
Big prediction from Rich Dad Poor Dad author Robert Kiyosaki: Gold will go to $25,000
WHAT if you threw a party and no one showed up?
That is what happened yesterday.
The Fed held an auction for US Bonds and no one showed up.
So the Fed quietly bought $50 billion of its own fake money with fake money.
The party is over. Hyperinflation is… — Robert Kiyosaki (@theRealKiyosaki) May 21, 2025
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Bestselling author and financial educator Robert Kiyosaki , known for his book Rich Dad Poor Dad, doubled down on gold in a post on the social media platform X, predicting a dramatic surge in its price amid economic turmoil. He described the recent U.S. bond auction as a failure and called it a harbinger of financial collapse.'Good news. Gold will go to $25,000. Silver to $70. Bitcoin to $500k to $1 million.'Kiyosaki declared, "THE END is HERE", expressing concerns about hyperinflation, a collapsing bond market, and severe consequences for the global economy.'WHAT if you threw a party and no one showed up? That is what happened yesterday,' Kiyosaki wrote, referencing the U.S. Treasury's recent 20-year bond auction that drew soft demand from investors.This follows the U.S. Treasury Department's struggle to attract buyers for a $16 billion sale of 20-year bonds, reflecting growing investor anxiety over the ballooning national debt and fiscal uncertainty as Congress debates new spending legislation.Stocks and the dollar sold off following the weak auction results, while U.S. Treasury yields rose, signalling market concerns about long-term fiscal sustainability.Kiyosaki elaborated on the issue, stating, 'The Fed held an auction for US Bonds and no one showed up. So the Fed quietly bought $50 billion of its own fake money with fake money.'The author interpreted this move as a sign of deeper monetary instability continuing. 'The party is over. Hyperinflation is here. Millions, young and old, to be wiped out financially,' he added.His reaction comes on the heels of Moody's downgrade of the United States' sovereign credit rating, which followed earlier downgrades from Fitch Ratings and Standard & Poor's.In a post made earlier this week, Kiyosaki remarked that the downgrade signifies that 'the US is like a dead-beat dad who is spending borrowed money, without a job, and not taking care of his family.'He warned that such credit downgrades may trigger higher interest rates, pushing the U.S. economy into a recession and potentially leading to unemployment, failing banks, a housing crisis, and even a depression on the scale of 1929.The recent bond auction only intensified those concerns. The auction's poor reception could spur bond market vigilantes, investors demanding greater fiscal discipline, and lead to a harsher investment climate for the U.S. government.Kiyosaki also reiterated his views on personal preparedness and financial independence, urging followers to adopt an entrepreneurial mindset.'I have always recommended people become entrepreneurs, at least a side hustle, and not need job security,' he wrote in a prior post, adding that individuals should invest in income-producing real estate, and accumulate assets like real gold and silver and today Bitcoin.As global uncertainty mounts, markets appear to be reacting accordingly. Gold prices have been on the rise, and Bitcoin recently surged past $111,000, hitting its all-time high, fueled by increased institutional interest and demand for alternatives to fiat currency.Kiyosaki has consistently criticised the U.S. Federal Reserve's policies and the country's departure from the gold standard in 1971, stating that 'each crisis gets bigger because they never solve the problem.' Reaffirming his stance, he concluded his recent post with a stark warning:'THE END I have been warning the world about is HERE. May God have mercy on our souls,' he stated.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Economic Times
an hour ago
- Economic Times
PPI inflation shock rocks Wall Street and Trump — big Fed rate cut dreams go up in smoke
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ADVERTISEMENT At the same time, jobless claims eased slightly to 224,000 from 227,000 the previous week, showing that the labor market remains relatively strong but may be starting to soften. This combination of higher wholesale prices and easing employment signals a delicate balancing act for the Fed: controlling inflation without slowing the economy too abruptly. Investors reacted cautiously to the data. S&P 500 futures fell 0.3% as traders digested the potential implications for interest rate policy. Market expectations for a 25-basis-point rate cut in September remain high but have moderated slightly, while hopes for a larger 50-basis-point reduction have diminished. ALSO READ: Ethereum surges 16% to $4,783 in 5 days — is a $5K breakout now inevitable as analysts eye $15K by year-end? For everyday Americans, rising wholesale prices often translate into higher costs for goods and services, from groceries to household essentials. Businesses are also adjusting, with manufacturers and suppliers already recalibrating contracts to hedge against continuing price pressures. Monthly change: +0.9% (largest monthly rise since May 2022) +0.9% (largest monthly rise since May 2022) Annual change: +3.3% (up from 2.4% in June) +3.3% (up from 2.4% in June) Goods prices: +0.7% (food, durable goods lead increase) +0.7% (food, durable goods lead increase) Services prices: +1.1% (largest contributor to overall rise) ADVERTISEMENT Wholesale prices surged in July, with the Producer Price Index (PPI) climbing 0.9% month-over-month — the largest increase since May 2022. Goods prices rose 0.7%, led by food and durable goods, while services jumped 1.1%. On an annual basis, PPI inflation accelerated to 3.3% from June's 2.4%, surpassing most economists' forecasts. ALSO READ: XRP price prediction: whales stir as XRP slips 2% but clings to $3.20 — breakout or sharp reversal ahead? ADVERTISEMENT Excluding volatile food and energy costs, core PPI jumped 0.6% in July, marking its steepest monthly rise in three and a half years. The annualized core rate now sits at 2.8%. For context, this core reading is critical because it reflects underlying inflation trends that most directly influence Federal Reserve policy. Monthly change: +0.6% (largest monthly gain in 3.5 years) +0.6% (largest monthly gain in 3.5 years) Annual change: +2.8% Wholesale price inflation often filters down to retail prices, impacting everything from groceries to housing costs. Companies facing higher input costs may pass them to consumers, fueling further price pressures. For households, even moderate increases in the PPI can translate to noticeable jumps in daily spending, particularly in food and energy. ADVERTISEMENT First-hand insights from industry sources indicate that manufacturers in the Midwest are already recalibrating supply contracts to hedge against rising costs. One executive in Chicago's food processing sector noted, 'We're seeing supplier prices move faster than our forecasts. Some of that will inevitably hit store shelves by early fall.' Contrasting with inflation pressures, initial unemployment claims dropped slightly to 224,000 from 227,000 the previous week. This subtle decline signals a modest softening in the labor market — not a major downturn, but enough to hint that employers may be pausing aggressive hiring. ADVERTISEMENT Historically, a stable or slightly easing job market can balance inflationary pressures, giving the Fed more flexibility to moderate policy without derailing growth. Analysts caution, however, that persistent inflation in goods and services could still force a more cautious stance. Initial claims: 224,000 (down from 227,000 previous week) 224,000 (down from 227,000 previous week) Implication: Slight labor market softening; not a major downturn Following the PPI release, S&P 500 futures dipped roughly 0.3%, reflecting investor concerns over rising costs and potential Fed interventions. Markets are still pricing in a 94.5% probability of at least a 25-basis-point rate cut in September, slightly down from 100% before the data. Expectations for a larger 50-basis-point cut have softened, showing that traders are weighing inflation data heavily in their Fed bets. Major tech stocks, historically sensitive to interest rate moves, also felt pressure. Analysts note that even a moderate slowdown in anticipated rate cuts could affect valuations for high-growth firms. S&P 500 futures: Fell by 0.3% after the PPI release Fell by 0.3% after the PPI release Fed rate expectations: Probability of 25-basis-point cut in September: 94.5% (down from 100% pre-data) Probability of 50-basis-point cut: Lower than prior expectations The Fed faces a delicate balancing act: strong inflation signals suggest caution, while a gradually cooling labor market argues for support. In practice, policymakers will likely emphasize data dependency, monitoring upcoming reports such as the August Consumer Price Index (CPI) and retail sales before making decisions. Fed watchers highlight that core PPI, which strips out volatile items, is particularly influential. If these underlying trends remain elevated, the Fed may need to reassess the magnitude of the September rate cut, potentially delaying or reducing it. For investors, rising wholesale costs may shift portfolios toward inflation-resistant sectors, such as commodities, utilities, or dividend-paying stocks. 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Q2: How did jobless claims affect market outlook in July? Falling jobless claims signaled slight labor market easing, influencing S&P 500 futures and Fed rate expectations. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. NEXT STORY


Time of India
2 hours ago
- Time of India
PPI inflation shock rocks Wall Street and Trump — big Fed rate cut dreams go up in smoke
U.S. wholesale prices surged in July, with the Producer Price Index (PPI) climbing 0.9%, marking the fastest monthly increase since May 2022. Rising costs for food and services drove much of the increase, signaling that inflationary pressures remain persistent. Core PPI, which strips out volatile food and energy costs, rose 0.6%, highlighting underlying price growth that could influence Federal Reserve decisions in the coming months. At the same time, jobless claims eased slightly to 224,000 from 227,000 the previous week, showing that the labor market remains relatively strong but may be starting to soften. This combination of higher wholesale prices and easing employment signals a delicate balancing act for the Fed: controlling inflation without slowing the economy too abruptly. Investors reacted cautiously to the data. S&P 500 futures fell 0.3% as traders digested the potential implications for interest rate policy. Market expectations for a 25-basis-point rate cut in September remain high but have moderated slightly, while hopes for a larger 50-basis-point reduction have diminished. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dementia and Memory Issues Have Been Linked To a Common Habit. Do You Do It? Memory Research Click Here Undo For everyday Americans, rising wholesale prices often translate into higher costs for goods and services, from groceries to household essentials. Businesses are also adjusting, with manufacturers and suppliers already recalibrating contracts to hedge against continuing price pressures. Producer Price Index (PPI) – July 2025 Monthly change: +0.9% (largest monthly rise since May 2022) Annual change: +3.3% (up from 2.4% in June) Goods prices: +0.7% (food, durable goods lead increase) Services prices: +1.1% (largest contributor to overall rise) Live Events July's PPI shows sharper inflation pressures than expected Wholesale prices surged in July, with the Producer Price Index (PPI) climbing 0.9% month-over-month — the largest increase since May 2022. Goods prices rose 0.7%, led by food and durable goods, while services jumped 1.1%. On an annual basis, PPI inflation accelerated to 3.3% from June's 2.4%, surpassing most economists' forecasts. Excluding volatile food and energy costs, core PPI jumped 0.6% in July, marking its steepest monthly rise in three and a half years. The annualized core rate now sits at 2.8%. For context, this core reading is critical because it reflects underlying inflation trends that most directly influence Federal Reserve policy. Core PPI (Excluding Food and Energy) Monthly change: +0.6% (largest monthly gain in 3.5 years) Annual change: +2.8% What rising PPI means for businesses and consumers? Wholesale price inflation often filters down to retail prices, impacting everything from groceries to housing costs. Companies facing higher input costs may pass them to consumers, fueling further price pressures. For households, even moderate increases in the PPI can translate to noticeable jumps in daily spending, particularly in food and energy. First-hand insights from industry sources indicate that manufacturers in the Midwest are already recalibrating supply contracts to hedge against rising costs. One executive in Chicago's food processing sector noted, 'We're seeing supplier prices move faster than our forecasts. Some of that will inevitably hit store shelves by early fall.' Jobless claims suggest labor market is easing Contrasting with inflation pressures, initial unemployment claims dropped slightly to 224,000 from 227,000 the previous week. This subtle decline signals a modest softening in the labor market — not a major downturn, but enough to hint that employers may be pausing aggressive hiring. Historically, a stable or slightly easing job market can balance inflationary pressures, giving the Fed more flexibility to moderate policy without derailing growth. Analysts caution, however, that persistent inflation in goods and services could still force a more cautious stance. Jobless Claims Initial claims: 224,000 (down from 227,000 previous week) Implication: Slight labor market softening; not a major downturn How markets reacted to the data? Following the PPI release, S&P 500 futures dipped roughly 0.3%, reflecting investor concerns over rising costs and potential Fed interventions. Markets are still pricing in a 94.5% probability of at least a 25-basis-point rate cut in September, slightly down from 100% before the data. Expectations for a larger 50-basis-point cut have softened, showing that traders are weighing inflation data heavily in their Fed bets. Major tech stocks, historically sensitive to interest rate moves, also felt pressure. Analysts note that even a moderate slowdown in anticipated rate cuts could affect valuations for high-growth firms. Market Reaction S&P 500 futures: Fell by 0.3% after the PPI release Fed rate expectations: Probability of 25-basis-point cut in September: 94.5% (down from 100% pre-data) Probability of 50-basis-point cut: Lower than prior expectations What this means for the Federal Reserve? The Fed faces a delicate balancing act: strong inflation signals suggest caution, while a gradually cooling labor market argues for support. In practice, policymakers will likely emphasize data dependency, monitoring upcoming reports such as the August Consumer Price Index (CPI) and retail sales before making decisions. Fed watchers highlight that core PPI, which strips out volatile items, is particularly influential. If these underlying trends remain elevated, the Fed may need to reassess the magnitude of the September rate cut, potentially delaying or reducing it. Implications for investors and consumers For investors, rising wholesale costs may shift portfolios toward inflation-resistant sectors, such as commodities, utilities, or dividend-paying stocks. Bonds could also see volatility if market expectations for Fed moves continue to adjust. Consumers should anticipate incremental price increases in essential goods, particularly food and energy. Budget planning for households may need to account for a 3–5% rise in certain goods over the next few months, depending on supply chain adjustments. July's PPI and jobless claims provide a snapshot of the economic balancing act facing the U.S.: inflation pressures remain, but the labor market shows signs of moderation. The next few weeks of economic data will be crucial in shaping the Fed's September policy and market sentiment. Investors, businesses, and households alike are advised to watch for signals from upcoming CPI readings, retail sales reports, and corporate earnings updates. FAQs: Q1: What caused U.S. wholesale inflation to rise in July? July's PPI jump was driven by higher food and service costs, pushing inflation above expectations. Q2: How did jobless claims affect market outlook in July? Falling jobless claims signaled slight labor market easing, influencing S&P 500 futures and Fed rate expectations.


Time of India
2 hours ago
- Time of India
US market today: S&P 500, Nasdaq slip from peaks; Dow down 104 points after hot inflation data
Photo credit- AP Wall Street retreated from record levels on Thursday after US government data showed wholesale inflation rose more than expected last month, dimming hopes for imminent interest rate cuts. The S&P 500 slipped 0.2% from its all-time high set on Wednesday, while the Dow Jones Industrial Average fell 104 points, or 0.2%, and the Nasdaq composite eased 0.1% from its record in early trading, AP reported. The US Labor Department reported that prices at the wholesale level jumped 3.3% year-on-year in July, sharply higher than economists' forecast of 2.5%. Analysts warned the increase could signal higher consumer prices ahead as costs filter through the economy. The hotter-than-expected data prompted traders to reassess expectations for a September interest rate cut by the Federal Reserve. CME Group data showed a 5% probability the Fed could keep rates unchanged next month, compared to near-certainty of a cut a day earlier. 'This doesn't slam the door on a September rate cut,' said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. 'But it may raise a bit of doubt.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Got Knee Pain? Treatment in Khilgaon Might Surprise You Knee Pain Treatment | Search Ads Undo The inflation reading came after a more encouraging consumer price update earlier in the week. Separately, weekly jobless claims fell, signalling layoffs remain low despite tighter job openings. A resilient labour market could also give the Fed less incentive to cut rates in the short term. Treasury yields rose after the data, with the 10-year yield climbing to 4.26% from 4.20%. On the corporate front, Tapestry slumped 16.9% after the Coach and Kate Spade parent warned tariffs and duties could shave $160 million off annual profit. The company's profit outlook missed estimates, even as revenue guidance exceeded expectations. Deere fell 8% after cutting the top end of its full-year profit forecast, citing cautious customer sentiment amid uncertainty. Overseas, stock market performance was mixed across Asia and Europe ahead of Friday's meeting between US President Donald Trump and Russian President Vladimir Putin. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .