Commodity Trade Mantra

Posts Tagged ‘Collateral’

If Gold Is Not Money, Why Do Clearinghouses and Former Fed Chairs Say It Is?

Collateral is an underlying asset that is pledged when a party enters into a financial arrangement. Even Alan Greenspan, the man most responsible for the 2008 financial crisis, has admitted that “gold is money.” He couldn’t admit this until he’d left the Fed. But this is a man who knows all too well just how the financial system works.

The Rehypothecation of Gold, and Why It Matters

Why keep the nation’s gold reserves so mysteriously secret? Maybe rehypothecation isn’t the reason; then what is? Fear of precisely what? Isn’t gold supposed to be a foolish relic? What’s the danger in letting people look at the foolish relic and count the bars and note the serial numbers on the bars? What’s the risk in that?

ECB - European Central Bank is Getting Tougher on Greek Banks

ECB now wants to impose further control for Greek banks looking to secure emergency loans. It makes you wonder if they’re interested in keeping Greece in the European Union at all. The ECB’s move to limit the amount of money Greek banks can access will only increase the chances of Greece falling further under Putin’s spell.

Why We Should Fear the REPO

The REPO market is the transmission mechanism that drives liquidity. REPO, also related to “shadow finance” is the core catalyst – the perpetual financial motion generator, the way constant leverage is conjured out of nothing on a daily basis. It drives worldwide liquidity and/or credit. It has enabled the funneling of credit into equities.

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