Commodity Trade Mantra

Posts Tagged ‘Bond Yields’

Revealing the Real Rate of Inflation Would Crash the System

The grim reality is that real rate of inflation is 7+% per year, and this reality must be hidden behind bogus official calculations of inflation as this reality would collapse the entire status quo. Who’s being destroyed by 7+% real inflation? Everyone whose income has stagnated and everyone who depends on wages rather than assets to get by–in other words, the bottom 95%.

Now It's The Japanese Savers That Are Flooding Into Gold Bullion

Individual investors drove a 60% jump in sales of gold in June from May at Tanaka Holdings, the operator of Japan’s largest bullion retailer. Why the surge into gold? The yen’s appreciation in spite of the adoption of the negative-rate policy has kindled skepticism about the policy’s benefits. It’s also led to investors seeking to protect their assets in case Abenomics fails.

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.

Investors Not Believing Economic Data, Still Prefer Gold

I think there is some disbelief in the recent slew of better-than-expected U.S. economic data, which could be supporting gold prices. Lower U.S. Treasury yields are increasing the attractiveness of gold and other precious metals as gold doesn’t pay a coupon or dividend. Investors have started to move back into gold. As a result, every slight weakening in prices is only temporary.

Europe, China Stocks & Commodities Crashing – Are U.S. Stocks Next?

European stocks are crashing, Chinese stocks are crashing, and commodities are crashing. And guess what? All of those things happened before U.S. stocks crashed in the fall of 2008 too. In so many ways, it seems like we are watching a replay of the financial crisis of 2008, but this time around the world is in far worse shape financially.

The End of the Debt Cycle

Tokyo’s debts have grown so large that 43% of tax receipts are required just to service its debt, to say nothing of the amounts needed for current and future deficits. Try living on 57% of what you earn (the rest goes to pay your creditors) while still spending more than your income. You can imagine how far you’d get if you tried this at home.

Are Central Banks Creating Deflation?

The unintended consequences of continuing to delve deeper into the new paranormal are making the game ever more dangerous as we now have central banks accidentally creating deflation while simultaneously embedding enormous amounts of risk in fixed income markets by sapping every last vestige of liquidity.

Citi Warns - Central Banks Grip On The World Economy Is Waning

Not only are central bank policies having a disappointing effect on business sentiment and investment; they are failing even to revive inflation expectations. Despite having growing doubts as to central banks’ ability to create durable economic growth, we remain convinced as to their ability to push up risky asset prices.

10 Key Events That Preceded Last Financial Crisis, Are Happening AGAIN

History literally appears to be repeating, but most Americans seem absolutely oblivious to what is going on. Signs that another massive financial crisis is on the horizon are everywhere. All you have to do is open up your eyes & look at them. Here are 10 key events that preceded the last financial crisis & are happening again right now.

‘Helicopter Yellen’ Sends Stocks, Gold, Silver Soaring

Gold, silver and stocks surged overnight after the Fed maintained their ultra dovish monetary policy stance. The risk to markets of an early hike in U.S. interest rates eased leading to a fall in the dollar after the release of minutes of the last Federal Reserve policy meeting. Record low interest rates globally remain positive for gold.

Additional Chinese Stimulus Risks Global Financial Stability: Goldman

The soft July data have once again generated expectations of monetary easing from China. Goldman believes that a combination of sectoral policies aimed at easing financial stress and structural adjustment would be a better policy option. They do not expect broad macro easing or an interest rate cut in what remains of this year.

Are Capital Inflows Propping Up U.S. Markets?

Nobody really believes the official narrative that the “recovery” is powering the remarkable strength of U.S. stocks, bonds & real estate. While capital inflows into U.S. stocks are difficult to monitor, put various factors together & it seems likely that significant capital inflows are helping prop up asset valuations in the U.S.

It Can't Be A Bubble! Does One Actually Exist Or Not?

Ultimately the question is whether brisk money supply growth will be maintained and whether the economy’s real pool of funding is still large enough to allow for additional diversions of scarce resources into bubble activities. Most of the time, it’s the eventual slowdown of money supply growth that brings a bubble to its knees.

Fed's Bullard Urges Investors To Sell Bonds (But Not Stocks)

Given the market’s rapid surge to dismissing The Fed’s stock-selling recommendations, we are stunned by the silence of “market defenders” as once again the Fed takes to the airwaves to demand investors sell their bonds. The Fed is desperate for investors to sell their bonds as they are in full panic mode over the broken repo markets.

Is India Heading Toward A Crisis Point?

Quite a few emerging markets are increasingly looking like submerging markets lately. Could India be the harbinger of a larger crisis? With few people expecting it automatically increases its likelihood

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