighting the alarming proportion of U.S. income tax revenue being consumed by interest payments on the national debt.
According to economist E.J. Antoni's analysis of the latest Monthly Treasury Statement, in June 2024, interest payments on Treasury debt securities amounted to 76% of the individual income tax revenue collected that month.
Triple Threat: U.S. Stocks, Gold, and Dollar Defy Economic Logic
Published: Thursday, 25 July 2024 11:22 | |
| The U.S. stock market, gold prices, and the dollar have all been soaring simultaneously, defying traditional economic explanations.
While factors such as AI advancements, geopolitical uncertainties, and monetary policy expectations have been suggested as reasons, none fully account for all three trends. The most plausible explanation appears to be the robust U.S. economy, which has consistently outperformed expectations, driven by strong consumer demand and government economic initiatives.
This economic strength has fueled demand for U.S. assets across the board, leading to the unusual concurrent rise in stocks, gold, and the dollar.
JP Morgan's Warning Sparks Gold Rush
Published: Thursday, 25 July 2024 11:13 | |
| The current economic landscape, including geopolitical tensions, central bank purchases, and the upcoming U.S. presidential election, are creating a bullish environment for gold, according to analysts at JP Morgan.
As equity markets face a significant downturn, gold is being touted as a "massive buying opportunity." Analysts predict a potential "new super bull" run for gold, especially if Donald Trump wins the election, given his previous presidency's impact on gold prices.
The current pullback in gold prices is seen as an opportunity for investors who missed the initial surge, with experts forecasting 2024 as the "Year of the Metals."
Government Measures Aim to Strengthen Demand for ZiG in Zimbabwe
Published: Thursday, 25 July 2024 10:34 | |
| Zimbabwe's Finance Minister Mthuli Ncube has announced measures to boost demand for the country's new bullion-backed currency, ZiG (Zimbabwe Gold).
These include requiring government departments to accept ZiG for goods and services, mandating certain taxes be paid exclusively in ZiG, and increasing circulation of ZiG notes without expanding money supply.
The government aims to strengthen the local currency, which replaced the Zimbabwean dollar in April after it lost 80% of its value against the US dollar, fueling inflation. Ncube credits the ZiG for helping to curb inflation and is implementing these measures to further support its adoption and stability.