Risks to global inflation remain strongly on the upside, as the oil price shock may have longer-lasting and more persistent knock-on effects than initially expected, according to new analysis by Trust Economics. The report’s key finding is that the deflation of inflation in the coming years may prove much slower, particularly in advanced economies and …
Tag: central banks
If banks have difficulty replacing expiring SRTs, then this systemic bomb will blow markets into the air
SRTs (Significant Risk Transfer), the new, rapidly growing “fashion” of European banking giants, are coming under the microscope of international regulators and central banks. This is an extremely complex financial tool through which credit institutions transfer the default risk of their loan portfolios to hedge funds and private equity funds. While the strategy is a …
Central Banks – They are selling US bonds non-stop due to the War in Iran
As the Iran war upends decades of balance sheets, central banks around the world are making a desperate move, dumping U.S. Treasuries at a pace not seen since 2012. Spiking energy prices and suffocating pressure on national currencies are forcing the world’s major economies to liquidate their reserves to avoid a total collapse. It’s a …
Inflationary shock and Interest rates are crashing Debt markets
Government bond prices collapsed globally as investors rushed to bet on higher interest rates after major central banks showed renewed concern that rising oil prices would trigger an inflationary shock. Three weeks after the start of the Iran war, the fallout has put upward pressure on short-term bond yields, defying until recently widespread expectations that …
Is the rise of Gold preparing for the coming disaster? What happened in 1970 and 2007?
Gold prices continue to hit record highs as rising geopolitical risks fuel safe-haven demand. The price of gold has topped $4,500 an ounce for the first time, with the precious metal up about 71% year-to-date. Gold started 2025 at $2,620 an ounce, weighed down by geopolitical developments, U.S. government tariffs and global political uncertainty. When …
Global Central bank war for gold and economic dominance
The reshaping of the global monetary system is happening, one gold bar at a time. Between 2022 and 2024, central banks bought more than 3,000 tons of physical gold — possibly the most intense period of accumulation of the precious metal since the 1970s. This is not nostalgia for the Bretton Woods era, but a …
Gold buying frenzy is reshaping global foreign exchange reserves
A historic gold buying spree by central banks is reshaping global foreign exchange reserves, signaling a broader shift away from the dollar amid growing geopolitical and economic uncertainty. Silent inventory reallocation Central banks buy more than 1,000 metric tons of gold annually, with much of that buying unreported. Heightened fears of the dollar being weaponized, …
Why don’t central bankers want private money? – The stablecoins revolution
In a recent speech in Portugal, Christine Lagarde — president of the European Central Bank (ECB) — gave a stern warning about the emergence of stablecoins, stating that they could lead to the creation of “new private currencies.” These stablecoins, which are tokens (digital tokens) backed by government currencies (fiat), pose a serious threat to …
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 …
The trade war is becoming monetary – Dilemma whether to devalue their currency
Uncertainty over US policy has led to a flight from the dollar and US bonds, with the dollar index down more than 9% so far this year. The dollar’s decline has led to other currencies appreciating against it, notably safe havens such as the Japanese yen, the Swiss franc and the euro. Currency depreciation is …