Tag Archives: Money

Central Banks and Our Dysfunctional Gold Markets

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“First, it remains unclear whether or not much of the gold that is being sold as shares and in certificates actually exists. Second, paper gold can theoretically be printed into infinity just like regular currency — although private-sector paper-gold sellers have considerably less leeway in this regard than central banks. Third, new electronic gold pricing — replacing, as of this past February, the traditional five-bank phone-call of the London Gold Fix in place since 1919 — has not necessarily proved a more trustworthy model. Fourth, there looms the specter of the central bank, particularly in the form of volume trading discounts that commodity exchanges offer them.”

https://mises.org/library/central-banks-and-our-dysfunctional-gold-markets

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Argentine small businesses turning to bitcoin

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“The prolonged use of capital controls in Argentina since 2011 has wreaked havoc for businesses operating in South America’s second-largest economy.  Under the leftist government of President Cristina Fernández, no immediate change is expected in Argentina’s complicated economic conditions, which have seen the use of bitcoin more than double over the past year, mainly among small businesses.  Recent raids on currency trading houses and new powers for the national spy agency to prevent speculative attacks pushed the peso’s black market value this week to its lowest levels since Argentina defaulted last year on its foreign debt for the second time this century.”

http://www.ft.com/intl/cms/s/0/b2a8cca4-2c11-11e5-8613-e7aedbb7bdb7.html#axzz3h7Y4tmqB

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Aussie, Kiwi And Loonie Under Commodity Currency Attack

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“Recent actions and rhetoric from Commonwealth Prime Ministers, and their respective policy makers, have put their commodity sensitive currencies under pressure.  In Australasia, the kiwi ($0.6592) and Aussie dollar ($0.7370) both linger within striking distance of their six-year lows. In North America, the loonie has fared no better, straddling its own six-year low, while under attack from last week’s Bank of Canada (BoC) rate cut to +0.5%. For now, dealers and investors are willing to trade as if they do not expect any short-term market reprieve for any of these commodity and interest sensitive currencies.”

http://www.investing.com/analysis/aussie,-kiwi-and-loonie-under-commodity-currency-attack-258998

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Bank of Canada Admits Recession, The Solution: More Bubbles

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“What made the Canadian recession easy to spot was the Canadian yield curve inverted out to three years following a surprise rate cut by the Bank of Canada on January 21.  It remains to be seen if the US follows. The US contracted in the first quarter, but the second quarter rebound was a bit stronger than I expected.  I awarded Canada the ‘Blue Ribbon’ for the first yield curve inversion of any major country following the great financial crisis. I smell an ‘Operation Twist‘ type move by the Canadian central bank to rectify this horrific ‘recession-signaling’ condition.  If so, the sweet spot for banks and hedge funds to front-run the trade appears to be 5Y or 7Y notes.  Some banks may already be in on it.”

http://globaleconomicanalysis.blogspot.com/2015/07/bank-of-canada-admits-recession-shades.html

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Fed rate-hike speculation lifts U.S. dollar to three-month high

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“The dollar reached its highest in nearly three months against a basket of currencies on Monday on a rise in U.S. bond yields as traders built bets the Federal Reserve would raise interest rates later this year.  A plummet in gold prices to five-year lows under $1,100 an ounce also increased the appeal of the greenback, the world’s reserve currency.  Last week, U.S. Fed Chair Janet Yellen testified before Congress, reiterating U.S. interest rates will go up later this year if the economy continues to expand.  St. Louis Fed chief James Bullard told Fox Business network on Monday there was a higher than 50 percent chance the U.S. central bank will raise rates in September.”

 

http://www.reuters.com/article/2015/07/20/us-markets-forex-idUSKCN0PU01920150720

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Greek Banks Reopen but Cash Limits Remain and Taxes Soar

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“The cash-strapped nation got a short-term loan from European creditors to pay more than 6 billion euros ($6.5 billion) owed to the International Monetary Fund and the European Central Bank.  But for most Greeks, already buffeted by six years of recession, Monday was all about rising prices as tax hikes demanded by creditors took effect. There are few parts of the Greek economy left untouched by the steep increase in the sales tax from 13 to 23 percent. strict controls on cash flows, including a ban on check-cashing and payments abroad as well as limits on cash withdrawals, remained in effect.  New rules permit the withdrawal of up to 420 euros a week.”

http://abcnews.go.com/International/wireStory/greeks-find-banks-open-restrictions-place-32559279?singlePage=true

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IRS Agents Rob Convenience Store

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“In June 2014, the government seized Ken Quran’s entire bank account—more than $150,000. This was money that Ken worked for years to earn, and that he was counting on for his retirement. Ken had no prior warning before the government seized the account. The government told him they were taking the money because he withdrew cash from the bank in amounts under $10,000.”

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Gold price falls to five-year low on US rate rise talk

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“The gold price has fallen to its lowest level in more than five years as talk of a US interest rate rise has led investors to sell the precious metal.  Gold closed 2.5% lower at $1,104.60 an ounce in London, having earlier fallen below $1,100 an ounce for the first time since March 2010.  The gold price is now more than 40% below its August 2011 peak.  The stronger US economy has led investors to expect the Federal Reserve to raise interest rates this year.  The expectations have led investors to gradually sell gold – a perceived safe haven investment in times of crisis – to invest elsewhere.  Other commodities have also fallen, with the price of platinum down 5% – its weakest level since the crisis.”

http://www.bbc.com/news/business-33590480

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‘It’s time to hold physical cash,’ says British senior fund manager

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“Ian Spreadbury, who invests more than £4bn of investors’ money across a handful of bond funds for Fidelity, including the flagship Moneybuilder Income fund, is concerned that a ‘systemic event’ could rock markets, possibly similar in magnitude to the financial crisis of 2008, which began in Britain with a run on Northern Rock.  The best strategy to deal with this, he said, was for investors to spread their money widely into different assets, including gold and silver, as well as cash in savings accounts. But he went further, suggesting it was wise to hold some ‘physical cash’, an unusual suggestion from a mainstream fund manager.”

http://www.telegraph.co.uk/finance/personalfinance/investing/11686199/Its-time-to-hold-physical-cash-says-one-of-Britains-most-senior-fund-managers.html

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Facebook US users can now send cash to friends in the messaging app

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“After months of teasing, Facebook has finally added payments to its Messenger app – in the US at least.  The service lets users pay friends within the private messaging app ‘in just a few taps’ and Facebook has described it as ‘easy and safe’.  Facebook formally announced in March that it would be competing with services such as PayPal and Snapchat, which already lets users beam money to friends and family using smartphones linked to bank accounts.  David Marcus, Facebook’s head of messaging products, announced the launch in a post on the social network. The service is free and is available on Apple and Android mobile devices and computers in the US.”

http://www.dailymail.co.uk/sciencetech/article-3145793/Facebook-Messenger-rolls-payment-service-Users-send-cash-friends-messaging-app.html

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