The rumors of the ECB rate cut had become rather ubiquitous in the past few weeks. Confidence in the European economy has been indirectly proportionate to those rumors, particularly as Germany seems to be heading south again after a short-lived reprieve. France is just a downright mess. But the rate cuts that were just announced will have no impact on [...]
Ever since the first warning of crisis in August 2007, indications of global banking health and liquidity have been turned upside down. Nowhere is that more evident than European banking, especially in the periphery. Observers have been looking for lower interest rates and reduced reliance on the ECB as evidence of “normalcy”. Starting with the chief interbank rate in Europe, [...]
In yesterday’s post on the price of gold and its direct relation to collateralized liquidity I linked the shortage of collateral to QE. For the sake of space I omitted the demand for liquidity part of the equation. This post aims to fill in that variable, particularly in the context of the gold price shamble. We should not forget that [...]
In the bank meltdown of 2011, the financial sector was in obvious and blatant distress much to the obvious and blatant consternation of every central banker in the modern economic “community”. By September 2011, the US Federal Reserve re-opened (a second time) dollar swaps with the ECB to pass US $ funding on to local banks that were again in [...]
Precious metals prices are currently fixed on strikes at mines in S Africa. Potential unrest is pushing PM prices higher. In the current weakening global trade environment, is it possible that an increase in worker unrest upsets the supply of metals at exactly when banks are shifting toward gold? Major disruption to platinum is expected from the current strike and [...]
Stay In Touch