Commodity Trade Mantra

Posts Tagged ‘Eurozone’

Greenspan Warns Of Imminent Crisis, Urges A Return To Gold Standard

“If we went back on the gold standard & adhered to the structure of the gold standard as it exited prior to 1913, we’d be fine. Remember that the period 1870 – 1913 was one of the most aggressive periods economically that we’ve had in the U.S. & that was a golden period of the gold standard. I’m known as a gold bug & everyone laughs at me, but why do central banks own gold now?” – Alan Greenspan

The Greatest One Day Global Stock Market Loss In World History

Worldwide markets haemorrhaged more than $2 trillion in paper wealth on Friday, according to data from S&P Global, the worst on record. For context, that figure eclipsed the whipsaw trading sessions of the 2008 financial crisis. This could be the tipping point that turns the existing global slowdown of 2016 into a global recession. Friday may turn out to be just the tip of the iceberg.

Eurozone in Danger on Falling Purchasing Power of Dollar, Not Rising Commodity Prices

All financial prices in the Eurozone are badly skewed. So far, the price inflation environment has been benign, but this year, things have been changing. Higher levels of debt will never allow the ECB to run interest rates up sufficiently to kill price inflation. More likely, positive rates of only one or two per cent would be enough to destabilise the Eurozone’s financial system.

Why Exactly Are Gold Prices Up And Will Keep Going Up

When both gold and paper pay you zero-percent interest, you should prefer gold over paper. Today, the real interest rate is negative… and gold should outperform. Yes, gold has run up in 2016… but I feel strongly that the move in gold prices is just getting started. It’s the optimal time for people to own gold – Make sure you get your money there first.

Negative Interest Rates Bullish for Gold Prices

With money printing in full gear & negative interest rates, it’s puzzling to see negative sentiment building up for gold prices. If you want to know where gold prices are headed, just pay attention to what’s happening in the global economy. Know that negative interest rates and money printing means devaluation of currency, and gold is one of the only hedges against this.

Financial Forecast: Six signs that 2016 will be much worse than 2015

Over the course of 2015 we witnessed several events that had, and will have, negative repercussions. The financial systems as a whole, once again, got deeper into debt. For how much longer can central banks & governments continue kicking the can down the road without any real reform? Here are answers to these questions to identify trends for 2016 by looking at six key issues.

OPEC Lowers Global Oil Demand Growth Expectations In 2016

OPEC provides this first serving, as they have released the third and final installment of key monthly oil reports after last week’s releases from the EIA and IEA. The cartel has upped its expectation for oil demand growth this year by 84,000 barrels per day to 1.46 mn bpd, but revised its forecast lower for next year by 50,000 bpd to 1.29 mn bpd.

How Fast Are We Approaching A Global Deflationary Crisis?

Describing Crisis – needs to relate all of these elements together – policy failure, debt, imbalances, energy. Each element is causatively connected to the others but sometimes in a time lagged way which obscures the relationships. Together these elements are bringing about what some observers are calling “secular stagnation”.

The Doomed Currency - Euro Is Not Dead

Based on the turmoil created by the European Debt Crisis, the continuing problems in Greece & other overly indebted southern tier European economies, many investors may have come to assume that Euro boosters will be forced to ultimately throw in the towel & call off the entire experiment, thereby leaving the Dollar completely unchallenged as the champion currency.

Eurozone Wants to Force Common Fiscal Control, Eurobonds - Jim Rickards

Greece now has to run its government according to German dictates. Greece has already outsourced its monetary policy to the ECB & now it’s sort of outsourced its fiscal policy to the German finance ministry. So you’re on a path to unified fiscal policy & ultimately the Eurobonds – bonds backed by full strength & credit of not just any one country but the entire Eurozone.

When It Comes To Total Debt, Greece Is Not Much Worse Than France Or USA

The problem France will find further down the road is that its own debt dynamics & sustainability is also highly questionable. Estimates we have used before with calculations for the present value of unfunded liabilities (as a % of GDP) show that its not Spain or Italy that have the worst long-term debt sustainability issues; its the US & France & then surprisingly, Germany.

Greece Just Lost Control Of Its Banks - Why Deposit Haircuts Are Imminent

One of the preconditions imposed on Greece for a deal is that it signs into law European rules that would put eurozone authorities at ECB & Brussels in charge of identifying & closing or breaking up sick banks. There will be absolutely nothing Greece can do to avoid it as on Wednesday, the government will vote to hand over its sovereignty to Europe for absolutely nothing in return.

Economic Stagnation and the Global Bubble

Despite massive policy stimulus in the United States since the late 2007 peak, the US economy is now growing far more slowly than in past periods of monetary inaction from the central bank. The Fed has thus become little more than a serial bubble machine. Meanwhile, fragile economic bubbles are being inflated from China to Europe.

Conspiracy Theory: A Greek Default Is Precisely What The ECB Wants

From an economic perspective, Greece shows “internal devaluation,” – which is a very polite way of saying plunging wages, labor costs, and generally benefits, including pensions. Goldman essentially says that it is in the ECB’s & Europe’s, best interest to have a Greek default – and with limited contagion at that – one which finally does impact the EUR lower.

Will They Confiscate Money From Bank Accounts In Greece - Like Cyprus?

ECB is up to its eyeballs swimming in unpayable Greek debt that it holds & has only 2 alternatives. It can push the €112 billion of Greek debt it holds to the national central banks of the Eurozone & on to the backs of the taxpayers in those countries. Or confiscate depositor money in Greece, like it did in Cyprus.

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.

Government Control of Currency A Good Reason To Hold Physical Gold and Silver

Governments want total control of your money & if they need your money they won’t hesitate to steal it from your account. Average savers can no longer rely on the state to protect their deposits. This is a good reason for depositors to allocate some of their funds to physical gold and silver stored outside of the banking system.

At The End Of The Road - Greece Prepares For Default, FT Reports

A default would almost certainly lead to the suspension of emergency ECB liquidity assistance for the Greek financial sector, the closure of Greek banks, capital controls & wider economic instability. Unfortunately for Greece, the default threat has been used, abused & denied so many times, nobody cares, or believes it will be used.

Gold Up 11% In Euros This Year As Currency Wars Intensify

The dollar-centric nature of most financial media and the tendency to focus on gold solely in dollars would give one the impression that gold has been devastated this year. When measured against other currencies, gold has risen versus many major currencies & will continue to protect and grow wealth over the long term.

Are Central Banks Creating Deflation?

The unintended consequences of continuing to delve deeper into the new paranormal are making the game ever more dangerous as we now have central banks accidentally creating deflation while simultaneously embedding enormous amounts of risk in fixed income markets by sapping every last vestige of liquidity.

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