The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label boj. Show all posts
Showing posts with label boj. Show all posts

Friday, July 29, 2016

Gold rises and investors lose complete faith in central bankers following the Fed and BoJ's failed guidance

Gold prices have recovered from recent pullbacks following this week's less than insightful messages from both the Federal Reserve and the Bank of Japan.  In fact, faith in the central banks has dropped to a near record low, and investors are becoming extremely wary that the monetary controllers will be unable to do the right things for interest rates and increased stimulus as the economy moves closer towards another crisis.

On Wednesday the Federal Reserve gave a lukewarm message and chose not to raise rates despite high job numbers from the May report.  And last night, the markets completely rejected Kuroda's promises of new stimulus, sending gold higher, and the Yen back towards 102 to the dollar.

Individual investors like Kudo drove a 60 percent jump in sales of the precious metal in June from May at Tanaka Holdings Co., the operator of Japan’s largest bullion retailer, as the yen’s rebound against the dollar made it more affordable. While Prime Minister Shinzo Abe’s ruling party scored a convincing victory in July 10 upper house elections, confidence in his economic policies is flagging. A July 2-3 Asahi newspaper poll showed 55 percent of those surveyed support a new direction versus 28 percent for maintaining course. 
Strong Yen 
The yen’s 17 percent gain this year is a reflection of Japanese investors fleeing from overseas markets due to pessimism about global growth rather than confidence in their own economy. Gold sales more than tripled at Tanaka’s shops on June 24, when the Japanese currency jumped to an almost three-year high against the dollar after the U.K. decided to exit the European Union. Japan’s Topix stock gauge dropped the most in five years the day after the Brexit referendum, while 10-year sovereign bond yields tumbled further below zero. - Bloomberg

Wednesday, February 10, 2016

Peter Schiff: As JP Morgan predicts severe negative rates for all central banks, gold will profit extremely from it

On Feb. 10, JP Morgan forecasted that the world's primary central banks... ie... Bank of Japan (BOJ), European Central Bank (ECB), and the Federal Reserve will not only carry interest rates into negative territory, but move them down to extreme levels of between one and five percent.

Since the beginning of the year, the BOJ has already pushed interest rates negative and individual nations within the Eurozone have done so as well.  But more importantly, banks have not taken well to these moves and several are experiencing liquidity and credit problems that place their solvency at risk.
According to a just released report by JPMorgan, the answer is even scarier. In the analysis published late on Tuesday by JPM's Malcolm Barr and Bruce Kasman, negative rates could go far lower than not only prevailing negative rates, but well below gold storage costs as well. 
JPM justifies this by suggesting that the solution to a NIRP world where bank net interest margins are crushed by subzero rates, is a tiered system as already deployed by the Bank of Japan and in some places of Europe, whereby only a portion of reserves are subjected to negative rates. 
Which leads to the shocker: JPM estimates that if the ECB just focused on reserves equivalent to 2% of gross domestic product it could slice the rate it charges on bank deposits to -4.5%. Alternatively, if the ECB were to concentrate on 25% of reserves, it would be able to cut as low as -4.64%.  That compares with minus 0.3% today and the minus 0.7% JPMorgan says it could reach by the middle of this year as reported yesterday. 
In Japan, JPM calculates that the BOJ could go as low as -3.45% while Sweden’s is likely -3.27%. 
Finally, if and when the Fed joins the monetary twilight race, it could cut to -1.3% and the Bank of England to -2.69%. - Zerohedge
In response to these moves, the one true safe haven will be physical metals, and as Peter Schiff reported in a new interview this morning, negative rates will be as 'blood in the water' for gold.