Commodity Trade Mantra

Posts Tagged ‘Foreign Currency’

Is Gold and Silver Bull Market Intact or will US Dollar Strength Crush it?

Conventional wisdom would tell us with the US$ index nearing a major breakout, gold and silver would be vulnerable to further losses. Ultimately, as long as Gold and silver’s fundamental driver – declining or negative real interest rates remain in place, then the fledgling bull market will remain on track. With inflation poised to rise, real rates are likely to decline further in 2017.

Gold Replacing the US Dollar as Reserve Asset

Fiat currencies are dying. Central banks will not actively back their currencies with gold but gold will replace foreign currency reserves. Many of the high debt countries like e.g. Greece, which look bad in today’s fiat currency context, will actually fare well in this transition of gold taking over the reserve asset status from fiat currency.

Will China's Currency Peg Be the Next to Fall?

A pegged currency rises & falls against other currencies along with the underlying currency. As the dollar weakened from 2010 to mid-2014, China’s Renminbi weakened along with it. Now that the USD has gained 16% in less than a year, that’s dragging the RMB / Yuan higher with it, making China’s goods less competitive outside the US.

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.

With Its Gold Vaporized, A Furious Ukraine Turns On Its Central Bankers

It was only a matter of time before Ukraine’s people finally got angry & demanded answers. A Kyiv-based court has instructed prosecutors to bring an action against National Bank of Ukraine Governor Valeriya Gontareva, who Kravets claims has intentionally committed an unfavorable transaction for the gold & forex reserves of Ukraine.

IRS Rules Bitcoin Is Property - Not Currency

The IRS has issued its statement clarifying th etax treatment of Bitcoins – Bitcoin and other virtual currencies are treated as property, not as a currency. Therefore, an investor who buys bitcoin would typically have a capital gain or loss when it’s sold but wouldn’t have foreign-currency gains and losses.

The Tragic Truth Behind A Guilty Bank (JPMorgan) Paying A $13 Billion Fine

To JPMorgan Chase, paying $13 billion is nothing more than a “licensing fee.” So what if it’s far and away the largest penalty ever paid to settle a civil investigation? – It doesn’t matter that these big banks are criminal enterprises. The only thing that matters is that they pay their licensing fees.

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