Commodity Trade Mantra

Posts Tagged ‘Central Bankers’

Gold Wins in 3 out of 4 Scenarios - None Bode Well for the Economy

If you think of gold, the only way gold loses is if normal business and private sector cycles come back. If that is the case, gold goes back 100 dollars per ounce. The other outcomes, deflation, stagflation, hyperinflation are good for gold. So gold wins in three out of four scenarios, but none of the three are particularly appealing. Here is why.

The Inflation Horse Defies Central Bankers' Whippings - Why?

Every 3 days for the past 9 years, one of the world’s central bankers dresses up as a jockey. They mount the horse & flog it with the whip marked ‘lower interest rates’. The inflation horse is supposed to respond to these whippings by suddenly springing to life & galloping towards the furlong marked ‘2–3% inflation’. No one seems to have told these jockeys they’re flogging a dead horse.

More Reasons to Own Gold and Silver With Each Passing Day

Does a 0.25% Fed Funds rate increase really change the fiat currency destruction policy adopted for decades & provide an impetus to sell gold and silver in exchange for devaluing paper & digital fiat currencies? There is no end in sight to the fiat currency purchasing power devaluation objectives of Central Bankers & start converting fiat currencies into wealth preserving physical gold and silver.

Deflation Scares Central Bankers - Can Gold Be Their Biggest Ally?

Every Central Banker dreads deflation. They’re doing everything they can to generate a 2% annual rate of inflation, but can’t get it. Well, the last thing you want to see is the gold price going down. If prices continue to drop, they fall to a point where they start to impact jobs. Drilling rigs & mines shut down. So in-fact, they want gold and silver prices, copper & oil prices to go higher.

Investors and Money Managers are All Moving to Gold

Investors have increasingly started processing the fact that the world’s central bankers are completely focused on debasing their currencies. Investors have also endured a five-year gold bear market. Every rally up until this year died out, eventually ending in new lows for gold. But things certainly have changed over the past five months & gold’s up over 20% year-to-date.

Central Banks are Buying Gold and Hedging Against their Own Policies

It is not surprising that central banks were adding to their gold reserves in 2015, but it is interesting that central banks have been on an unprecedented spree of creating money out of thin air. So while many investors were not enthusiastic about gold, central bankers saw a need. It seems that central bankers who are buying gold are hedging against their own policies.

Volatility Frustrates Traders: No Rational Explanations On What’s Going On

Traders are frustrated in a market where nothing makes sense. A casualty of this current volatility is that at any given time there are no rational explanations for what’s going on. Back & forth swings of meaningful proportion are characterized, by necessity, with a random reason generator. Better to just put it down to simple things like China’s economy or European banking system is collapsing.

The $100 Bill Could Be the Next Victim in the War on Cash

When banks implement negative rates, they literally charge customers to hold their money. You’re not likely to save money in the bank if it’s costing you to do so. Central planners believe this will motivate you to spend, thus stimulating the economy. But in order for this scheme to work, it has to be impossible for you to hide currency. That’s what the war on cash is really all about.

GOLD: The most consistent form of Money in World History

Empires rise and fall. Governments and central bankers come and go. Paper currencies lose their dominance. But gold lasts. And if you hold a long-term view, and believe that the path to prosperity is not paved in debt and money printing it makes sense to consider holding at least a small portion of your savings in the metal.

The Mindless Stupidity Of Negative Interest Rates

Can anyone show a clear example connecting the dots to show where negative interest rates have stimulated an economy? Can anyone clearly explain how charging an institution or business to hold deposits is in any way stimulative… not net stimulative, but stimulative AT ALL? It defies common sense.

The Worst Part Is Central Bankers Know Exactly What They Are Doing

Perhaps the most dangerous lie circulating today is that central banks are chaotic operations run by intellectual idiots – the Central Bankers, who have no clue what they are doing. This is nonsense. While the ideological cultism of elitism & globalism is ignorant & monstrous at its core, these people function rather successfully through highly organized collusion.

The Bull Market in Stocks May Have Ended Already

With the Fed now running out of ammo, we MAY no longer be in a bull market. Instead, we MAY be entering a bear market. If so, you can forget about a recovery in four months. Instead, it may take four years… or 40 years… to reclaim the bull market high set this past May. Corrections in a bull market are one thing. Bear markets are something very different.

Federal Reserve Fairytales: 15 Reasons Fed Policies Belong in Fantasyland

If you add all this up – all the forward guidance, all the dates, all the targets, the currency wars, operation twist, all the flavors of QE, 15 separate fed policies in 5 years, that tells you, you don’t know what you’re doing. You’re making it up as you go along. So people should have no confidence in the Fed. That’s for starters.

Pro - Gold Governments and Central Banks

Many gold bugs argue that governments & central banks are generally biased against gold. Certain countries, with India as the most notable example, have adopted hostile gold policies. Here, I will however show that the tide has turned with many central banks not only accumulating gold but understanding the importance of gold.

Why We Need Deflation and Higher Interest Rates

The Fed, like central bankers elsewhere, (though slightly out of step as it recently hinted at possible future rate hikes) stays committed to a 2% inflation target as it continues a policy driven by a fear of deflation, a fear that is not supported by either good economic theory or economic history properly interpreted.

Gold And Silver Decline – Banker Insanity Grows

The central bankers are on a path of self-destruction, and they will take down the masses with them. The bankers want to destroy the gold and silver markets for the masses. They want to destroy all hope for higher prices, all justification for holding them as an alternative to their artificial, worthless fiat paper.

Gold: The Good, Bad, and Truly Ugly

Dollars, Euros, Yen, and other unbacked fiat currencies have been printed to excess for decades. A vulnerable and dangerous financial system that is increasingly leveraged is a bubble in search of a pin. Accidents happen! Protect yourself and insure your assets with gold and silver – The real money for 5,000 years.

What the "Price of Gold" Says About Central Bankers

Today, it seems hard to imagine a time when central bankers were more involved meddling in the markets. It seems hard to imagine a time when investors would be more likely to question their faith in these central bankers & that there has been a time in recent memory that investors would be more inclined to consider owning gold.

Central Bankers Understand That Monetary Stimulus Is Not The Answer Only After Quitting

What is it about central bankers who wait to tell the truth only after they have quit their post? First it was the Fed’s Alan Greenspan. Now BoE’s former head, Mervyn King after having the biggest monetary stimulus & yet not solved the problem, says, “The idea that monetary stimulus after six years … is the answer doesn’t seem (right) to me.”

Gold And Silver: Is Swiss National Bank Rally Enough For A Change?

The world events are circling the drain like an unstoppable eddy. If the wealthiest of countries are accumulating gold and silver as much as possible, following their lead is a worthy mantra. The current price of gold and silver is not that important. Having and holding those proven forms of real money can only be a very wise undertaking.

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