Commodity Trade Mantra

Posts Tagged ‘Negative Rates’

Is There A Better Insurance Against Global Risk Than Gold? I Doubt It!

Negative rates kill the incentive to save & without savings, there will be no investments or growth in the economy. But the biggest disaster is hitting the pension sector. When risks are major, it is critical to protect yourself against them. It is not a coincidence that some of the most successful investors in the world are recommending physical gold as insurance against these risks.

Negative Rates Confirm The Failure Of Globalization: Deutsche Bank

Negative interest rates may or may not be a thing of the past, but the confusion about their significance remains. Here is Deutsche Bank’s Dominic Konstam explaining how, among many other things including why Europe will need to “tax” cash before this final Keynesian experiment is finally over, negative rates are merely the logical failure of globalization.

What Savers Do Under Negative Rates - The "Perversely Negative" Impact Of Going Negative

The initial market reaction on negative rates has been to see it as an act of desperation by central banks to keep up the momentum of economic growth. The risk is that this negative sentiment will infect the real economy, serving to depress spending. If so, the danger is that NIRP will have an impact on economic growth that is not merely non-linear, but perversely negative.

The Negative Rates "Doom Loop" That Can Wipeout Banks & Global Economy

In a way, the move below zero was a gamble. The theory went like this: Banks would take a hit, but negative rates would get the economy moving. A stronger economy would, in turn, help the banks recover. It appears that wager isn’t working. The consequences are deeply worrying. Weak banks may now drag the economy down further.

Gold Prices Are Soaring Right Now - Here's What's Next

The World Gold Council said it’s largest customers, China, India & Russia will be adding to their stockpiles of physical gold & that the global stock market turmoil would be enough to keep gold demand strong this year. Well, I would say that’s all fine and good, but the main currency that gold is concerned about is the dollar.

Gold To $1,400 As Faith In Central Banks Is Lost: Jeff Gundlach

In his latest communication with the outside world, Jeff Gundlach said that gold prices are likely to reach $1400 an ounce “as investors lose faith in central banks. “The evidence that negative rates are harmful and not helpful has piled up to the point that the ‘In Central Banks We Trust’ mantra has finally been laid bare as a hoax,” Gundlach said.

Negative Rates In The U.S. Are Next: Here's Why In One Chart

The Fed will follow the footsteps of negative rates in Sweden, Denmark, Europe, Switzerland & now Japan. Will this crush money markets as we know them & unleash even more volatility & havoc around the world? Absolutely. But at this point, when every other central bank has lost credibility “what differnce will it make” if the Fed joins the party on the central bank Titanic?

NIRP Officially Arrives In The US As JPM Starts Charging Fees On Deposits

NIRP is now officially in the US, which means that one after another US commercial banks will join what has already become a NIRP free-for-all across most of continental Europe where NIRP now reigns supreme & where trillions in government bonds yield negative rates. JPM is preparing to charge large institutional customers for deposits.

How to Position Your Portfolio to Win in the Currency Wars - GOLD

After recent QE announcement by ECB, euro-to-yen swap rate has gone back to where it was & yen is even stronger! Precisely what Germany wants because it’s biggest competition in machine tools, robotics & automation is Japan. This is currency wars. Currency wars are not genteel, friends-and-family squabbles. This could get ugly.

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