By Michael Every of Rabobank, "None so blind as those that will not see. There are none so blind as those who will not see: except those who refuse to look." The financial system seems to be suffering from a severe case of blindness as it continues to overlook the warning signs of an impending economic disaster.
The most popular example of the fecklessness of Silicon Valley Bank is that it stupidly amassed a $124bn bond portfolio and then, even more foolishly, decided to double down on that investment by buying $1.25bn worth of junk bonds. The bank is now facing the consequences of its actions as it struggles to offload these bonds at a loss.
Central bank net gold purchases, led by China, show no sign of slowing down with the strongest start to a year since 2010. This suggests that central banks around the world are preparing for an economic crisis by stockpiling gold.
Twitter has permanently suspended markets blog Zero Hedge's Twitter account, @zerohedge, for violating the company's policy after it posted a tweet that reportedly shared private information about a Twitter executive. The suspension of Zero Hedge's account has raised concerns about censorship and freedom of speech.
ZERO HEDGE writes that a large swath of American consumers are facing financial hardship as they grapple with elevated living costs, record-high debt levels, and stagnant wages. The article suggests that the Federal Reserve's low-interest-rate policy is exacerbating the problem by encouraging consumers to take on more debt.
Google has banned ZeroHedge, a far-right website that often traffics in conspiracy theories, from its advertising platform over policy violations. This move by Google has been criticized as an attack on free speech by some, while others have applauded the tech giant for taking a stand against hate speech and misinformation.
19 nations, including 5 oil producers, have formally asked to join the BRICS group of nations ahead of its upcoming summit in South Africa. The BRICS group of nations comprises Brazil, Russia, India, China, and South Africa and represents some of the fastest-growing economies in the world.
ZERO HEDGE reports that the Conference Board's Leading Economic Indicators (LEI) accelerated its decline in March, dropping 1.2% MoM. This suggests that the US economy may be heading for a recession in the near future.
With oil stubbornly the only asset class that is pricing in if not a depression then certainly a deep recession, even as every other asset class is rallying, investors are becoming increasingly concerned about the health of the global economy. The article suggests that this is a warning sign that should not be ignored.
