Tag Archives: Featured

Securities lending as standard practice is incredibly complicated, and for many the process can be counterintuitive. With numerous different players contributing various pieces across a wide array of financial possibilities, not to mention the whole expanse of global geography, collateral for collateral swaps have gone largely unnoticed by even mainstream Economics and central banking. This despite the fact, yes, fact, securities lending was the epicenter of the 2008...

We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity gains, while the REER assumes constant productivity in comparison to trade partners. Who has read Michael Pettis, knows that a rising trade surplus may also be caused by a higher savings rate while the trade partners decided to spend more. This is partially...

We will let you know what we are doing once we know what we are doing was the message from the Federal Reserve statement and Chair Powell’s press conference that followed. The Fed, as widely expected did raise their short-term rate, known as the fed funds rate, by .25% to a range of 0.25% to 0.50%. This was the first increase since 2018. Along with the statement FOMC (Federal Open Market Committee) participants also released their Summary of Economic Projections....

Indien ist schon des Öfteren in die Schlagzeilen geraten, wenn es um Cryptocoins geht. Doch trotz zahlreicher Verbotsankündigungen und Restriktionen blieb der Markt bis jetzt offiziell unreguliert. Dies soll sich nun ändern, während die Regierung gleichzeitig eine digitale Version der nationalen Fiat-Währung angekündigt hat. Crypto News: Indien kündigt digitale Rupie für 2022/2023 anNeben Russland und China wird Indien damit zu den größeren Ländern gehören, die...

Swiss Franc The Euro has risen by 0.14% to 1.0387 EUR/CHF and USD/CHF, March 17(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The markets continue to digest the implications of yesterday’s Fed move and Beijing’s signals of more economic supportive efforts as the Bank of England’s move awaited. The US 5–10-year curve is straddling inversion and the 2-10 curve has flattened as the Fed moves from one horn of the...

Listen to the audio version of this article here. Here at Monetary Metals we love providing investors with A Yield on Gold, Paid in Gold®. So when we heard that German artist Niclas Castello designed a 186 kilogram pure 24-karat gold cube called the “Castello Cube” as an art installation in the middle of Central Park we couldn’t help but start doing a little math on Mr. Castello’s art piece. How Much is the Gold Cube Worth? Most people when they see the gold cube...

The Swiss economics ministry has downgraded its growth forecast for 2022 due to the war in Ukraine. But it still predicts a solid post-pandemic upswing. After a couple of years impacted by Covid-19, 2022 should yet see Swiss gross domestic product (GDP) grow by 2.8%, the State Secretariat for Economic Affairs (Seco) said on MondayExternal link in a quarterly assessment – down from the 3% predicted last December. While the war will have an impact, Swiss economic ties...

With the 7s10s already inverted, and the 5s today mere bps away, making a macro case for the distortion isn’t too difficult. Despite China’s “upside” economic data today, even the Chinese are talking more about their downside worries (shooting/hoping for “stability”) than strength. In the US or Europe, no matter the CPIs in either place there are cyclical (not just inventory) warning signs all over the place. Aside from these economic concerns, is there a pure money...

All this decay is so incremental that nobody thinks it possible that it could ever accumulate into a risk that threatens the entire system. The funny thing about risk is the risk that everyone sees isn’t the risk that blows up the system. The mere fact that everyone is paying attention to the risk tends to defang it as everyone rushes to hedge or reduce the risk. It’s the risk that accumulates under everyone’s radar that takes down the system. There are several...

One quick glance at different news headlines or just 5’ switching between TV networks suffice to convince even the most naive news consumer that there is something seriously wrong with the way public discourse was (d)evolved in our societies over the last years. Of course, journalism was never entirely devoid of bias, not even in its “golden age”. Reporters and editors are merely human after all and their own views, beliefs, hopes and opinions have always tainted...