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All posts under ‘Eurozone’

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”?

Eurozone in Danger on Falling Purchasing Power of Dollar, Not Rising Commodity Prices

All financial prices in the Eurozone are badly skewed. So far, the price inflation environment has been benign, but this year, things have been changing. Higher levels of debt will never allow the ECB to run interest rates up sufficiently to kill price inflation. More likely, positive rates of only one or two per cent would be enough to destabilise the Eurozone’s financial system.

The Doomed Currency - Euro Is Not Dead

Based on the turmoil created by the European Debt Crisis, the continuing problems in Greece & other overly indebted southern tier European economies, many investors may have come to assume that Euro boosters will be forced to ultimately throw in the towel & call off the entire experiment, thereby leaving the Dollar completely unchallenged as the champion currency.

Eurozone Wants to Force Common Fiscal Control, Eurobonds - Jim Rickards

Greece now has to run its government according to German dictates. Greece has already outsourced its monetary policy to the ECB & now it’s sort of outsourced its fiscal policy to the German finance ministry. So you’re on a path to unified fiscal policy & ultimately the Eurobonds – bonds backed by full strength & credit of not just any one country but the entire Eurozone.

The Euro Crisis: Solvency of the ECB is at Stake

How the Greek crisis is a euro crisis: ECB itself now needs refinancing as losses that ECB faces from Greece alone are about €189.3bn – twice its equity capital & reserves of €98.5bn. Given the likely collapse of the Greek banking system & default on its debt, collateral held by ECB are more or less worthless. Upsetting of the Greek applecart risks destabilising the euro itself.

Bail-Ins Coming – EU Gives 11 Countries 2 Months To Adopt Rules

This bail-in legislation which is being driven by the BIS through the Bank of England, ECB, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) appears designed to protect banks by allowing them to confiscate deposits to prop them up rather than the noble stated objective – “to shield taxpayers”.

European Debt Crisis

A revolt against previously-agreed austerity packages by any of these other states would have untold ramifications not only for the future of the Eurozone, but the euro itself. In the wake of this episode, the status of the euro as money is likely to be increasingly questioned, not just in the foreign exchanges, but by its users as well.

Is Greece Finally Ready to Do the Right Thing & Leave the Euro?

The euro is one of the greatest monetary frauds in history & its managers have waged one of the greatest campaigns of financial terrorism in history. They have persuaded just about everyone on the planet that exiting the euro would be an unmitigated disaster for the Greek people. This is absolutely opposite of the truth.

More Euro Tragedy & Its Consequences For Gold

Gold price is an early warning of future monetary & currency troubles & it is now becoming apparent how they may transpire. The ECB move is likely to have important ramifications well beyond Europe & together with parallel actions by the BoJ, can now be expected to increase demand for physical gold in the advanced economies once more.

There’s More to the Gold Rally Than European Market Fears

You’ve probably read that gold’s breakout is resultant of what’s currently happening in Europe, but there’s much more to the story. If the dollar or any other fiat currency were universally acceptable at all times, central banks would see no need to hold any gold. The fact that they do indicates that such currencies are not a universal substitute.

How a Default by Greece May Sill Unravel the EU

Greece is actually in the driver’s seat. Historical evidence shows that once a country reaches such a situation it is likely to default within the next 2 years. Quotation: “If you owe the bank thousands, then you have a problem. If you owe the bank millions, then the bank has a problem.” In the current situation, it is the EU that has a problem.

Eurosystem Increasing Allocated Official Gold Reserves

The Eurosystem is surely up to something with its gold reserves. This can only be seen in advance of a reform of the international monetary system. The global economy and global finance is at the turning point in a way…So, China & Europe are embracing gold prior to the replacement of the US dollar as the world reserve currency.

As the Eurozone Stalls, China Cuts the Red Tape

Compared to many Eurozone nations, China is relatively young. There’s huge growth potential in this region, especially now that Premier Li has resolved to cut red tape & balance monetary and fiscal policy. In 10 years’ time, the 35-to-45 cohort, a well-educated group with good salaries & credit, will expand dramatically.

Deflation In Europe Is Just Beginning... And How To Trade It

Disinflation is just about to turn into outright Deflation in Europe. The ECB is active but most likely already late in the game, behind the curve, and unable to prevent deflation from kicking in. There are important consequences for rates and spreads in Europe, together with the level of the EUR itself.

Europe: Stagnation, Default, Or Devaluation

When a country accumulates too much debt and begins to find the roll-overs a growing challenge, it really has just two options: the first is a total or partial default; the second is a large currency devaluation. The second choice begs the question ‘Who prints the currency in which the debt is labeled?’

Europe's Proposed Russian Sanctions Leaked: Full Report

The memo of possible sanctions prepared by the European Commission & distributed to national capitals, includes a proposal to ban all Europeans from purchasing any new debt or stock issued by Russia’s largest banks. Also proposes barring the Russian banks from listing new issues on European exchanges, etc. Will it happen?

The Bank Stress Tests That Could Stress Markets

Portugal’s problems reminded investors that Europe’s bank problems have not been fixed. The belief that the Euro has been saved is lulling investors into taking on too much risk, as they did in 2007. Whatever the outcome of the EU’s stress tests, it’s only a matter of time before the Eurozone debt crisis re-erupts.

What are Negative Interest Rates and how do they work?

The ECB has cut its headline interest rate to a new record low of 0.15%, and also imposed negative interest rates of -0.1% on Eurozone banks with the hope that this will encourage the banks to stop hoarding money, and instead lend more to each other, to consumers, and to businesses, in turn boosting the broader economy.

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