WARNING: This Now Threatens To Bring The System To Its Knees
KingWorldNews.com
April 19, 2018
As volatility has increased dramatically in world markets, this now threatens to bring the system to its knees.
Commodities & Interest Rates On The Move!
By Peter Boockvar, author of the Boock Report
April 19 (King World News) – Here is what Peter Boockvar wrote today as the world awaits the next round of monetary madness: The commodity spike continues, especially in aluminum and nickel. Yesterday’s close in the CRB index was up 1.8% to the highest since July 2015 which led to a near 4 yr high in inflation expectations in 10 yr TIPS. For those that drive, gasoline prices at the pump are up 14% y/o/y. For those that like chocolate (I’m a fan of dark), cocoa closed at the most expensive since October 2016.
Because of the sharp spread between US dollar LIBOR and Hong Kong HIBOR with the former much higher than the later notwithstanding the currency peg, there has been persistent pressure on the Hong Kong dollar where the Hong Kong Monetary Authority has been intervening to relieve. It finally worked a bit overnight as the HKD rallied and HIBOR rates continued to rise. The issue though becomes if interest rates continue higher in Hong Kong is the potential threat to their real estate market. Hong Kong is the most expensive place in the world to live.
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