Risk assets are now supported by the new ”Keynesian Put”, the expectation that fiscal measures will be deployed to combat any renewed weakness in the economy/markets (independently of any larger political projects). But asset prices remain primarily supported by excess monetary abundance across the world:
- There have been 667 interest rate cuts by global central banks since Lehman;
- G7 central bank governors Yellen, Kuroda, Draghi, Carney & Poloz have been in their current posts for a collective 17 years, yet only one (Yellen in Dec’15) has actually hiked interest rates during this time;
- Central banks own $25tn of financial assets (a sum larger than GDP of US + Japan, and up $12tn since Lehman);
- There are currently $12.3tn of negative yielding global bonds (28% of total);
- There is currently $8tn of negative yielding sovereign debt (54% of total).
For more FX info checkout Splitting Pennies - Understanding Forex
"To be honest, the return is abysmal now. We've gone back to a more typical investment portfolio for an insurance company."
12Aug: USD 1,336.70, GBP 1,032.60 & EUR 1,199.02 per ounce
11Aug: USD 1,344.55, GBP 1,037.05 & EUR 1,206.06 per ounce
10Aug: USD 1,351.85, GBP 1,035.11 & EUR 1,209.23 per ounce
09Aug: USD 1,332.90, GBP 1,025.80 & EUR 1,201.74 per ounce
08Aug: USD 1,330.00, GBP 1,019.84 & EUR 1,198.86 per ounce
05Aug: USD 1,362.60, GBP 1,036.39 & EUR 1,222.53 per ounce
12Aug: USD 19.87, GBP 15.33 & EUR 17.81 per ounce
11Aug: USD 20.21, GBP 15.56 & EUR 18.13 per ounce
10Aug: USD 20.34, GBP 15.55 & EUR 18.19 per ounce
09Aug: USD 19.70, GBP 15.18 & EUR 17.77 per ounce
08Aug: USD 19.66, GBP 15.04 & EUR 17.74 per ounce
05Aug: USD 20.22, GBP 15.36 & EUR 18.14 per ounce
Recent Market Updates
- Gold Investment Demand Reaches Record In First Half 2016 On “Perfect Storm”
- Peak Gold – Did Gold Production Peak in 2015?
- Financial Times: “Victory For Gold Bulls Is Only Just Beginning”
- Irish Banks Most Vulnerable In Stress Tests – Banking Contagion In EU Cometh
- Gold In Sterling 2.2% Higher After Bank Of England Cuts To 0.25% and Expands QE
- Silver Kangaroo Coins – Sales Surge To Over 10 Million
- Trump, Clinton, "Ugliest" Election Coming - Gold's "Summer Doldrums" Prior To Resumption of Bull Market
- Marc Faber: Invest 25% Of Investment Portfolios In Gold Bullion
- “Could Not Invent A More Bullish Story For Gold Bullion”
- Gold In Bull Market – “Every Reason For It To Continue” – Frisby In Money
- Is Gold Set To Hit $1,500 Per Ounce?
- Why Italy’s bank crisis could be a ‘ticking time bomb’
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Johnson is global head of foreign exchange cash trading at HSBC, based in London. Prior to joining HSBC in 2010, he was founding managing partner and chief investment officer at Johnson Stewart Partners. Before that, he was global head of trading at Deutsche Bank.
Mark Johnson, HSBC’s global head of foreign exchange cash trading in London, was taken into custody at John F. Kennedy International Airport Tuesday and is scheduled to appear before a judge in federal court in Brooklyn Wednesday morning, said the people, who asked not to be named because the case hasn’t been made public. He’s charged with conspiracy to commit wire fraud, the people said.According to Bloomberg, Johnson’s arrest comes more than a year after five global banks pleaded guilty to charges related to the rigging of currency benchmarks. HSBC, which wasn’t part of those criminal cases, in November 2014 agreed to pay $618 million in penalties to U.S. and British regulators to resolve currency manipulation allegations. HSBC, which still faces investigations by the Justice Department and other authorities for the conduct, has set aside $1.3 billion for possible settlements, according to an August filing.Rob Sherman, an HSBC spokesman, and Peter Carr, a Justice Department spokesman, declined to comment.
1. Investment sharks
2. Investors who love to litigate
3. Imperial investors
4. Legal eagle investors
5. Academic coach investors
6. Pretend investors
7. Investors without a clue
8. Investors for a fee
Some of Russia’s coins are now worth less than their metal values.
"If hackers were to go through the trouble of taking down two or three data centers they would take down the financial markets infrastructure. With blockchain, you could distribute the nodes and you might not even know where they are."
Lessons for central banks
"I’m on many central bank committees and I expected they were all doing this, but so far they weren’t."
"FMIs should immediately take necessary steps in concert with relevant stakeholders to improve their cyber resilience, taking into account this guidance. FMIs should also, within 12 months of the publication of this guidance, have developed concrete plans to improve their capabilities."
Preparing for the big day
"We have the idea that this next prototype might require more coding, more thinking and we might need more people."