Commodity Trade Mantra

Posts Tagged ‘Euro/Dollar’

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.

Chinese Devaluation Extends To 3rd Day - Yuan Hits 4 Year Low

Having devalued the Yuan fix by 3.5% in the last 2 days, China did it again, shifting Yuan to 4 year lows. While confusion reigns over why PBOC would intervene at the close to strengthen the Yuan last night, the reality is the commitment isn’t to a devaluation for China’s exports, but its actions are directed toward trying to keep the wholesale finance interfaces somewhat orderly.

Gold Price Moves Since QE3 Have Been A Warning To Mainstream Economists

There is “something” missing beyond just the recovery economists were so sure the gold price crash was foretelling. Normalizing both economic & financial conditions would mean interest rates rising back to where they were pre-crisis, as “inflation” picks up. Neither of these is evident in the 2 years since gold prices crashed.

Traders Are Buying Gold & Silver At Fastest Pace In Over A Decade

Large speculators increased their net long gold exposure to $14.8bn from $9.2bn & Silver net long position to $4.4bn from $2.4bn notional. It seems as if Yellen’s introduction of complications has led to at least contemplation about it, tipping the scales, ever so slightly, back toward financial suicide.

What a Reserve Currency Should Look Like

The perfect reserve currency is provided by private institutions who guarantee gold redemption through contracts with independent agents in many easily accessible and safe areas of the world. Failure of the issuer to redeem for specie would be prosecutable for breach of normal commercial and criminal law.

Quantitative Easing To Qualitative Guidance: What To Expect From FOMC Today

Goldman expects the Fed’s FOMC meeting (the first with Yellen as Chair), to deliver an accommodative message, alongside a continued tapering of asset purchases. Their market views here are likely to shift little in response, as much of that dovishness is arguably already priced, particularly in US rates.

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