Gold, the Federal Reserve, and a Catch-22

Money Metals News Service
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Gold, the Federal Reserve, and a Catch-22

(Mike Maharrey, Money Metals News Service) If you know inflation is going to increase, would you sell your inflation hedge?

Me neither. That would be dumb, right?

However, that’s what a lot of people did yesterday (Wednesday, March 18), and they’re still doing it this morning. This hints at the Catch-22 still haunting the Federal Reserve and the market’s inability to make sense out of it.

I’ve been writing about this Catch-22 for months. In a nutshell, the Fed simultaneously needs to hold interest rates higher (and arguably raise them) to deal with increasing inflation pressure while also needing to cut interest rates due to the massive Debt Black Hole warping the economy.

It can’t do both. Ultimately, it will have to choose between inflation and propping up the debt-riddled bubble economy. Right now, markets are betting they’ll go after inflation.

I think anybody who believes that is underestimating the force of the debt black hole and the level of malinvestment in the economy as a result of decades of easy money.

Price Inflation Spooks Markets Desperate for Interest Rate Cuts

If you follow the markets, you know that gold fell sharply, breaking below the $5,000 support level. Gold was already under selling pressure. A lot of investors are using the liquidity of their gold holdings to raise cash to navigate the volatility in the markets.

However, a specific headline seemed to spark yesterday’s sell-off – news that producer prices rose far more than anticipated.

Producer prices are considered a leading inflation indicator because companies generally pass on at least some of their higher costs to consumers.

Well, the PPI for February came in red hot. The forecast was for a 0.3 percent month-on-month increase. Instead, producer prices spiked 0.7 percent.

Core PPI, stripping out more volatile food and energy prices, was up a healthy 0.5 percent in February.

On an annual basis, PPI came in at 3.4 percent, with core producer prices rising 3.9 percent.

And of course, this was before the oil price shocks we’re now seeing due to the war with Iran.

Keep in mind that rising prices don’t measure inflation when you define the term properly. Rising producer and consumer prices are one symptom of inflation – an increase in the supply of money and credit. Inflation is caused by money printing. This can result in rising prices.

As I pointed out when the February CPI data came out. While it seemed to signal cooling inflation, a quick look at the trajectory of the money supply reveals that inflation is increasing rapidly, despite the perception that monetary policy is still tight.

So, the fact that producer prices are going up isn’t really a shock, especially when coupled with the impact of tariffs.

But why are people selling gold when inflation is apparently heating up?

It’s a matter of perception. Investors imagine that the Federal Reserve will hold rates higher for longer due to this inflationary pressure (that has been ongoing but is more noticeable when prices start going up). In fact, after the PPI data came out, the expectation for the next rate cut was pushed back to December.

Why does this matter to gold investors?

Because gold is a non-yielding asset. Conventional wisdom holds that investors will spurn gold and turn to other assets as rates increase to capture yield.

I watched this happen over and over again when the Fed was raising rates a few years ago. Every data point indicating inflation was still sticky led to a gold selloff.

Here we go again.

But Will the Fed Really Keep Interest Rates Higher for Longer?

I think not.

Remember that Catch-22.

It can’t keep rates higher – inflation or no inflation. That’s because it must contend with the Debt Black Hole.

The perception that the Fed should hold interest rates higher is absolutely correct. Price inflation remains well above the mythical 2 percent target, and as I’ve mentioned, the money supply is increasing rapidly. In fact, I could make an argument for rate hikes at this point, because the central bank never did enough to kill the inflation dragon. Keep in mind that then-Fed chair Paul Volcker had to jack up interest rates to 20 percent to slay the price inflation of the 1970s.

The fact is, the Federal Reserve never did enough to slay inflation. The central bank tightened monetary policy just enough to subdue the inflation dragon and hoped it wouldn’t get up off the mat. Now it has gone back to creating inflation.

By declaring victory over price inflation and easing monetary policy over the last couple of years, the Fed effectively committed to creating more inflation.

So, why don’t they hike?

Because they know that rate hikes would run a dagger through the heart of this debt-riddled bubble economy.

And that’s the Catch-22. The Fed simultaneously needs to hike interest rates to fight inflation and cut them to rescue the economy.

It obviously can’t do both.

Powell’s comments during his post-meeting press conference on Wednesday reveal the quandary facing the central bank. He conceded that the economic projections and dot-plots released by the central bank weren’t worth a whole lot, saying they had to “write something down,” but there is still a lot of uncertainty.

“If we were ever going to skip an SEP [Summary of Economic Projections], this would be a good one because we just don’t know.”

To date, the central bankers at the Fed have been trying to walk the tightrope. But at some point, economic realities will force their hands. They’ll be forced to cut aggressively when the bottom falls out of the economy. The oil price shock could cause that sooner rather than later.

We also need to address the big elephant standing in the middle of the kitchen. The Fed already wrecked the economy with well over a decade of easy money. It pumped nearly $9 trillion in new money (inflation) into the economy through quantitative easing alone from the onset of the Great Recession through the pandemic. That’s on top of the inflation it created with nearly a decade of zero percent interest rates.

That monetary malfeasance has consequences. It created a massive debt bubble and all kinds of malinvestments in the economy. The impact hasn’t manifested yet.

When the economy visibly cracks, the Fed will be forced to get even more aggressive in loosening monetary policy – elevated inflation or not. If history is any indication, it will cut rates to zero again and launch more rounds of quantitative easing (QE). That means even more inflation.

The worst-case scenario is a protracted period of stagflation.

In fact, CNBC reported on stagflation worries earlier this week. The reporter tried to downplay the potential, but the fact that the mainstream is talking about it at all is telling.

You should take note of the fact that despite all the worry about hot inflation (that they’ll conveniently blame on the war), the Fed still projects a rate cut this year. Think about that. Inflation remains well above the target and appears to be heating up, and the Fed still plans to loosen monetary policy.

That reveals their priorities. If you watch the Fed closely, you will realize that central bankers tend to talk a lot about controlling inflation, but their actions tend toward looser policy to boost the economy.

That won’t likely change.

In other words, expect the inflation to continue.

And you might want to hold onto that inflation hedge.

Mike Maharrey is a journalist and market analyst for Money Metals with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.

FBI Investigating Trump Official Who Resigned in Protest of Iran War

Headline USA Editor
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FBI Investigating Trump Official Who Resigned in Protest of Iran War

(Headline USA) The FBI is investigating whether Joe Kent, who resigned his position as a top counterterrorism official this week in protest of the Iran war, improperly shared classified information, a person familiar with the matter said Wednesday.

The investigation purportedly precedes Kent’s resignation Tuesday from his role as director of the U.S. government’s National Counterterrorism Center, said the person, who spoke on condition of anonymity to discuss an ongoing FBI inquiry.

But it comes amidst Kent’s vocal criticism of Israel for allegedly dragging the U.S. into the war with Iran. FBI Director Kashyap Patel has said that serving Israel’s interests is among his top priority.

Additional details about what the investigation, which was first reported by Semafor, is examining were not immediately available.

Kent disclosed his departure from the administration in a statement on X in which he cited his concerns about the justification for military strikes in Iran and said he “cannot in good conscience” back the war against Iran.

“Iran posed no imminent threat to our nation, and it is clear that we started this war due to pressure from Israel and its powerful American lobby,” Kent wrote.

Trump, who appointed Kent, later told reporters that he always thought Kent was “weak on security” and if someone in his administration did not believe Iran was a threat, “we don’t want those people.”

A phone message was left Wednesday night for Kent, who previously ran unsuccessfully for Congress, with a former campaign manager.

Adapted from reporting by the Associated Press

DNI Gabbard Tells Congress Iran Was Not Rebuilding Its Nuclear Program

Headline USA Editor
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DNI Gabbard Tells Congress Iran Was Not Rebuilding Its Nuclear Program

(Kyle Anzalone, Antiwar.com) Director of National Intelligence Tulsi Gabbard testified before the Senate Intelligence Committee on Wednesday, where she faced several questions about President Donald Trump’s war on Iran.

Gabbard told the committee that after two weeks of Israeli and US bombardment, Iran’s military projection capabilities had been “largely destroyed” and its strategic position “significantly degraded.”

However, Tehran has achieved some important success in the conflict: the government remains intact and in control of the country, Iranian forces continue to fire missiles at US allies and bases in the Middle East, and Iran has been able to prevent US- and Israel-linked cargo from passing through the Strait of Hormuz.

In her opening remarks, Gabbard attempted to hype the alleged threat that Iran poses to the US. “Russia, China, North Korea, Iran, and Pakistan have been researching and developing an array of novel, advanced, or traditional missile delivery systems with conventional and nuclear payloads that put the United States at direct risk,” she told the committee.

She later clarified that Iran does not currently have an intercontinental ballistic missile program, and would take nearly a decade to produce a functioning ICBM. “Iran has previously demonstrated space launch and other technology that it could use to develop an ICBM by 2035 if it chose to pursue the technology,” the DNI explained.

During questioning from senators, Gabbard also admitted that Iran’s nuclear energy program was destroyed by the US and Israel during the war last June, and that Tehran had not begun the process of rebuilding its nuclear facilities.

Gabbard’s statement may be problematic for President Donald Trump, who has repeatedly stated that Iran presents an imminent threat to the US which requires immediate military action. However, his top intelligence chief testified that Iran was not rebuilding its nuclear program nor attempting to build a missile capable of reaching the US.

Gabbard is one of several members of the Trump administration who was strongly opposed to war with Iran before joining the White House. Joe Kent, who ran the National Counterterrorism Center and served as Gabbard’s deputy, resigned over the conflict on Tuesday, insisting that Tehran “posed no imminent threat to our nation.” 

This article originally appeared at Antiwar.com.

WATCH: Murder Suspect Hints at Confession on Hot Mic

Luis Cornelio
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WATCH: Murder Suspect Hints at Confession on Hot Mic

(Luis Cornelio, Headline USA) A Florida man facing a first-degree murder charge erupted in a shocking tirade, including what appeared to be a confession, during a court hearing Monday, forcing his attorney to intervene. 

The suspect, Tramonte Terrell Gibson, 20, told a Florida judge that he “shot every one of them in the head” and rebuked his attorney when he attempted to quiet him, as seen in videos shared on social media. 

Court records reviewed by Headline USA state that in addition to the first-degree murder charge, Gibson is facing four counts of attempted murder and armed carjacking in connection with the fatal shooting in Riviera Beach. 

Gibson appeared confused about Monday’s events when addressing the judge, according to CBS12 Florida and WPBF News. 

“The people that were supposedly killed? They didn’t die. Nobody died, obviously, right?” he claimed, to which the judge replied: “One person did.” 

After a brief back-and-forth, Gibson said, “I shot every one of those people.” His attorney intervened, prompting Gibson to say: “Nah, shut up, man. Let me talk. I can’t talk to the judge, bro?” 

The attorney reminded him that his remarks were being recorded, but Gibson appeared undeterred. He continued: 

“Okay, let me talk. If it’s being recorded, then it been record. I shot every one of them people in the head [sic]. They not making it back. My cousin, wasn’t supposed to die. That dude that hit the floor? Oh yeah, he died. A lot of people were shot in the head sir and woke back up right in front of my face.” 

According to reports, Gibson was sitting with others before he pulled a gun and shot his cousin in the head.  

Others were also shot during the incident. He then attempted to carjack several vehicles, shooting driver James Easley multiple times and injuring two other men who drove themselves to a hospital. 

Gibson is being held without bond in Palm Beach County Jail, with Judge Sara Willis scheduling his next appearances for April 16 and May 7. 

Leftist Activist César Chávez Accused of Child Molestation

Luis Cornelio
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Leftist Activist César Chávez Accused of Child Molestation

(Luis Cornelio, Headline USA) Former President Joe Biden repeatedly credited his political rise to César Chávez, the late farmworker activist now at the center of a growing national scandal involving allegations of child rape and sexual abuse. 

Chávez’s legacy was thrown into crisis after The New York Times published Wednesday accounts from multiple women accusing him of sexual abuse and making unwanted advances toward them. 

One accuser, fellow civil rights and farmworker leader Dolores Huerta, 95, said she became pregnant twice after Chávez assaulted her. 

Two other accusers, Ana Murguia and Debra Rojas, both 66, alleged they were molested and groomed by Chávez when they were just 13 and 15 years old, respectively. Rojas said the alleged grooming and groping began when she was 12. 

Another accuser, Esmeralda Lopez, said Chávez attempted to push her into a sexual relationship when she was 19. Her mother, Cynthia Bell, said Chávez made unwanted sexual advances toward her years earlier in the 1970s. 

Before those allegations came to light, Biden repeatedly praised Chávez across both his White House and personal X accounts, mentioning him at least nine times over four years, according to a Headline USA review. 

Biden himself has faced multiple allegations of inappropriate behavior, including one accusation of sexual abuse. 

One of Biden’s most widely viewed posts featured a video of a bust of Chávez that he “proudly placed” in the Oval Office shortly after taking office in 2021. 

“When I became President, I proudly placed a bust of César Chávez in the Oval to serve as a reminder of the values he embodied, the vision of freedom he fought for, and his commitment to justice and dignity that we must uphold each and every day,” Biden wrote on March 31, 2023.  

“Happy César Chávez Day,” he added, referring to the commemorative federal holiday first enacted by then-President Barack Obama in 2014. 

Biden first mentioned Chávez on Sept. 15, 2019, when he included him among Hispanic leaders recognized for “Hispanic Heritage Month.” He repeated the mention in a Spanish-language post that same day. 

Biden again praised Chávez on March 31, 2024, writing: “Today, we honor César E. Chávez by carrying on the cause to which he dedicated his life: Championing the dignity and rights of every worker, using nonviolence to fight for justice, and standing with organized labor to build an economy that rewards work and not just wealth.” 

On Oct. 7, 2024, Biden said he was first elected in 1972 “because of the United Farm Workers in southern Delaware who were organized by Cesar Chavez.” 

He continued: “Here I stand, 50 years later, as your president, honored to celebrate the heritage of the Hispanic community.”

TPUSA Chapter Cuts Ties with National Organization, Citing Exploitation of Charlie Kirk’s Legacy

Jose Nino
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TPUSA Chapter Cuts Ties with National Organization, Citing Exploitation of Charlie Kirk’s Legacy

(José Niño, Headline USA) The University of Arkansas chapter of Turning Point USA has reportedly voted to sever ties with the national organization and rebrand as Young American Revival .

Chapter president Dino Fantegrossi, who had been involved with the organization for ten semesters and held leadership roles for five of them, announced the decision on Tuesday. The disaffiliation came less than a week after TPUSA CEO Erika Kirk visited Arkansas alongside Governor Sarah Huckabee Sanders to announce a state proclamation endorsing the organization, per a report by KATV.

The central grievance centers on how TPUSA has invoked the name of founder Charlie Kirk, who was assassinated on Sept. 10, 2025. Kirk was shot by a sniper while speaking at Utah Valley University in Orem, Utah during what was billed as the “American Comeback Tour.” He was 31 years old. 

His alleged assassin, Tyler Robinson, reportedly expressed support for left-wing rhetoric. Following Kirk’s death, his widow Erika Kirk assumed leadership of the organization.

According to KNWA, Fantegrossi said the chapter took issue with how national TPUSA has repeatedly invoked Kirk’s memory.

“We are generally put off by how Charlie Kirk has been used by TPUSA since his assassination,” Fantegrossi said. “Statements like ‘Charlie would have said’ and ‘Charlie would have wanted’ have felt in many instances disingenuous and manipulative.”

Per a report by IB Times, Fantegrossi noted that Kirk “cannot speak for himself anymore” and accused the national organization of becoming “overly focused on metrics, pursuing viral cultural moments, and generally seeking relevance” rather than advancing real conservative policy goals. He wrote that TPUSA had lost its “guiding north star” and had become a participant in a “performative culture war” rather than a serious legislative force.

The rebrand also frees the group from 501(c)(3) nonprofit status restrictions, allowing them to directly support and campaign for grassroots conservative candidates.

José Niño is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino 

DOJ Accused of Blocking DEA’s Drug Investigation into Epstein

Jose Nino
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DOJ Accused of Blocking DEA’s Drug Investigation into Epstein

(José Niño, Headline USA) Sen. Ron Wyden, D-OR, accused Deputy Attorney General Todd Blanche of personally intervening to block the Drug Enforcement Administration from releasing documents related to a secret drug trafficking investigation into Jeffrey Epstein.

Wyden, the ranking Democrat on the Senate Finance Committee, announced on social media that “Deputy Attorney General Todd Blanche — Trump’s former personal lawyer who was also responsible for Ghislaine Maxwell’s transfer to a cushy club fed — has intervened to block the DEA from providing details of a mysterious Epstein investigation to my Finance Com.”

In January 2026, the Justice Department released millions of pages of Epstein related documents pursuant to the Epstein Files Transparency Act. Buried among those files was a heavily redacted 69-page memorandum, dated May 18, 2015, prepared by the director of the Organized Crime Drug Enforcement Task Forces Fusion Center, per a report by CBS News. That document revealed that the DEA had launched a major investigation into Epstein and 14 co-conspirators as far back as December 2010, focusing on illegitimate wire transfers tied to illicit drug and prostitution activities.

The investigation was triggered by an informant who told authorities Epstein was funding and distributing club drugs, specifically ecstasy, ketamine, and methamphetamines, and procuring Eastern European prostitutes for high profile clients, Bloomberg reported. Despite years of investigation, no charges were ever filed against any of the targets.

Wyden wrote that “Recent reporting revealed that Epstein was one of several targets of a big drug trafficking investigation a decade ago. DEA has key info. Based on what we know, Epstein was likely pumping his victims, young women and girls, with incapacitating drugs to facilitate abuse.”

On Feb. 25, 2026, Wyden sent a formal letter to DEA Administrator Terrance Cole demanding a fully unredacted copy of the memorandum. His concern was that the heavily redacted version offered no explanation for why Epstein and his associates were never charged and why the investigation ended.

Wyden stated that “My team immediately sought key documents from that investigation. What was the result, and why did the investigation end? We were notified that the DEA intended to release those documents to the Finance Committee. Then Deputy AG Todd Blanche intervened.”

The Senator added that “This is stunning interference. The document I’m after literally says ‘unclassified’ at the top. The investigation it details is closed. Given Blanche’s close personal ties to Donald Trump, this reeks of a continued coverup to protect key names in the Trump administration.”

Blanche represented Donald Trump in his criminal cases prior to the 2024 election before being appointed Deputy Attorney General under Trump’s second term. In the summer of 2025, Blanche personally met with Ghislaine Maxwell, Epstein’s convicted accomplice serving a 20 year sentence.

According to a CNN report, one week after those meetings, Maxwell was moved from a low security prison in Florida to a minimum security prison camp in Texas. Senator Sheldon Whitehouse demanded an explanation for the move, noting that Bureau of Prisons policy requires sex offenders to be placed in low security facilities at minimum.

Blanche responded to Wyden’s accusations, calling the Senator’s claims “completely fabricated” and stating the unredacted memo is available to members of Congress in a DOJ reading room but that Wyden had never visited. Blanche also denied ignoring Epstein’s victims, saying “Any claim that we are neglecting Epstein’s victims is simply untrue.”

Wyden fired back, saying the DOJ was hiding files in a “black box” and that DOJ officials were surveilling members of Congress who visited to view the documents, per a CBS report. 

The House Oversight Committee has separately subpoenaed Attorney General Pam Bondi to give a sworn deposition on April 14 as part of its own Epstein probe.

José Niño is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino 

Gold, War, and the Collapse of Safe Havens

Money Metals News Service
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Gold, War, and the Collapse of Safe Havens

(Money Metals News Service) The latest episode of the Money Metals Midweek Memo, hosted by Mike Maharrey, explores a growing shift in global markets. Traditional safe havens are no longer behaving as expected. In their place, gold is emerging as the primary refuge during economic and geopolitical instability.

The discussion begins with a light nod to St. Patrick’s Day and Irish folklore, including the myth of leprechauns and their elusive pots of gold. The story serves as a metaphor for misplaced trust and the dangers of chasing illusions. Maharrey contrasts this with the reality that investors do not need to chase myths to acquire gold. It remains accessible and tangible.

That contrast sets the stage for the central theme of the episode. In a world filled with financial distortion and geopolitical risk, investors are increasingly searching for something real.

Treasuries Fail the Safe Haven Test

Historically, U.S. Treasury bonds have been considered the ultimate safe haven during times of war and uncertainty. That expectation is now being challenged.

Following the escalation of conflict involving the United States, Israel, and Iran, the 10-year Treasury yield rose from 3.96 percent to 4.20 percent. Rising yields indicate falling bond prices and weakening demand. Instead of capital flowing into Treasuries, investors appear to be pulling away.

This behavior signals a deeper issue. Confidence in U.S. debt is eroding even during conditions that would normally drive demand higher. The lack of interest in Treasuries during wartime suggests a structural shift rather than a temporary anomaly.

Gold Surges While Markets Hesitate

Gold reacted immediately to geopolitical tensions, briefly surging above $5,400 per ounce. However, the rally was short-lived. Prices pulled back and have since traded within a range between roughly $5,000 and $5,200.

Despite the initial spike, broader market behavior remains cautious. Oil prices have stayed mostly below $100 per barrel, and equities have stabilized. Investors are not fully committing to risk or safety.

Even so, gold continues to demonstrate resilience. It remains the asset investors turn to first when uncertainty rises, even if short-term volatility follows.

Oil, Liquidity, and the Dollar System Under Pressure

According to Luke Gromen, the dynamics of the current conflict are tied closely to oil markets. Rising energy prices are forcing countries to make difficult financial decisions.

Global investors hold approximately $27 trillion in dollar-denominated assets. When oil prices spike, nations must secure energy supplies. To do so, they often liquidate highly liquid assets such as U.S. Treasuries.

This creates downward pressure on bond prices and upward pressure on yields. The system reveals its fragility. A global economy dependent on dollar liquidity becomes unstable when energy shocks force asset liquidation.

This is not simply a wartime anomaly. It reflects deeper weaknesses in the dollar-based financial system.

Inflation Misunderstood and Misrepresented

Maharrey emphasizes a critical distinction that is often misunderstood. Rising prices are not the root cause of inflation. They are a symptom.

True inflation is the expansion of the money supply and credit. While higher oil prices can push costs upward, they do not create inflation in the traditional economic sense.

This distinction matters because it shifts responsibility. Inflation is driven by monetary policy, not external price shocks. Governments often obscure this reality by blaming rising costs on external events rather than their own policies.

The implication is clear. Monetary expansion remains the underlying force eroding purchasing power.

Debt, Deficits, and Fiscal Reality

The fiscal situation in the United States continues to deteriorate. The national debt has reached $38.9 trillion and is approaching $39 trillion.

In February alone, the government ran a deficit of $37.5 billion. The fiscal year 2026 deficit has already surpassed $1 trillion within just five months.

Revenue has increased significantly. The government collected $1.89 trillion, a 10.8 percent increase compared to the previous year. Tariff revenue alone surged to $151 billion, up 294 percent year over year.

Despite this, spending continues to outpace income. The federal government spent $620.62 billion in February and $3.1 trillion so far this fiscal year.

The issue is not a lack of revenue. It is uncontrolled spending. Even modest increases in spending compound the long-term debt burden.

De-dollarization and the Rise of Gold

Global confidence in the dollar is weakening. Countries are increasingly seeking alternatives to dollar-based reserves.

Gold has now surpassed Treasuries as the largest foreign reserve asset. Central banks are accumulating gold at record levels as they attempt to reduce exposure to U.S. fiscal policy and geopolitical risk.

The weaponization of the dollar through sanctions has accelerated this trend. Nations are reevaluating their dependence on a system that can be used against them.

If global demand for dollars declines, the consequences for the United States could be severe. Excess dollars would return domestically, increasing inflationary pressure and weakening the currency.

War, Monetary Policy, and the Gold Outlook

War introduces additional economic strain. It increases government spending, expands deficits, and often leads to monetary easing.

According to UBS, gold is expected to rise between $5,900 and $6,200 by the end of the year. This represents roughly a 20 percent increase from current levels.

UBS analysts note that gold has struggled to break resistance at $5,200 despite geopolitical tension. However, the fundamental drivers remain intact. These include lower real interest rates, rising debt, and continued central bank demand.

They also highlight that gold often serves as a source of liquidity during market stress. Investors may sell gold temporarily to manage other positions, creating short-term pressure even within a broader uptrend.

The longer-term outlook remains positive. Structural forces continue to support higher gold prices.

The Federal Reserve and the Debt Trap

The Federal Reserve faces a difficult position. It must balance inflation concerns with the realities of a debt-heavy economy.

Raising interest rates would help control inflation, but would also increase the cost of servicing the national debt. Lowering rates supports economic activity but risks further currency devaluation.

UBS expects two rate cuts of 25 basis points by September. This suggests that monetary easing will continue despite inflation concerns.

This dynamic reinforces the case for gold. Lower real interest rates and a weaker dollar tend to support higher gold prices.

The Bottom Line for Investors

The episode concludes with a clear message. Inflation is not accidental. It is embedded within the system.

Governments rely on currency devaluation to sustain spending without imposing direct taxation. This erodes purchasing power over time.

Gold and silver offer an alternative. They serve as a store of value that is not dependent on government policy or monetary expansion.

With gold trading near $5,000 and projections reaching as high as $6,200, current price dips may represent opportunities. In a world of rising debt, geopolitical instability, and monetary uncertainty, gold remains a critical hedge.

The search for safety is no longer theoretical. For many investors, it is becoming urgent.

NYC Moves to Strip Adams of Legal Representation

Headline USA Editor
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NYC Moves to Strip Adams of Legal Representation

(Chris Wade, The Center Square)  New York City Mayor Zohran Mamdani is moving to strip his predecessor, Eric Adams, of city-funded legal representation to defend him against a sexual harassment lawsuit.

In a court filing Tuesday, the city’s Law Department requested to withdraw from representing Adams in a lawsuit alleging he sexually assaulted a woman when he was an NYPD transit cop in 1993.

New York City Corporation Counsel Steven Banks said the decision to ask the court to withdraw representation for the former mayor was made after the office conducted a review of Adams’ “right to legal representation at the city’s expense” under existing municipal laws. 

“Based on my review of new evidence since the original decision to represent him was made, I have determined that he is not entitled to representation by the city in this matter,” the statement said. “Accordingly, the Law Department has asked the court to permit our office to withdraw from representing the former mayor.” 

The lawsuit, filed in New York State Supreme Court in March 2024, alleges that Adams sexually assaulted Lorna Beach-Mathura in 1993 when the two worked for the NYPD’s transit division, and Adams was with the Guardians Association, a fraternal order of the police department.

Adams, a Democrat who dropped out of the mayor’s race ahead of last year’s election, has denied the allegations. An Adams spokesman declined to comment on the ongoing litigation, but in a statement said the former mayor “has been proven innocent before and remains confident that the facts will ultimately prevail.”

Beach-Mathura, who now lives in Florida, was hired by the transit police as an administrative aide in 1980 but stopped working for the city in 1994 — a year after the alleged assault, according to the complaint.

The lawsuit accuses Adams of sexual assault, battery and intentional infliction of emotional distress, and also accuses the City of New York and the NYPD Transit Bureau of negligence. It also accuses Adams and the city agencies of gender discrimination, sexual harassment, retaliation and enabling a crime of gender-motivated violence.

When Beach-Mathura was passed over for promotions while working as an administrative aide for the Transit Bureau, she turned to Adams, who at the time was a “high-ranking member” at the fraternal organization, according to the lawsuit. But instead of helping her get a promotion, Adams propositioned the woman.

Lawyers for the plaintiff describe lurid details of the alleged sexual assault, saying that Adams drove her to a vacant lot and asked her to perform oral sex on him, which she rejected. He continued to sexually assault her, according to the lawsuit.

“The effects of that sexual assault, betrayal, and astonishing abuse of power, continue to haunt plaintiff to this day,” they wrote.

Number of Online Undercover FBI Agents Increase Under Director Patel

Ken Silva
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Number of Online Undercover FBI Agents Increase Under Director Patel

(Ken Silva, Headline USA) FBI Director Kashyap Patel said Wednesday that the number of online undercover FBI agents have increased during his tenure—claiming that the boost in online operatives helped solve four terrorist plots in December alone.

Patel first touted the increase in online agents in response to a question from Sen. Susan Collins, D-Maine, about thwarting terror attacks.

“What we’ve done in the [counterterrorism] space specifically is expand the number of agents and analysts that go online and detect [threats] … and what that leads us to is what we saw last December, where we at the FBI stopped four terrorist attacks—four, in California, Texas, North Carolina and Pennsylvania—three of which were ISIS-inspired,” Patel said.

The FBI director later said the bureau has increased funding online covert activity in response to a question from Sen. James Lankford, R-Ok., who was asking about his efforts to thwart online scams.

“You have to drown and get online with your covert employees and platforms, and we’ve increased funding [for that],” he said.

The terrorist attacks Patel reference include a left-wing group named “Turtle Island Liberation Front” that planned to bomb empty businesses in California on New Year’s Eve; a North Carolina teenager who allegedly planned a mass stabbing; and a 21-year-old Texan who tried sending money to ISIS. It’s unclear what Pennsylvania plot Patel’s referring to.

In the Turtle Island case, it’s unclear whether the defendants were capable of pulling off a bombing. Much of the case seems to be based on an eight-page planning document obtained by an FBI informant, and at one point one of the defendants admitted his lack of bomb-making skills: “I have the basics down but building circuits is beyond me (which is needed for a digital timer),” one of the defendants said 5 days ago,” a defendant said about five days before the arrest.

In the North Carolina mass stabbing case, meanwhile, the defendant was on the FBI’s radar since 2022, when he was just 14 years old. Similarly in the Texas case, the defendant was first approached online by an undercover New York Police Department detective, who then introduced him to two undercover agents.

The FBI has long been criticized for using undercover agents and informants to provoke and nudge vulnerable individuals to commit terroristic crimes—even when those individuals wouldn’t have the capacity to do so by themselves.

The 2015 ISIS-inspired shooting at a contest to draw the Prophet Muhammed in Garland, Texas is perhaps one of the starkest examples of the FBI provoking a terrorist attack.

In that case, FBI informants had been monitoring the shooters for years, the bureau allowed one of them to purchase a weapon from a gun store involved in the Operation Fast & Furious scandal, and an undercover agent even encouraged the shooting by telling the attackers to “tear up Texas.”

Perhaps most damningly, the same undercover agent who provoked the shooters was at the “Draw the Prophet” event when the attack occurred. Then, when local cops detained the undercover agent because they thought he was one of the attackers, other FBI agents intervened immediately. They placed a hood over the undercover agent’s head and whisked him away to another location before confiscating footage of the incident from bystanders.

The FBI continues to defend itself in this case some 10 years later. In a brief filed last June in an ongoing appeal, Justice Department prosecutors said the undercover FBI agent’s presence at the “Draw the Prophet” contest was a total coincidence.

Numerous other examples of the FBI provoking crime can be found here.

Ken Silva is the editor of Headline USA. Follow him at x.com/jd_cashless.

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