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A little over a year ago, the IMF announced that the renminbi, China’s currency, would be added the IMF’s “basket of currencies” that makes up SDRs (Special Drawing Rights). A loud outcry ensued from many pro-gold analysts that the inclusion would mean the end of the dollar as the world’s reserve currency and would result
The dollar is a favorite refuge for money seeking safety as the European banking crisis again dominates financial news. Consequently, 10-year US treasury bills are now yielding a record low of 1.39% as money pours into them. (As bond prices are bid higher, yields drop.)
In what is being reported as an effort to impede criminal activity and terrorism, the European Central Bank announced that it will discontinue issuing €500 notes around the end of 2018. However, the ECB was quick to affirm that the €500 notes already in circulation “will remain legal tender and . . . always retain
According to the New York Times, Saudi Arabia recently told Obama administration officials and members of Congress that it could be forced to sell up to $750 billion in treasuries and other assets in the United States if Congress passes a bill that would allow the Saudi government to be held responsible in American courts
As noted in G-20 talks up more deficit spending; Deutsche Bank recommends gold, there were loud cries at the Shanghai G-20 Summit for “a worldwide coordinated effort” to head off global recession. Here are a few more details about the G-20 discussions.
A former head of the UK’s Standard Charter bank proposes that the war on cash be ratcheted up. ln a paper published Sunday, Peter Sands demonized large banknotes, saying they are “king among terrorists, drug lords and tax cheats.” According to him, Illicit money flows are estimated to run up to $2 trillion a year.
Recent collapsing stock prices did not result in significantly higher metals prices, primarily because investors fled stocks not just in the US but around the world. Following conventional thinking, investors plowed into dollars via short-term US treasuries, which made the dollar stronger versus other currencies.
In the financial news, nothing is getting more attention than Greece’s financial plight. In short, Greece cannot meet its debt payments schedule without further assistance from the European Central Bank and the International Monetary Fund, both of which want a more strident austerity program than the present one that has already brought the people of
Greece remaining in the eurozone monetary system and keeping the euro as its currency appears less likely at the end of every marathon meeting of eurozone prime ministers and Greek representatives. Many analysts are of the opinion that dumping the euro and going back to the drachma would alleviate some of Greece’s pain. Of course,
Five megabanks–Barclays, JPMorgan Chase, Citigroup, the Royal Bank of Scotland and UBS–are expected to plead guilty to rigging currencies markets; collectively, they will pay fines in the billions of dollars. And, we’re supposed to continue believing that the bullion banks never manipulated the gold and silver markets.
