Central banks around the world are hoarding gold at a record pace, signaling a transformation of historic proportions in the global financial system. This “gold rush” is not just about a defensive strategy to preserve the value of assets from the “storms” of the global economy – it is a strategic move on the grand …
Category: Financial Markets
Light Painkiller the interest rate cut, loop the over-indebtedness
While the Federal Reserve and European Central Bank’s message on rate cuts appears clear as they reiterate their commitment to reducing inflation, the market expects between five and six rate cuts, between 125 and 150 basis points , the next twelve months. This shows us the tendency of investors to overlook bubbles. We live in …
Where is the “smart money” looking for refuge while Wall Street is at historic highs?
Wall Street may be at all-time highs, but “behind the lines,” there’s a mass exodus from bonds, a frenzy for gold, and a dollar selloff. “Smart money” is looking for safe havens. And all this while the markets worldwide are experiencing, more or less, a santa rally, giving the message that everything is fine. But …
What do we expect about Stocks, Bonds and Gold for 2024?
Companies faced the spike in inflation to boost their profit margins – a phenomenon known as greed inflation. As a result, consumer prices have probably risen more than warranted, with cash hoards built up thanks to the expansionary fiscal policy of governments around the world during the pandemic making consumers less price-sensitive. Margins rise again …
How healthy is the Global Banking “system”?
Markets are still digesting the fallout from the failure of Silicon Valley Bank, the second largest bank failure in US history and the biggest collapse since the 2008 financial crisis, which was quickly followed by the collapse of New York’s Signature Bank, when suddenly what seemed to be just a problem of mid-sized American banks …
The digital dollar and the collapse in the “fake” wealth of the markets
Why did the decoupling of production from consumption through the operation of financial markets and the leverage of values become the greatest historical economic experiment? The financial “bubble” that began in the late 1980s is expected to burst with a wave sweeping away the forms of economies we know. “Bad currency” had long driven out …
Russia has abandoned the dollar and is increasing its foreign exchange reserves in yuan
In a state of war economy, Russia has survived and is victorious in a currency war that was declared against it by the West. Urals oil exports in local currencies, mainly with China and India, as well as the failure of sanctions on Russian energy goods boosted the country’s foreign exchange reserves and prevented the …
When are Real values produced vs the “Bubbles” of Casino Capitalism
In a complex juncture where few wise people “read” the real facts of economies, it is time to face structural questions: Many people believe – and on the surface they are not wrong – that a general increase in stock prices is an important factor in the strength of an economy. However, this is an …
FED: Vicious economic cycle with interest rate hikes leads to a crisis-crash like 1930s
The Fed’s “medicine” of lowering interest rates appears to be killing the sick American economy. The credit crunch due to unprecedented tight monetary policy has led to a surge in bankruptcy filings, portending a vicious recession and soaring unemployment. The flow of money supply (the dollars the Fed prints) fell again in October, remaining deep …
Why High Investment Grade Bonds remain the preferred choice?
Bonds and especially those characterized as high investment grade remain the preferred choice for Trust Economics. With yields trading at multi-year highs – a result of interest rate hikes by central banks – government bonds offer returns far better than any deposit account (even term deposits) while missing the risk of equity investments and commodities. …