Shadow banking can combine limited transparency, illiquid assets, leverage, maturity mismatch and rapid growth - a potentially dangerous mix in periods of market stress.
According to the Financial Times, central banks globally hold 36,000 tonnes of gold. That is nearly as much as the peak of the Bretton Woods era, when the dollar was tied to gold...
Without the Federal Reserve, the US government would have to finance the welfare-warfare state via direct taxation, instead of via the central bank’s hidden (and regressive) inflation tax.
The messaging pattern is clear. Rates are staying where they are for now, but the next move is more likely up than down. That's the expectation the central bankers seem to be setting.
The next big move is likely to be up towards the top of the range. The rally could potentially see gold make a new high before one final dip back towards the lower end of the range...
Ira Epstein discusses the impact of recent events on various markets, noting pressure on the stock market, declines in gold and silver, and stability in natural gas.
