Geotrendlines - Page 2 of 9 - Money, gold and geopolitics

Not a banking crisis, but a dollar crisis

April 5, 2020August 17, 2020 Sander Boon 0 Comments bis, bonds, crisis, dollar, dollar shortage, eurodollar, financial markets, financial system, government bonds, imfs, liquidity, sander boon, Zhou Xiaochuan

The world economy was in a bad shape in March 2009. In the eighteen months before that, the economy took beating after beating. What started as a housing crisis in the United States, turned into a bankrun among banks and a financial crisis like the world had never seen before. Central banks pulled out all the stops to shore up banks and the financial market, but each time a different financial bomb exploded in the system. Only after bail-outs by governments – taxpayers – the markets stabilized.

Gold

What’s going on with the gold price?

April 1, 2020August 17, 2020 Frank Knopers 0 Comments cme, comex, gold, gold market, gold price, goldprice, lbma

Last week we saw a remarkable movement in the gold market. On Tuesday the price of gold on the New York stock exchange was $70 per troy ounce higher than in London, the biggest price difference in 40 years. These prices often diverge, but under normal circumstances traders are entering the market to eliminate this difference. This did not happen last week, resulting in two different gold prices and tightness in the New York gold market. How did this happen?

Gold Money

ABN AMRO leaves gold investors empty-handed

March 25, 2020August 17, 2020 Frank Knopers 3 Comments abn, abn amro, gold, gold market, jaco schipper, weight account

ABN AMRO leaves gold investors empty-handed, as the bank closes all weight accounts for gold, silver and platinum. Approximately 2,000 customers who have precious metals in their weight account at the bank have to sell them before April 1. If they fail to do so, ABN AMRO will sell their positions at the current market price. The bank cannot guarantee that they will sell the precious metal at a favorable price.

Geopolitics Oil & Gas

Turkey important for European gas market

November 21, 2019November 21, 2019 Frank Knopers 0 Comments energy, europe, gas, natural gas, russia, south stream, tanap, tap, turkey, turkish stream

In the future, Turkey will play an important role in the European energy supply. The construction of various new pipelines will create a southern transport route to bring natural gas from Russia and Azerbaijan to the European market.

Economics Money

Fed continues to intervene in repo market

November 18, 2019February 23, 2020 Frank Knopers 0 Comments fed, liquidity, repo, repo operations

The Federal Reserve announced new long-term repo operations to avoid liquidity problems in the money market by the end of the year. In addition to daily and 14-day repo operations, new liquidity injections of 28 and 42 days will be made.

Economics Money

Fed warns against risks of long-term low interest rates

November 18, 2019April 6, 2020 Frank Knopers 0 Comments central bank, fed, federal reserve, interest rate, interest rates

Long-term low interest rates may jeopardize the profitability of US banks and encourage bankers to engage in risky behavior, which could jeopardize financial stability, the Federal Reserve said in a new report published on Friday.

Economics Geopolitics Money

Venezuela provides more euros than bolivars to banks

November 15, 2019August 17, 2020 Frank Knopers 0 Comments bolivar, currency, euro, venezuela

Instead of bolivars, the central bank of Venezuela is increasingly distributing euro banknotes to its own banking sector. As a result, the euro is gaining market share in domestic payments, at the expense of the virtually worthless bolivar.

Gold

Serbia adds 9 tonnes to gold reserves

November 15, 2019August 17, 2020 Frank Knopers 0 Comments gold, serbia

After Hungary and Poland, Serbia has also recently added gold to its reserves. On the recommendation by President Aleksandar Vucic, the central bank bought 9 tons of gold in October. As a result, the country’s total gold stock rose to 30.4 tonnes, about 10% of total reserves.

Economics Money

Fisher: “Draghi will go down in history as a great monetary fool”

November 14, 2019November 15, 2019 Frank Knopers 0 Comments central banks, draghi, ecb, fed, fisher, mario draghi, monetary policy, richard fisher

Mario Draghi will go down in history as one of the greatest ‘monetary fools’. That’s what former head of the Federal Reserve Bank of Dallas, Richard Fisher, said in an interview with Bloomberg.

Economics Geopolitics

Russia and China seek stronger rapprochement

November 14, 2019November 14, 2019 Frank Knopers 0 Comments china, dollar, putin, russia, trade, xi jinping

Europe is still Russia’s most important trading partner, but in recent years the Russians have shifted their focus more to the east. As a result, China is taking away an ever-increasing share of the EU’s market.

Economics Money

Commerzbank considers negative interest rates

November 12, 2019August 17, 2020 Frank Knopers 0 Comments banks, central bank, commerzbank, ecb, germany, interest rates, monetary policy, negative rates, savings

After Deutsche Bank, also Commerzbank wants to pass on negative interest rates to its customers. In addition to large companies also smaller companies and wealthy individuals will have to pay interest on their bank balances.