Commodity Trade Mantra

Posts Tagged ‘Central Banks’

Fed & ECB to now Strangle the Extraordinary Stock Bull they Nurtured

The stock bull went from normal between 2009 to 2012 to literally central-bank-conjured from 2013 on. Without central-bank money printing behind it, the stock-market levitation between 2013 to 2015 never would’ve happened! Now that the Fed & ECB have started strangling this extraordinary stock bull they nurtured, the long-overdue stock bear delayed by QE, will also prove proportionally oversized.

Central Bank Asset Purchases Inflate Stock & Real Estate, but Cap Gold and Silver Prices

The Central banks bought a staggering $1.5 trillion in assets in the first five months of the year to keep the economy from imploding. This massive increase in Central bank asset purchases is a last ditch effort to prop up the market & cap the gold price. They will likely have to increase their level of buying even more. As it goes exponential… then we know the END IS NEAR.

A Mega Sell-Off in U.S. Government Debt is Underway... 1 more Reason to Buy Gold

Foreign creditors are selling U.S. government debt like never before. Last year, China alone sold $188 billion worth of U.S. Treasurys while Japan sold about $21 billion worth of U.S. debt in December. Japan & China are America’s biggest creditors. But they’re not the only ones pulling out either. Saudi Arabia, Belgium & Switzerland have recently become net sellers, too.

Why Central Banks & IMF Were Forced To Rig The Gold Market

Looking at this new information, I had no idea of the amount of Fed, Central Bank and IMF gold market intervention until I put all the pieces together. While most of the folks in the precious metals community realize that the Fed and Central Banks have sold gold into the market to depress the price, this new evidence puts the gold market it in an entirely DIFFERENT LIGHT.

Are Rate Hike Cycles Good for the US Dollar & Bad for Gold?

Gold does not necessarily rise and fall with interest rates, jewelry demand in India, or any other widely believed nonsense. Rather, gold has moved in conjunction with perceptions as to whether or not the Fed and central banks have everything under control. If you believe as I do, that everything is not under control, or if you want some insurance, then take a position in gold.

Gold Price Forecast: The Factors Influencing Gold Prices in 2017

Here are three things that are currently taking place that could have significant positive impacts on gold prices. They shouldn’t be ignored by investors, whatsoever. Every day that gold prices remain subdued, the precious metal becomes an even better opportunity. Keeping everything in mind, I am not ruling out $2,000/ounce gold prices in the next few years. It’s possible.

Ironically, Gold and Silver will find Buyers in Crowds at Higher Prices Than at Lower

Even after you’ve done the research & decided to participate, buying into price weakness against the herd & contrary to your emotions is not an easy thing to do. But time & again, some of the world’s most successful investors have done just that. You might want to consider joining their ranks. As new nominal highs in both gold and silver are printed, several situations begin to develop.

Asset Bubbles Created by Central Banks Setup a Perfect Storm for Gold

Unless central banks are willing to initiate ultimate protocols, the inevitable result will be a bursting of all these asset bubbles and an explosion for gold that will make its $1940 high in 2011 look like pocket change. Gold will likely soar to a record within five years as asset bubbles burst in everything from bonds to credit and equities, forcing investors to find a haven.

Why the Coming Wave of Defaults Will Be Devastating

In an economy based on borrowing, loan defaults & deleveraging matter. Defaults mean loans & bonds won’t be paid back. The owners of the bonds & debt (mortgages, auto loans, etc.) will have to absorb massive losses. Having unleashed tens of trillions of dollars in new credit since 2008, the central banks have simply increased the likelihood & scale of the coming default conflagration.

Finally The Fed Admits It Has No Clue on Inflation & Investment Spending

The most interesting comment by Fed Chair Janet Yellen was her admission that she and her prestigious voting members don’t have a clue why inflation and capital investment spending have not returned to loftier levels. Then how do they yet expect a significant 250 basis point credit tightening over the next couple of years in an economy muddling along just above “stall” speed?

The Fed’s Missed Window To Hike Rates & Failed Realizations

What is clear is the Federal Reserve should have chosen to increase rates long ago where such tightening of monetary policy would have been somewhat offset by the continued floods of interventions. The window to lift interest rates appears to have closed which could potentially be a policy nightmare. Eventually something has to give & it will likely not be the outcome the Fed hopes for.

Silver will be the Top Performing Asset in 2017

Silver had a massive run from the lows of $15.83 to $21.22 &is set to rally higher. No markets rise vertically, a 50% Fibonacci correction is a healthy and accepted norm. The weaker hands are out of silver, whereas, the stronger hands have bought the white metal at lower levels. You need to invest at the right time and to be positioned properly for when high volatility strikes.

The SDR Is Designed As A Rescue Operation For The US Dollar

The IMF created the SDR Substitution Account in 1969. T he core idea is that the SDR Substitution Account Central Banks allows to diversify their existing US dollar reserves in a one-time conversion away from the dollar into IMF’s SDR, comprised of the US dollar, European euro, Japanese yen and British pound, in an off-market transaction, so as not to depress the dollar’s exchange rate.

Double Digit Inflation And The Rise of Gold

Inflation can really spin out of control very quickly. So is double-digit inflation rate within the next five years in the future? It’s possible. We would see a struggle from two to three, and then jump to six, and then jump to nine or ten. This is another reason why having a gold allocation now is of value. Because if and when these types of development begin happening, gold will be inaccessible.

Exposing The Link Between Monetary Policy And Social Inequality

Our monetary policy direction has been prolonging the slowdown since 2008. The longer we wait, the worse the hit we will take. We are going from one bubble to another and are just postponing the inevitable. Under our current system, which has stripped the working class from their savings, they are exposed to greater risks than ever before.

A Gold Standard & Debt Jubilee for an Honest Money Monetary System

A gold standard handcuffs corrupt governments, forcing them to operate somewhere near a balanced budget, at all times. It handcuffs criminal central banks, restraining the speed with which they steal-by-inflation to a near-zero rate. Only alternative to Debt Slavery: Debt Jubilee – the complete renunciation of all debts. We absolutely require a gold standard but cannot till we don’t have a debt jubilee.

Gold Investment Necessitated by Failed Monetary Policies

Many analysts are interpreting weak Japanese Government Bond demand as a signal that investors are starting to lose confidence in the effectiveness of unconventional monetary policies, following increasingly desperate bids by the world’s central banks to reflate the global economy. In this environment, we believe investors are using gold to hedge portfolio risk as they add more stocks.

Helicopter Money Tested And Failed Spectacularly, Surprising Only Economists

Imagine waking one morning to find extra cash in your account, a gift from your country’s central bank. That might sound outlandish. But the concept of so-called helicopter money is being seriously debated by economists. Helicopter money handed directly to consumers, the theory goes, would send us scurrying to the shops to spend our windfalls, boosting confidence in the economy.

Gold Prices will easily Triple on a Collapse in the Monetary System

What could possible make gold prices go from roughly $1,350 an ounce now to triple in value at US$4,200? The inability of central banks to wind down their balance sheets and the continued effort to stimulate the economy by, admittedly, unconventional means will end our current currency system. We will then return to some sort of gold standard, thus sending it soaring.

Giant Financial Bubbles created by Central Banks are Fracturing

Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy & elsewhere in Europe & the sudden trading suspensions by three UK commercial property funds. It’s beginning to feel like August 2007 all over again. Of course, central banks have nothing to do with it at all!

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