Commodity Trade Mantra

Posts Tagged ‘Derivatives’

GOLD - The Only Saviour from the Dangers of Derivatives

Derivatives have been used to push, pull, manhandle & outright price many global markets. They have been used to paint a picture as “proof” the Alice in Wonderland markets are in fact real. The only response to a breakdown of derivatives, which is destructive to currencies, will be more QE. With currency dilution, or from macro standpoint of “solvency” all roads will lead to gold.

Gold And Silver – Wall Street Pulls Off Another Destructive Coup

Neither gold or silver have any counter-party risk & will always be the same. The insanity of ongoing central bank suppression of gold and silver to levels that defy the unprecedented demand world-wide will come to an end, which always comes back to the “When” factor. When it happens & not a day before, is the best answer we know.

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.

End Of Quantitative Easing - How Will The Stock Market React?

Since 2008 stocks have risen dramatically throughout every stage of quantitative easing. But when the various phases of quantitative easing have ended, stocks have always responded by declining substantially. The only thing that caused stocks to eventually start rising again was a new round of quantitative easing. So what will happen this time?

The Fed “IS” the Problem!

The solvency of the Fed itself will be questioned during the next crisis, which seems to already have begun. Either the Fed gets the markets calmed down or, the markets will begin to question the Fed’s “all-encompassing power.” When will speculators take them on? Announcement of further QE will probably do the trick.

The World Has Less Than 5 Days Worth Of Copper Inventories

Global copper inventories fell from 477,014 mt in Mar, to 355,075 mt in Apr. Why would global copper inventories be falling if production is increasing, demand falling & China with a supposed GLUT of copper inventories to work through? Why did Chinese copper imports increase 18.7% Jan-Jul? Does that make any sense whatsoever?

A Strong Dollar? Why has the Dollar Rallied?

To answer the question whether or not King Dollar is back to stay, I don’t believe there is ANY chance at all and the current strength will be very transitory. The U.S. is broke on too many levels to count from financially to morally, ethically and everything in between. So why has the dollar rallied?

Evidence: The New York Fed Serves The Interests Of Goldman Sachs

The New York Fed has been caught red-handed serving the interests of Goldman Sachs, and no number of strongly-worded denials is going to change that. A very brave lawyer named Carmen Segarra made a series of audio recordings while she was working for the New York Fed. Sadly, this is not likely to change anything soon.

Liquidity Becoming A Serious Issue As Japan's Bond Market Death Goes Global

Government intervention has killed the largest bond market in the world. While there are ‘trade-less’ sessions now in Japanese bonds, lack of liquidity is becoming a growing problem in US Treasuries (where Fed owns 1/3rd of the market) & Europe where as JPMorgan warns, “some of this liquidity may be more superficial than really deep.

Derivatives World Plays Russian Roulette. What’s At Stake?

Total face value of unregulated derivatives contracts (that suck a huge amount of capital out of the global economies each year) is around 1,000 Trillion dollars – depending on who is counting & who is lying. Mega banks sell these derivatives contracts to generate huge commissions & obscene profits, not the public good.

Goldman Sachs Is Highly Motivated To Low-Ball The Price Of Gold

The distinguished analysts from Goldman Sachs reiterated their 2014 forecast for gold to hit $1,050 by the end of the year. They believe the paper price of gold will continue to decline as the supposed “Powerhouse” U.S. economy picks up speed and accelerates growth.

After the crash of September 2008, the term “too big to fail” became familiar when hundreds of billions of dollars were set aside to bail out BANKS -The nations largest financial institutions. And today, many of the mega-banks that caused the panic of 2008 have now become even larger.

What’s Really Going on Inside a Big Bank

Banks manipulate prices to their advantage, which is how they get around capital ratios and measures like those that are supposed to tell us about how safe the banks are.

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