GOLD 0.51% $1,391.7 gold futures

@goldbear77 Just from one of your previous posts you say "theyve...

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    @goldbear77

    Just from one of your previous posts you say

    "theyve widened the remit to include corporate bonds so they can keep driving down yield across a wider spectrum"

    Do you have any links that provide more detail on ECB policy in respect of central bank corporate bond purchases or what practices are currently being applied outside of sovereign debt purchases to facilitate money printing in Europe? I've only recently become interested in the European picture again.

    Kuroda has his ETF purchase programme running along side the BOJ's buying up of Japanese government debt.

    The funny thing is that the stock market bubbles are part corporate bond bubbles in any case as valuations have been driven by dividends and buy-backs funded by corporate debt.

    The reality is that this form of debt is not very well regarded in markets. You can't post collateral in that form as margin on the CME to trade gold futures so that must say something about where it ranks in the scheme of things. Funnily enough not that long ago the CME opened gold up as a "good" form of collateral for opening trades on that market.

    In my opinion you can't keep QE going for long with this form of debt. It's like in those old movies where the actors are on a steam train and they run out of coal.....they start ripping carriages apart and furniture to throw into the engine.

    Interesting to see how this potential "lack of Bunds" theme plays out and how they go about resolving the banking issues in Italy and Europe in the next days, months, years. Eshmun
 
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