WEEKEND WRAP: Bitcoin Tops $100,000; Dow, S&P, NASDAQ New All-Time Highs; Gold, SIlver Continue Decline; Gas at Multi-Year Low

This story is getting a bit old, but bears repeating: Stocks continue their ascent to who-knows-where, as the Shiller PE settled Friday at the second highest level ever, 38.88, slightly above 38.58, the pandemic level of October, 2021.

Considering that the highest reading ever, 44.19, was at the height of the dotcom boom in November 1999, implies that this bubble has further upside because it almost certainly is the biggest balloon ever.

Stocks do not always go up. It's a known fact, just like real estate in the early 2000s, when the most profitable activity was to own residential real estate and do nothing else. That episode ended in the sub-prime collapse which took real estate values down 40-60% and more in some cases, triggering millions of foreclosures nationwide and widespread financial reordering.

Will this crash play out gradually, then all at once, like in Hemingway's "The Sun Also Rises"? That seems to be the preferred pathway. The months and years ahead are sure to be entertaining and challenging.

Stocks

While the NASDAQ gained 3.34% for the week, the Dow Transportation Average sank 4.20%, just a week after making a new all-time high.

The Dow made an all-time closing high on Wednesday, but traded lower the other four days of the week.

All of the major indices are riding well above their 50-and-200-day moving averages. The NASDAQ is particularly stretched, more than five percent above its 50-day moving average and all of them have remained above their 50-week moving averages since November of 2023.

Currently, there's more than ample bullishness amid uncertainty, though the market appears to believe the incoming Trump administration will usher in an era of greater prosperity, or, at least, accommodating conditions for stocks.

Friday's report of 227,000 jobs gained in the November non-farm payroll data was just about what the market expected and reinforces the contention that the Fed's path of rate cuts will continue without interruption.

S&P 500 sectors for the week were mixed, led to the upside by Telecom (+4.1%), Information Technology (+3.4%), and Consumer Discretionary (+5.9%), while being held back by Healthcare (-2.1%), Utilities (-3.8%), Industrials (-2.3%), Materials (-3%) Energy (-4.6%) and Real Estate (-2.6%).

The week ahead will supply November CPI on Wednesday and PPI, Thursday. Like the latest employment figures, the accounts are expected to be benign, which reinforces a full speed ahead narrative for stocks.

A few notable earning reports in the week ahead include Oracle (ORCL), Toll Brothers (TOL), Yext (YEXT), and Vail Resorts (MTN) on Monday; AutoZone ((AZO), Ollie’s (OLLI), and Academy Sports (ASO) Tuesday morning, Game Stop (GME) and Sportsman’s Warehouse ((SPWH) Tuesday after the bell.

On Wednesday, Macy’s (M), Vera Bradley (VRA), and Adobe (ADBE) report, with Ciena (CIEN), Costco (COST), and Broadcom (AVGO) on Thursday.

Treasury Yield Curve Rates

Date	1 Mo	2 Mo	3 Mo	4 Mo	6 Mo	1 Yr
11/01/2024	4.75	4.74	4.61	4.53	4.42	4.28
11/08/2024	4.70	4.69	4.63	4.53	4.42	4.32
11/15/2024	4.70	4.67	4.60	4.52	4.44	4.34
11/22/2024	4.72	4.67	4.63	4.53	4.46	4.42
11/29/2024	4.76	4.69	4.58	4.52	4.42	4.30
12/06/2024	4.57	4.50	4.42	4.42	4.34	4.19

Date	2 Yr	3 Yr	5 Yr	7 Yr	10 Yr	20 Yr	30 Yr
11/01/2024	4.21	4.18	4.22	4.30	4.37	4.68	4.57
11/08/2024	4.26	4.18	4.20	4.25	4.30	4.58	4.47
11/15/2024	4.31	4.27	4.30	4.36	4.43	4.70	4.60
11/22/2024	4.37	4.32	4.30	4.35	4.41	4.67	4.60
11/29/2024	4.13	4.10	4.05	4.10	4.18	4.45	4.36
12/06/2024	4.10	4.05	4.03	4.09	4.15	4.42	4.34

All yields were lower on the week, but especially short term rates, i,e, bills of 30-day, 60-day, 90-day, 120-day and six-month duration. 30-day and 60-day yields were down 19 basis points. By contrast, the 2-year and 10-year yields only fell by three basis points each.

Nothing shows more conviction that the Federal Reserve will lower the federal funds target rate by 0.25% at the next FOMC meeting (Dec. 17-18) than the enormous drop at the short end of the curve. It's a near-certainty at this point that the Fed is committed to cutting rates on a regular basis. They know the economy is sputtering and are trying to provide relief. The Fed is also quite well aware that the current debt burden and interest payments by Treasury in excess of $1 trillion annually is unsustainable and must be curtailed now that they've nearly bankrupted the federal government (with ample assistance from the free-spending congress, as always).

The big drop on the short end of the curve resulted in further flattening. 2s10s held steady at +5 basis points, but full spectrum fell closer to dis-inversion, at -23.

Timing is ominous. The Fed's plan to flatten the curve completely coincides with Inauguration Day, January 20, and just prior to the January 28-29 FOMC meeting. Two cuts of 0.25% would bring the federal funds target rate down to 4.00-4.25%, implying 30-day bills right around 4.12-4.20%. With the 30-year hovering in the same area, nobody in fixed income, including banks that lend to business, would make any money as there would be no spread upon which to "borrow short, lend long."

Those looking for a liquidity crisis might find one early next year.

Spreads:

2s-10s
9/15/2023: -69
9/22/2023: -66
9/29/2023: -44
10/06/2023: -30
10/13/2023: -41
10/20/2023: -14
10/27/2023: -15
11/03/2023: -26
11/10/2023: -43
11/17/2023: -44
11/24/2023: -45
12/01/2023: -34
12/08/2023: -48
12/15/2023: -53
12/22/2023: -41
12/29/2023: -35
1/5/2024: -35
1/12/2024: -18
1/19/2024: -24
1/26/2024: -19
2/2/2024: -33
2/9: -31
2/16: -34
2/23: -41
3/1: -35
3/8: -39
3/15: -41
3/22: -37
3/28: -39
4/5: -34
4/12: -38
4/19: -35
4/26: -29
5/3: -31
5/10: -37
5/17: -39
5/24: -47
5/31: -38
6/7: -44
6/14: -47
6/21: -45
6/28: -35
7/5: -32
7/12: -27
7/19: -24
7/26: -16
8/2: -08
8/9: -11
8/16: -17
8/23: -09
8/30: 00
9/6: +06
9/13: +09
9/20: +18
9/27: +20
10/4: +5
10/11: +13
10/18: +13
10/25: +14
11/1: +16
11/8: +5
11/15: +12
11/22: +4
11/29: +5
12/6: +5

Full Spectrum (30-days - 30-years)
9/15/2023: -109
9/22/2023: -99
9/29/2023: -82
10/06/2023: -64
10/13/2023: -82
10/20/2023: -47
10/27/2023: -54
11/03/2023: -76
11/10/2023: -80
11/17/2023: -93
11/24/2023: -95
12/01/2023: -105
12/08/2023: -123
12/15/2023: -154
12/22/2023: -149
12/29/2023: -157
1/5/2024: -133
1/12/2024: -135
1/19/2024: -118
1/26/2024: -116
2/2/2024: -127
2/9: -117
2/16: -103
2/23: -112
3/1: -121
3/8: -125
3/15: -109
3/22: -112
3/28: -115
4/5: -93
4/12: -87
4/19: -77
4/26: -70
5/3: -85
5/10: -87
5/17: -94
5/24: -99
5/31: -83
6/7: -92
6/14: -113
6/21: -103
6/28: -96
7/5: -101
7/12: -108
7/19: -103
7/26: -104
8/2: -143
8/9: -131
8/16: -138
8/23: -141
8/30: -121
9/6: -125
9/13: -117
9/20: -80
9/27: -80
10/4: -75
10/11: -58
10/18: -54
10/25: -38
11/1: -18
11/8: -23
11/15: -10
11/22: -12
11/29: -40
12/6: -23

Oil/Gas

WTI crude oil fell near recent lows again this week, closing at $67.17 on Friday, down nearly a buck from $68.15 quoted last Friday. Oil's price continues to reflect the Middle East standoff and the lack of progress in the Ukraine-Russia conflict. Trump soon to enter the picture is also keeping a lid on oil, as is the concern over recession, already a reality in Europe. China's slowdown and a global glut adds to the woes of the producers who apparently cannot cut back enough, lest they destroy their own economies.

Gasbuddy.com reports the national average for a gallon of unleaded regular gas at the pump of $2.99 a gallon, down four cents from the prior week and the first sub-$3.00 reading since May 2021. For reference purposes concerning the direction of gas prices under the incoming Trump administration, the national average never rose above $3.00 from 2016 through 2020. Nothing beats price inflation better than lower prices for oil and gas. Surely, less pain at the pump will translate to happier consumers overall.

California continues to be the price leader, at $4.32 a gallon, down five cents from the prior week and well below prices seen during the summer.

Pennsylvania prices are down, but saw a rise of five cents this week, at $3.27, with the Keystone State holding the high price in the Northeast. New York was static, at $3.12. Connecticut ($3.04) and Massachusetts ($3.01) were slightly lower, while Maryland became the latest state to dip below $3.00, at $2.97 per gallon. Prices in the Midwest continue to wane. Even Illinois was down seven cents ($3.13).

Fuel prices in Oklahoma ($2.44) continue to be by far the lowest in the nation, though five cents higher on the week. Following are Texas ($2.56), Mississippi ($2.57), and Arkansas ($2.59). Louisiana, Kansas, and Tennessee all check in at $2.65. Florida ($3.06) remains the outlier, with all other Southeastern states well below $3.00, including Georgia ($2.89) and North Carolina ($2.84).

Sub-$3.00 gas can now be found in at least 35 U.S. states. The Northeast and West coast are the over-$3.00 holdouts

Arizona ($3.16) was down three cents on the week, with Oregon at $3.48, Nevada at $3.61, and Washington at $3.95, leaving only California above $4.00. Utah ($2.92) and Idaho ($2.99) have both come down steadily over the last eight months.

Bitcoin

This week: $99,645.69
Last week: $97,184.05
2 weeks ago: $97,283.64
6 months ago: $69,277.68
One year ago: $43,790.26
Five years ago: $8,020.98

Bitcoin remains atop the asset leaderboard, up 125% year-to-date and more than 40% since the November 5 U.S. elections, topping out at $103,511.60 this week.

With bitcoin hitting the century mark, pundits and skeptics are split over where its headed, with supporters loudly calling for $200,000 as the next logical stop. Those who consider bitcoin to be the ultimate folly, like Peter Schiff, continue to preach that it is not money, has no store of value nor means of exchange properties, but merely fantastic, fanatical speculation.

Precious Metals

Gold:Silver Ratio: 84.31; last week: 85.97

Per COMEX continuous contracts:

Gold price 11/8: $2,691.70
Gold price 11/15: $2,567.40
Gold price 11/22: $2,743.20
Gold price 11/29: $2,673.90
Gold price 12/6: $2,654.90

Silver price 11/8: $31.42
Silver price 11/15: $30.33
Silver price 11/22: $31.85
Silver price 11/29: $31.10
Silver price 12/6: $31.49

Here are the most recent prices for common one ounce gold and silver items sold on eBay (numismatics excluded, free shipping):

Item/Price	Low	High	Average	Median
1 oz silver coin:	33.01	48.99	39.42	37.27
1 oz silver bar:	34.00	44.68	39.29	38.84
1 oz gold coin:	2,728.74	2,908.78	2,791.17	2,779.44
1 oz gold bar:	2,740.78	2,789.80	2,752.73	2,747.03

The Single Ounce Silver Market Price Benchmark (SOSMPB) trended well lower this week, to $38.71, a decline of $1.73 cents below the November 29 price of $40.44 per troy ounce.

Prices have continued their retreat in both gold and silver. While these lower levels may be temporary, there's reason to believe that Trump policies may keep a lid on prices for a longer period of time. Upcoming Chinese New Year and wedding season in India are likely to boost demand over the near term and silver supply is low. Central banks may have slowed their purchasing of gold slightly, though that also appears to be only a temporary condition.

The longer outlook for the U.S. dollar and fiat currencies in general continues to put a floor under gold prices, with silver lagging, but still tagging along.

WEEKEND WRAP

With the fall of the Syrian government making headlines Sunday morning, there's little doubt that incoming President Trump has already been in contact with world leaders and is influencing decisions on military and economic fronts. Syria's demise may well have been part of a compromise package worked out between Trump and Putin, with Ukraine the ultimate bargaining chip. Russia's willingness to allow Assad's government to collapse and its leader to flee comes at a most opportune time for the United States and its major Middle East ally, Israel.

President Trump promises an end to militarism and conflict and greater competence and cooperation in foreign affairs. If he can also keep inflation down, cut taxes for the middle class, and spur domestic manufacturing, what's not to like?

Food for thought as we proceed through the holidays towards Inauguration Day.

At the Close, Friday, December 6, 2024:
Dow: 44,642.52, -123.19 (-0.28%)
NASDAQ: 19,859.77, +159.05 (+0.81%)
S&P 500: 6,090.27, +15.16 (+0.25%)
NYSE Coposite: 20,107.79, -49.66 (-0.25%)

For the Week:
Dow: -268.13 (-0.60%)
NASDAQ: +641.60 (+3.34%)
S&P 500: +57.89 (+0.96%)
NYSE Composite: -164.25 (-0.81%)
Dow Transports: -739.23 (-4.20%)

Stocks Retreated Prior to November NFP +227,000; Sold the Rumor and Appear to be Buying the News

Futures were initially lower after the BLS announced November Non-Farm Payrolls up 227,000, but changed direction before 9:00 am ET, a half hour after the jobs data became public.

Overall, though the number of jobs created in November was an enormous improvement from the October disaster, which was revised up by 24,000, from +12,000 to +36,000.

From the release:

Total nonfarm payroll employment rose by 227,000 in November, and the unemployment rate changed little at 4.2 percent, the U.S. Bureau of Labor Statistics reported today. Employment trended up in health care, leisure and hospitality, government, and social assistance. Retail trade lost jobs.

Particular notice should be paid to that last, brief, four-word sentence: Retail trade lost jobs.

In a healthy, normal U.S. economy, retail would have been adding jobs in anticipation of increased holiday sales. As a whole, retail trade lost 28,000 jobs over the course of the month. That drop can probably be attributed to a small number of factors, the most prominent being the continuing shift from brick-and-mortar physical stores to online shopping. The internet has completely revolutionized how retail operates. Some companies have adapted, others are still playing catch-up, while some have given up and gone out of business, like Bed, Bath and Beyond, Big Lots, Rue21, Express, 99¢ Only, Joann, The Body Shop, and a host of restaurant chains, led by T.G.I Friday's and Red Lobster.

Accelerating the retail decline is the decimation seen in the number of shopping malls overall. according to Capital One Research, in 1986, there were some 25,000 malls in the United States. On average, from 1986 to 2017, 581 shopping malls closed every year. From 2017 to 2022, the rate of mall closures practically doubled to 1,170 closing every year.

The other factor can be described as an economy teetering on the brink of recession, a condition that's been persisting, or so it seems, for the better part of the last two years. While the Biden administration routinely fudged numbers to their benefit to make the economy appear healthier than it actually was, the coming storm from expected government downsizing at the federal level is about to usher in a recession for real, which is why stock futures headed higher as the cash session approached Friday morning.

As leading indicators go, another one to watch is the price of oil and gas at the pump, both of which are at or approaching multi-month lows. WTI crude oil this morning is trading at $67.58, a sizable decline from the brief high Wednesday morning of $70.34. Gasbuddy.com reports the average price of $3.02 for a gallon of unleaded regular, the lowest price since May, 2021, and also the last time the national average was under $3.00.

If gas isn't moving, cars, trucks, busses and other vehicles aren't either. The lower price of oil and gas is partially the cause of a glut on the global market along with slack demand, especially in developed economies.

With most of Europe already in recession, it won't be long before the U.S. finally admits that things are slowing down. For now, Wall Street is content to believe in anything supporting the narrative that the U.S. is ship-shape and sailing along toward a brighter future, rather than face the reality of a slowing economy, failing infrastructure, and advancing policies that lean heavily towards austerity and deflation.

Believe what you will, but relying on data from the Bureau of Labor Statistics - which just recently had to admit they overstated job creating by 818,000 in 2023 - has been nothing short of a freak show.

Further out along the argument of jobs and the economy is how these figures will affect the Fed's upcoming policy decision, on December 18, and whether the pace of rate cuts will proceed on a regular basis into 2025. That's an easily answered question. The Fed started with a 50 basis point cut in September, cut another 25 basis points in November, and wil likely cut by that same amount again in December and at the next four FOMC meetings in 2025 - January, March, May, and June.

Five cuts of 0.25% will bring the federal funds rate down from its current range of 4.50-4.75% to 3.25-3.50%, a more comfortable level for all involved, at par or slightly above the inflation rate, but stimulative enough to cushion recession losses and keep dis-inflation contained. If the Fed chooses to accelerate the cuts to 0.50% per meeting or continues cuts well into the second half of 2025, that would indicate deeper recession conditions and outright price deflation, which is at the top of the list of greatest Fed fears, alongside threats from crypto-currencies, Trump policies, and the BRICS.

Friday's trading may offer some indication of what's ahead. Should the morning's relaxed attitude devolve into another day of selling, the message might be that the legendary bell at the top of rallies has been rung, though there's always a "Santa Claus" rally to brighten spirits before year's end.

If the market considers a recession, job losses, and government austerity a recipe for higher stock prices - how could they? - then the bubble still isn't ready for popping. The remaining 16 trading days in 2024 ought to be interesting, but even more so, what happens in January is sure to be enthralling.

At the Close, Thursday, December 5, 2024:
Dow: 44,765.71, -248.33 (-0.55%)
NASDAQ: 19,700.72, -34.39 (-0.17%)
S&P 500: 6,075.11, -11.38 (-0.19%)
NYSE Composite: 20,157.44, -31.16 (-0.15%)

Bitcoin Vaults Over $100,000; Dow, S&P, NASDAQ Close at Record Highs; Bubble Economy Built by Welfare, Pensions, Social Security, and Credit Cards

OK, this is a bubble.

There's no need to belabor the point. Everything about the stock markets says, "bubble." Not that anybody cares; we're all going to be rich because the U.S. economy - um, sorry, the stock market and the economy are two different things - is humming right along.

The U.S. economy is built on welfare payments, pension account payouts, Social Security benefits and other government handouts and entitlements to rich and poor alike. Money - actually currency - spent using credit cards accounts for another huge chunk of GDP, along with those never-ending monthly payments to CapitalOne, Bank of America, Visa, Mastercard, and other credit purveyors.

All of this spending makes up U.S. GDP, which is a horrible measure of the health of an economy because it includes all manner of expenditures by government which actually doesn't produce much of anything other than more debt.

In any case, the U.S. debt to GDP calculation shows the ratio going over 100% in 2020 (plandemic), hitting 124% that year and remaining above 100% since. In other words, Total federal debt exceeds annual GDP, generally understood by economists to be a sign of an ailing economy (not one that's running on all cylinders, stocks making record highs).

Not convinced? How about this:

In 2024, an average of almost 68 million Americans per month will receive a Social Security benefit, totaling about $1.5 trillion in benefits paid during the year.

That's a direct quote from the Social Security Administration in their fact sheet [PDF].

Still not convinced?

In fiscal year 2023, Total Welfare Expenditures by the federal government were $1.1 Trillion, including Medicaid payments, accounting for 18% of federal outlays. Without Medicaid, the total was $485 billion, with the single largest program, SNAP (food stamps), accounting for $135 billion, up from $64 billion just five years earlier (fiscal year 2019). Hmmm, no wonder poor people are so fat.

Credit card spending (transactions for goods and services) was just short of $5 trillion in 2022. Ten years prior, 2012, the toal was just above $2 trillion. Credit card spending has more than doubled in just the last 10 years. If the economy is doing so well, why is everybody borrowing to pay for things?

Without welfare and pension benefits and items bought with credit cards, what would Walmart's profits look like? Apple's? How many new iPhones would have been purchased? Home Depot?

It's not worth debating. The U.S. economy is a mirage.

Bitcoin, the invisible currency of which less than two percent of wallet addresses hold more than 90% of all total BTC currently in circulation, has gone ballistic, up more than $4,000 in the last 24 hours (4.11%) and up 132.58% year-to-date. Somebody's getting rich. Probably not you.

Bitcoin's up. Stocks are up. Gold and silver had their runs earlier in the year. Since the election (November 5) they're both down nearly three percent. Why? Because this is a bubble economy.

It's like being a bartender at a house of pleasure. Enjoy it while it lasts.

At the Close, Wednesday, December 4, 2024:
Dow: 45,014.04, +308.51 (+0.69%)
NASDAQ: 19,735.12, +254.21 (+1.30%)
S&P 500: 6,086.49, +36.61 (+0.61%)
NYSE Composite: 20,188.60, +2.79 (+0.01%)

How High is Up? Stocks at Record Levels and Going Higher; Wells Fargo Says S&P Will Hit 7,007 in 2025

It's net even Christmas yet, but investors are gifting themselves to all-time highs on the major indices.

On Tuesday, the NASDAQ and S&P both closed at record highs, the Dow took a breather, but stock market analysts are predicting 2025 to be another banner year. Both Deutsche Bank and Yardeni Research have called for the S&P 500 to finish 2025 at 7,000, but the braintrust over at Wells Fargo (yep, those people famous for opening fake bank accounts), led by Christopher Harvey and his team, issued a 2025 year-end target of 7,007, marking his territory as the highest prediction to date. In pissing contest terms, Harvey is top dog.

Time will tell, but there's little doubt that the ongoing stock bubble players don't seem to notice any impediment against soaring into the stratosphere. Who knew making money could be so easy?

For those keeping score, the Shiller PE finished yesterday at the second-highest level ever, 38.61, just ahead of the October 2021 level of 38.58, now chasing the record from November 1999, 44.19.

Color us skeptical.

It used to be common knowledge that when everybody is bullish, it's a good time to be bearish. On that note, exactly why is Warren Buffett hoarding cash? His Berkshire Hathaway holding company is sitting on a dollar stack of $325 billion, enough to buy outright 476 individual companies in the S&P 500. Maybe he's waiting for prices to fall so he can buy them all, except, probably the Magnificent 7 tech giants, Alphabet, Amazon, Apple, Nvidia, et.al.

Has the old man lost his touch? Is he living in the past, when prudence was virtuous and speculation was an art perfected only by the best and brightest, not everyday momentum traders or yield-chasers suffering from FOMO (Fear Of Missing Out)?

Well, it's the holiday season, after all, so why throw cold water on the Christmas parade? After all, in a little more than a month, Joe Biden and all the lefties will begin to fade into the woodwork, Donald Trump will lead the grand MAGA movement, everybody will benefit, and America will re-emerge as the greatest place on earth.

Actually, there is some believability to that argument and over here at Money Daily we're all for it.

It just sounds too good to be true, if only because stocks are already well extended. Nobody ever suggested, “buy high, sell higher.”

Maybe Moe, Larry and Curly can provide some clues.

At the Close, Tuesday, December 3, 2024:
Dow: 44,705.53, -76.47 (-0.17%)
NASDAQ: 19,480.91, +76.96 (+0.40%)
S&P 500: 6,049.88, +2.73 (+0.05%)
NYSE Composite: 20,185.81, -27.41 (-0.14%)

What's the Big Deal About BRICS-Pay and Trump Tariffs? Some Background on De-Dollarization and Currency Debasement

Loads of ink and countless electronic bytes of data were spent Monday deciphering the impact of President-Elect Trump's post on his social media platform, TruthSocial.

"We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy."

Yahoo! Finance reports the proximate cause for Trump's post is the formation of a payment system known as BRICS Pay, according to Douglas Holtz-Eakin, president of the American Action Forum.

BRICS Pay is a new attempt by the BRICS group of countries to use digital payment and QR code technology to provide an alternative to dollar-dominated networks — specifically the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which Russia was barred from upon its invasion of Ukraine in February, 2022.

Since then, war has raged, NATO nations having supplied Ukraine with all manner of weaponry, to little avail. Russia continues to take territory and advance through the country. The US, UK, and EU have applied various sanctions to Russia and other countries, also with little effect. Russia's economy, in fact, is growing at a faster rate than most Western nations, especially European ones, France, Italy, and Germany, which are falling or have already entered into recession.

The BRICS-pay website is indeed registered in Russia, but is likely more for demonstration purposes and trolling of U.S. interests. What concerns Trump, and, more importantly, the Federal Reserve, is that BRICS nations have been bypassing use of the U.S. dollar in international trade and transactions, using local, national currencies for settlement. Also, use of the Chinese yuan has been advanced, as has gold, as a settlement mechanism.

At the last two most recent BRICS summits, in Kazan, Russia this year and South Africa in 2023, there were more than a few discussions about the establishment of a BRICS currency, ostensibly to compete with the dollar and euro in international trade, though nothing concrete has been established. The discussions among finance ministers of BRICS nations and affiliates continue and there have been tests done using blockchain technology, most specifically the recent MBridge tests that were suddenly halted and de-platformed by the Bank of International Settlements (BIS), reported by Vince Lanci of GoldFix in late October.

Whatever Trump, in association with the Federal Reserve, plans to do to counter the ultimate establishment of competing reserve currencies in the wider world and especially in the so-called, "Global South", those efforts are likely to be in vain unless the U.S. reverses course on its continuing hectoring of countries which refuse to be bullied by U.S. hegemony and insistence on use of the dollar in trade settlement.

The dollar has lost more than 97% of its purchasing power since inception of the Federal Reserve and is unlikely to change direction. The vaunted U.S. dollar is a dying currency, just as others, the yen, euro, franc, and pound, which are backed by nothing more than faith. Eventually, a shift will be made to better, more stable forms of payment that are not debt-based, likely to be backed by gold, silver and/or other commodities.

Since the U.S. weaponization of the dollar, the world has moved away, an oft-heard phrase by countries trading with the United States is "getting nothing for something." Abandonment of the U.S. dollar as a means of exchange follows along with its being a poor, negligible store of value.

An article on Sputnik teases, Trump's Threat of 100% Tariffs Targeting BRICS Would Blow Up in America's Face.

Americans have reason to be concerned. After the most recent bout of inflation - caused by the Fed's relentless currency creation out of thin air - prices for even everyday items have risen to levels that are unobtainable for average citizens. Losing reserve currency status, which is well underway, would render the dollar completely worthless. Change is necessary.

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