Commodity Trade Mantra

Posts Tagged ‘Currency Markets’

China’s Monetary Ascension Is Paved with Gold

When the Chinese yuan becomes an SDR currency, that could be the inflection point for a new multi-polar currency regime that sees the US dollar decline in stature. Could gold also begin to emerge as a leading currency in world trade? Over time, it certainly could. But the more immediate implications for gold’s monetary role center on its increasing accumulation by central banks such as China’s.

Helicopter Money Will Boost Gold Market to New Highs

The idea of helicopter money would be to circumvent banks & to directly inject money into the bank accounts of people who then spend it & create higher inflation & growth. Of course, if you know history you will know that this is a measure that cannot heal anything—it just buys time. On the other hand, for gold it would be the time to shine if helicopter money would be implemented.

Higher Gold Prices can Produce the Inflation the Elites Seek

There are three ways out of debt. One is default, which is not a good option. One is growth, but it’s not happening. The third way is inflation. The government has to have inflation. If it doesn’t, there’s going to be a crack-up in the national debt. But we’re not getting inflation from monetary policy. There’s another option & that’s to bid up the price of gold.

Peak Debt & The Need For A Reliable Store of Value: GOLD

Most investors seem unconcerned about the unsustainable levels of global debt and the inflationary potential of the trillions of dollars created by the major central banks especially the U.S Federal Reserve. I expect to see gold and silver demand increase dramatically in the coming years as more prudent investors see the truth and look for a reliable store of value.

The Real Reasons Why The Fed May Hike Interest Rates

With a complex and disaster-prone system of interdependence causing social strife and chaos, why not just simplify everything with a global currency and perhaps even global governance? The elites will squeeze the collapse for all it’s worth if they can, and a Fed rate hike may be exactly what they need to begin the final descent.

The Next Financial Crisis Won't be Like the Last One

It’s not that difficult to predict that the next global financial crisis will arise not in the banking sector but in a market that’s beyond the reach of central banks.That is, printing $1 trillion and promising to “do whatever it takes” won’t fix what’s broken. It seems increasingly likely the next Global Financial Meltdown will arise in the FX/currency markets.

Why the Fed Would be Insane to Raise Rates: The Rising U.S. Dollar

What happens when the Fed makes the US Dollar more attractive to global capital? Capital flows even faster out of emerging economies and China. The tidal flow of capital out of emerging markets and China threatens to surge into a veritable tsunami should the Fed raise rates. What happens as capital flees emerging markets and China? Lots of bad things.

What China's Devaluation Means For The Future Of The Dollar

Nearly every government, commercial bank & central bank in the world holds US dollars in reserve as they are used as the primary currency in global trade. But this status is by no means written in stone. The US dollar is not the first global reserve currency, and it won’t be the last. It’s foolish to expect a reserve currency with such pitiful fundamentals as the US dollar to last forever.

Trading the Parabolic Dollar

The US dollar has been rocketing higher on the incredible divergence of major central-bank policies. While the Fed’s first rate-hike in 9 years looms, ECB has started aggressively monetizing sovereign debt first time ever. Resulting yield differential has catapulted the USD parabolic, portending a major reversal & fantastic trading opportunity.

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.

New Currency Wars Cometh - Gold To Be “Last Man Standing”

Volatility in the currency markets is likely to increase greatly. If competitive devaluation of currencies accelerate, fiat currencies risk losing value versus gold. In worst case scenarios some may revert to their intrinsic value – zero. When the dust settles gold will be the last man standing as it cannot be created or destroyed by governments.

US Dollar Super-Overbought

The bottom line is the US dollar is super-overbought & will soon crumble. The US dollar falls as fast and far as it rose, reversing all the peripheral trades that suffered during the dollar’s rally. So sell the US dollar high when everyone loves it, and buy euros, yen, oil, and gold while they are still low before they rebound.

Another Crisis of Confidence in the Dollar is Coming

The US is engaged in a new currency war & another crisis of confidence in the dollar is on its way. The new crisis will likely begin in the currency markets & spread quickly to stocks, bonds & commodities. When the dollar collapses, dollar-denominated markets will collapse & panic will quickly spread throughout the world.

Gold Price Exploding In Emerging Markets

The reason for the emerging market turmoil is the capital flight out of those markets, directly linked to the tapering fear from the US Federal Reserve. Gold is the ultimate protection against the central banking illusion which is why we advocate holding physical gold outside the banking system.

Federal Reserve Overstepped Bounds With Monetary Policy

The Federal Reserve has caused more damage by creating a short-term bubble that is unsustainable on its own, and has set the stage for future ad-hoc interventionist asset purchases in markets on equally subjectivist timeframes and justification!

The U.S. Federal Reserve QE3 - Tapering Impact

The Federal Reserve’s decision on Tapering, its size and what the FOMC implies for future tapering will almost certainly spark sharp price reactions in the markets, all that have moved violently this year on mere QE3 – Taper anticipation.

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