Strange things are happening in the finance markets, very strange. As the FT and Dow Jones main indexes go up and down faster than a whores knickers, commodity prices are behaving weirdly too.
from Zero Hedge:
The last few days have seen Western anti-Russian rhetoric and red lines escalate dramatically as the military and economic issues come to light in any push back against Putin’s pressure. From NatGas export fallacies to “boomerang”-ing sanctions, the west seems stuck (for now).. which brings up the question – why is China and Russia making huge investments in commodity-miners? Russia’s largest gold miner Polyus Gold is considering a complete onshoring of its activities and China is buying a huge Peruvian copper mine from Glencore. The outcome would appear to enable both firms to do away with USD but not having to buy this resource in the market… just mine it? Continue reading
Well commodity backed currency is more stable than money from the air currrency we have had since the end of World War Two or the extreme version of fiat money, which involves city traders exposing themselves (Naked Finance). But who sets the exchange rates? And how many chickens are there to a goat.
Russia, Ukraine and the Petrodollar