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You can chart the damage done by Goldman Sachs and their gang of thieves by looking at commodity pricing pre- and post-ICE. Before ICE, commodities foll
by 1gor 17y ago
You can chart the damage done by Goldman Sachs and
their gang of thieves by looking at commodity pricing
pre- and post-ICE. Before ICE, commodities followed a more
or less normal growth path that matched global GDP...
Funny that, many investors think that global commodities boom since 2000 has been triggered by the Fed dropping interest rates close to zero about that time to avoid post-internet-bubble recession.
Combine that with some famous central bank character wanting to drop money from helicopters to avoid the US sliding into Japan-like deflation...
Combine that with China and the Pacific region starting to emerge as economic powerhouse about that time...
And you can send any European pension fund shivering from anticipation of collapsing dollar (and value of their treasury holdings) and scrambling to protect themselves by buying commodity index swaps. The demand was there and Goldman Sachs (and other smart/hard working banks) obliged and engineered as many commodity-linked instruments as possible, supported by as much liquidity as they can create.
Commodities boom of past several years is simply an implicit devaluation of the dollar. Commodities supply is more or less fixed. Chinese industrial growth has been between 10 and 25% since 2000 (affecting world demand for commodities/energy). US dollar interest rates have been somewere around 2% on average since then, and credit growth was massive (dollars are still plentiful in these times of 'stimulus').
How would the author explain gold breaking $1100 this week (up from under $300 in 2000)?
You can blame this currency collapse on the 'gang of thieves' or on the US monetary authorities, or simply on the historical trends. I won't care that much, but the article author is obviously an ignorant populist.