Gold has all the potential to go unprecedentedly high. But silver will be gold on
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The Moscow branch of a Chinese state bank has seen a surge in enquiries from Russian firms wanting to open new accounts, a person familiar with the matter said, as the country's businesses struggle with international sanctions after its invasion of Ukraine. "Over the past few days, 200-300 companies...
The Russian rouble slid to new record lows against the dollar and euro on Thursday, after ratings agencies Fitch and Moody's downgraded Russia's sovereign debt to "junk" status.
Russia’s invasion of Ukraine could devastate global grain markets so deeply that it’s likely to be the biggest supply shock in living memory. Most Read from BloombergRussia’s Rating Cut to Junk; Talks on Tap: Ukraine UpdateChina Holds Talks With Ukraine, Further Edging Away From...
The Perfect Storm in Commodity Markets: Record Peaks and Multi Year HighsMar 3, 2022 - 05:07:25 PST
Commodity prices surged still higher on Thursday as Russia's invasion of Ukraine disrupted global raw material flows, sending gas, coal and aluminium to record peaks while crude oil and wheat scaled multi-year highs.
It comes as the US has targeted Russia’s oil refining sector with sanctions, with the possibility that its oil and gas exports will be next on the list.
‘Nuclear’ sanctions on Russia threaten long-term dollar dominance as China has more geopolitical incentive to ditch the greenback.
“The high-risk aversion among market participants is also evident in tumbling stock markets and significantly lower bond yields – both factors that make gold attractive as a safe haven. At almost -1%, Yields on ten-year US Treasuries are at their lowest level since the start of January in the US. This also makes gold attractive to investors as no interest is payable on gold.”
Russia was the biggest central bank buyer of gold. The Central Bank of Russia bought $4.3 billion worth of the yellow metal between June 2019 and June 2020. And the Russians were buying gold long before that. The Central Bank of Russia bought gold every month from March 2015.
After all, why get married and have children when the children will have to bear the enormous burden of the national debt?
Faced with an unprecedented level of sanctions on Russia, global banks are taking a dim view of business with all Russian entities and dropping clients if there is even a slight doubt on their ties to that country, said bankers and lawyers.
WASHINGTON (AP) — Moscow’s war on Ukraine and the ferocious financial backlash it’s unleashed are not only inflicting an economic catastrophe on President Vladimir Putin’s Russia.
Mar 2, 2022 - 12:07:01 PST
While Corelogic’s January home price index was hot, hot, hot (UP 19.1% YoY), today’s mortgage applications index for the week ending February 25, 2022 was not, not, not.
Bank of Canada Front-Runs the Fed, Hikes Interest Rates, Citing Hot Inflation & Even More InflationMar 2, 2022 - 11:58:15 PST
Rates “need to rise further.” Balance sheet already shrank by 14%, more shrinkage to come.
Despite assuring Americans last night that no troops would be sent to fight in Ukraine, President Biden assured the country that it would stand by its NATO allies. Many argue that this is a good argument against Ukraine's NATO membership in the first place - as then the US would be obligated to fight...
Mar 2, 2022 - 09:17:46 PST
It is not entirely clear what was behind the Fed’s initial misstep on inflation. What remains baffling is that, for most of 2021, policymakers seemed eager to double down on their “transitory” claim, rather than show humility as their inflation forecasts were revealed to be repeatedly and spectacularly wrong.
Mar 2, 2022 - 09:08:12 PST
Federal Reserve Chairman Jerome Powell appears before the House Financial Services Committee to present the semiannual monetary policy report and discuss the state of the U.S. economy. In remarks prepared for dual appearances this week before House and Senate committees in Congress, the central bank chief acknowledged the “tremendous hardship” the Russian invasion of Ukraine is causing. “The implications for the U.S. economy are highly uncertain, and we will be monitoring the situation closely,” Powell said.
Powell Kills March 50bps Rate Hike, But Leave Door Open For Later In 2022Mar 2, 2022 - 08:37:24 PST
Moments ago, Fed Chair Powell said that he is "inclined to support a 25 basis point rate hike" in March, which immediately killed any market expectation of a 1+ rate hike in two weeks.
the Chinese are playing a long game. Finance is a key pillar in the new Great Power competition with America; currency, capital flows and the Belt and Road Initiative trade pathway will all play a role in that. Beijing is slowly diversifying its foreign exchange reserves, as well as buying up a lot of gold. This can be seen as a kind of hedge on a post-dollar world...
One question going forward, "Is Putin willing to go full barbarian on Ukraine or full Strangelove on nuclear stuff?" Herbst said. "And question two is: Will the military apparatus carry out such instructions?"
Mar 2, 2022 - 08:01:26 PST
Asked Monday if Americans should worry about nuclear war, Biden answered, “No.” From the briefing room, Psaki condemned Putin’s nuclear rhetoric and said the U.S. would not change its readiness status.