Monday, September 24, 2018

Why gold investors should look at silver too

Silver prices hit a two-year high above $21 per ounce on Monday, as precious metals continue to gain from the safe-haven rally following the U.K. referendum. Some investors say silver has further to run and may be a better bet than gold. "Silver is a metal that most people don't really...

Yellen Outsources U.S. Monetary Policy to the Financial Markets

The Federal Reserve looks to have outsourced monetary policy to the financial markets -- and that may not necessarily be bad. Fed Chair Janet Yellen told the Economic Club of New York on Tuesday that policy makers had scaled back the number of interest rate increases they expect to carry...

The Looming Mystery Behind the Panama Papers: How Did the Largest Document Leak In...

After similar coups by WikiLeaks and others, we had an idea of who pulled the trigger, and why. Not this time. “Hello. This is John Doe. Interested in data?” That line — apparently written in English and using an American cultural reference — is much of what we know about the source, possibly a hacker, behind the...

BlackRock to Wind Down Macro Hedge Fund

BlackRock, the world’s biggest asset manager, is closing a billion-dollar hedge fund that made money for investors with bets on macroeconomic trends around the world. The BlackRock Global Ascent hedge fund has lost 9.4 percent this year and investors in the $1 billion fund were notified over the last week...

Fed, again, left with egg on its face as recovery falters

All that hawkish Fed talk in recent weeks, as well as the market's knee-jerk reaction, seemed kind of silly after Friday's dismal jobs report. Expectations for a summer rate hike fell into a sinkhole Friday after the Labor Department reported that nonfarm payrolls grew by just 38,000 in May, amounting...

Washington Launches Its Attack Against BRICS

Having removed the reformist President of Argentina, Cristina Fernandez de Kirchner, Washington is now disposing of the reformist President of Brazil, Dilma Rousseff. Washington used a federal judge to order Argentina to sacrifice its debt restructuring program in order to pay US vulture funds the full value of defaulted Argentine...

Japan may be on route for a soft form of helicopter money

Japanese policymakers, who won't go as far as funding government spending through direct debt monetization, might pursue a mix of aggressive fiscal and monetary expansion to battle deflation, say sources familiar with the matter. In the past week, Japanese markets have seen hyped-up speculation that the government will resort to...

Gold’s Rally Means Old Rings Are Headed to the Melting Pot

The surprising rebound in gold prices this year has given new life to unwanted jewelry, coins and trinkets -- in the melting pot. More than a third of the world’s bullion supply usually comes from recycled metal, but purchases at pawn shops and cash-for-gold companies had slowed during a three-year slump...

World faces wave of epic debt defaults, fears central bank veteran

Exclusive: Situation worse than it was in 2007, says chairman of the OECD's review committee. The global financial system has become dangerously unstable and faces an avalanche of bankruptcies that will test social and political stability, a leading monetary theorist has warned. "The situation is worse than it was in 2007....

The Deflation Monster Has Arrived

As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling. Just in the two weeks since the start of 2016, the US equity markets are down almost 10%. Their worst start to...

Venezuela: how the socialist paradise turned into debt and hyperinflation hell

They call them bachaqueros. Venezuela's army of black market shoppers descend every day at dawn outside Caracas’s biggest stores. Named after the bachaco leaf-cutting ant that carries several times its weight, the men and women queue alongside hundreds of other Venezuelans for food, nappies, milk and other basic goods. A demonstrator...

Gold surges most in 2 years in panic buying after Brexit shock

Gold surged on Friday to its highest level in more than two years, and posted its biggest daily gain since 2008, as shaken investors snapped up the safe haven asset amid fears of further market turmoil after Britain shocked the world by voting to leave the European Union. Gold for...

$2.5 Trillion in Wealth Has Vanished since Monday

The financial markets are in chaos... Chinese stocks crashed again last night, dropping 7% in less than an hour. The Shanghai Composite Index is now down 11.7% this week, and 40% since peaking last June. For the second time this week, China’s stock exchange completely shut down. As Dispatch readers know,...

Equities tumble on oil drop, but finish well off lows

Global equity markets staged a late rebound along with oil prices on Wednesday to cut declines from 2-1/2 year lows, but remained on pace for one of the most dismal monthly performances on record. Oil prices tumbled once again after the International Energy Agency warned Tuesday the market could "drown...

ECB risks freezing repo market, ICMA official says

(Reuters) - The European Central Bank (ECB) risks secured-lending or repo markets grinding to a halt unless it works more closely with national central banks (NCBs) to improve liquidity, a senior trade association official told Reuters. The 5.5 trillion euro ($6 trillion) repo market is vital for banks and companies...

Panama Papers: Massive Tax Haven Document Leak Exposes Corruption and Crime on Global Scale

A trove of files obtained by German journalists reveals how a global industry of law firms and large banks sell financial secrecy services to politicians, crooks and drug dealers as well as billionaires, celebrities and sports stars. A massive leak of millions of documents has revealed that heads of state,...

Global Currency Tensions Rise

Japan's Abe Calls on Central Bank to Resist Easing Moves by U.S. and Europe. TOKYO—Japan's incoming prime minister fired a volley into increasingly tense global currency markets, saying the country must defend itself against attempts by other governments to devalue their currencies by ensuring the yen weakens as well. Shinzo Abe's...

Behind the Facade: America, The Bankrupt Hegemon

Fantasy and fairy tales can go only so far when it comes to the true condition of anything or anyone. Sooner or later the truth must out. This is very much the case when looking at the true condition of the nation the Chinese call, The Hegemon, the not-anymore-so-United...

Subprime Flashback: Early Defaults Are a Warning Sign for Auto Sales

High level of missed payments for such loans made recently has raised concerns about underwriting standards. To understand how far the U.S. auto business has been reaching for new customers, consider the early performance of a bond issue called Skopos Auto Receivables Trust 2015-2. The bonds were built out of subprime...

Fed’s Eric Rosengren Sees Reasonable Case for Gradual Rate Increases

Federal Reserve Bank of Boston president finds U.S. economy resilient despite drag from overseas. Federal Reserve Bank of Boston President Eric Rosengren said Friday that “a reasonable case can be made” for tightening interest rates to avoid overheating the economy. Holding rates at their current low level for much longer risks...
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Former Fed President: We Injected Cocaine And Heroin Into The System To Create A...

Just two months ago, former Fed President Dick Fisher admitted that "The Fed front-loaded an enormous market rally in order to create a wealth effect." Today he is back, taking a victory lap onthe 7th anniversary of the crisis lows by explaining, rather stunningly, to CNBC that "we injected...

Deutsche Bank Über Alles

While Germans weren’t looking, the quiet steward of German industry became a globalized risk-taking behemoth that might take the country’s economy down with it. Modern Germany was built around iconic firms, and over the past year, quite a few have taken a knock. Siemens is only now starting to recover...

ECB can only buy time, not solve eurozone growth woes

Mario Draghi’s efforts will count for little without structural reforms and more aggressive use of fiscal policy by European governments. For most of its short life, the European Central Bank fretted about inflation being too high. Now it has the opposite concern. The fear of deflation explains the package of measures...

The Rich Get Richer

Why are stocks still flying-high when the smart money has fled overseas and the US economy has ground to a halt? According to Marketwatch: “For the eighth week in a row, long-term mutual funds saw more money flowing out of U.S. stocks and into international stocks, according to the Investment Company Institute……For the...

U.S. Import Prices Rise at Fastest Pace Since 2012

May’s 1.4% jump indicates rising oil prices are contributing to firming domestic inflation. WASHINGTON—Prices for imported goods rose in May at their fastest pace in over four years, a sign that rising oil prices and the fading strength of the dollar are contributing to firming domestic inflation. May saw the third...

G20 Urges U.S. Action on IMF Reforms by April

WASHINGTON, (IPS) - The Group of 20 (G20) industrialised and emerging economies on Sunday formally expressed frustration with the ongoing inability of the United States to approve a major reform package that would see governance at the International Monetary Fund (IMF) shift more towards developing countries. The reforms were approved...

How Federal Reserve Quantitative Easing Expanded Wealth Inequality

The Brookings Institution earlier this month held a conference entitled, “Did the Fed’s quantitative easing making inequality worse?,” examining whether central bank long-term asset purchases (commonly known as quantitative easing) expanded wealth inequality through boosting prices of financial assets that are disproportionately owned by wealthier households. Former Fed chairman Ben...

May trade deficit jumps 10% as U.S. consumers snap up more imports

Trade gap climbs to three-month high of $41.1 billion. WASHINGTON (MarketWatch) — Higher oil prices and stronger demand by consumers for imports such as cell phones, sneakers and home furnishings boost the U.S. trade deficit in May by 10% to a three-month high. The nation’s trade gap climbed $41.1 billion from...

U.S. Commodity Regulator Was Unaware About Deutsche Bank’s Gold-Rigging Until Ten Days Later

Almost two weeks ago, On April 14, we reported the striking news that Deutsche Bank has decided to "turn" against the precious metals manipulation cartel by first settling long-running silver and gold price fixing lawsuits which in addition to "valuable monetary consideration" would expose the other banks' rigging after...

Actually, the Surging Yen Could Be a Good Thing for Japan’s Economy

It's gold for the old. The lofty yen, the best-performing G10 currency in 2016, threatens to serve as an arrow to the heart of Japan's Abenomics, crimping exports and dampening inflation at a time when the country is trying to boost both. During an interview on Bloomberg TV, however, UBS AG...

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