Financial markets

The Fed has fought by all possible means the installation of the correction wave, because the amount of debt is so high that letting deflation happen would lead to a never-seen-before catastrophe

Beyond Deutsche Bank, we must understand that the large banks of the world are holding inordinate amounts of derivatives, beside which their own funds are ridiculously low. And this constitutes an endemic risk that is largely underestimated by the shareholders, as well as the depositors.

With virtually empty gold vaults, the central banks and bullion banks are now becoming desperate.

Scatterplot charts showing the relationship between the Dow Industrials Index & Gold for the last 200 years.

Money Managers are piling on long (Hedge Funds?) And the Commercials are going short as JPM has to hedge the positions sold to the longs.

This anemic growth, this ever-delayed recovery and this QE tapering should normally be worrisome for the stock market, but things are staying put for now. How is that?

The Bank for International Settlements (BIS) just published a statistical study on the amount of derivatives worldwide at the end of 2013, and they reach the astronomical amount of $710 Trillions ($710,000,000,000,000).

The Fed is trying to control the price of gold below $1,300 and the price of silver below $20. Every time the Fed speaks flash crashes in gold and silver happen, which has probably kept the dollar from falling more as a consequence.

The breakout observed on the CCI commodities index should correspond to another leg in the bear market for the dollar and to another leg in the bull market for commodities that started in 2001 and that can be qualified as a « supercycle ».

The Foreign Exchange (FOREX) manipulation scandal is growing in scope. In 2013 many large banks (Barclays, Deutsche Bank, UBS, Royal Bank of Scotland and HSBC) set aside 16.4 billion euros to cover « legal expenses », e.g. the probable amount of fines they will have to pay after their t...