The central bank driver world macro structure is in full can-kicking mode. The fuels that have built up are almost too numerous to mention, though some issues continue to be recycled as if they were needed to explain the latest potential spark.
Commodity prices are correcting broadly lower overnight as markets correct after Friday’s sharp surge in risk-linked assets and tumble in the US dollar, a move driven by an unexpected outcome to the EU leaders’ summit.
This time we have the eurozone sovereign debt crisis, and headlines like JP Morgan’s $9 billion loss on its ‘London Whale’ trading book and a half-billion dollar fine for Barclays Bank over interest rate fixing.
We note the contrast between the reporting companies who by law cannot lie about their fiscal realities, versus central planners who admit that they must lie to preserve calm and control. We'll leave it to you to decide whose version of the truth you want to believe.
The wholesale market gold price fell further Thursday in London, falling hard to eight-session lows at $1,587 per ounce following last night's "no change" decision from the Federal Reserve on new US quantitative easing.
Growth-geared crude oil and copper prices are on the upswing amid a broad-based improvement in risk appetite after a general election in Greece over the weekend produced enough votes for pro-bailout parties to form a coalition government.
if the euro survives the US dollar, it might prove enough of a shock to euro-zone leaders to make them reject fiat, the same way that the collapse of the Continental Dollar led Jefferson and the American founding fathers to embrace gold and silver.
Gold fell initially in Asia before trading sideways and this range trading has continued in European trading. Gold edged higher Tuesday after hopes were dashed that Spain's bank bailout would be the panacea that would lead to alleviating the euro-zone debt crisis.
The past couple months have been a roller coaster ride for investors and traders. Overseas headline news has made investing and trading more difficult than normal because of prices gaping up or down at the opening bell several times per week.