Jim Rickards, author of Currency Wars , has been warning the public for several years about the upcoming economic wars between US - Europe and China. China - Europe are moving in the direction of currency manipulation to overthrow US powerful grip over the worlds commodities, mostly energy, with US Dollars.
Gold has so far outperformed many assets, even silver, another metal that is considered a safe haven play. Silver has more room to go up once the public/media is exposed to the ongoing waged economic war between the major 3 powers.
PetroDollar - PetroPound Duopolist US and GB team up Overall plan to defeat the currency manipulators, is for US Federal Reserve and Bank of England to raise interest rates quickly to spurn any exported inflation caused by drastic currency moves.
GOLD on the move
Comments
jangseohee
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Hi JR, welcome back
PBOC has exhausted their QE plans, hence they resorted to devalue to pump dollar up
so far, QE in europe doesnt seems to be successful, need another one i suppose
but i don really think Yeller would want to raise hike in Sept
QuantitativeExhaustion
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China just devalued currency. Takes 12-18 to see inflation. Inflation lag is common
dionvuletich
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QE in general is ineffective... it does not improve employment or the real economy... it only pushes up asset prices that's all...
And when you push them too far beyond what is sustainable by the real economy (I'm looking at you China and US....) and create unsustainable bubbles and not allow the market pricing mechanism to work naturally by averting any pullback > 5-10% Then don't complain when it all unravels and crashes
China up 160% last year, has a 30% pullback which we all know is normal and healthy - Chinese central planners ban selling for foreigners/ add QE and try to talk it back up to 160% gains... it's pure lunacy
The current volatility is simply reflecting unsustainable pricing and flawed assumptions which are unraveling...
QuantitativeExhaustion
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I agree. Also, consider entitlement programs that are underfunded. Even China is making absurd entitlements for it's 1.3 billion population. You're right though it will all unravel once bond prices crash and yields skyrocket.
jangseohee
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in the first place, THEY (the central banks) knew long ago that QE doesnt work in actual truth.
they are just supplying free money to the bank to help them function
the only asset not inflated is commodities though the daily price of staples foods and daily usage keep increasing ^_^
THEy want to create a penultimate top, just you watch
IvanLabrie
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Great convo gents.
IvanLabrie
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Was studying Silver, might have a nice long pending to catch up with gold.
Maybe a pair trade.
QuantitativeExhaustion
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I would like to get in Silver early this week. Not so sure to make a simple trade more complicated with pair trade. I expect once metals to be full stride. US Fed will kill all exported inflation to US. So look for TLT / US Bonds to be the next play.
ChimbOt
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silver/ gold ratio too high ... silver isnt moving well.. was furious last week
PBOC has exhausted their QE plans, hence they resorted to devalue to pump dollar up
so far, QE in europe doesnt seems to be successful, need another one i suppose
but i don really think Yeller would want to raise hike in Sept