Commodity Trade Mantra

Posts Tagged ‘Monetary Policies’

Deemed Necessary but Progressively Ineffective Monetary Injections will Support Gold

In the coming months, the central banks of advanced economies will begin to suffer from monetary exhaustion, possibly starting in Japan where the debt burden is now 250 percent of the GDP. As monetary injections will be seen as necessary but progressively ineffective, investors’ confidence in fiat currencies is likely to decline as they will add their gold purchases.

The Gold Bull Begins to Stir - Thanks to the Weakening Economy & Drastic Measures

I expect that the U.S. and other major economies will perform poorly for several years to come, with recession or near-recession business conditions forcing the Fed and other leading central banks to pursue reflationary monetary policies and low interest rates – a bullish long-term mix for gold that promises stagflation and much higher prices for gold later in the decade.

They'll Blame Physical Gold Holders For The Failure Of Monetary Policies: Marc Faber

The failure of monetary policies will not be admitted by the central banks – they will then go and blame someone else for it and then an easy target would be to blame it on people that own physical gold because they can argue, well these are the ones that do take money out of circulation and then the velocity of money goes down, we have to take it away from them.

Economic Inequality and the Gold Standard

Economic inequality declined in the US from 1917 to the early 1970s when Nixon took America off of the gold standard. The trend has been for greater economic inequality ever since. Part of the answer to the problem of economic inequality is to return to an honest and sound monetary system including — but not limited to — the gold standard.

Avoid the Next Global Financial Crisis - Invest in Gold

The ultimate conclusion to the events now unfolding will take the world in one of two directions: an economic meltdown, or a dramatic re-correction. Gold, too, will struggle temporarily, if only because of the shock factor. But just as it did in the last crisis, gold will gather its bearings & prove to be a safe haven for shell-shocked investors & savers.

Can Money Printing Cause Deflation?

Over the last 45 years I have observed that, in countries with high monetary inflation, real wages and incomes have tended to decline. Incidentally, this has also been the case since the turn of the millennium in the US, a period in which there has been a colossal expansion of money and credit.

The Four Pillars of Poverty - Marc Faber

The increase in poverty rests on four pillars: Cultural & social factors, educational issues, excessive debt & government handouts, which encourage people not to work. Other factors: International competition – keeps wages down; Monetary policies – create bubbles & impoverish the majority.

Why Some Emerging Markets Are Heading for a Economic Bust

A tighter monetary stance undermines the rate of growth of money supply and thus weakens support for various bubble activities. This sets an economic bust in motion. The main reason for the tighter stance was a sharp decline in exchange rate of domestic currencies against the US dollar.

Why The Fed Likely Won't Taper...Anytime Soon

Its unlikely the Fed will taper its purchases in Dec as government once again begins to debate over raising the debt ceiling. A March taper is also unlikely as the Fed will be dealing with two primary issues then – Evaluating impact of Debt ceiling deal & transition of control at the Fed.

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