______________________________________________________
Palisades Gold Radio
Feb 23, 2022
Jeff explains the purpose of swap spreads which includes reflecting systemic credit risk. Back in October 2008 something significant changed as spreads turned negative.
The 2008 crisis was primarily about the money dealers since without them there is no banking system. We may not want a fixed supply of money because the world is quite dynamic. We need to adapt the Eurodollar into a more disciplined system.
Every country constantly needs dollars because otherwise, they can’t participate in the global marketplace. When countries need dollars in a hurry it’s not unusual for them to sell treasuries.
The Fed is concerned that the public might begin to change their spending behavior because of inflation. The Fed today is more of a behavior influencer than a direct intervener in the markets. The main parallels of today are the 1930s in the U.S. and the 1990s in Japan.
We see similar pricing of current long-term bond yields to those times.
Gold prices this year are doing fairly well despite higher interest rates. Gold is often a reflection of long-term treasuries. The bottom line for gold is that nothing in the system has been fixed so gold will continue to do well. There are many ominous signs of problems in the system.
Compressed rates, flat yield curves, and negative rates are all indicative of massive problems in the monetary system. What form those problems will take remains unknown but they are stacking to the downside. It could be a recession or a decline in growth for part of the world.
Advertisement
______________________________________________________
https://www.youtube.com/watch?v=fnm9KMjRPdI
______________________________________________________
If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is an informational news aggregator. All content, including third-party reports and community commentary, is provided for educational purposes only. We do not provide financial, legal, or tax advice. We do not recommend the purchase or sale of any currency or investment. Please consult with a licensed professional before making any financial decisions.
Copyright © Dinar Chronicles
______________________________________________________
