Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Economical situation 2020 (Corona)
#21
Today the FED announced to print unlimitted amounts of money.

it will launch a barrage of programs aimed at helping markets function more efficiently amid the coronavirus crisis.

Among the initiatives is a commitment to continue its asset purchasing program “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

That represents a potentially new chapter in the Fed’s “money printing” as it commits to keep expanding its balance sheet as necessary, rather than a commitment to a set amount.
What is this thing that builds our dreams, yet slips away from us?

Reply
#22
The end is near. This can be just the kick-start cryptocurrency needs to go global
Adapting the future, while it unfolds - Junior
Reply
#23
The same is about to happen in Europe now. Selling bonds and print money.

What is sad is that millions of people will lose their jobs and don't have an income to pay for their living. Families will be forced from their homes because they can't pay of their loans making the crises even deeper.

This could be the collapse of the system we know. That's for sure, but we will see a lot of initiatives to prevent the total collapse to happen because that could end in civil war and go very bad like a sci-fi movie.
Cardano is the most promising 3 gen. crypto right now.


Reply
#24
(2020-03-24, 01:55 PM)Carsten Wrote: The same is about to happen in Europe now. Selling bonds and print money.

What is sad is that millions of people will lose their jobs and don't have an income to pay for their living. Families will be forced from their homes because they can't pay of their loans making the crises even deeper.

This could be the collapse of the system we know. That's for sure, but we will see a lot of initiatives to prevent the total collapse to happen because that could end in civil war and go very bad like a sci-fi movie.

That's how I see it too.
Let's hope we are wrong.
What is this thing that builds our dreams, yet slips away from us?

Reply
#25
(2020-03-24, 05:32 PM)Hugues Wrote:
(2020-03-24, 01:55 PM)Carsten Wrote: The same is about to happen in Europe now. Selling bonds and print money.

What is sad is that millions of people will lose their jobs and don't have an income to pay for their living. Families will be forced from their homes because they can't pay of their loans making the crises even deeper.

This could be the collapse of the system we know. That's for sure, but we will see a lot of initiatives to prevent the total collapse to happen because that could end in civil war and go very bad like a sci-fi movie.

That's how I see it too.
Let's hope we are wrong.

Yes let's hope it doesn't come to total collapse and civil war. It's okay to be a bit scared about the future now but no matter the direction there is  not much we can do if it end in total collapse. It still hard to imagine it will come so far and I think we will see the military in action as a last resort if it comes so far. The military is already activated with medical care, transportation and transportation of the dead since the undertakers no longer can keep up with the speed of people dying. "Exciting" times for sure. Watch out for your families but keep the distance to the older ones.
Cardano is the most promising 3 gen. crypto right now.


Reply
#26
It is really going mad.
Soon people will need a wheelbarrow full of money to buy a bread.

https://www.nationalreview.com/news/coro...-trillion/
What is this thing that builds our dreams, yet slips away from us?

Reply
#27
(2020-03-25, 07:59 AM)Hugues Wrote: It is really going mad.
Soon people will need a wheelbarrow full of money to buy a bread.

https://www.nationalreview.com/news/coro...-trillion/

It's the same all over Europe but the amount is less because our economy is less.
Cardano is the most promising 3 gen. crypto right now.


Reply
#28
All brakes are released.

The gold price was up $ 200 in the past two days and silver was bouncing at $ 2 an ounce.

You shouldn't look too far for any reason: the Federal Reserve has gone all-in.

In the past the market has always been disappointed by the amounts the Fed came up with, Therefor it was decided to throw those limits completely overboard.

The Fed will do whatever it takes. Whatever the cost.

$ 1,000 ... $ 5,000 or $ 10,000 billion? Who can tell.

Whatever it takes.

And without waiting any longer. The Fed will now purchase $ 125 billion in loans daily.

Per day!

Do that for a month and you're at $ 2.500 billion.

During QE1, QE2 and QE3, the central bank never bought more than $ 85 billion a month in bonds.

It gives you an idea of ​​the scale of these operations.

There is literally no brake on it.

Precious metal demand has been particularly high, and it has exploded since the Federal Reserve's announcement.

Some traders report that demand for precious metals has increased ten times in recent days. The gold and silver coins fly sells faster than toilet paper.

We are also receiving more and more reports of gold mines stopping production to protect personnel from Coronavirus.

Gold refineries have also paralyzed the activities, causing a significant shortage of precious metal.

You can barely get it at the moment, which means empty shelves for the traders.

We also see a weird phenomenon in the financial markets where the spot price of gold was $ 80 lower than the futures price at one point.

The only explanation you can come up with for this is that there are delivery problems. Certain parties went short on gold and are now unable to deliver.

Finally, there are also several gold mines that have sold their production through forward sales. How will they deliver this gold when no more ounces were produced? These mines will likely have to buy gold in the market to fulfill their obligations.

So the great search for the physical metals has begun. There are all kinds of parties with huge short positions and they now all have to look for physical precious metal that can hardly be found.

A good example of this is ABN AMRO.

Investors who have gold accounts through this bank are now required to sell that precious metal before the end of the week.

You only get one option: sell! (You see once again why I hate banks)

Can you imagine people having exchanged their euros for precious metals a short while to protect their assets? Now they are obliged to sell just because the banks tell them to do so. Just now before the grand final they are stuck again with their euros.

The big question is why ABN AMRO does not give customers the option to simply take possession of this precious metal? Although you can guess the answer, I think…

So this is exactly why I have been insisting on the importance of PHYSICAL precious metal.

Because (and this has become clear today), there is a huge difference between the physical and paper markets.

Things are about to burst and soon more and more investors will realize that they only have a paper claim instead of “the real stuff”.

As there is barely any gold and silver to be found at the moment, investors will now turn to mining stocks. That is the only way to increase your exposure of gold and silver.

Mining stocks have been dumped over the past few weeks that it was unpleasant to see and are now trading against the lows of years past… while gold is about to hit a new high!

(2020-03-25, 06:11 PM)Hugues Wrote: All brakes are released.

The gold price was up $ 200 in the past two days and silver was bouncing at $ 2 an ounce.

You shouldn't look too far for any reason: the Federal Reserve has gone all-in.

In the past the market has always been disappointed by the amounts the Fed came up with, Therefor it was decided to throw those limits completely overboard.

The Fed will do whatever it takes. Whatever the cost.

$ 1,000 ... $ 5,000 or $ 10,000 billion? Who can tell.

Whatever it takes.

And without waiting any longer. The Fed will now purchase $ 125 billion in loans daily.

Per day!

Do that for a month and you're at $ 2.500 billion.

During QE1, QE2 and QE3, the central bank never bought more than $ 85 billion a month in bonds.

It gives you an idea of the scale of these operations.

There is literally no brake on it.

Precious metal demand has been particularly high, and it has exploded since the Federal Reserve's announcement.

Some traders report that demand for precious metals has increased ten times in recent days. The gold and silver coins fly sells faster than toilet paper.

We are also receiving more and more reports of gold mines stopping production to protect personnel from Coronavirus.

Gold refineries have also paralyzed the activities, causing a significant shortage of precious metal.

You can barely get it at the moment, which means empty shelves for the traders.

We also see a weird phenomenon in the financial markets where the spot price of gold was $ 80 lower than the futures price at one point.

The only explanation you can come up with for this is that there are delivery problems. Certain parties went short on gold and are now unable to deliver.

Finally, there are also several gold mines that have sold their production through forward sales. How will they deliver this gold when no more ounces were produced? These mines will likely have to buy gold in the market to fulfill their obligations.

So the great search for the physical metals has begun. There are all kinds of parties with huge short positions and they now all have to look for physical precious metal that can hardly be found.

A good example of this is ABN AMRO.

Investors who have gold accounts through this bank are now required to sell that precious metal before the end of the week.

You only get one option: sell! (You see once again why I hate banks)

Can you imagine people having exchanged their euros for precious metals a short while to protect their assets? Now they are obliged to sell just because the banks tell them to do so. Just now before the grand final they are stuck again with their euros.

The big question is why ABN AMRO does not give customers the option to simply take possession of this precious metal? Although you can guess the answer, I think…

So this is exactly why I have been insisting on the importance of PHYSICAL precious metal.

Because (and this has become clear today), there is a huge difference between the physical and paper markets.

Things are about to burst and soon more and more investors will realize that they only have a paper claim instead of “the real stuff”.

As there is barely any gold and silver to be found at the moment, investors will now turn to mining stocks. That is the only way to increase your exposure of gold and silver.

Mining stocks have been dumped over the past few weeks that it was unpleasant to see and are now trading against the lows of years past… while gold is about to hit a new high!
https://www.theblockcrypto.com/post/5966...medium=rss
What is this thing that builds our dreams, yet slips away from us?

Reply
#29
I don't know about gold, but guns have been in high demand in USA also much more than gold. It's the Asians who buy guns to protect themselves. Seems people blame asians for the virus.

In the worst case scenario you can't use gold, silver or crypto fro anything, but guns come in handy.

I really don't know where this is going and I don't think anybody does. For now I still think worst case scenario is unlikely but the probability is far from zero anymore.
Cardano is the most promising 3 gen. crypto right now.


Reply
#30
Worse than 2008

The idea that lives today is that the economy has to go through a big shock due to the lockdowns, but then bounces back.
Governments and central banks now have to pull everyone through and everything will be fine after that...
That's very optimistic of course.
The past few years I have warned several times that the next crisis would be greater than that of 2008. I stopped talking about it because everyone called me pessimistic or paranoid.
The credit crisis already showed that the world was in too much debt and there were problems with repayment.
That problem was addressed with even more debt.
The world had $ 180,000 billion in debt in 2008, and these have grown by $ 70,000 billion to an astronomical $ 250,000 billion.
The Coronavirus has exposed this weakness.
There are no buffers to deal with a crisis, only debt.
The current crisis started long before the outbreak of Covid19 in the repo market.
At the end of September, the Federal Reserve had to inject $ 200 billion into the repo market.
The cracks were already visible and the FED had been filling for some time.
The US had a record last week with over 3 million new unemployed… a record that was broken smoothly this week.
I have seen a graph (sorry but I lost the link to it) that shows how exceptional these figures are. The 2008 crisis is barely visible on that graph.
Economic activity will resume after the lockdowns, but we will not immediately reach the level of 2019.
Because the Coronavirus has not disappeared and the risk of infections remains. People will remain cautious.
It may take another year before we can fully resume normal life. This will continue to weigh heavily on the economy.
The impact on our economy can hardly be quantified.
How big is the downturn in our economy during a quarter where we are all at home for the most part?
It does not seem inconceivable to me that economic activity is currently 40% to 60% lower?
Let's assume 40%, which is a shrinkage of 10% on an annual basis.
However, it does not stop here because the third and fourth quarters will also be a lot lower than 2019.
How much lower? Hard to say now. 5%? 10%?
If you calculate it all, you will soon see a shrinkage of 15% to 20% in 2020!
This figure is a lot more pessimistic than the estimates circulating to date.
BNP Paribas expects a contraction of 3.5%, Belfius 5% and KBC of 9.5%.
Which companies will have the means to continue to meet their obligations? Big question mark.
We have only been a few weeks into the crisis and one fifth of retailers are no longer able to pay the rent.
The longer this takes, the more companies will be unable to pay off debts and will be forced to file for bankruptcy.
This crisis will turn into a debt crisis relatively quickly.
Globally, $ 12,000 billion in stimulus has been announced to date, but more are needed. Much more.
If you want to save the system at all costs by printing money, you need billions to finance the government deficits, keep the debt bubble afloat and provide the citizens with bread and games.
A while ago, I told that thousands of billions of euros would fly right over your head, and now it turns out that I was still too optismistic.
We may soon be talking about tens of thousands of billions, so that the debt crisis culminates in an inflationary depression.
That is the only conceivable scenario.
During an inflationary depression, the economy deteriorates… while prices rise.
What is this thing that builds our dreams, yet slips away from us?

Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)
Banners