Hi Everybody
Have look at the chart of Deutsche Bank. (DB is about twice the size as was Lehman brother). They are talking about merging it with CommerzBank, but haven't done it yet probably because it is not viable. By the way Germans have recently become the largest buyers of Gold!
Read the 3 following articles I think they illustrate perfectly the quandary of the FED:
To sum up: A recession is coming and the Fed need to raise rate to have ammunitions to fight it. Due to their leverage increasing their balance sheet further is no longer an option. They also need to raise interest to avert a brewing pension fund crisis.
But doing so create havoc in emerging market, exacerbate the debt problem and may precipitate the next crisis that they are preparing to fight.
A way around the problem, suggested in Jim Rickards article, would be to revaluate Gold, but as you well know there are so many troubling doubts about the reality of Western Gold reserve.
Interesting time ahead!
A Recession Is Coming... And the Fed Can't Stop It:
dailyreckoning....-fed-cant-stop/?mkt_tok=ey...
"Dollar Is King": Indonesia Joins India In Begging Fed To Stop Shrinking Its Balance Sheet
www.zerohedge.com/ne...ng-its-balance-sheet
World's Biggest Hedge Fund: "We Are Bearish On Almost All Financial Assets" www.zerohedge.com/ne...all-financial-assets
WILLIAM BOND
HAPPY WEEKEND
Have look at the chart of Deutsche Bank. (DB is about twice the size as was Lehman brother). They are talking about merging it with CommerzBank, but haven't done it yet probably because it is not viable. By the way Germans have recently become the largest buyers of Gold!
Read the 3 following articles I think they illustrate perfectly the quandary of the FED:
To sum up: A recession is coming and the Fed need to raise rate to have ammunitions to fight it. Due to their leverage increasing their balance sheet further is no longer an option. They also need to raise interest to avert a brewing pension fund crisis.
But doing so create havoc in emerging market, exacerbate the debt problem and may precipitate the next crisis that they are preparing to fight.
A way around the problem, suggested in Jim Rickards article, would be to revaluate Gold, but as you well know there are so many troubling doubts about the reality of Western Gold reserve.
Interesting time ahead!
A Recession Is Coming... And the Fed Can't Stop It:
dailyreckoning....-fed-cant-stop/?mkt_tok=ey...
"Dollar Is King": Indonesia Joins India In Begging Fed To Stop Shrinking Its Balance Sheet
www.zerohedge.com/ne...ng-its-balance-sheet
World's Biggest Hedge Fund: "We Are Bearish On Almost All Financial Assets" www.zerohedge.com/ne...all-financial-assets
WILLIAM BOND
HAPPY WEEKEND
t.me/WilliamBond