This post was published at Jay Taylor Media
The significance of the shift taking place on a geo-political basis to unseat the U. S. dollar as the world’s reserve currency cannot be understated. It is, by all means, a complete upending of the financial and economic systems as we have come to know them. According to Keith Neumeyer, the Chairman of First Mining Finance and Chief Executive Officer of First Majestic Silver, the world’s purest silver producing mining company, the move is already taking place with countries like China, Russia, Venezuela and Iran already beginning to trade commodities with Yuan, Rubles and gold.
Amid a recent announcement about developments in the gold and silver mining industry discussed in the following interview with SGT Report, Neumeyer, who previously called out, in very public fashion, the manipulation of precious metals by a small concentration of market players, says that the global currency wars currently playing out on the monetary battlefield will lead to significant price increases in the world’s most trusted hard assets of last resort.
This post was published at shtfplan on September 24th, 2017.
The primary purposes of the incorrectly named ‘unconventional monetary policies’ are to debase the currency, stoke inflation, and make exports more competitive. Printing money aims to solve structural imbalances by making currencies weaker.
In this race to zero in global currency wars, central banks today are ‘printing’ more than $200 billion per month despite that the financial crisis passed a long time ago.
Currency wars are those that no one admits to waging, but everyone wants to fight in secret. The goal is to promote exports at the expense of trading partners.
Reality shows currency wars do not work, as imports become more expensive and other open economies become more competitive through technology. But central banks still like weak currencies -they help to avoid hard reform choices and create a transfer of wealth from savers to debtors.
The Euro Rallies So how must the bureaucrats at the European Central Bank (ECB) feel when they see the euro rise against the U. S. dollar and all its main trading currencies by more than 12 percent in a year, despite all the talk about more easing? The ECB will keep buying 60 billion euro a month in bonds, maintain its zero interest-rate policy, and keep this ‘stimulus’ as long as it takes, until inflation growth and GDP growth are stable.
This post was published at Ludwig von Mises Institute on Sept 12, 2017.
It’s time to start worrying about currency wars again.
Moments ago, with the EURUSD trading just shy of 1.19 and having risen above the “red line in the sand for corporate profits” 1.20 mark earlier in the week, the ECB again used its favorite trial balloon news service, Reuters, to suggest that not only is Draghi not in any rush to announce tapering (or tightening) of the European central bank’s QE and/or NIRP (something last week’s Jackson Hole confirmed all too well), but that with a growing number of ECB policymakers worried about the strong Euro, there is an increasing chance of a “more gradual exit” from asset purchases, Reuters reported:
EURO CONCERNS INCREASE CHANCE OF DELAY IN QE DECISION, OR A MORE GRADUAL EXIT FROM ASSET PURCHASES: RTRS STRONG EURO IS WORRYING A GROWING NUMBER OF ECB POLICYMAKERS: RTRS Some more details from Reuters:
This post was published at Zero Hedge on Aug 31, 2017.
The next two days are very crucial for all metals and energies. Gold, silver, copper and nickel are bullish but need to break key resistances for another wave of rise. If gold, silver, copper and nickel do not break key resistances then there can be a sell off. Zinc and lead are testing key short term support. Either zinc and lead hold those key supports or else there will be a sell off. Crude oil needs to break and trade over $49.00 this week to prevent short sellers from getting the upper hand. Natural gas is bullish but once again like bullion, they need to break key resistances for another wave of rise.
Central bank currency wars are not over yet. Tomorrow’s European central bank meeting will be relevant only with statement directing at altering the current strengthening trend of the euro.
Bitcoins – current price $2267.00
Trend is bullish. Bitcoin can rise to $2370 and $2646 as long as it trades over $2224. Sellers will be there below $2224 to $2044 and $1882. Key support till Friday is at $2044.
This post was published at GoldSeek on 19 July 2017.
– ‘Time to position in gold is right now’ – James Rickards
– Fed has hit the ‘pause’ button; No more rate hikes for foreseeable future
– Fed’s theories ‘bear no relation to reality’ and has ‘blundered by raising rates’
– Growth is weak, inflation is weak, retail sales and real incomes are weak
– Tight money, weak economy & stock bubble classic recipe for market crash
– Reduce allocations to stocks and reallocate to defensive assets such as gold
– ‘Gold will be the big winner when the Fed suddenly realizes its blunder’
James Rickards, geopolitical and monetary analyst and best selling author of ‘Currency Wars’, ‘The Death of Money’ and ‘The New Case for Gold’ wrote yesterday in the Daily Reckoning that the ‘time to position in gold is right now.’
In an timely piece, Rickards points out how the Federal Reserve is behind the curve, has ‘theories that bear no relation to reality’ and has ‘blundered by raising rates.’ This is happening at a time when the U. S. economy and stock markets are very vulnerable.
This post was published at Gold Core on July 19, 2017.
Currency moves can be “brutal,” as the European Central Bank well knows, since then-ECB President Jean-Claude Trichet used that memorable adjective more than a decade ago. The problem for the ECB is it may be heading down a dark alley where two well-armed peers await.
Investors have reasonable clarity about the medium-term policy outlook for the U. S. Federal Reserve and Bank of Japan, with both central banks effectively anchoring long-term rates.
The Fed’s dot plot, along with senior policy makers’ comments, have cemented the idea that the benchmark rate will top out at 3 percent, a level that won’t be reached for years.
The BOJ has explicitly frozen long-term bond yields through its yield-curve control, and Governor Haruhiko Kuroda made crystal clear two weeks ago that he’s not about to embrace stimulus tapering.
This post was published at Zero Hedge on Jun 30, 2017.
Mike Gleason: It is my great privilege to be joined now by James Rickards. Mr. Rickards is editor of Strategic Intelligence, a monthly newsletter, and Director of the James Rickards Project, an inquiry into the complex dynamics of geopolitics and global capital. He’s also the author of several bestselling books including The Death of Money, Currency Wars, The New Case for Gold, and now his latest book The Road to Ruin.
In addition to his achievements as a writer and author, Jim is also a portfolio manager, lawyer and renowned economic commentator having been interviewed by CNBC, the BBC, Bloomberg, Fox News and CNN just to name a few. And we’re also happy to have him back on the Money Metals Podcast.
Jim, thanks for coming on with us again today. We really appreciate your time. How are you?
Choose From 10-100oz Pure Silver Trusted Bullion Dealer – Buy Now! silvergoldbull.com Jim Rickards: I’m fine, Mike. Thanks. Great to be with you. Thanks for having me.
Mike Gleason: Absolutely. Well first off, Jim, last week, the fed increased the fed funds rate by another quarter of a point as most of us expected, but during that meeting, we also heard Janet Yellen say she wants to normalize the Fed’s balance sheet, which means the Fed could be dumping about $50 billion in financial assets into the marketplace each month. Now you’ve been a longtime and outspoken critic of the fed and their policies over the years. So, what are your thoughts here, Jim? Do you believe they will actually follow through on this idea of selling off more than $4 trillion in bonds and other assets on the Fed’s books? And if so, what do you think the market reaction would be including the gold market?
Jim Rickards: Well, I do think they’re going to follow through. Of course, it’s important to understand the mechanics of the Fed. They’re actually not going to sell any bonds. But they are going to reduce their balance sheet by probably two to two and a half trillion. So just to go through the history and the math and the actual mechanics there, so prior to the financial crisis of 2008, the Fed’s balance sheet was about $800 billion. As a result of QE1, QE2, QE3, and everything else the fed has done in the meantime, they got that balance sheet up to $4.5 trillion. By the way, if the Fed were a hedge fund, they’d be leveraged 115 to one. They look a really bad hedge fund. But that’s how much the Fed is leveraged, they have about 40 billion of equity, versus 4.5 trillion of assets. Mostly U. S. government securities of various kinds. So, they’re leveraged well over 100 to one.
This post was published at GoldSilverWorlds on June 23, 2017.
Cyber wars are a bigger threat to humanity than nuclear weapons, the world’s richest and most famous investor Warren Buffett, presciently warned a few days ago.
‘I do think that’s the number one problem with mankind,’ Warren Buffett warned during Berkshire Hathaway’s annual shareholder meeting on May 6th.
‘I’m very pessimistic on weapons of mass destruction generally although I don’t think that nuclear probably is quite as likely as either primarily biological and maybe cyber,’ Buffett said during Berkshire Hathaway’s annual shareholders’ meeting. Unlike most of Buffett’s pronouncements, this clear and very strong warning was not reported widely.
‘I don’t know that much about cyber, but I do think that’s the number one problem with mankind’ said Buffett as reported by Business Insider UK.
Last year, Buffett told CNBC – cyber, nuclear, biological and chemical attacks – posed a major threat to the economic well-being of Berkshire shareholders.
Echoing Buffett’s cyber concerns, today one of the world’s leading experts on currency wars, financial warfare, cyber terrorism and cyber war, James Rickards has again warned that cyber attacks may have already compromised the U. S. national security and could turn a ‘bad day on Wall Street into a full blown crash’.
This post was published at Gold Core on May 16, 2017.
The first 100 days of the Trump administration have brought some surprises and disappointments – as well as some new threats and new opportunities for precious metals investors.
Among the disappointments was President Trump’s inability to push Obamacare repeal through Congress. The White House intended for the GOP’s replacement to reduce the deficit and lay the groundwork for tax cuts.
Now there is a very real chance that no tax reforms whatsoever will be passed this year. And that would be an even bigger disappointment to many investors. Ideological divisions within the GOP may well lead to debt ceiling brinksmanship and a possible government shutdown.
Trump’s surprise about-face on foreign policy in ordering bombings in Syria could have far-reaching implications for U. S. relations with other problem regimes including Iran, Russia, China, and North Korea. The geopolitical risks going forward are many and range from a new Cold War, to trade and currency wars, to the worst-case scenarios of a North Korean attack on Hawaii or an all-out nuclear war.
This post was published at GoldSeek on Friday, 5 May 2017.
Jim Rickards joined up with Stephen Guilfoyle, also known as ‘Sarge’ at The Street, to discuss his book The Death of Money and how investors can find a safe haven for their money in this modern era of financial warfare. The discussion hits at Rickards’ area of expertise as a currency wars analyst and covers what to expect from geopolitical interests in Russia, North Korea and beyond.
Jim Rickards highlights that he was recently giving a seminar to the U. S Army War College and remarks that what he informed them of was that ‘there has really been some economic aspect to warfare but it now completely non-kinetic. It can be decisive and when you combine financial warfare with the emerging cyber techniques you get into cyber financial warfare.’
‘In one of the case studies I am analyzing is where Russia has invaded Crimea. We responded with economic sanctions. President Obama indicated that he was not going to war but would apply economic sanctions. However, Russian President Putin thinks of them as an act of war. When you degrade the capability of your adversary through economic means, that’s an act of war. They may respond in a ‘war-like’ way.’
This post was published at Wall Street Examiner on April 7, 2017.
Currency wars can best be defined as a ‘competitive devaluation’ of a national currency.
Think of currency wars as the purest form of competitive devaluation for financial warfare purposes.
Under such conditions the value of currency can be a ‘make or break’ for a national economy. A currency that is too high can push down export demands. If it is too low, it could cause imports to be too expensive and cause higher inflation rates.
The International Monetary Fund (IMF) defined these actions in 1976 when it revised its charter to warn of policymakers ‘manipulating exchange rates…to gain an unfair competitive advantage over other members.’
The objective of currency wars are to boost national exports through gaining advantage of cheaper goods compared to foreign competition. If another country does not match in currency devaluations, then exports from the non-actor will be negatively impacted.
The currency at the center of global currency wars is the U. S dollar. The dollar continues to face competitive devaluation that plays out in the story of lower prices, avoidance of U. S dollar paper assets and varying economic policy.
By understanding the origin of currency wars, exactly how they undermine effective policy and what the future may hold can leave you and your money better positioned for the future.
History of Currency Wars
At the onset of the great depression that hit western industrialized countries starting in 1929, rampant unemployment continued to compound problems in the international financial system.
This post was published at Wall Street Examiner on March 14, 2017.
Mario Draghi took the Trump administration to task, addressing recent assertions that Germany is a currency manipulator and warning against the rollback of post-crisis financial regulation.
Speaking at a hearing in Brussels on Monday, the European Central Bank president responded to the charge by U.S. National Trade Council Director Peter Navarro and others that Germany is using a ‘grossly undervalued’ euro to gain an unfair trade advantage.
‘The ECB has not intervened in the foreign exchange markets since 2011,’ Draghi told European Union lawmakers, adding that Germany’s trade surplus was the result of productivity gains. ‘Germany has a significant bilateral trade surplus with the U.S., a material current account surplus, but it has not engaged in persistent one-sided intervention in the foreign exchange market.’
In a question-and-answer session punctuated with lawmakers’ concerns over the shifts in global economic and financial policy brought about by the change of government in Washington, Draghi also hit out at the U.S. President’s moves to begin dismantling the Dodd-Frank Act. Rolling back the compendium of financial rules intended to prevent a repeat of the 2008 financial crisis would be ‘very worrisome,’ he said.
This post was published at bloomberg
Gold Buying Russia To Increase Diversification On Trump ‘Unpredictability’?
Russia’s massive and increasing gold bullion reserves are kept in tightly-guarded locations across Russia due to the fear of sanctions and the ‘unpredictability’ of Donald Trump according to The Sun and Russia Beyond The Headlines.
ussia increased their gold reserves by a very large 199.1 tonnes in 2016. This was the eight consecutive year of gold diversification due to concerns about the dollar and currency wars
From The Sun:
Russia is hedging its bets with a stockpile of gold due to Donald Trump’s ‘unpredictable’ nature.
The hoard, which is stashed around Moscow, St Petersburg and Yekaterinburg, has seen Russia become one of the world’s leading gold buyers – a stance that it hopes will protect it from any drastic changes that the new US President might have on the world economy.
This post was published at Gold Core on February 8, 2017.
What it could mean for gold
‘But the chaotic start to the administration and what many see as its protectionist agenda have amplified fears of not only currency wars but a fully fledged trade confrontation that could be disastrous for the world economy.’ Financial Times 2/2/2016
MK note: [OPINION] President Trump and National Trade Council head Peter Navarro have launched verbal assaults on the Japanese yen, Chinese yuan and the euro labeling all three undervalued the result of deliberate currency policies in the three countries. ‘With his statement [Mr Navarro] has in fact fired the next salvo in the currency war the US administration is currently conducting against the rest of the world,’ says Ulrich Leuchtmann of Germany’s Commerzbank.
The fact of the matter is that the United States can no longer devalue the dollar as effortlessly (with the stroke of pen) as if the world were still on a dollar-based gold standard. In such a system, the United States could, and did, devalue the dollar by simply raising the official benchmark price of gold (1971,1973).
This post was published at GoldSeek on 2 February 2017.
Gold hits 12-week high USD Gold price up 4.85% in last month Sabre-rattling from Trump administration set-to benefit gold Iran upset and Middle East tensions could drive oil and gold prices up. Financial Times foresees ‘not only currency wars but a fully fledged trade confrontation that could be disastrous for the world economy.’ Royal Mint producing 50 % more gold bullion coins and bars compared to 2016 Utah moves to hold public funds in gold WGC report demand for gold hit four-year high in 2016 Investment demand climbed by 70% last year fuelled by geopolitical uncertainties The Trump administration continues to sabre-rattle at global powers and threatens to disrupt the status-quo of international relations. Comments in just 24-hours by Donald Trump and his team have included attacking an Ivy League university, a nuclear power and two of the United States’ key trading partners.
We continue to look on as the unconventional tweets and announcement appear, but in the meantime watch the gold price hit 12-week highs and inflows of roughly 1.2 million ounces surge into gold ETFs, as uncertainty continues to drive investors towards safe havens.
This post was published at Gold Core on February 3, 2017.
The Trump administration’s willingness to break with tradition and comment about currency valuations has raised fears that the US might lead the world into a new round of currency wars, angering and unnerving allies.
Shinzo Abe, Japan’s prime minister, complained on Wednesday after Mr Trump attacked China and Japan for “play the devaluation market.”
In response, Mr Abe told the Japanese parliament: “The kind of criticism they are making of yen manipulation is incorrect.”
The previous day Angela Merkel, Germany’s chancellor, denied that Berlin was seeking to influence the valuation of the euro — after a top Trump adviser in an interview with the Financial Times accused Berlin of exploiting a grossly undervalued euro.
The administration’s comments were the latest sign of a dramatic departure from past practice that began during last year’s campaign when Mr. Trump complained that a strong dollar was hurting U.S. companies.
This post was published at Financial Times
In the aftermath of the stunning statement by Trump‘s top trade advisor, Peter Navarro, who indirectly warned that a currency, and therefore, trade war with Europe may be imminent after he told the FT what everyone else knows but is unwilling to admit, namely that Germany is using a ‘grossly undervalued’ euro to which was like an ‘implicit Deutsche Mark’ whose low valuation gave Germany “an advantage over its main partners”, analysts are asking if this is the precursor to a third front in Trump’s currency wars, which most recently included China and Mexico.
While one look at the rising European currency reserves driven by the soaring current account surplus, mostly out of Germany, suggests that Navarro’s allegation that Germany is a currency manipulator does have some validity. But isolating the problem is only the first step: a full blown trade war with Europe, or Germany, would have profound consequences not just for the two counterparts, but the rest of the world.
This post was published at Zero Hedge on Jan 31, 2017.
Gold price to 2 month high as fiery Trump declares New American Order
– ‘Trumponomics’: Politics and economic policy in 140 characters
– The ‘intelligence’ according to Trump
– Trump, Putin and Russia – the great bromance
– Trump – Bull in a China shop
– Trade and currency wars with China and other nations
– Trump – Fan of gold and golden tweets
– Conclusion – Trump may be the ‘Golden Ticket’
On Friday Donald J Trump became the 45th President of the United States of America.
This post was published at Gold Core on January 23, 2017.