The tiny island of Salamis in Greece was the birthplace, in 480 BC, of one of the three great tragedians of the Classical Athenian era. Aeschylus and Sophocles were the other two...
The Fed’s purpose, when it comes down to it, is to buy bonds. Under their various “Quantitative Easing” (QE) programs, they sure have bought a lot of bonds. This pushes up the price of the bonds. Since the yield is basically the inverse of the bond price, this means the rate of interest falls.
The recent sharp slide in US T-Notes was preceded by a tremor in the world’s second largest bond market in Tokyo. On April 4th, the Bank of Japan’s (BoJ) new governor, Haruhiko Kuroda, unveiled the most radical scheme ever, - designed to “shock and awe” Japanese bond traders into complete submission.
When Jonathan Tepper and I wrote Endgame some two years ago, the focus was on Europe, but we clearly detailed how Japan would be the true source of global volatility and instability in just a few years.
Central-planning manipulation "works" by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and "growth."
With most of Europe in a nasty recession, and significant parts of it (Spain, Greece, Cyprus, Italy) in an outright economic depression, I wonder why it took so long for theIMF to Reduce Germany GDP Forecast.
The Fed’s QE program remains in the spotlight as investors try to size up when the central bank will start trimming the size of its monthly bond purchases.
To suggest gold is a controversial asset is not bold. For those watching long term, you know gold rose over 300% in the last decade before it even gained mainstream attention, let alone acceptance by many as an investment vehicle.
The banking situation in Europe continues to deteriorate rapidly. As a measure of the ongoing crisis the “ Bail In” option used in Cyprus is actually being made European Commission policy.
London prices to buy gold and silver rose in volatile trade Monday morning, recovering Friday evening's late losses as Asian and European stock markets fell hard.