There is just one way to describe the plunge in bond yields overnight and the event behind it: the global race to the currency bottom is now rapidly accelerating in its final lap.
Since late May, the price of COMEX Digital Gold has been on a tear with a rally of over $200. Will this surge continue? Perhaps more importantly, can this surge continue?
...countries currently in price deflation around the world were Ecuador (-0.2 percent), the Maldives (-0.1 percent), Rwanda (-0.3 percent) and Burundi (-2.8 percent).
The New Zealand Dollar is tumbling following a surprise 50bps rate-cut by RBNZ (economists had forecast 25bps) to 1.00%, citing downside risks on inflation and jobs.
Gold hit record highs in a number of currencies this week as trade war worries, geopolitical uncertainty drove investors to seek safe haven... following central banks buying a record amount of the precious metal in the first six months of the year...
"In a risk case where the yen strengthens sharply and the Trump administration is adamantly opposed to the [Bank of Japan] intervening...the GPIF has the ability to ramp up its purchases of overseas securities."
...there is a clear dissociation between “Wall Street” and “Main Street” that will at some point inevitably lead to serious economic and political problems in the United States...
The Fed may have no choice but to resume Quantitative Easing and start expanding its balance sheet again - potentially as early as 4Q - in order ease funding pressures expected during the coming wave of Treasury supply.
