_{ECONOMIC NEWS}
Jim Rickards Raises Alarm on Dollar's Decline and BRICS' New Currency Strategy Amid Supply Chain Issues

Jim Rickards, in a recent interview with Greg Hunter, discussed ongoing global economic issues, emphasizing that supply chain problems and inflation are far from resolved. He highlighted a failed grain deal between Ukraine and Russia as evidence of the fragility in global supply chains, noting that this breakdown has led to a significant increase in grain prices.

Rickards also introduced the concept of a new BRICS (Brazil, Russia, India, China, South Africa) currency potentially tied to gold, named a "BRIC." This new currency, he explained, is not intended as a reserve currency but is designed to be stable through its gold anchor, rather than directly redeemable in gold. This system could lead to fluctuations in the dollar/BRIC exchange rate as the price of gold changes.

Moreover, Rickards speculated on the strategic economic impacts of such a currency. He suggested that by anchoring a currency to gold, BRICS nations could enhance the value of their currency relative to the U.S. dollar, particularly during times of dollar inflation. This strategy, according to Rickards, could potentially undermine the dollar without the need to maintain substantial gold reserves.

He also discussed broader economic strategies, such as affecting supply chains and commodity prices, to influence currency values and economic stability. Rickards predicts significant inflation in the future for economies tied to the dollar, urging caution based on his analysis.

For more detailed insights from Rickards, including his views on the potential consequences of these economic strategies, you can check out his full 52-minute interview conducted by Greg Hunter, where Rickards also talks about his latest book, "Sold Out: How Broken Supply Chains, Surging Inflation, and Political Instability Will Sink the Global Economy.” Read More.

_{FINANCIAL NEWS}

Warning Signal: 2008's Credit Default Swaps Reemerge, Sparking Stock Market Concerns

Wall Street is facing heightened fears of a stock market crash as credit default swaps (CDSs) have reached their highest levels since 2008, signaling deep concerns over government debt and causing traders to shy away from domestic debt investments. According to S&P Global Market Intelligence, the spreads on five-year CDSs have more than doubled since January, and one-year government default swaps are trading at levels not seen since the 2008 financial crisis.

These swaps serve as insurance against the possibility of a borrower defaulting on debt, and the rising costs indicate a growing fear among traders of a potential U.S. government default. This concern is further exacerbated by the ongoing discussions in Congress regarding the raising of the debt ceiling, with the Treasury Department resorting to "extraordinary measures" to manage payments until an agreement is reached.

The situation is critical, as a government default could lead to catastrophic consequences for the stock market and the broader financial system. Analysts and officials, including Moody's Chief Economist, have warned that a default could severely impact the global economy and have long-lasting effects on financial trust and stability. Read More.