Musk claimed that his DOGE team was ready to “check” the gold bars to make sure none were missing. For the record, the U.S. Treasury holds 8,133.5 metric tons of gold in the U.S. reserve. A little less than half of that gold is stored at Fort Knox. The rest is mostly stored in a …
Category: Financial Markets
Bond Markets: Reduce Debt and Deficits – deficits will not be financed by the markets
The Land of the Rising Sun is not generally of much interest to global investors — until something goes really wrong, when it does. Japan’s $7.8 trillion government bond market is suddenly causing major financial shocks around the world. A few days ago, Japanese government bonds (JGBs) were the usual haven of calm with ultra-low …
Trump: Attack to “Fortress Europe” through the Bond market with Capital Controls and the abolition of Dollar Swaps
The “monster” of the bond market has awakened after the turmoil of the trade war, this time on the occasion of the detection of fiscal derailment – not only in Washington but also in the major financial capitals. The indications from the long-term bond auctions smell… blood! Foreign investors are selling off American debt after …
Risks to Europe’s financial system from Gold Derivatives
Gold derivatives are now a risk to the global financial system, the European Central Bank said in a note written by its four economists. The note, titled “What does the record price of gold tell us about risk appetite in financial markets?”, comes nearly 25 years after a GATA delegation led by President Bill Murphy …
Credit Default Swaps are back for the US
Credit Default Swaps, or CDS, are a type of security that provides protection against default on bonds. Investors are worried that the U.S. government may struggle to pay its debts — and are buying insurance to protect themselves in the event of a default. The cost of insuring exposure to U.S. government debt has been …
Is a Global bond market crash possible?
Liquidations, steepening and sell-off – The new phase of volatility in global bonds has begun. At a time when the positive side of the distribution curve in US stocks was starting to gain interest again (as we were approaching the point of exercise of options dealers’ “short” positions above 6,000 units of the S&P 500), …
China abandons the Dollar and buys Gold – Liquidated $27.6 billion in US bonds
China’s decision to dump US bonds and at the same time engage in massive gold purchases to bolster its foreign exchange reserves amid a trade war is heralding a monetary earthquake. This move did not come as a bolt from the blue as Beijing’s gradual withdrawal from US debt began during the period of sanctions …
The appreciating yen and the depreciation of the dollar became a nightmare for Japan
As Donald Trump tries to weaken the dollar to boost the US economy and manufacturing, the Japanese yen is developing safe-haven behavior faster than Tokyo policymakers would like – causing monetary policy turmoil in Asia’s second-largest economy. The extent to which the US president’s trade war is hurting confidence in dollar-denominated assets can be seen …
Central banks are geometrically increasing their purchases of gold and are abandoning the dollar
Record gold purchases by central banks signal a major shift in the monetary order – a shift in foreign exchange reserves and significant cracks in the dominance of the US dollar. Last week, the price of gold soared to another record high. While much of the buying has come from investors seeking safety in safe-haven …
Do stock option programs distort valuation ratios?
The distribution of shares, usually free of charge, to business executives is experiencing a great boom, as a reward for the work they have done in previous years. As a move, it is considered positive, both by investors and analysts, as long as not only executives are rewarded, but also shareholders. This is because it …