In recent discussions with Mr. Leorgance, founder of a Welsh research group, important insights have been shared regarding the current state of the economy and financial markets. Two main concerns have been highlighted: the real estate housing market and China’s potential recession in 2024.

The Stagnant Real Estate Market

While the Consumer Price Index (CPI) has improved, the real estate market remains stagnant, impacting banks and causing a prolonged crisis. Strict regulations on mortgages and the large amounts of money in money market accounts restrict banks’ ability to lend. This freeze in the housing market is not healthy for the economy, especially considering housing’s contribution to GDP.

The Rise of Central Bank Digital Currencies (CBDCs)

Mr. Leorgance finds central bank digital currencies (CBDCs) intriguing from a monetary perspective. He expresses concern about the rapid advancements by central banks in this area and emphasizes the need for careful consideration. CBDCs can be classified as wholesale and retail. Wholesale CBDCs are intended for governments, central banks, and commercial banks, while retail CBDCs are for individuals and can be held in commercial banks or directly by individuals. The adoption and acceptance of CBDCs vary by country, with China piloting a retail CBDC on a large scale and Europe and the United States still considering their implementation.

There are concerns about privacy and the power of central banks over individuals’ finances with the introduction of CBDCs. For instance, worries exist in China about potential abuses, such as using facial recognition technologies to deduct funds from bank accounts as penalties. However, it’s essential to note that CBDCs are not meant to replace physical money but rather complement it.

The Possibility of a Gold-Backed Currency Within BRICS

Another interesting development discussed is the possibility of a gold-backed currency within the BRICS association (Brazil, Russia, India, China, and South Africa). Although the BRICS association is more of a think tank than a formal agreement among countries, the impact on global markets would depend on whether such a currency is implemented or remains speculative.

The Rise of Tokenization and Innovation

Tokenization is gaining attention as it allows for the creation of gold-backed transactions without the need for a central bank. This innovation could revolutionize asset collateralization and enable transactions in non-traditional currencies, such as gold. While governments and central banks are expected to maintain control over most circulating currencies, they may adopt innovations from the decentralized finance (DeFi) world to enhance their systems.

Monitoring the Economic Landscape

In conclusion, it is crucial to monitor the housing market, monetary policies, and geopolitical developments in the current economic landscape. Additionally, keeping an eye on earning calls for attractive companies and considering the potential impact of the Federal Reserve’s decision to raise interest rates on gold and silver prices are essential for investment opportunities.