USA about to unveil ugliest GDP report ever recorded… GOLDMAN: Spike in gold puts dollar reserve status in question

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USA About to Unveil Ugliest GDP Report Ever Recorded…

Half jobs lost may be gone permanently…

The COVID-19 outbreak has clearly done a number of the U.S. economy, plunging it deep into a recession and sending unemployment levels skyrocketing. In fact, jobless claims reached a record high in April, and while things improved slightly in May and June, new restrictions could send the unemployment rate even higher in the coming months.

Unfortunately, rising joblessness could coincide with the end of the $600 weekly unemployment boost that’s been keeping millions of Americans afloat these past few months. That $600 boost, which March’s CARES Act provided for, expires at the end of July, but because of the way states pay their unemployment benefits on a weekly cycle, for most jobless folks, it’s actually already gone.

GOLDMAN: Spike in gold puts dollar reserve status in question

A record high price for gold, known as the currency of last resort, is raising questions about the U.S. dollar’s future as the world’s reserve currency, according to a Goldman Sachs research note published Tuesday.

The commodity, which tends to see increased demand during economic uncertainty, reached an unprecedented price of $1,943 an ounce this week, in part because of record-low interest rates that Goldman Sachs analysts said may demonstrate a stronger appetite for inflation at the Federal Reserve.

“Combined with a record level of debt accumulation by the US government, real concerns around the longevity of the US dollar as a reserve currency have started to emerge,” the analysts wrote.

The idea that the dollar may one day be seen as less of a safe currency jeopardizes its role as the world’s reserve currency, a position that has given the U.S. financial system a tremendous advantage in global financial markets for decades.

The Federal Reserve Note Has Been Dethroned



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