Gold ix being sold to absorb the oil price shock – but no amount of tinkering with margin requirements can address physical shortages.
The moment we all wondered about has come. Oil has surged past $100 per barrel and markets are coming under serious strain. When I wrote an initial reaction to the Iran war last week, markets were still clearly pricing a “nothing to see here” scenario.
With the system of global governance in shambles and institutional checks conspicuously lacking, I wrote that markets may now be the only force left capable of imposing constraint. Think of markets as a congress that has to approve a continuation of war – except…
Read the full article at RT.COM
