Commodity Trade Mantra

Posts Tagged ‘US Treasury’

When the Bond-fire has finally run its course, Gold and Silver will Emerge Victorious

Today’s rising interest rates & trillion-dollar losses in global bond markets are prelude to what is to come,- Rising inflation with higher interest rates ending in the bursting of global government bond bubble & long awaited breakout in gold. The battle between capital & free markets is almost over; & when the bondfire has finally run its course, gold and silver will be victors.

A Scramble for Gold has Begun - Jim Rickards

What drives gold’s new allure? In some cases, central banks are constructing a hedge against US dollar inflation. Countries are also acquiring gold in advance of a collapse of the international monetary system that has a shelf life of about 30 years. The system has collapsed three times in the past century. Each time, major financial powers came together to write new rules.

US Treasury Finally Updates The Total US Debt Number, And It Is...

On March 16 of 2015, the US Treasury officially hit what was then the US statutory debt limit of $18.113 trillion. After 162 work days without an update, the latest US debt number is $18,492,091,120,833.99 (yes, and 99 cents), an increase of $339.1 billion since the latest official pre-debt ceiling update. This is also 102.5% of US GDP.

Central Banks Have Become A Corrupting Force

The US government has a “plunge protection team” consisting of the US Treasury & Federal Reserve. The purpose of this team is to prevent unwanted stock market crashes. If central banks purchase stocks in order to support equity prices, what is the point of having a stock market? If central banks cannot properly conduct a monetary policy, how can they conduct an equity policy?

Here Is Why The Fed Can't Hike Rates By Even 0.25%

The US Treasury and the Federal Reserve (where Zoltan Poszar previously worked) understand and grasp the momentuous implications of even the smallest quantum of interest rate increase. What the Fed doesn’t want, is not one but one thousand LTCMs going off at exactly the same time in what is now the world’s most levered trade.

IMF’s Gold Depositories- Nagpur & Shanghai: Indian & Chinese connections

The IMF holds the equivalent of US$27.5 million in gold with Reserve Bank of India in Bombay. IMF has received a letter from the Reserve Bank stating that it has recently opened an office at Nagpur, which is situated about 520 miles from Bombay in the interior of the country & contains a special vault for storing the Bank’s stock of gold.

Gold Is Beginning to Lose Less Badly Against the US Dollar

Over the last few years, gold has simply been losing the war against the US dollar. Though gold’s price is stabilizing, its struggle against the US dollar is uphill, and that the dollar still has a strong upper hand. Important moves in gold originate from deep changes in the global monetary and financial system.

The Biggest Economic Story Going Into 2015 Is Not Oil, But Emerging Markets

Emerging markets today are half the world economy. Much of what happened in global credit markets, especially in emerging markets, was based on cheap, easily available dollars, which has ended. It used to be said that when the US economy sneezes the rest of the world catches a cold. Now it seems all we need is a hiccup in emerging markets.

Watch the Petrodollar - Ron Paul

Want to know when the fiat US dollar will collapse? Watch the petrodollar system & the factors affecting it. This is important, because once the dollar loses its coveted reserve status, the consequences will be dire for Americans. It will be the day when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars.

China Likely Bought 10,000 tons of Gold. And if They Did, Here’s Why

China’s gold holdings would act as an insurance policy paying off in the case of a dollar dilution. China may be protecting itself from itself as much as from the US because if they follow the Japanese and US model to print their way out of a real estate collapse…gold may simply be “priceless” in sovereign currencies.

The Russian Empire Strikes Back

The Russians will get through these & even further sanctions from the United States. Natural gas in Europe currently sells at more than a 100% premium to North American natural gas prices. When US imposes a sanction on Russian uranium, then its serious. Until then, current sanctions are nothing more than political posturing.

The U.S. Dollar Under Siege - Long-Term Financial Implications

The US debt will continue its rapid growth that began in 2008. Historically, foreigners have been a reliable source of US Treasury purchases. But with the US issuing so much debt, foreigners have become saturated with US dollars and so have slowed their buying considerably.

Gold Forward Offered Rate (GOFO) Turned Negative AGAIN: The Consequences

Historically, GOFO rates (Gold Forward Offered Rate) have only been negative twice since 1999, but have frequently moved into negative territory over the past year. We believe this is a result of on going large shift of gold from the west to the east. GOFO is back negative again, 7th time since July 8, 2013.

New York Federal Reserve Lying About Gold Storage

Although I’m not sure every gold lease requires a movement of physical gold, the statement from the NY Fed they grant to return the exact same bars deposited by the account holder upon withdrawal, is untenable. As we have clearly seen by the repatriation of some German gold from the NY Fed.

Dark Gold: Shedding Light On A Mysterious Market

Once an individual locks his or her safe, that gold effectively disappears from the market at large. Unlike bank deposits or stocks, there is no way to tally the total amount of gold held by individual investors. I like to call this concept “Dark Gold.”

Hyperinflation of The Reserve Currency And The US Reaction

That all fiat currencies end the same is no secret. Reserve currencies are not immune – Just as every fiat currency has fallen in the past, the same goes for every reserve currency. What makes the dollar special is that we are living through the last 1% of its purchasing power.

The Greatest Debt Crisis The World Has Ever Seen Is Coming

This debt crisis is going to end up destroying the global financial system and the unprecedented debt binge seen right now is going to continue until someday we hit a brick wall of financial disaster. We can yell and scream, but what is happening isn’t going to stop.

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