Commodity Trade Mantra

Posts Tagged ‘Bank of Japan’

Outlook for Gold and Silver Prices in a Crucial Central Banks' Influenced Week

There is a very high degree of uncertainty over market developments in the week ahead, but a fresh surge in volatility is guaranteed. The decisions by the Bank of Japan, followed later by Federal Reserve will have a big short-term impact & an important influence on market direction for the remainder of 2016. Gold and silver prices settled lower last week. Here is the outlook for this crucial week.

Gold and Silver Rally to be Fuelled by More Monetary Easing

July has not been kind to either market, with gold falling 4% lower from the month’s high, while its silver lost 9%. Easing is back on the table in the UK, while the ECB and Japan are also likely to be more dovish. From a technical point of view, both markets seemed to be primed for a sharp rebound, with silver in a descending triangle and gold in a symmetrical triangle.

Negative Rates In The U.S. Are Next: Here's Why In One Chart

The Fed will follow the footsteps of negative rates in Sweden, Denmark, Europe, Switzerland & now Japan. Will this crush money markets as we know them & unleash even more volatility & havoc around the world? Absolutely. But at this point, when every other central bank has lost credibility “what differnce will it make” if the Fed joins the party on the central bank Titanic?

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.

QE Warfare Pushing World Financial System out of Control

William White, a former chief economist to the Bank for International Settlements said QE is a disguised form of competitive devaluation. “There is a significant risk that this is going to end badly. Central banks have been put in an invidious position, compelled to respond to a deep economic disorder that is beyond their power.”

Central Banks Create Deflation, Not Inflation

The Federal Reserve and other central banks desperately want inflation, even though it destroys the purchasing power of paychecks and savings, for one reason:in a system based on phantom collateral supporting ever-increasing mountains of debt, the Prime Directive of central banks is to make it ever easier to service yesterday’s debt.

Central Banks: When We Succeed, We Fail

Central banks around the world share a few simple goals. Should central banks succeed in jacking up inflation, devaluing the purchasing power of fiat currencies and pushing stocks to the moon, they will have failed their citizenry. Should they succeed in reaching their goals, they will trigger catastrophic instability.

Liquidity Becoming A Serious Issue As Japan's Bond Market Death Goes Global

Government intervention has killed the largest bond market in the world. While there are ‘trade-less’ sessions now in Japanese bonds, lack of liquidity is becoming a growing problem in US Treasuries (where Fed owns 1/3rd of the market) & Europe where as JPMorgan warns, “some of this liquidity may be more superficial than really deep.

The $23 Trillion Credit Bubble In China Is Starting To Collapse

The bubble of private debt that we have seen inflate in China since the Lehman crisis is unlike anything that the world has ever seen. Never before has so much private debt been accumulated in such a short period of time. And yet China’s money supply and credit are still expanding.

China Money Creation Blows US And Japan Out Of The Water

While everyone focuses on the breakneck money creation by the Fed and the BOJ, what happened in the past month is that China quietly created some 20% more money – For those curious, here is a more detailed breakdown of the Chinese numbers from Bank of America.

China On A Debt Binge And A Buying Spree Unlike Anything Ever Seen Before

According to a recent World Bank report, the level of private domestic debt in China has grown from about 9 trillion dollars in 2008 to more than 23 trillion dollars today – Lots of signs show the gigantic debt bubble in China is about to burst & when it does, the entire world is going to feel the pain.

Deflation - Phobia Set to Bring on More Monetary Inflation

Why would Inflation below 2% pose risks to the economy? Who doesn’t want to pay less for things? It is only considered a problem because there is such a huge mountain of unsound debt in the system, much of it incurred by governments, which they naturally want to ease.

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