By Steve Saville
[This blog post is an excerpt from a commentary posted at TSI about three weeks ago]
TARGET2 is the system set up in the euro-zone to clear inter-bank payments. The Bundesbank (Germany’s central bank) describes it as a payment system that enables the speedy and final settlement of national and cross-border payments. The problem is that often there is no “final settlement” under TARGET2. Instead, credits and debits can build up indefinitely.
To understand the issue it first must be understood that although the 19 countries that comprise the euro-zone use a common currency, the euro-zone isn’t really a unified monetary system. It is more like 19 separate monetary systems, each of which is overseen by a National Central Bank (NCB). These NCBs are, in turn, overseen and coordinated by the ECB. TARGET2 is the means by which money is transferred quickly and efficiently between these 19 separate monetary systems. The transfer may well be quick and efficient, but, as noted above, it often doesn’t result in final settlement.
Further explanation is provided by the Bundesbank, as follows:
Continue reading The Absurdity Known as “TARGET2”
Like me or hate me, I think what I think and in this business that is part of my product (unlike, say, an office worker toiling away as a good company man while holding a veritable Vesuvius of thoughts within).
I really like the addition of NFTRH’s Wild Card segment, because it allows me a massive range. Two weeks ago we broke down the Semiconductor sector. Last week we talked about the shift in Fed policy toward the decidedly dovish. This week for tomorrow’s NFTRH 537 this thing was burped up.
It’s not actionable to any kind of real analysis, so here it is for public consumption (or regurgitation for all I care).
Saturday Morning Cartoons
First off let me say that my market report is called Notes From the Rabbit Hole. I have a tattoo of Alice, the Queen and the Rabbit on my right forearm. The letter is so named because early in the Millennium I fell into a hole inhabited by some strange characters, including the now very public Chris Martenson, who was but one of several characters.
Continue reading Saturday Morning Cartoons
By Anthony B. Sanders
Gold Vol Remains Subdued
The Federal Reserve’s “maybe we will, maybe we won’t” regarding further shrinking of its balance sheet coupled with keeping its target rate at 2.50% was celebrated by equity investors … and gold investors (including SPDR Gold Shares).
(Bloomberg) — Gold is poised to close out January with a fourth straight monthly gain after the Federal Reserve signaled it’s done raising interest rates for a while, hurting the dollar, and as investors sought a haven against slowing growth and U.S.-China trade disputes.
Continue reading Gold Rewards Bulls in January as Fed’s Message Wounds Dollar
By Jeffrey Snider
A year ago, central bankers were over the moon. From those in the US to those in Europe, with Japanese officials in between, they really thought they had it. There wasn’t much basis for the belief, mind you, merely the fact that positive numbers were registering in all those places at the same time. Like some old Three Stooges movie, Moe (Powell), Larry (Draghi), and Curly (Kuroda) clunked their heads together and thought it had to mean something.
As 2019 dawns, nope, it really was meaningless nothing. Leading the way toward the wrong direction is Larry with Curly not far behind. Moe’s turn is fast approaching; he is currently paused to figure out whose face he might slap in order to shift the blame.
Curly always was the more flamboyant of the three. His track record for slapstick continues to be unmatched.
Continue reading The Light and the Dark
By Otto Rock
This was read by subscribers to The IKN Weekly on Sunday. Now it’s your turn.
Newmont (NEM) and Continental Gold (CNL.to): Intel
I semi-promised I wouldn’t come back to this whole CNL Buriticá thing for a while just a couple of editions ago, but I’m going to have to break that semi-promise. This weekend, a reputable source passed on intel that by its nature must remain unconfirmed (so please keep that in mind, I have no second lead on this) but due to the respect I have for the seriousness of my source it’s going to get an airing.
This: According to my source, the board of Newmont (NEM) is meeting this week coming to decide, in an up/down yes/no manner, whether to buy out the remaining 80% of Continental Gold (CNL.to) that they do not already own. Also, my source stated that NEM is not at all happy with the current situation there and says that if NEM stays, they want full control and ownership of the project. End.
Continue reading Newmont (NEM) and Continental Gold (CNL.to): Intel (from IKN499)
[biiwii comment: Tim posted this video @ Slope of Hope and I think it is fantastic, and so we post it here as well. A great and humble mind explains his successful strategies and challenges. The most interesting stuff to me are his views on the new academically run monetary regimes and Algos/machines, how they’ve distorted the market’s signals and how he’s trying to reconcile it all.]
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