Live Spot Gold
Bid/Ask
2,711.602,712.60
Low/High
2,697.902,724.30
Change
-3.00-0.11%
30daychg
+75.50+2.86%
1yearchg
+695.30+34.49%
Silver Price & PGMs
(Kitco News, Friday, Jan. 17th, 2025 ) – The Federal Reserve’s recent pivot to cheaper money, despite lingering inflation concerns, has fueled a stock market rally disconnected from the economic realities facing consumers, according to Dr. Nomi Prins, Geo-Macro Economist, Author, and Founder of Prinsights Global.
In an interview with Kitco News, Prins, author of “Permanent Distortion: How Financial Markets Abandoned the Real Economy Forever,” warned that real inflation for everyday Americans remains high, driven by persistent increases in the cost of groceries, housing, and healthcare.
“If you look beneath that month-on-month number, you are being pinched by a number of different basic items,” Prins stated.
While headline inflation figures may be moderating, Prins argued that the Fed’s actions are masking deeper problems in the economy. “The Fed can’t print commodities, build lower-cost homes, or open oil reserves, and it can’t control inflation,” she said.
Prins believes the Fed’s rate cuts are primarily aimed at propping up a fragile financial system burdened by record levels of debt. “We’re seeing that reckoning happen in terms of prospective policies to remove the debt ceiling or increase the debt ceiling in the United States,” Prins stated, noting that the US national debt has ballooned to over $36 trillion.
This runaway debt, coupled with slowing economic growth, paints a worrying picture for the year ahead, she cautioned.
Prins also expressed concern about a lack of transparency in the global banking system, pointing to the Bank of England’s recent decision to cease public disclosure of its bailouts. This move, she argues, suggests deeper problems lurking within the UK banking sector. Watch the video above for insights.
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com