Posted by Richard Mills
on
Wednesday, 25 March 2020 9:15
In the 1960s, French politician Valéry d’Estaing complained that the United States enjoyed an “exorbitant privilege” due to the dollar’s status as the world’s reserve currency. He had a point.
Because the dollar is the world’s currency, the US can borrow cheaper than it could otherwise (lower interest rates), US banks and companies can conveniently do cross-border business using their own currency, and when there is geopolitical tension, central banks and investors buy US Treasuries, keeping the dollar high and the United States insulated from the conflict. A government that borrows in a foreign currency can go bankrupt; not so when it borrows from abroad in its own currency ie. through foreign purchases of US Treasury bills….CLICK for complete article
Posted by ZeroHedge
on
Tuesday, 24 March 2020 15:20
Last night, when observing the unprecedented “gold run” on precious metals dealers which has left all gold vendors with little to no physical gold, we said that “the price of physical gold has decoupled from paper gold” as a result of paper gold liquidations as leveraged funds scramble to cover margin calls using safe assets resulting in an arbitrage that physical gold buyers, i.e., those who don’t have faith in gold ETFs such as the GDX or simply prefer to have possession of the metal, find especially delightful as it allows them to buy physical gold at lower prices than they would ordinarily have access to.
However, we also noted that whereas in the past such conditions were self-correcting, this time it is not only a record surge in demand for physical gold but also a near shut down in supply as the most productive gold refiners, those located in the southern Swiss town of Ticina, namely Valcambi, Pamp and Argor-Heraeus, now appear to be offline indefinitely….CLICK for complete article
Posted by MoneyTalks Editor
on
Monday, 23 March 2020 10:59
Justin Smith of Hawkeye Wealth Management joins Mike to discuss potential impacts on commercial, industrial and multi-family real estate – both in the near and long term.
Posted by Michael Campbell
on
Saturday, 21 March 2020 10:07
Mike got his first letter of apology from a former “hater” who now understand that the major themes on MoneyTalks from pension to credit problems to the downturn in the markets. Mike hints at where the big risk for individuals is now.
The Early Innings of a Monetary Crisis
Posted by Michael Campbell
on Saturday, 21 March 2020 10:07
Mike got his first letter of apology from a former “hater” who now understand that the major themes on MoneyTalks from pension to credit problems to the downturn in the markets. Mike hints at where the big risk for individuals is now.