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Bitcoin is down 65 percent from its all-time high of $68,990. In June, it briefly dropped below $18,000, implying a 75 percent drop from its all-time high. Last year when he appeared on Kitco News, Hex founder Richard Heart predicted an 85 percent drop in the price of Bitcoin. “At my last appearance here, I said that Bitcoin was down to $10K,” he said. “So far, Bitcoin is actually down 75 percent, 10 percent lower than my 85 percent target.” Heart blamed institutions with large holdings in Bitcoin such as Celsius, MicroStrategy, and Three Arrows Capital for taking leveraged positions in the cryptocurrency, leading to the bubble. “Michael Saylor took leverage and he dropped, I believe, 30 percent on his Bitcoin stack,” Heart said. “El Salvador’s government is down, ARKK’s investment is down. Everyone was devastated, except for me. I called the top on the deck. ” Heart spoke with David Lin, Anchor and Producer at Kitco News. https://www.youtube.com/watch?v=/vfE7U...

The US economy unexpectedly contracted in the second quarter, with consumer spending growing at its slowest pace in two years and business spending declining, raising speculation the economy is on the cusp of a recession. Key points: Prices of groceries, gasoline and other basic necessities are rising at the fastest pace since 1981 Job growth averaged 456,700 per month in the first half of the year Joe Biden said: “We also see signs of economic progress in the second quarter” By some definitions, a second consecutive quarterly decline in gross domestic product (GDP) would be considered a “technical recession”. US President Joe Biden dismissed talk of a recession, however, pointing to a “historically strong” job market along with strong consumer spending and business investment. But contraction, on 0.9 percent annual rate last quarter, attracted widespread attention because of concerns about the growing economy. That could deter the Federal Reser...

Across Europe, signs of distress multiply as Russia’s war in Ukraine drags on: Food banks in Italy feed more people, German officials turn off air conditioning as they prepare plans to ration natural gas and restart coal plants. Key points: Just as Europe is recovering from the pandemic, its economic future looks uncertain as Russia’s war in Ukraine continues Meanwhile, high energy costs, fueled by the war, benefited the Kremlin and kept the ruble But in the long run, economists say, Russia will pay a heavy price for its war A giant utility is asking for a taxpayer bailout, and more to come. Dairy companies wonder how they are going to pasteurize milk. The euro has slumped to a 20-year low against the dollar, and recession predictions are on the rise. Those pressure points are signs of how the conflict — and the fact that the Kremlin is gradually suffocating the natural gas that keeps industry humming — is provoking an energy crisis in Europe and increasing the likelihood ...

A: I still don’t have a recession (in my estimation). Obviously, the risk of a recession is high – I mean, obviously, when inflation is really high and the Fed is at DEFCON 1 and really focused on lowering inflation by pushing up interest rates, and the sentiment is depressing, isn’t it? I talk to CEOs, CFOs, investors, friends, family – to those people, they think we’re going into a recession. I’ve never seen anything like it. I have seen many business cycles now. And no one predicts a recession. But this one, everyone predicts a recession. So when sentiment is so fragile, it doesn’t take much to push us. I think with a little luck, and some pretty good policymaking by the Fed, we’ll be able to avoid a recession. But I’m not saying that with great confidence. I don’t think we need a recession to bring inflation back. Oil prices will roll over. Natural gas prices will fall. We will see vehicle prices drop as supply chain issues ...

Nearly 70 percent of economists surveyed believe NBER will make this call at some point next year, according to a University of Chicago survey. US gross domestic product fell 0.35 percent in the first quarter, slowing annual growth to 3.6 percent. Interestingly, part of the blow was through the trade balance where imports of services exploded to a record $US51.6 billion ($76.6 billion). Half of that comes from the cost of using intellectual property due to a temporary boost from the costs of rights to broadcast the Winter Olympics. The second quarter GDP data will be released on July 28, and that could touch and head for a technical recession. But that doesn’t mean the country will be in an NBER-defined recession. Morgan Stanley US economist Julian Richers thinks there may be a technical recession but not a recession, as defined by the NBER. Under pressure: Fed Chair Jerome Powell is trying to avoid a 1970s-style price spiral. Bloomberg “The latest trade data this week has mov...

The Bank of Canada’s (BoC) surprise decision to raise interest rates by 1 percentage point has shocked global markets and Canadian borrowers and raised expectations more central banks will follow with super-sized hikes. Key points: The Bank of Canada has raised interest rates by a full percentage point, while monetary authorities in Singapore and the Philippines have also tightened them sharply Former IMF chief economist Maurice Obstfeld worries the central bank is catching up after delaying rate hikes for too long He warned that rising interest rates too quickly around the world could trigger a major economic downturn like that seen in the 1980s The BoC raised its policy rate from 1.5 percent to 2.5 percent, the highest since 2008, in a bid to contain inflation. It is far from alone in raising interest rates quickly. Today, the Philippine central bank raised interest rates by 0.75 percentage points to 3.25 percent in an unscheduled move, while the Singaporean authorities also ti...

Australians are feeling the pressure from inflation, but in some parts of the world inflation rates are almost 11 times higher, causing massive spikes in the prices of goods. Key points: Experts told the ABC developing countries are likely to be hit harder by inflation One expert says countries with cautious central banks have so far managed rising inflation better The situation in Australia is common in countries such as the US, South Korea, Germany and Canada According to the Australian Bureau of Statistics, the country’s inflation rate is just above 5 percent. By comparison, Turkey faces one of the highest inflation rates in the world, currently at around 54 percent, Fariborz Moshirian, director of the global finance institute at the University of New South Wales, told the ABC. Sri Lanka, where protests over food and fuel shortages have prompted the President to leave the country, has an inflation rate of nearly 55 percent. Brazil’s inflation is around 12 percent and in R...

Another record inflation reading against the backdrop of a tight labor market and rising food and goods prices will, despite the recent declines in oil and therefore gasoline prices, leave the Fed with no choice but to continue raising rates aggressively, even if it does. risk of pushing interest rates up. US economy into recession. In fact, the drop in oil prices – dropping below $100 a barrel on Tuesday for the first time since dropping briefly below that level in April – also reflects the view among traders in commodity markets that a recession and falling demand are imminent. . With inflation at an unprecedented rate and such a raw tool monetary policy, it is almost inevitable that [Fed] must induce a recession to try to control inflation. There are those, including the Fed, who believe that a two-year/10-year inversion, because of their imperfect record in predicting a recession, is less useful as a guide to the economy’s future than a three-month/10-year yield relationship...

In the race to get off the economic rollercoaster caused by COVID, Australia’s Pacific neighbors New Zealand are holding the ball firmly in their hands and about six steps ahead. Key points: At 6.9 percent, inflation in New Zealand is the highest in 32 years Property prices have fallen about one percent every month since banks started raising interest rates in October 2021 ANZ chief economist for NZ not worried about recession After slashing interest rates during COVID, the Reserve Bank of New Zealand (RBNZ) was one of the first to make a reversal and began increasing the official interest rate (OCR) in October 2021. His first increase was a quarter of a percentage point, with several rate increases of the same size after that. But it actually picked up in April, up half a percentage point, followed by another double gain in May. The RBNZ is widely expected to undertake another half a percentage point rate hike later today, at midday AEST. That would take its OCR from 0.25 percent...

Financially, times have been tough — and don’t expect to get much better anytime soon. Reserve Bank Governor Philip Lowe said a recession would not happen in Australia. Others think there’s a chance we could hit a brief recession sometime next year. But one thing is certain now: millions of Australians are hurting because of the rising cost of living. So, how can we prepare for the financially difficult times ahead? We asked three experts. First of all, you should know that you are not alone Before we get into it, National Debt Helpline financial adviser Deb Shroot says no matter how bad financial circumstances are, there’s always a choice. Even when things seem really bad. “If you talk to a financial advisor, there’s always a choice,” he said. Fundamentally, financial counselors are professionals who help those experiencing financial difficulties and their services are non-judgmental, free, independent and confidential. “The options may not...