Saturday, June 28, 2014

No Exit For The Fed By Jim Rickards

Written by Jim Rickards

The Federal Reserve, the central bank of the U.S., is nearing the end of its ability to manipulate the U.S. economy without producing consequences worse that those it set out to avoid in 2008. The Fed has no good exits from seven years of market manipulation. If it continues its current policy of reducing purchases of assets, the so-called “tapering,” it risks throwing the U.S. into a recession. If it reverses course and pauses the taper and later increases asset purchases, it risks destroying confidence in the dollar among foreign creditors of the U.S.
...
Major creditors such as Russia and China are taking steps to insulate themselves from the potential for inflation in the near future if the Fed’s QE money printing programs continue.
...
Russia has been dumping U.S. Treasury debt since late 2013, partly as a result of fear of U.S. economic sanctions and partly out of concern about the fate of the U.S. dollar. Both Russia and China have been buying enormous quantities of gold to hedge against possible U.S. dollar inflation.

Excerpt from Original Article

Thursday, June 26, 2014

Singapore Stock Exchange to Launch Physical Gold Contract in September

The world’s first exchange-traded, gold contract will be created for the trade, clearing and physical delivery of the precious metal in Singapore. The contract will be the first wholesale 25 kilobar gold contract to be offered worldwide. The Singapore contract will have no price limits.

The World Gold Council, Singapore Bullion Market Association, SGX and four banks - JP Morgan, Scotia Bank, Standard Bank and Standard Chartered - are supporting the launch.

According to SGX President Muthukrishnan Ramaswami, he said that the launch "will enable the trading and clearing of the Singapore kilobar gold contract and establish a fully transparent price discovery mechanism for gold in this region".

 “This is a timely development given the increased requirements for reference prices to be transparent,” Trade and Industry Minister Lim Hng Kiang said in a speech at the London Bullion Market Association’s conference yesterday.

Tuesday, June 17, 2014

Singapore Launching Overnight Yuan Liquidity Facility in July

SINGAPORE — The Republic’s position as an offshore yuan hub is set to receive an additional boost with the launch of a facility to provide overnight liquidity as trade transactions using the Chinese currency rise.

The facility, offering up to 5 billion yuan (S$1 billion) in overnight funds on any given day to financial institutions in Singapore, will be launched on July 1, the Monetary Authority of Singapore (MAS) said yesterday.
...
Meanwhile, the People’s Bank of China Nanjing branch also announced yesterday that it would allow eligible companies and individuals in the Suzhou Industrial Park (SIP) to conduct cross-border yuan transactions with Singapore.
...
Singapore’s journey as an offshore yuan centre started in February last year when the People’s Bank of China appointed Industrial and Commercial Bank of China’s local branch here as the yuan clearing bank for Singapore.
Excerpt from Original Article