Quite frankly, I would be guilty of “comedy hijacking” if I didn’t link to the scene
in “Trading Places” where Randolph is having a heart attack … I’ve seen this
about 10 million times, and I still laugh every time I see it … the link directly
below … “turn those machines back on!!” … Bwahahahaha!
Everywhere you look there is a new dynamic shaping the world, one where
“financialization” is on the way out [e.g., cash settled indices and to some
extent FX], and the era of commodities [actual physical “stuff” that can’t be
created or delivered with simple QE bullshit from central banks] is just
beginning … and at the forefront of all of this are the 2 nemesis of the U.S., the
Ruskies and the Chicoms, and the strengthening of the BRICS [Brazil, Russia,
India, China, & South Africa] on the world stage … throw in Dubai & Singapore
for trading hubs, and the entire Eastern Hemisphere is engaged in locking out
the U.S. and dollar payments for goods [read commodities], thus avoiding U.S.
sanctions and U.S. hegemony, which nobody wants or needs … in other words,
in the vernacular of the trading pits, “fuck the U.S. and the horse they rode in
on!” … and it’s happening at a faster clip than most realize, the most recent
example the “Moscow Gold Exchange”.
At the forefront of this new era are gold and crude oil, with Natty Gas quickly
gaining momentum, followed by basic metals, and rare earth metals … and
while the race hasn’t even started yet, over the next months / years, these
markets will gain at the expense of pure financial derivatives, IMHO … we’ve
already seen this in the world’s crude oil market, and coming to the U.S. one
day soon is going to be one of the OPEC members [maybe more] completely
ditching the dollar for pricing, and watch how fast the U.S. slides into
“Venezuela mode” with the loss of the “Petro Dollar” … and as the FED Lounge
Lizards fumble, bumble, and mumble, there isn’t a “Hoover Dam” thing they
can do about it except print more money and make matters worse for the
average U.S. citizen … the world is about to ditch the U.S., and never go
back again!
It’s a crying shame that too many offshore brokerage houses [Turnkey being
one of them] have decided to ruin crude oil CFD’s with horrific pricing … this
bullshit of paying a spread of 4 - 8 cents per barrel depending on HFT LP greed,
is without merit, and can only be understood by realizing it’s a function purely
of not allowing specs to scalp against them in a volatile market … they are there
to pick you off, not the other way around … at times gold can get like this, but
so far in 2022, the spread in gold has been acceptable, especially at houses like
“SIMPLE FX” … NOT SO MUCH AT TURNKEY, WHICH IS SIMPLY AVERAGE
AMONG HOUSES.
The BRICS are now starting to price their commodities in baskets of raw
materials, and the ChiComs & Ruskies have set up their own clearing system
to bypass the SWIFT network … this is only going to hasten institutional
investment funds out of financialized products into physical “stuff”, and most
of the payments will be in gold, facilitated through Dubai and/or Singapore
… “hey U.S. and Taliban Joe, see the middle finger!”
The one thing, though, people need to recognize about physical commodities, is
that they go through very big “boom & bust” cycles … generation to generation,
people never learn and make the very same mistakes traders made 50, 100,
even 200 years ago! … and quite frankly, IMHO, gold is about to go orbital at the
first hint of ANY FED PIVOT THAT RESTARTS QE INFINITY … and it’ll be “look
out above”!
Directly below, this week’s 20 Day Range MA’s of selected markets.
Daily ranges falling [except the Japanese “Peso”] cuz it’s August, and gold sees
its 20 Day Range MA go below $20 for the first time in a long while … I wouldn’t
read too much into this, and expect explosive price action once August and
Labor Day are over and done with and we get into September.
Onto the week … OUTTA HERE … “The future’s so bright I need 2 pairs of
“golden” sunglasses 😎😎, and my own Brinks armored truck” 💓!!
… Onward & Upward!!
-vegas
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