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All posts under ‘Economy’

Goldman Sachs Warns “Too Much Debt” Threatens World Economy
Debt Crisis | Economy | Goldcore | May 29, 2015

Andrew Wilson, Goldman Sachs Asset Management’s chief executive in Europe said, “There is too much debt and this represents a risk to economies. Consequently, there is a clear need to generate growth to work that debt off but, as demographics change, new ways of thinking at a policy level are required to do this.”

What A Cashless Society Would Look Like
Economy | May 20, 2015

Those who generate real wealth & employment need support, not penalties on how they choose to go about their business. A cash ban does not address any substantive issues. What is needed is a sensible economic proposal & political courage to implement a Cashless Society, which so far seems to be lacking.

The Debt To GDP Ratio For The Entire World: 286%
Debt Crisis | Michael Snyder | May 18, 2015

Seven years after the bursting of a global credit bubble resulted in the worst financial crisis since the Great Depression, debt continues to grow. In fact, rather than reducing indebtedness, or deleveraging, all major economies today have higher levels of borrowing relative to GDP than they did in 2007.

How GDP Metrics Distort Our View of the Economy
Economy | May 18, 2015

GDP purports to measure economic activity while largely divorcing itself from quality, profitability, depth, breadth, improvement, advancement & rationalization of goods & services provided. Why does GDP poorly reflect economic size & vitality? Its largely due to 3 fallacious concepts embedded within GDP measurements.

Global Debt Now $200 Trillion!
Debt Crisis | Goldcore | May 15, 2015

Global debt is now in the region of $200 trillion. Unless and until the debt based system is replaced there can only ever be an increasing debt load and an urgency for economic growth with the consequent degradation of our environment and a debt enslaved humanity.

Why Dodgy US Jobs Data is Keeping Gold Prices Down
Gold Trading | US Economy | May 11, 2015

Low unemployment rate will be used as evidence to prevent the dollar from rising. If the US dollar retains its current strength, then gold prices won’t move higher in the short term. There’s no reason for a mass market movement into hard assets like gold if the US dollar is strong and the official inflation rate is low.

Can Gold Save The World From the Credit Bubble?
Debt Crisis | Gold Trading | April 29, 2015

Governments & central banks created the currency & credit bubbles. When fiat currencies crash in the next crisis, backing currencies with gold could “save the world” & restore confidence in fiat currencies but only after significant trauma. Perhaps central banks will do the “right thing,” but only after exhausting all other alternatives.

Gold, the SDR and BRICS
Emerging Markets | Gold Trading | April 24, 2015

There are difficulties when it comes to including gold in the SDR basket as none of its paper constituents are convertible into gold. It also cannot last long as major central banks insist on printing money as an economic cure-all. But China’s position with respect to gold & her own currency could be a different matter.

China's Massive Debt Problem Is About Get Much Massiver
China | Debt Crisis | Zerohedge | April 23, 2015

PBOC has announced that regulatory approval will no longer be required to issue ABS. Market players now expect ABS issuance to more than triple to 1 trillion yuan ($161 billion) this year. This means China’s massive debt burden is about to get massiv-er, as banks use ABS issuance as a pressure valve to free up lending capacity.

Do We Want High Prices or Low Prices?
Economy | April 21, 2015

Prices have a fundamental role to play in the market. Prices are an indicator of the relative scarcity of a good with respect to its uses. What happens if prices are tampered with through price controls or other coercive government controls? The biggest problem is that disrupting the price system jams the price signal system.

What Do Negative Bond Yields Mean for the Gold Price?
Bond Market | Gold Trading | April 9, 2015

Bonds are no longer trading like bonds. They now trade like commodities. Given that investors often buy gold and other precious metals as a hedge against risk — for instance, when the economy is doing poorly — it will be interesting to see whether this new way bonds are being traded has any impact on interest in such metals.

How Will (Rigged) Markets React to QE Failure?
Economy | Market Manipulation | April 8, 2015

How will (rigged) markets react to the increasingly obvious, indisputable evidence of not only the hopeless, irreversible economic collapse engulfing the planet; but widespread recognition that Central banks – despite their cumulative arrogance & bluster – have not only failed to revive the global economy, but made it exponentially worse?

US Debt vs Silver Price Disconnect Has To Be Resolved
Silver Trading | US Economy | April 7, 2015

Would you rather possess a stack of silver eagles, or a stack of $20 paper Federal Reserve Notes issued by a dodgy central bank, backed by nothing but full faith & credit of a government in obviously shaky financial condition? Trust real money, real silver, in your possession or preferably in secure storage outside the banking system.

Guaranteed Financial Security Is Just A Fantasy
Economy | April 6, 2015

Those dependent on the promises made in the previous era will support any policy that “extends & pretends” the illusion that financial security can be guaranteed, regardless of seismic shifts in the natural and financial economies. The irony of “extend and pretend” is these policies only push the system to extremes that guarantee systemic collapse.

The U.S. Economy Slows to Stall Speed
Debt Crisis | US Economy | April 2, 2015

The US economy is slowing to stall speed, the point when gravity overcomes the lift provided by central bank free money. This long-term weakening of the economy is the direct result of financialization & the Federal Reserve’s policy of propping up impaired debt with more debt & constantly bringing demand forward with zero interest rates.

Why We Need Deflation and Higher Interest Rates
Economy | March 31, 2015

The Fed, like central bankers elsewhere, (though slightly out of step as it recently hinted at possible future rate hikes) stays committed to a 2% inflation target as it continues a policy driven by a fear of deflation, a fear that is not supported by either good economic theory or economic history properly interpreted.

Ballooning Student Debt Levels will Usher in New QE
Debt Crisis | Sprott Group | March 23, 2015

Today almost a third of student debt is going unpaid. The White House’s solution is to revisit bankruptcy laws surrounding student debt. It is looking like a new bill will be passed, one that will restructure student debt laws. Get ready for the next wave of QE, the next wave of money printing. QE to infinity continues.

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