Commodity Trade Mantra

Posts Tagged ‘Financial Meltdown’

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.

Is This How the Next Global Financial Meltdown Will Unfold?

As emerging market currencies decline, income streams needed to service the dollar debt declines: as income & valuations fall, capital flees, pushing the relative value of the currency down even more, which further raises the risk premium which triggers even more capital flight. The sums in play are so staggering, even the Fed won’t be able to stop the financial meltdown.

Plunge Protection Teams of the World, Unite!

When things get very serious, the central bank can buy assets directly, and in such massive quantities that the markets are forced to respond appropriately. If this fails, the last resort is a coordinated buying campaign by all the central banks, acting in concert. This last stand has a rallying cry: Plunge Protection Teams of the World, Unite!

Believe It Or Not - We Are Right On Schedule For The Next Financial Crash

The financial markets have become completely divorced from economic reality & such a state of affairs never lasts forever. It is just a matter of time before a correction comes. Just because something has not happened yet does not mean that it is not going to happen. We are right on schedule for the next great financial crash.

"Buying Time" Doesn't Fix Financial Crises, It Makes the Next One Worse

The strategy of “buying time so the financial system can heal itself” by protecting a systemically destabilizing financial sector has failed because it could only fail. The policies that “saved the financial system” only saved it from the healing process of the market discovering the price of capital, credit, assets, collateral and risk.

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