Investing in Precious Metals 101 Ad

Tag Archives: yuan

  • Daily Digest
    Image by Mohmed Althani, Flickr Creative Commons

    Daily Digest 4/16 -The Doomsday Maps Of The World, Miami Racing Against Time

    by DailyDigest

    Monday, April 16, 2018, 3:13 PM

    3
    • Here's How Facebook Tracks You When You're Not On Facebook
    • The Shocking Doomsday Maps Of The World And The Billionaire Escape Plans
    • Inside The Secret World Of Russia's Cold War Mapmakers
    • Cops Around the Country Can Now Unlock iPhones, Records Show
    • IEA: U.S.-China Trade Row Could Dampen Oil Demand Growth
    • The world faces a future of floods, famine, and extreme heat — here’s what it’ll take to bounce back
    • Miami is racing against time to keep up with sea-level rise
    • Gulf Stream current at its weakest in 1,600 years, studies show 
    Enroll Now
    Or Sign In with your enrolled account.

    Read More »

  • Insider
    swissmacky/Shutterstock

    Why The Coming Currency Crisis Will Push The USD Higher

    Which will crush stocks
    by charleshughsmith

    Wednesday, November 25, 2015, 5:11 PM

    16

    Executive Summary

    • Other currencies are inflating faster than the USD
    • The USD is still backed by a preponderance of the world's assets
    • The potential for a global currency crisis is rising
    • Why USD will be the (initial) safe haven when it arrives

    If you have not yet read Part 1: How Much Higher Can The U.S. Dollar Go?, available free to all readers, please click here to read it first.

    In Part 1, we reviewed the technical evidence in support of a second move higher in a multi-year U.S. dollar rally. Here in Part 2, we ask: What conditions might drive such a move higher?

    To answer this question, let’s start with another question: What’s scarce in the world of foreign exchange (FX)?

    We ask this because capital, profits and gains flow to what’s scarce and in demand. This boils down to supply and demand: gains go to whatever is in high demand and scarce, and whatever is not in demand and over-supplied will lose value.

    Supply and Demand

    Like every other commodity, currencies respond to supply and demand: whatever currency is scarce and in demand will rise, while currencies that are in oversupply and not in demand will decline.

    Though many presume the world is awash in dollars as a result of Federal Reserve quantitative easing, the reality is that expansion of USD via bank loans (credit) and Fed money-creation is modest compared to the expansion of other global currencies such as China’s renminbi (RMB), a.k.a. yuan.

    Consider this chart of bank credit expansion in the U.S. and in China since the onset of the “Great Recovery” in early 2009: China’s bank credit has soared by 260%, a sum that is roughly 140% of China’s entire Gross Domestic Product (GDP), while U.S. bank credit rose by a modest 12% of U.S. GDP.

     

    If we compare M2 money supply, we find…

    Enroll Now
    Or Sign In with your enrolled account.

    Read More »

  • Insider
    hin255/Shutterstock

    Off The Cuff: Currency Turmoil

    China is the latest to enter the currency wars
    by Adam Taggart

    Friday, August 14, 2015, 4:17 AM

    12

    In this week's Off The Cuff podcast, Chris and John Rubino discuss:

    • Currency Turmoil
      • What a yuan devaluation means
    • China's Credit Crisis
      • Why the growth of the past decade is over
    • Deflation Everywhere
      • The whole world economy is slowing
    • Lower prices ahead!
      • "All that's missing is a stock market crash"
    Enroll Now
    Or Sign In with your enrolled account.

    Read More »

  • Blog
    Ivan Cholakov/Shutterstock

    Deflation Is Winning – Beware!

    Expect the ride to get even rougher
    by Chris Martenson

    Friday, July 24, 2015, 3:03 PM

    14

    Deflation is back on the front burner and it's going to destroy all of the careful central planning and related market manipulation of the past 6 years.

    Clear signs from the periphery indicate that a destructive deflationary pulse has been unleashed. Tanking commodity prices are confirming that idea. 

    Read More »

  • Insider
    swissmacky/Shutterstock

    Why The Strengthening Dollar Is A Sign Of The Next Global Crisis

    It causes the weaker parts of the system to fail faster
    by charleshughsmith

    Wednesday, November 12, 2014, 3:21 PM

    2

    Executive Summary

    • Understanding the two different ways money flows into the US dollar
    • How currency crises elsewhere can send the dollar skyrocketing
    • Why yen, yuan and euro printing are not the same as dollar printing
    • How these accelerating money flows are creating the next global crisis

    If you have not yet read The Consequences of a Strengthening US Dollar available free to all readers, please click here to read it first.

    In Part 1, we surveyed the key dynamic that is playing out across the globe: the problems revealed by the Global Financial Meltdown of 2008-2009 were not addressed; they were in effect shifted into the foreign exchange (FX) market. Now the risk bubble is in the FX market.

    The complexity of the feedbacks into the FX market is nothing short of mind-boggling, and rather than attempt a comprehensive survey, I’m highlighting the dynamics that hold the greatest risks of triggering instability, not just in finance but in geopolitics, trade and commodities.

    Two Kinds of Dollar Flows

    Let’s start by differentiating between the two kinds of money flows into the dollar:

    1. Money converted from periphery currencies into dollars to pay back loans denominated in dollars
       
    2. Money flowing out of periphery economies and into dollar-denominated assets such as stocks, bonds, real estate and dollar-denominated bank accounts.

    Broadly speaking, both of these capital flows are “risk-off,” but they have different effects.

    In the first case, money borrowed on the cheap in dollars and invested in high-yield periphery bonds earned a tidy profit as the dollar weakened. The trader picked up a double profit: the arbitrage on the interest rates (borrow at .25% and earn 4+%) and the FX profit from the rise of the periphery currency and the decline of the dollar.

    This currency-arbitrage profit reverses when the dollar starts rising, and it quickly wipes out the entire interest-rate profit as it leaps higher.

    The carry trade is “risk-on” because money is being borrowed to speculate in interest-rate arbitrage. Deleveraging this trade is “risk-off” because the only way to stem the potential losses as the dollar strengthens is to…

    Enroll Now
    Or Sign In with your enrolled account.

    Read More »

  • Blog

    Daily Digest 5/27 – ‘Heads You Win, Tails You Don’t Lose’ With the Yuan, Treasurys’ Second Biggest Weekly Drop Ever

    by DailyDigest

    Friday, May 27, 2011, 2:31 PM

    0
    • Green Shoots, Exit Strategy, No QE3
    • It’s “Heads You Win, Tails You Don’t Lose” With This Currency
    • Kan Vows to Boost ‘Green’ Power to 20 Percent by 2020
    • Second Biggest Weekly Drop Ever in Treasurys Held in Fed’s Custodial Account
    • Dollar Gains Versus Most-Traded Counterparts as Stocks Tumble; Euro Drops
    • UK Government to Work with Business on Plans to Tackle Peak Oil Threat
    • Cancer Now Leading Cause of Death in China

    Crash Course DVDGet Yours Today! The Crash Course Special Edition with Presenter’s Pack (NTSC or PAL)

    Read More »

  • Blog

    Daily Digest 3/3 -12 Countries Most Likely To Go Belly-Up, Maxwell’s Silver Hammer, China To Allow All Trades In Yuan

    by DailyDigest

    Thursday, March 3, 2011, 3:43 PM

    0
    • 12 Countries Most Likely to go Belly Up
    • USA Incorporated – a Look at the Grim Financial Situation of the USA
    • A Road Tour Of The Revolution
    • Pentagon Report Reveals Financial Terrorists May Have Triggered Economic Crash
    • China “Attacks The Dollar” – Moves To Further Cement Renminbi Reserve Currency Status
    • Merrill’s Harley Bassman On Why This Is The “Big One” And Its Implications
    • Bang Bang, Maxwell’s Silver Hammer
    • China To Allow All Trades To Settle In Yuan, Encourages Use As Reserve Currency

    Follow our steps to prepare for a world after peak oil, such as how to store & filter water

    Read More »

  • Blog

    Daily Digest 1/22 – Euro Gains Amid Optimism, Gold Heads for Decline, Increased Ethanol in Auto Fuel Approved

    by DailyDigest

    Saturday, January 22, 2011, 4:00 PM

    0
    • The Yuan’s Coming Out Party
    • Alpha 2 Says “Cliff Ahead”
    • Euro Gains Amid Optimism Leaders Will Act to Ease Debt Crisis
    • Gold Heads for Third Straight Weekly Decline on Outlook for Interest Rates
    • California Unemployment Rate Ticks Up To 12.5%
    • E.P.A. Approves Increased Ethanol in Auto Fuel
    • US Renewable-Energy Incentives Help Bloom Energy To Expand Sales

    Get started building resilience into your life with our ‘What Should I Do?’ guide

    Read More »

  • Blog

    Daily Digest 1/15 – Unprecedented Buying of Silver, Banks Loosen Purse Strings, Yuan Won’t Ease Inflation

    by DailyDigest

    Saturday, January 15, 2011, 4:00 PM

    0
    • How to Fix Mortgage Mess in Three Steps: Laurence Kotlikoff
    • US Mint Reports Unprecedented Buying Spree Of Physical Silver
    • Copper Deficit May be 600,000 Tons, JPMorgan Says
    • Banks Loosen Purse Strings
    • China Lawmaker Says Yuan Appreciation Won’t Help Ease Inflation
    • Progress on Overhaul of Corporate-Tax Rules
    • Norway’s $186 Billion Gas Loss to Cement Russian Grip on Supply

    Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

    Read More »

  • Blog

    Daily Digest 1/14 – Europe Fears Chinese Super-Creditor, Cleaner Energy in LA, Gas Could Return to $4/Gallon

    by DailyDigest

    Friday, January 14, 2011, 4:00 PM

    0
    • Fed’s Fisher Says Monetary Policy Not Cure for Nation’s `Fiscal Pathology’
    • Europe Fears Motives Of Chinese Super-Creditor
    • Markets Shrug Off Fresh Warnings About US Sovereign Debt
    • Li Tests Yuan IPO Market
    • 10 Things That Would Be Different If The Federal Reserve Had Never Been Created
    • In Los Angeles, Officials Announce Attainment of a Cleaner-Energy Goal
    • Gasoline’s Prepping For A Return To $4 A Gallon

    Get started building resilience into your life with our ‘What Should I Do?’ guide

    Read More »