The interest rate on safe government bonds is the opportunity cost of holding an asset like gold. Interest rates are the natural enemy of the precious metal - if they rise, investors dump gold and move into interest-bearing or cash flow-providing assets. For about two years now, this correlation has been diverging in the other direction. Obviously, gold investors are now accepting rising nominal interest rates because they are questioning the creditworthiness of so-called safe assets after the crash on the bond markets. The flooding of the markets with ever more government debt casts its shadow and allows safe haven assets such as Bitcoin and gold to continue to shine.
21 sats \ 3 replies \ @halalmoney 12 Apr
Whilst on the topic of interest rates…
ECB President Christine Lagarde insisted her institution was "data-dependent, not Fed-dependent" on Thursday. But analysts and policymakers said high U.S. inflation and interest rates were bound to have an impact on the ECB's plans via financial markets and trade.
"While we continue to believe that the ECB will be the first central bank to start cutting rates this year, the path beyond that will remain dictated by Fed action," Max Stainton, a senior global macro strategist at Fidelity International, said.
https://www.reuters.com/markets/europe/solo-minded-ecb-may-find-itself-singing-feds-hymn-sheet-after-all-2024-04-11/
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21 sats \ 1 reply \ @wingalt 13 Apr
Christine Lagarde was such a joke in French politics. Somehow many losers at national elections (e.g., Lagarde, Strauss-Kahn, Breton...) ended up at positions of higher power in globalist institutions, causing even more damage that they were doing on the national scene
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0 sats \ 0 replies \ @TomK OP 13 Apr
Brussels is a dumping ground for degenerate political parasites and failed politicians
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0 sats \ 0 replies \ @TomK OP 12 Apr
Gaslighting the market....
Look at the Euro
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21 sats \ 0 replies \ @halalmoney 12 Apr
I feel sorry for the people so busy chasing their tails that they’ve not had time to study Bitcoin and appreciate its potential to navigate to better days ahead.
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