Commodity Trade Mantra

Posts Tagged ‘Financial Crisis’

Is Apparent Strength in Stock Market Masking Deeper problems below the Surface?

Mounting pessimism comes at a time when US equities are looking healthy, at least on the surface. This apparent strength of the stock market may just be masking deeper problems brewing under the surface. The fact that we had many volatility cycles since 1983, and are now at all-time lows in volatility, indicates that we may be very close to the turning point.

Mega Investors Loading up on Gold - Are They Cornering the Gold Market?

China has become a debt crisis waiting to happen. Central banks in Europe have deployed negative interest rates that rapidly erode value. And in the United States wealth has been borrowed from future economic growth to feed bubbles in stocks and real estate. That’s why billionaires are rapidly rushing into their old standby, gold. It’s the only asset that can be trusted right now.

Massive Debt Pain in China Could Be a Blessing for Gold Investors

Although the economy grew by 6.7% in 2016, the debt is causing a host of problems in China. The main reason many Chinese are buying gold is to preserve wealth against the backdrop of massive fiscal stimulus & lax credit conditions. Never has a big economy piled up so much debt so quickly without serious repercussions. It could be wise to take a lesson from Chinese investors & buy physical gold.

The Real US Economy - A Full-Fledged Credit Crisis Is Inevitable

Americans are filing bankruptcy at the fastest rate in years… A growing number of U.S. businesses are going bust… The value of U.S. auto loans topped $1 trillion for the first time ever. Outstanding credit card debt has also surged to record highs. The value of student loans has doubled since 2009. All this wouldn’t be such a big problem if the economy were doing well… But it’s not.

Here Is Why The US Dollar Collapse Is Imminent

The list of reasons why the US dollar could collapse is getting bigger daily. Here are some factors – Reckless monetary policies by the Federal Reserve. U.S. national debt continues to increase. Other currencies like the Chinese yuan are gaining a significant amount of attention on a global level. Central banks are starting to lose trust in the US dollar as well. Read more…

Will We Return To A Gold Standard Any Time Ever?

The fact that government does not back the currency with anything tangible seems implausible &d insecure. Under the current academic environment, as generations have been misinformed, deceived & lied to, it is unlikely that a return to a gold standard will take place. Until the intellectual battle is won, paper money & central banksters that manage it will continue their reign of financial terror.

Gold Investing Justified By Paradigm Shifts In Politics And Markets

What needs to be considered is the future – that is riddled with uncertainty. What we do know, is that the growing negative sentiment towards our governments that have failed us both politically and economically, presents a need to safeguard wealth from the tides ahead. If you haven’t yet included gold in your portfolios, now is the time to do it.

Giant Financial Bubbles created by Central Banks are Fracturing

Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy & elsewhere in Europe & the sudden trading suspensions by three UK commercial property funds. It’s beginning to feel like August 2007 all over again. Of course, central banks have nothing to do with it at all!

The Looming Bank Run Will Send Gold Prices to $3,000+

How do you think the government would react to the ultimate financial crisis…a bank run that locks Americans out of their own bank accounts? Right now, less than 1% of Americans own a single gold or silver coin. If that number rises to just 2%, it would create a huge demand for gold. It could easily push gold prices to $3,000 or beyond. And easily push silver prices to…?

Central banks may do more harm than good, says RBI's Rajan

Raghuram Rajan, governor of the RBI, has been leery of the unconventional monetary policy tools used by central banks since the financial crisis. At some point, he said, pushing interest rates low seems to have the perverse effect of making people save rather than spend. The asset-price boost that comes with QE may disappear if these assets can’t grow into their valuation.

Betting on Deflation May Be a Huge Mistake. Here's Why

If the metals markets look forward, as markets are supposed to do, they will anticipate the Fed’s response to a strengthening dollar and economic malaise. In 2008, investors knew little about the lengths to which the Fed would be willing to go. Today they DO know. The Fed will overwhelm deflation by creating new inflation.

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.

Commodity Crash Warns Of Imminent Deflationary Financial Crisis

Overall, the Bloomberg Commodity Index is down more than 28 percent over the past 12 months, and it has plummeted by more than half since mid-2011. The exact same patterns that we witnessed just prior to the great stock market crash of 2008 are happening once again. This includes the staggering crash of commodity prices that we are currently witnessing.

All You Need To Know About The US Economy: True Unemployment Is Over 12%

How can an economy that is growing so slowly produce such big declines in unemployment? Something about the U.S. economy isn’t adding up. Either the unemployment data or the GDP calculation is very much wrong. Last week’s failure by the Fed to hike rates is a direct confirmation that nothing with the US economy is as strong as the 5.1% unemployment rate suggests.

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.

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.

Why Stocks Could Fall 50% if the Fed Makes the Wrong Move

I don’t know what the Fed’s going to do. That’s a guessing game. What’s important is that we’re in an extremely fragile situation. The world has too much debt & the Fed’s margin for error is tiny. If it takes a wrong step & stocks plummet 50%, it could cause a bigger financial crisis than in 2008. Do you trust the US government & the Fed to manage this dangerous situation?

What If The Market Crash Is as Rigged as Everything Else?

There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who’s to say this crash isn’t rigged? A few things about this “crash” (11% decline from all time highs now qualifies as a “crash”) don’t pass the sniff test. Take your pick–here’s three good reasons to engineer a “crash” that benefits the few at the expense of the many.

How a Gold Investment Could Make You Millions During a Financial Crisis

Gold is the ultimate form of wealth insurance. I buy it & hope to never have to use it. It’s a vital part of my overall wealth plan. You don’t have to buy a huge amount of gold to have a good insurance policy. But the larger your gold-insurance policy, the better you would do in a financial-disaster scenario. The Right Time to Buy Insurance Is When It’s Dirt-Cheap.

Here’s What Happens When Central Banks Run Out of Ammo

Governments and central banks are arrogant to think they can solve any problem by printing and borrowing money. Their arrogance will eventually cause “the biggest banking crisis in world history.” The next downturn could further expand Fed bond holdings, but with the central banks balance sheet already exceeding $4 trillion, there are limits to how much more the Fed can buy.

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