Bank Liquidity Is Still the Issue!
Depositors drained another $126 billion from U.S. banks during the week ending March 22, according to new Federal Reserve data. This time the outflow came from the nation’s largest institutions. The biggest 25 banks lost $90 billion on a seasonally adjusted basis, according to the Fed. The smaller banks, which suffered massive withdrawals the previous week as regulators seized regional lenders Silicon Valley Bank and Signature Bank, were able to stabilize their outflows. They actually gained back $6 billion on a seasonally adjusted basis.
Why the Dollar Still Beats the Euro and the Yuan
As evidenced by a number of recent policy changes in China, Russia, Saudi Arabia, and Brazil, the status of the US dollar as the world’s reserve currency is under coordinated attack. Efforts to dethrone the dollar, however, will require time and luck in favor of antidollar forces. For now, however, the US dollar is the most preferred currency for foreign reserves and for settling international transactions.
How a Central Bank in the Caribbean Recently Used Its Gold Revaluation Account to Cover Losses
By selling and immediately buying back some of its gold reserves, the central bank of Curaçao and Saint Martin managed to use its gold revaluation account to offset losses in 2021. Because many other monetary authorities are currently making losses too—and there is no limit to revaluing gold against fiat money—this trick could be used the world over to heal central banks’ balance sheets.
China Plans to Ban Exports of Rare Earth Magnet Tech
China is considering banning the export of technologies used to produce high-performance rare earth magnets deployed in electric vehicles, wind turbine motors and other products, citing “national security” as a reason, it has been learned. With the global trend toward decarbonization driving a shift toward the use of electric motors, China is believed to be seeking to seize control of the magnet supply chain and establish dominance in the burgeoning environment sector.
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