Originally published at: https://peakprosperity.com/daily-digest/russia-to-launch-gold-exchange-to-challenge-lbma-legislation-introduced-to-audit-the-fed/
Economy
Senators Rick Scott (R-FL) and Rand Paul (R-KY) have introduced legislation to mandate a full audit of the Federal Reserve System, including the Board of Governors and all regional banks, with the stated goal of increasing transparency in the central banking system. However, concerns have been raised by outlets like The Washington Post that such an audit could undermine the Fed’s independence, potentially leading to political interference in monetary policy.
Meanwhile, Russia plans to launch physical gold trading on the St. Petersburg International Mercantile Exchange (SPIMEX) by the end of the year, aiming to establish national price indicators as an alternative to the London Bullion Market Association’s benchmark, as part of efforts to enhance economic independence. Analysts cited by Bloomberg, however, express skepticism about its impact, suggesting the LBMA’s dominance and liquidity challenges may limit SPIMEX’s traction. Additionally, analyst Rashad Hajiyev stated that gold prices, after consolidating in a contracting triangle for 3.5 months, may be approaching a potential breakout.
In other economic news, Japan is facing potential recessionary pressures, with exports declining by 0.5% year-over-year in June, driven by significant drops in car shipments (-27%) and steel shipments (-29%), following a 0.7% GDP contraction in Q1 2025, according to data shared by Global Markets Investor. Despite this, the Japan Trade Association noted that domestic consumption and service industries remain resilient, suggesting the economic outlook may not be entirely bleak.
Geopolitics
Tensions in Eastern Europe have intensified as Russia has warned that any foreign troops deployed to Ukraine, even as part of a post-ceasefire coalition, will be considered military targets. Russian Foreign Ministry Spokeswoman Maria Zakharova reiterated Moscow’s opposition to such deployments, while reports indicate that European nations are discussing the formation of a “coalition of the willing” to station soldiers in Ukraine as a deterrent, with UK Defense Minister John Healey confirming the UK’s willingness to participate. Russian official Dmitry Medvedev reportedly described the situation as a proxy war and suggested that preemptive strikes could be considered, though President Vladimir Putin has stated there are no plans for broader conflict with NATO or Europe, dismissing Western claims as rhetoric, according to reports by Tass. Conversely, Ukrainian Foreign Minister Dmytro Kuleba expressed gratitude for European support, framing potential troop deployments as a step toward peace rather than escalation.
Sources
Senators Scott and Paul Push for Full Federal Reserve Audit with New Legislation
It’s long past time for Congress to stop shirking its duty and hold the Federal Reserve accountable.
Russia Challenges LBMA with New Gold Trading Platform on SPIMEX
In the gold market, our goal is to ensure the formation of national price indicators that are independent of international benchmarks, based on the balance of supply and demand in the Russian market.
Japan Teeters on Recession Edge as Exports Plummet in June
Japanese exports DROPPED -0.5% Y/Y in June, the 2nd straight drop.
Source | Submitted by Chris Martenson
Russia Warns of Targeting Foreign Troops in Ukraine as European Nations Mull Deployment
“We will consider these so-called ‘multinational forces’ as legitimate military targets.”
Gold Poised for Breakout After 3.5 Months of Consolidation, Analyst Says
Gold has been consolidating within a contracting triangle formation for the past 3.5 months.
In addition to sources submitted by community members, the following were also used in the creation of this report: The Washington Post, Japan Trade Association, Bloomberg, Dmytro Kuleba.