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All posts under ‘Economy’

Helicopter Money Tested And Failed Spectacularly, Surprising Only Economists

Imagine waking one morning to find extra cash in your account, a gift from your country’s central bank. That might sound outlandish. But the concept of so-called helicopter money is being seriously debated by economists. Helicopter money handed directly to consumers, the theory goes, would send us scurrying to the shops to spend our windfalls, boosting confidence in the economy.

End of an Era: The Rise and Fall of the Petrodollar System

Similar to the paradigm shift – the transition to the petrodollar system that followed with the collapse of the Bretton Woods system, there is another major shift underway today. We will know its consequences in full, the day oil-producing countries demand gold for their oil, instead of dollars. The Gulf states are seeking measures to reduce their dependence & exposure to the US dollar.

Giant Financial Bubbles created by Central Banks are Fracturing

Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy & elsewhere in Europe & the sudden trading suspensions by three UK commercial property funds. It’s beginning to feel like August 2007 all over again. Of course, central banks have nothing to do with it at all!

Negative Yields On Global Government Debt Drives Gold Demand

It’s unprecedented that a third of all global government debt has negative yields. Which drives gold demand. Effectively what we’re seeing is people’s pensions being decimated because the policymakers have had very few if any alternatives left. It is in this environment that gold will help satisfy need. It’s more about protection of wealth rather than creation. That’s where gold plays.

Bear Stearns 2.0? UK's Largest Property Fund Halts Redemptions

While equity markets have rebounded exuberantly post-Brexit, suggesting all is well, British property-related assets have tumbled. Standard Life has been forced to stop retail investors selling out for at least 28 days after rapid cash outflows were sparked by fears over falling real estate values. The fund will need to sell real estate to raise cash before any money can be redeemed.

Future Prospects for Fiat Currency Money & it's Purchasing Power

The faith and credit-standing of issuers of paper money, and not the known and suspected inadequacies of commercial finance, is the last rotten pit-prop supporting the system. We can easily see how a new round of monetary expansion designed to save the global banking system from its nemesis will lead, not to a Lehman-style outcome, but to a collapse of paper currencies.

Will Gold Prices Crash With The Dow And Again Soar On Inflation?

Are we headed for a crash in the stock market? Yes, and a more severe one than in 2008. As the crash unfolds, gold will be sold even though holders may be confident about gold, as the goal will be to cover immediate losses. Inflation will then ramp up dramatically as governments increase money supply, eventually causing collapses in currencies. Currency collapse will again push up gold prices.

Gold Warns of Impending Monetary System Collapse

The U.S. monetary system is the most debased it has ever been. Furthermore, the monetary system is at an all-time high stress-point & also at the worst possible time relative to other key conditions. The Dow is near all-time highs & is about to crash. This is the first time that point 4 on the Gold / Monetary Base chart will basically coincide with a Dow top/crash. This warning should not be ignored.

Greenspan Warns Of Imminent Crisis, Urges A Return To Gold Standard

“If we went back on the gold standard & adhered to the structure of the gold standard as it exited prior to 1913, we’d be fine. Remember that the period 1870 – 1913 was one of the most aggressive periods economically that we’ve had in the U.S. & that was a golden period of the gold standard. I’m known as a gold bug & everyone laughs at me, but why do central banks own gold now?” – Alan Greenspan

Brexit - Will The UK Take a Historic Decision and Opt for Freedom?

It is a rare moment in history. The British have, ever since they voted to join the EU, found themselves being dragged into a regional economy of zero growth and a weak Euro, and heavily indebted states. We wish to address what a Brexit or Bremain scenario would mean for Britain. We are one day away from the EU referendum – will they vote to “Brexit” or to “Bremain”?

Gold is Worried More About a Broken Financial System, Than Just a Brexit

Speculative money is there for a good time — not a long time — so the gold price is at risk from a pullback as some of the Brexit fear unwinds. But if it continues to hold up in the event of a ‘remain’ vote, that will be very positive for gold’s longer term prospects. It will tell you that gold is worried more about a broken financial system. That’s what gold is really worried about.

National Debt: US Economy Priced in Gold - Cause For Alarm

National debt has increased exponentially for the past 50 years. The 35-year graph shows on average the national debt has increased rapidly, even when priced in gold. Debt is increasing far too rapidly & gold is underpriced. The current national debt is equal to about 100 times the total value, at current gold prices, of the gold “officially” stored in Fort Knox. This should be cause for alarm.

Pension Fund Deficits Stand at Record Levels - Can Gold Ameliorate the Situation?

The result is pension fund deficits today stand at record levels, even after a doubling of equity markets over the last five years. Goodness knows how bad it must be for pension funds in countries where negative interest rates have been imposed. This article lays out the problem & its scale, so far as it is known, & notes that a pension fund that has a holding in gold is a very rare animal.

Why ‘Stimulus’ Doesn’t Guarantee an Economic Recovery

The theory is that the additional spending will cause businesses to boost production to meet this demand. Producers will add jobs, triggering increases in consumer spending that will ripple through the economy and fuel a stronger overall recovery. Unfortunately, such government pump-priming hasn’t worked in the past & there’s no reason to believe it will work now.

Why We Need Oil Prices to Rise to $120 Per Barrel or More

When oil prices fall from $100 per barrel to $50, the incomes of a large share of people are adversely affected. This drop in income tends to radiate outward to the rest of the economy because each worker who is laid off is forced to purchase fewer discretionary items & is also less able to take on new debt, such as to buy a new car or house.

America’s Hidden Jobless Rate is a Product of This Conspiracy

The jobless numbers are actually part of a much larger mainstream “conspiracy” that goes the heart of the way economies work in 21st century America. There are something like 100 million Americans not working, including older people and young people. That’s a fairly well accepted statistic. These people are not counted in the jobless figures though in fact they may want to work.

This Always Happens Right Before The Official Start Of A Recession

The exact same patterns that we witnessed just prior to the last major economic crisis are playing out once again right in front of our eyes. If you are waiting for some type of big announcement from the government that a recession has started, you are likely going to be waiting for quite a while. Those that are wise have already been getting prepared for a new recession.

Key Structures That Guide the Processes of Inevitable Collapse: 2016-2019

Leaders face a no-win dilemma: any change of course will crash the system, but maintaining the current course will also crash the system. The end-state of unsustainable systems is collapse. Though collapse may appear to be sudden & chaotic, we can discern key structures that guide the processes of collapse. These six dynamics are sufficient to illuminate the inevitable collapse.

Worldwide Defaults are Imminent - Would You Prefer Bonds or Gold?

The US owes something like $200 TRILLION if one includes Social Security & other outflows going forward. Some 100 million individuals including young people & seniors are not working in mainstream jobs or not working at all. When the entire world’s financial infrastructure is threatening to implode due to unmanageable debt, what would you rather be holding – gold or bonds?

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