Commodity Trade Mantra

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The US Dollar is a Crowded Trade – Why this Matters for Gold

Gold remains not only an important portfolio diversification tool, but also an asset class ripe for a rebound. While gold prices have certainly declined as the USD rises, it might be small comfort to see that gold loses less value than other currencies, it also appears to recover more quickly. Gold behaves like a currency, but one that is not easily manipulated by central bank policy.

The Fed Blinked; Dollar Plunged; Gold Rallied

Gold has fallen for the last few years based on this false belief that everything is great and we’re going to have a return to normalcy, and the Fed’s going to shrink its balance sheet. Nothing could be further from the truth. This gold price today, is at the highest it has been since the Fed hike. And this collapse in the dollar today is just the beginning.

How the Blockchain and Gold Can Work Together

Gold-on-the-blockchain technology appears to hold great potential when it comes to making possible a world of digital gold money transactions. Governments use regulation & taxation to inhibit & even prevent unencumbered competition among monies. The evolution of the blockchain largely circumvents many of the obstacles governments put in the way of a free market in money.

Crude Oil Bust Could End The US Dollar Domination

With Bretton Woods’collapse in 1971, oil became its new saviour and kingmaker as the U.S. dollar became the prime currency for crude oil transactions. The current strength of the U.S. dollar shouldn’t be taken for granted. Although a viable alternative to the U.S. dollar has yet to be found, the petro-dollar is vulnerable in the long-term, and perhaps even in the medium-term.

Gold In 2016: "The Economic Power Is Shifting"

In the near-term, paper gold is extremely oversold, reflecting the expression of western establishment sentiment in the paper markets. Compared with the situation at the time of the Lehman crisis, gold is significantly cheaper today, which is wholly at odds with the continuing systemic risk to fiat currencies from under-capitalised banks, unprepared for the prospect of markets normalising.

Paper Money Versus The Gold Standard

Many critics of the gold standard consider this a rigid and inflexible “rule” about how the monetary system and the quantity of money in the society is to be determined and constrained. Yet, the advocates of the gold standard have long argued that this relative inflexibility is essential to discipline governments within the confines of a “hard budget.”

Bitcoin Or Gold: What Is More Valuable?

Mr Ferrier is alleged to have told Mr Wright gold was good security in the event the ‘funny money’ of Bitcoin failed. In December 2013 Mr Wright filed actions in the Federal Court and NSW Supreme Court suing for his share of the gold, claiming the sum of $84.42m based on the market value of the alleged Bitcoin payments for the gold.

Why Gold Backed Money Doesn’t Bring Booms and Busts

The injection of money out of thin air generates bubble activities while disappearance of money out of thin air destroys these bubble activities. In a true gold standard without central bank manipulation — this cannot take place & money cannot disappear since gold cannot disappear. Thus in the gold standard, if not abused, is not conducive of boom-bust cycles.

Understanding the Death of the US Dollar

Is it possible that the collapse of the US dollar as the leading reserve currency has already begun? The answer is ‘yes’. Looking at the massive flows of gold to China, the rise of a dollar competitor in the form of the SDR, and the coming inclusion of the Chinese yuan in the SDR basket, it is difficult not to conclude that the dollar collapse has already begun.

Russia's Dollar De-Dollarization May Have Begun

Russia has plans to raise $1 billion in government debt next year with bonds denominated in Chinese renminbi. Not the US dollar! Uh-Oh. the de-dollarization is taking off. So what if Russia denominates their bonds (that used to be issued in dollars) in renminbi & vice versa with Chinese issued bonds? This eliminates the need to hold large sums of dollar reserves.

Can the US Dollar Face Down the Chinese Yuan?

The decision to include the Chinese yuan in the SDR is a political decision, not an economic one. Including the Chinese yuan is a “seal of approval” by the world’s major financial powers, led by the United States. It means China is a financial superpower and deserves a seat at the table when the international monetary system is reset.

How Much More Higher Could The US Dollar Go?

The US Dollar broke out of its multi-year downtrend and soared above 100. Needless to say, the USD did in fact strengthen a lot. After that initial leg up, the dollar has remained in a consolidation range for much of 2015. Though it recently broke out of a wedge/triangle formation to the upside, it’s not yet clear if this is a definitive move higher or more consolidation.

Is This How the Next Global Financial Meltdown Will Unfold?

As emerging market currencies decline, income streams needed to service the dollar debt declines: as income & valuations fall, capital flees, pushing the relative value of the currency down even more, which further raises the risk premium which triggers even more capital flight. The sums in play are so staggering, even the Fed won’t be able to stop the financial meltdown.

Beijing & the West Together Manipulate the Global Currency War

So why is the world of currency diplomacy now playing along with the nonsense of the IMF examining whether the Chinese yuan has met the criterion to become a reserve currency? Why is the Western world playing along with the official Chinese currency charade? Why do Western governments pursue non-market trade diplomacy so enthusiastically with Beijing?

Currency Wars Become Much Nastier During Recession Times

All central banks have printed trillions of dollars in their respective currencies under various QE programs. They are at the point where they simply cannot print trillions more without risking the collapse of confidence in their currencies. How will central banks stop the recession when they’ve used up their dry powder fighting the currency wars?

Decline of the US Dollar – The Consequences

We cannot blame China and India, or Russia if they wish to protect themselves from western systemic risk by shifting their trade settlements away from the dollar. It is becoming clear to Asian leaders at least that the dollar’s reserve status is an anachronism of the past & cannot last, a simple deduction that raises important questions not addressed for over a century.

Gold and Silver unlikely to Rally till US Dollar can Forge Appearance of ‘Health’

If & when the elite’s corporate operations fall apart due do the unsustainable debt creation & the launching of so many regional wars around the globe in the service of maintaining the fiat Federal Reserve Note, “dollar, as the world reserve currency, only then will we likely see the end of the decline in gold and silver and some degree of higher prices.

Will US Dollar Collapse Over Another Debt Ceiling Fight?

The US federal government is about to hit the debt ceiling, which stands above $18.0 trillion, and Congressional Republicans refuse to raise it. The last debt ceiling fight led to a downgrading of U.S. debt. Another blow to the credibility of the U.S. government could be devastating. Could a US dollar collapse be around the corner?

Death Of Cognitive Dollar Dissonance & The Remonetization Of Gold

Gold, the only internationally-recognised non-national money provides the international monetary solution to an economically multipolar, globalised, competitive world. As gold again begins to circulate to settle cross-border balance of payments, it resolves the perennial floating fiat currency dilemma of ever-growing imbalances & associated ever-growing debts to finance them.

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