News, Rumors and Opinions Friday Morning 9-27-19
Emailed to Recaps:
Sam P: To Recaps: Check this out- It Expires today!!!!!
Central Bank Gold Agreements
On 19th May 2014, the European Central Bank and 20 other European central banks announced the signing of the fourth Central Bank Gold Agreement. This agreement, which applies as of 27 September 2014, will last for five years and the signatories have stated that they currently do not have any plans to sell significant amounts of gold. For further information, please click here.
Collectively, at the end of 2018, central banks held around 33,200 tonnes of gold, which is approximately one-fifth of all the gold ever mined. Moreover, these holdings are highly concentrated in the advanced economies of Western Europe and North America, a legacy of the days of the gold standard. This means that central banks have immense pricing power in the gold markets.
In recognition of this, major European central banks signed the Central Bank Gold Agreement (CBGA) in 1999, limiting the amount of gold that signatories can collectively sell in any one year. There have since been three further agreements, in 2004, 2009 and 2014.
Central banks have a commitment to being stewards of stable markets, in particular where it involves their own investment behaviour. The sharp and abrupt swings in the gold price prior to the first CBGA show what a world without an agreement might look like. The agreements have provided the gold market with much needed transparency and a commitment from global central banks that they will not engage in uncoordinated large-scale gold sales.
The agreements have been beneficial to all aspects of the gold market from gold producers, fabricators, investors and consumers and in particular to heavily indebted poor countries (HIPC), several of whom are large exporters of gold. Central banks have also benefited from the agreements due to the enhanced stability they have brought to the gold market and to the market value of reserves.
Judy Shelton: Twenty Years of the Central Bank Gold Agreement comes to an end today https://twitter.com/judyshel/status/1177556004948627456?s=21
SusanaC: charlie sharp ceo oct 21rst NEW ...we need more sharpness at WFB
Spaghetti: SusanaC, the new guy at WFB is named Charles Scharf…..Marketwatch article about Charles Scharf. https://www.marketwatch.com/story/wells-fargo-names-charles-scharf-its-new-ceo-who-previously-led-bank-of-new-york-mellon-2019-09-27
Spaghetti: CNN says Scharf takes over on Oct 21, as SusanaC said earlier. https://www.cnn.com/2019/09/27/business/wells-fargo-ceo-charles-scharf/index.html
Harambe: RBZ Responds To “Leaked New Currency $10 & $25
Follow link to view photo of the leaked New Zimbabwe $10 & $25 Coins.
Dr John Mangudya, the governor of the Reserve Bank of Zimbabwe has dismissed as fake news the purported leaked ZW$25 coins of the soon to come new currency.
Speaking to the Herald in an interview from New York, Mangudya said:
It’s all fake news; I don’t know what is happening back home (in terms of spreading false information).
There is nothing like that. I think there is a lot that is happening underground because the intensity of what is going on is alarming.
We can do with less bad news as a country. This bad news is unhelpful to the economy.
Mangudya speaks when the country is expecting the new currency to be introduced anytime from now.
Zimbabwe abandoned the multicurrency system after using it for a decade. Through Statutory Instrument 142 of 2019, the government also reintroduced the Zimbabwe Dollar.
The new currency is yet to be printed.
Courtesy of Dinar Guru
Bloodloch: ...As far as how I still believe it will happen, some are right on the money.
The slow climb of 1090 to 1 up to 1 to 1 isn't likely to occur since speculators will exert buying pressure and the secondary market would get overheated very quickly.
Yet, to say that 40 trillion in IQD is suddenly worth 40 trillion USD on the foreign (or domestic) exchange can't happen either. Even the US only possesses about a 3.3 trillion USD money supply (M0) of late.
The truth, I believe, will be a happy medium between the extremes of an overnight revaluation on the one hand, and a long-term crawl on the other, to find its true, happy equilibrium.
Repo Madness Day 8: NY Fed Pumps $110 Billion of Cash into Market
The Federal Reserve Bank of New York added $110 billion of cash to the financial system Thursday, the eighth consecutive business day of Fed support for the market for overnight repurchase agreements, or repos.
The N.Y. Fed added $50.1 billion of overnight cash, swapping dollars for $34.55 billion of Treasuries and $15.55 billion of mortgage-backed securities. That was half of the $100 billion of securities the Fed said it would accept. The Fed also offered two-week repos on Thursday.
In these operations, the Fed provides cash in exchange for securities and holds them for two-weeks. The Fed said it accepted $37.55 billion of Treasuries but received requests to take $43 billion. It took $24.25 billion of mortgage-backed securities with bids for $29.25 billion.
The Fed’s repo operations are highly unusual. The Fed launched them after short-term repo rates spiked to nearly 10 percent last week as financial firms sought short-term funding. Stress–and Fed intervention–is expected to continue through the end of the year although the current Fed program officially expires on October 10.
2019 Mass Layoffs Continental To Close 2 US Factories 1,400 Job Cuts and Plans For 20,000 More
Silver Report Uncut: Sep 27, 2019
More 2019 mass layoffs. Continental is a manufacturing giant in the auto sector, so to hear plans to cut 20,000 jobs is stunning. We also see they announced that they will be closing 2 factories in the US as well as 1,400 job cuts in the US alone. It's amazing how a company can explain they are in contraction in such a calming manner. The problem is the sales, or lack thereof...