from Birch Gold Group:

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: the IMF’s panicky “buy gold” warning, the surge past $2,000/oz. and a frank assessment of the Texas gold-backed money proposal.

The IMF’s Global Stability Report is a gold investor’s dream

The International Monetary Fund (IMF)’s latest Global Financial Stability Report released on April 11, is basically an advertisement for owning precious metals. IMF economists say that the fight against inflation has exposed “fault lines” in the financial system. The banking crisis is a warning:

TRUTH LIVES on at https://sgtreport.tv/

harbinger of more systemic stress that will test the resilience of the global financial system—a canary in the coal mine—or simply the isolated manifestation of challenges from tighter monetary and financial conditions after more than a decade of ample liquidity.

There is major financial stress ahead. And this is not a “straw that broke the camel’s back” situation, no – it’s the camel being crushed under a five-ton bale of hay. For example:

…leveraged loans and private credit markets have slowed.

Concerns have also been growing about conditions in commercial real estate markets, which are heavily dependent on smaller banks.

…broad equity indices [stock markets] remain very stretched…

Some mutual funds have experienced outflows in recent weeks.

In addition to banking sector turmoil and fragile investor confidence, macro-financial volatility could also be exacerbated by geopolitical fragmentation…

The IMF makes a point of differentiating what can be called the coming crisis from previous financial crises. It isn’t clear whether that distinction makes this one better or worse.

Don’t get the wrong idea – the IMF isn’t just looking at the global economy from the highest, most abstract level. This time is a little bit different thanks to social media:

Word of deposit withdrawals spread globally at lightning speed, potentially signaling that future banking stress may spread faster and be less predictable.

Households are now bearing the burden of the last two decades of debt-fueled spending. Savings levels are dropping, pandemic-era “fiscal support” has dried up and household debt is rising to meet higher prices.

Taken in its entirety, the report shows just how fragile the global financial system has become. Despite its bland, committee-revised language, you can almost feel the fear. If Stephen King was a central banker, this is the story he would’ve written instead of It or The Shining.

Global growth has been downgraded to 2.7% this year. It’s a steep fall from two years ago, when it was at 6.0%. And, as you probably recall, it wasn’t a particularly prosperous year. This is now the lowest growth figure since 2001 outside of instances where there was an officially declared global crisis. In other words, there is probably an undeclared crisis.

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