The Bretton Woods system was intentionally set up to funnel monetary convertibility through official channels. The primary characteristic of any true gold standard is that any person who wishes can change paper claims into hard money. It was as much true in any one country as between those bound by the same legal framework (property). What might differ were the standards for satisfying those claims (“good delivery”...
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The UK referendum is three months away. Three-month options are a common benchmark for various market segments; from speculators, to fund managers to corporations. Events over the past week have raised the risks that the UK votes to leave the EU. The market has responded forcefully today, and even if you only follow the spot market, what is happening in the options market is significant. First, three-month volatility has jumped 2.6 percentage points to 14.5%. It appears to be the...
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