- ITM Trading
Slides and Links: https://www.itmtrading.com/blog/criti…
All of a sudden, in the face of no change, global stock markets are moving up. In the US they are making new highs even as trade wars escalate and a possible government shut down was postponed until December 20th. Merry Christmas. In the EU, markets are now at four-year highs, even as a hard Brexit looms. And now we know why it had to be postponed yet again. Because of the 640 trillion euro derivative contracts that clear through the city of London.
Bank “traders have stressed that there is no alternative venue for some types of contracts” (emphasis mine), in other words, they don’t know how to untangle the complicated derivative spider web and both the Bank of England and the European Central Bank are worried about the risks to global financial stability and a potential breakup of the Euro common currency currently being used in nineteen European countries. In Europe unemployment “is at its lowest level in a generation. Ten million more people have jobs today than before the financial crisis” as “Demand for workers remains high, with more job openings than ever before”. Sound familiar?
Additionally, “The British job market over the past decade looks like a success story. The unemployment rate is near a record low” with the number of working adults is at the highest since records began in 1971. The same is true in the US, so what’s the problem? Rather than creating a booming global economy, income inequality is at the highest levels ever with most of the benefits going to corporations and the 1% and the world is slipping into recession because the inflationary money creation is remaining at the top and not flowing through the entire economies. How has digital spot gold responded in terms of euro’s? It is concluding the cup formation (accumulation pattern) that began in 2013. But even more importantly, as central bankers understand that they are losing the inflationary war they are preparing to remain in power by accumulating physical gold at levels never seen before. What can we deduce from their behavior? Those who hold physical gold are most likely to win.