There’s Only More Upside for Gold as the Banking Crisis Continues

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. There’s Only More Upside for Gold as the Banking Crisis Continues By Nomi Prins, Editor, Inside Wall Street with Nomi Prins Welcome to our Friday mailbag edition! Every week, we receive fantastic questions from your fellow readers. And every Friday, I answer as many as I can. Up first today, a question from reader Renate on the safety of the National Credit Union Administration (NCUA)… If you have money at a credit union, is the NCUA as safe a guarantor as the FDIC? – Renate F. Hi Renate, thank you for that excellent and very timely question. I'm sure many other readers have a similar question on their minds as well. The National Credit Union Administration (NCUA) is an independent agency created by the U.S. government. It regulates and protects credit unions and their owners. It backs deposit accounts up to $250,000 in the same way that the FDIC does in the event of a credit union failure. The difference is that while the FDIC insures banks, the NCUA covers credit unions. Also, banks insured by the NCUA must pay a 1% fee every year. The National Credit Union Insurance Fund (NCUSIF) then uses these fees to insure credit union accounts up to $250,000. So if the banks run into problems and depositors want to get their money out, that means some of the bank's own money is already backing these deposits. In the end, there’s no perfect way to ensure money above $250,000 per deposit account is 100% safe in the face of a massive, widespread banking catastrophe. But there’s one way to make sure your money is safer in a credit union or a big bank. And that’s to divide anything you might have over $250,000 into separate deposit accounts across different banks. Recommended Link [Forget tech, crypto, bonds, and treasuries – buy these instead]( [image]( All you have to do is own a small handful of these unique stocks… And you could retire wealthier than you would by trading, chasing the latest “hot” stock, or doing anything your broker tells you. [Click here for the name and ticker of the #1 stock.]( -- Next, reader Keeron wants to know how the Fed’s 0.25% interest rate hike will affect the Treasury’s actions in the event of a bond default… I have been working in the financial services industry supporting software onboarding for institutions for seven years. I understand more from two months of becoming a Distortion Report member about what all the terms are in plain language and how the market is interconnected. Thanks, Nomi, for making it easy to understand without feeling like you need a finance degree. One quick question: We haven't heard much else about the "extraordinary measures" that the Treasury Department is taking since it's now up to Congress to get this done before default. But what’s your take on how the Fed’s recent update for Stage 1 will impact the Treasury Dept’s actions? – Keeron E. Hi Keeron, thank you so much for sharing that information about your own background with me. And thank you for your kind words about the information we're putting out in our Distortion Report advisory. We spend a lot of time making sure things are as clear as possible, so I’m thrilled that’s coming across. (For more information about how to become a subscriber, [click here]( And you’re right about the Treasury Department. Janet Yellen recently said the Department would take extraordinary measures if a U.S. bond default happens. [Featured: Must See! Florida Dad “hacks” gas pump. What happens next will STUN you…]( But we haven't heard much about this because the Treasury Department is too preoccupied with the current banking crisis. Plus, the Fed reached Stage 1 too late. It was too focused on inflation, not the budding banking crisis. As a reminder, Stage 1 of the Fed’s [three-stage pivot]( means smaller rate hikes. The reality is, last year, the Fed raised rates quickly. This, in turn, caused the value of Treasury and mortgage bonds to drop. Here’s why… Higher-paying bonds are better for the investors buying them. That makes existing bonds with lower rates less attractive. This means that any bank that held these bonds against shorter-term positions and loans faced huge losses. And it’s why the Treasury Department and Federal Reserve created a $25 billion package in the wake of the [Silicon Valley Bank, Silvergate, and Signature Bank failures](. And, as of this moment, the Fed has also created emergency lending lines of about $300 billion for the entire banking system. That's already about half of what they created in the beginning months of the financial crisis in the fall of 2008. What’s more, on Wednesday, at the March Federal Open Market Committee (FOMC) meeting, the Fed raised interest rates by another 0.25%. This means the Fed chose to tread carefully. And it also means the Fed will likely hit Stage two more quickly than I expected. As a refresher, Stage 2 would be a pause in rate hikes. Recommended Link [This trader’s best year was during the 2008 bank collapse. Watch him now.]( [image]( From 1990 to 2010 – when he was actively running hedge funds – this market wizard [never had a single losing year.]( And not only did he manage to turn a profit during the 2008 global financial crisis… 2008 was his fund’s best year. It made $95 million for its clients. So, if you’re looking for a new strategy to make big gains this year… after we’ve seen more banks collapse and volatility shoot up… Larry Benedict has come forward to share his secret to making millions. And how you can use it too. [Watch his video here.]( -- Finally, our last question this week is from Roger, who wants to know about the relationship between the U.S. debt, interest rates, and gold prices… Regarding the U.S. debt, will the interest on the debt cause a pause in interest rates rising, and how will this affect the price of gold? – Roger R. Hi Roger, thank you very much for that excellent question. The more debt the United States creates, the higher the interest payments on that debt will be. This also means that the U.S. government is borrowing from the future to pay for the U.S. economy in the present. [Featured: Strange Force Coming for American’s Savings? (Prepare Now)]( I believe this will lead to a pause in interest rate hikes, or Stage 2 of the [three stages of the Fed’s pivot](. As I explained above, Stage 2 will most likely arrive earlier than expected due to the banking crisis unfolding around the world. With respect to the price of gold, here’s what I believe… Increased debt, higher interest rates, and greater financial uncertainty are all lifting the price of gold up. That’s because gold in this environment is not only acting as a hedge against inflation. It’s also acting as a safe haven. During times like this, I like to refer to gold as a “sanity haven” investment. Recommended Link [New Dollar Warning From Expert Forecaster]( [image]( Jeff Clark predicted and/or profited from the last four major market crashes. But now, he’s coming forward with a brand-new prediction about the dollar. [Just click here for all the details – including a unique way to protect yourself.]( -- And it's for this reason that we have already seen the price of gold surge. Just this week, the price of gold broke over $2,000 per ounce. It hadn’t been that high since March 2022. And I believe there is only more upside. In fact, I just recommended a company positioned to benefit from the gold rally in my Distortion Report advisory. If you’re already a subscriber, catch up [here](. And if you’re interested in becoming a subscriber, [click here](. And that’s all for this week’s mailbag. Thanks to everyone who wrote in! If I didn’t get to your question this week, look out for my response in a future Friday mailbag edition. I do my best to respond to as many of your questions and comments as I can. Just remember, I can’t give personal investment advice. And if there are any other topics you’d like me to write about, I’d love to hear from you. You can write me at feedback@rogueeconomics.com. Happy investing… and have a fantastic weekend! Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). IN CASE YOU MISSED IT… [If the talking heads in the mainstream media have you seeing ghosts of 2008…]( You’ll want to pay close attention… A former Wall Street managing director who walked away from a million-dollar career, Nomi Prins, is now a prolific author and one of the world’s most respected Investigative Journalists. You might recognize her from appearances on Fox Business… CNBC… Bloomberg… PBS… or CSPAN… She’s exposing a bombshell story about our financial system… A $150 trillion transfer of wealth she calls “The Great Distortion”, could soon trigger a historic windfall for some Americans… [Click here to see what it means for your money.]( [image]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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