Commodity Trade Mantra

Posts Tagged ‘Debt Obligations’

Life In A Cashless World: How Cash Became A Policy Tool

The people now intensively working on a mechanism for a cashless society are building it around the concept of blockchain technology. In essence, there would be a single ledger that records each expenditure or revenue event (the block), linking them chronologically with every other subsequent purchase, sale, or revenue event in a recorded chain.

Same Currency War, New Battle Phase

What is a currency war? They happen when there’s not enough growth in the world to go around for all the debt obligations. In other words, when growth is too low relative to debt burdens. They do this basically by cutting interest rates or intervening in markets. It is as an effort to cheapen the currency, get inflation & to display growth.

The Fed Basically Still Uses LTCM’s Financial Models

According to Greenspan, the Fed expanded its balance sheet not to boost the economy or to keep inflation moving higher. It was because the Federal government had such large expenditures that it would have ‘crowded out’ private borrowers if the Fed had not increased the size of its balance sheet.

It Begins: Gazprom Warns European Gas "Supply Disruptions" Possible

Russia’s gas giant Gazprom warned that not only could it cancel its “supply discount” as Ukraine’s overdue payments reached $1.5 billion but that “simmering political tensions in Ukraine, that are aggravated by inadequate economic conditions, may cause disruptions of gas supplies to Europe.

China's First Default Is Coming: Here's What To Expect

With a large volume of trust products scheduled to mature this year, who bears the losses in the event of a default could set an important precedent. Policymakers may see, the default of a trust in current circumstances, as having less risk of contagion than some other shadow banking products.

Is Gold Still a Safe Haven? Gold Price Action Indicates Otherwise

A potential US debt default would seem to be a crisis custom made for gold, but the price action of late is telling a different story – Since government shutdown on Oct 1st and while potential for a historic default exists, the gold spot price has fallen & delivered negative returns.

What A U.S. Debt Default Would Mean For The Global Economy

Just for starters – A U.S. debt default would cause stocks and bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch and would cause a derivatives panic that would be absolutely unprecedented.

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