Posts On Economic and Geopolitical News

June 23, 2016 |

What Might A “Brexit” Vote Mean For The U.S.?

Brexit_date

As the highly anticipated “Brexit” referendum approaches this Thursday, markets could see ongoing volatility. Now that the latest FOMC meeting is out of the way, this key vote is likely to garner the majority of financial headlines this week. While the two sides in Great Britain have traded time as the front-runner, the election could be very close and markets may be on edge until a clear winner is determined. While a vote to remain in the EU may calm markets in the short-term, the... Continue Reading

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June 17, 2016 |

Chinese Bank Buys “Secret” London Gold Vault

Machine

In another indication of Chinese demand for physical gold, China’s ICBC Standard Bank has reportedly agreed to buy a London vault from Barclays. The ICBC Standard Bank is the largest bank in the world by assets, and the vault being purchased is one of the largest in all of Europe. While the exact whereabouts of the vault are unknown, it reportedly is within the M25 road and can allegedly hold up to 2000 metric tons of gold and other precious metals. Mark Buncombe, head of commodities... Continue Reading

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June 10, 2016 |

Does a June Rate Hike Really Matter?

Close to the Fed

Since the beginning of 2016, a debate has been ongoing about the pace and timing of additional rate hikes by the Federal Reserve. The Fed raised rates for the first time in almost a decade back in December, and it was thought that the central bank would embark on a series of further hikes in 2016. Things haven’t quite worked out that way… The Fed has not raised rates again through the first five months of 2016 and has cited numerous reasons for waiting. China’s weakness, a... Continue Reading

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June 8, 2016 |

Could Be Harder Times Ahead For China

Heard this before

Much has been made of the slowdown currently being experienced by China. This makes perfect sense, after all, since China is the world’s second largest economy. Stock markets have whipsawed along with Chinese equities, and any increases in volatility seen in China tend to spread quickly. The People’s Bank of China has taken measures to boost its economy and stabilize its equity markets. From interest rate cuts to bans on short selling, the central bank has not been afraid to take the steps it feels... Continue Reading

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June 1, 2016 |

A Potential “Brexit” and Gold Explosion

England Flag

Gold has had a spectacular start to 2016 and the run higher could potentially be far from over. The reasons for gold’s strong performance year to date are numerous, with uncertainty over the global economy and the Fed’s plans regarding interest rates nearing the top of the list. Another issue near the top of the list is the potential for a vote by Great Britain to leave the European Union, a referendum scheduled to take place June 23, 2016. While this issue has become more... Continue Reading

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May 23, 2016 |

Can Gold and Rates Rise Together?

FOMC

Last week, the release of minutes from the latest Federal Open Market Committee (FOMC) meeting showed there is growing support for another rate hike to take place in June. This seems to be quite contrary to recent assessments by many analysts, who have cited several reasons that any further hikes would likely wouldn’t be seen until December, if at all in 2016. Perhaps this was another example of investor complacency. According to the minutes: “Some participants were concerned that market participants may not have properly assessed... Continue Reading

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May 20, 2016 |

The Dollar Index Could Be at the Cliff’s Edge

George Washington

The dollar index is a measure of the value of the U.S. Dollar versus a basket of other currencies. When the index is rising, the dollar is appreciating. When the index is declining, the dollar is depreciating. The dollar index is currently near a key previous low that, if breached, could potentially see a significant leg lower in the dollar’s value. That’s right. The greenback is precariously close to seeing what could be a significant decline against a basket of other currencies. And guess what.... Continue Reading

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May 13, 2016 |

What's Next From Central Banks?

Federal United States

Although the Federal Reserve has recently abandoned its policy of zero interest rates and has put an end to (at least for now) its quantitative easing program, the era of QE and ultralow interest rates around the globe may be far from over. This past week, the Fed announced it would hold interest rates at current levels although a hike or two still remains on the table for June and possibly December. In a surprising move, the Bank of Japan elected this week to do... Continue Reading

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May 6, 2016 |

Today’s Jobs Report Another Sign of Underlying Weakness

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It’s the first Friday of the month and today has brought one of the most key pieces of economic data released each month in the employment situation report. The U.S. Department of Labor reported the country added just 160,000 jobs in April as the unemployment rate ticked up to five percent. This jobs number was significantly less than the consensus estimate of 200,000 jobs created. What might this data tell us? Despite much of the positive talk and rhetoric currently being circulated, the economy may... Continue Reading

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April 29, 2016 |

Is the Global Economy Entering a Period of Deflation?

Financial Crisis

Does debt work? This question already appears to have found an answer, and the coming years could reinforce the notion that the massive amounts of debt accumulated around the world are due at some point, and a price will have to be paid. That day could be closer than many realize… Take a look at how equity markets began 2016. The Dow Jones saw its worst start on record, the S&P 500 tumbled, and crude oil prices continued their slide to trade below $30 per... Continue Reading

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