Carpe diem: Intraday tactics for Dax and Dow
- #46,454
- Feb 18, 2020 8:51am Feb 18, 2020 8:51am
- Joined Nov 2013 | Status: Only thing to change was the view. | 2,444 Posts
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- #46,457
- Feb 18, 2020 9:16am Feb 18, 2020 9:16am
- Joined Nov 2013 | Status: Only thing to change was the view. | 2,444 Posts
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- #46,458
- Feb 18, 2020 9:26am Feb 18, 2020 9:26am
- Joined Nov 2013 | Status: Only thing to change was the view. | 2,444 Posts
FYI
Those saying US rates are headed to 0% or NIRP are ignoring important context: At 0% or lower US rates, $7T in USD FX reserves globally will likely begin bidding for physical gold, of which only ~$120B/year is mined.
Other current ZIRP/NIRP regions do not have this problem. What this means is that if the US takes rates to 0% or lower, the US will effectively be forcing a change in the structure of the USD’s reserve status whereby gold once again becomes the primary reserve asset instead of USTs, except this time with gold at a floating rate.
that’ll be interesting.
Those saying US rates are headed to 0% or NIRP are ignoring important context: At 0% or lower US rates, $7T in USD FX reserves globally will likely begin bidding for physical gold, of which only ~$120B/year is mined.
Other current ZIRP/NIRP regions do not have this problem. What this means is that if the US takes rates to 0% or lower, the US will effectively be forcing a change in the structure of the USD’s reserve status whereby gold once again becomes the primary reserve asset instead of USTs, except this time with gold at a floating rate.
that’ll be interesting.
Que Sera
- #46,460
- Feb 18, 2020 9:37am Feb 18, 2020 9:37am
- Joined Nov 2013 | Status: Only thing to change was the view. | 2,444 Posts
Que Sera