Commodity Trade Mantra

Posts Tagged ‘Central Bank’

The U.S. Economy Slows to Stall Speed

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.

Venezuela Begins Liquidating Its Gold

Venezuela’s primary export is oil, that has been slammed in recent months on tumbling oil prices. Venezuela faces a cash crunch following maturity of a 1 billion euro bond this month & coupon payments of $700 million in April. Its central bank is in talks with Wall Street banks to create a gold swap in exchange for $1.5 billion cash.

The Federal Reserve and the Price of Oil

Domestic oil producers have a source for financing: the Fed. If you want to deploy the oil weapon, make sure you have a central bank that can intervene at will, in whatever size is necessary, to reduce the impact on your own economy, while maximizing the financial pain inflicted on the targets of the oil weapon.

Price of Oil 2015 - Asymmetric Warfare Tactics

The world has habituated to the never-ending undeclared war over ownership and access to hydrocarbons. Now we are entering a new phase of asymmetric war being waged not over oil but the price of oil. Here are a few of the many possibilities of asymmetric warfare that could be applied to the price of oil.

Gold Price & The US Dollar Trend Forecast For 2015

My forecast conclusion is for the Gold price to trend lower into August 2015, targeting a low of $1050 before Gold finally makes a low for the year that propels the Gold price to above $1300, probably spiking to approx $1350 during Nov. Clear investing strategy for 2015 will be for one of accumulating into Gold during first half weakness.

Gold And Silver – Is the Golden Rule Broken?

Why has the concerted effort to suppress gold and silver been so unopposed by China & Russia when either country could “stick it” to the West & collapse the “dollar” & Western central banks in a day? It may also be that China & Russia are assisting IMF as it is not in their best interest to see gold and silver “reset” dramatically higher.

The Cultural and Political Consequences of Fiat Money

Fiat money allows government to take out loans to an unlimited extent because fiat money by definition can be produced without limitation, without commercial limitation or technological limitation, and can be produced in whatever amount is desired. Fiat money also has a very important impact on our culture.

The Real Reason Why Germany Halted Its Gold Repatriation From The NY Fed

Germany was pressured to keep its gold in the US after a “diplomatic” line of communication was opened, most likely the result of the Fed making it all too clear to the Bundesbank not only who runs the show, but what the assured failure to repatriate Germany’s gold would mean for “price stability.”

How Macroeconomic Data Encourages Government Intervention

What possible use can an entrepreneur make out of information on GDP, Employment or Deficit, etc? In practice, so-called macroeconomic indicators are fictitious devices that are used by governments to justify intervention with businesses. These indicators can tell us very little about wealth formation in the economy or individuals’ well-being.

How Debt Was Used to Create the Biggest Financial Heist in History

Experts have come up with various reasons behind the financial crisis. Some feel the crisis was because Wall Street was greedy. But then the question to ask is: When was Wall Street not greedy & so why didn’t financial crises happen all the time? Its because never before in history have the entire world’s finances been so distorted by debt.

The End Of QE3, Trouble Ahead For The Bulls?

The Federal Reserve’s latest asset purchase program, QE3, is coming to an end. What was once an $85 billion a month program, one in which at its peak had been goosing the financial markets and economy at an annual rate of $1.0 trillion – and over its 27 month life will have pumped $1.7 trillion of money into the economy – is going to zero.

All Eyes on the Swiss Gold Referendum

On November 30th, voters in Switzerland will head to the polls to vote in a referendum on gold. On the ballot is a measure to prohibit the Swiss National Bank (SNB) from further gold sales, to repatriate Swiss-owned gold to Switzerland, and to mandate that gold make up at least 20 percent of the SNB’s assets.

Impact On Gold And Silver By Death Of Derivatives Monster

The U.S. Banking industry utilized the Interest Rate Swap Market to destroy the REAL MARKET RATE OF INTEREST. By the banks artificially controlling the market rate of interest, they also manipulate the REAL VALUE of goods, services, commodities and yes… Gold And Silver.

Federal Reserve Policies Cause Booms and Busts

Federal Reserve monetary expansion & artificially low interest rates generated wide imbalances between investment & housing borrowing on the one hand & low levels of real savings in the economy on the other. It was inevitable that reality of scarcity would finally catch up with all these mismatches between market supplies & demands.

China Launches CNY500 Billion In "Stealth QE"

Will the PBOC’s Short-term Lending Facility (SLF) evolve into China’s version of QE? While investor attention has been fixated on China’s deteriorating PMI reports and fears of a widening credit crisis, China’s central bank is operating behind the scenes to prevent a wide-scale financial panic.

New World Order = Deceit, Debt, & War. Gold And Silver A Casualty

If you want to know why your holdings of physical gold and silver have remained under suppression, it is because both are anathema to paper fiat currencies, and the ones who are in control, the moneychangers, will not tolerate competition against their fiat Ponzi monopoly scheme.

Central Bank Monetary Policy Enables Us To Put Off Real Reforms

The cycle of entrenched interests protecting their skims and scams via central bank monetary policy is self-liquidating: every nation that pursues this “fix” will find its economy liquidated by financial implosion and the hollowing out of productive sectors to support crony-capitalist unproductive sectors.

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?’

Money Creation: The Road to Hyperinflation

With banks willing to lend money and customers increasingly willing to borrow, bank credit can be expected to gradually increase in a self sustaining, inflationary spiral. With asset prices being gradually inflated, more investors are inclined to borrow at low interest rates to share the bonanza – An outcome, the central banks look for.

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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