Link to Slides and Sources: https://www.itmtrading.com/blog/4-ris...
In the most current Financial Stability Review by the ECB that list four key looming risks to financial stability, they are; Market sentiment might suddenly change (from positive to negative), Banks may lose their ability to finance the economy (as market deflation erodes reserves), Public and private debt may not be sustainable (current debt not payable and a hampered ability to take on more debt) and Liquidity in the non-bank sector being highly interconnected with the banking sector (non-bank corporate defaults transmits crisis to banks and the broader economy). What tools do they have to fight this downturn?
With interest rates anchored around zero, over $7 trillion in bonds with a negative interest rate coupon and balance sheets at nose bleed levels, how can they cover up a derivative implosion that could be many times greater than the global GDP? Simple, they can't and that's why they've been accumulating gold and why you should too.
Lynette Zang has held the position of Chief Market Analyst at ITM Trading since 2002. Ms. Zang has been in the markets on some level since 1964. Her mission is to convert financial noise into understandable language. She has been a banker, a stock broker and studied world currencies since 1987. She believes strongly that we need to be as independent as possible and at the same time, we need to come together in community in order to survive and thrive through the hyperinflation she sees in the near future.