Commodity Trade Mantra

Posts Tagged ‘Paul Volcker’

An Endless Fiscal Crisis Looms

Since 1985, fiscal policy went on automatic pilot — where it has more or less languished ever since. – U.S. nominal GDP will be lucky to reach $24 trillion by 2024 or so. The math computes out to a public debt equal to 140% of GDP. For all practical purposes, it means an endless fiscal crisis lurks in the nation’s future.

Real Interest Rates have a Real Influence on Gold

Does gold respond to the inflation or rather to the real interest rate? Paul Krugman said once that the reason behind the high real price of gold between 2001 & 2011 was low real interest rates, not the expected inflation. Is he right and are real interest rates really the main driver of the yellow metal price? How do they affect the gold market?

The Volcker Rule and You: What’s Your Bank Doing with Your Money?

Its true that the Volcker Rule wouldn’t have prevented the financial crisis. So is your money safer in the bank with the Volcker Rule than without? There’s no concrete answer, but given that the loopholes are big enough to drive Jamie Dimon’s private jet through, I would say no.

What the drop dead date for the Volcker Rule might mean for Gold

Big trading banks traditionally have occupied the short side of the paper gold market. The Volcker Rule which limits banks’ speculative investments (including gold) goes into effect April 1, 2014. There has already been quite a bit of adjustment to bank portfolios & will get interesting as we move ahead.

Fed Unveils "Self-Regulated" Volcker Rule

Federal Reserve extends Volcker Rule compliance period to July 2015 from July 2014 – Volcker Rule bans banks from owning and sponsoring “covered” hedge funds and private equity funds – Regulators.

Citi Asks "How High Can Gold Ultimately Go?"

Citi – We do not believe that the fall in Gold will be sustainable and expect new highs in the trend eventually – Also retained a long term target of about $3500 for some time on Gold price based on a comparison of this period and that seen in the 1970’s

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