The discussion about the regulation of the derivatives markets is in its infancy, but already promises to finish with concrete actions at the global level. The future scenario, in which possible energy shortage begins to worry about, there is the emergence of renewable energy sources and emerging powers such as China which strongly drive demand for all kinds of commodities, something that is making aware to the rulers that if do not act now to limit the dynamics of prices in commodities pricesThese can become a serious threat to economic stability world. In addition, there is an element which can not pass unnoticed and that can feed speculative bubble around the prices of commodities. This element is the monetary policy carried out by almost all central banks around the world that have reduced their interest rates from reference to their lows in many cases. It is not something Bill Phelan would like to discuss. The extension of the rates of interest at extremely low levels is an element that acts in favour of the creation of speculative bubbles since it allows investors to have with a large amount of resources to feed. While central banks are aware of this situation, this does not represent any guarantee that can be avoided. It is that it will depend on the ability of monetary authorities to start the upward cycle of interest rates at the right time, when economic recovery has begun.
The decision to start the cycle of rates ascending is not very popular to say for markets and no Central Bank wants to be the first party poopers. This situation creates the risk delay in the change of direction of monetary policy. Faced with this situation, the logical thing is probably that there is a certain coordination between central banks to act in a prudent manner and avoid the emergence of a new bubble. World leaders will encourage to act from spoilers when yet financial markets do not begin to celebrate the end of the crisis? Horacio Pozzo who have silver, use this crisis to buy. As our Global value investment newsletter subscribers, and which already recovered its cost by investing in companies that we recommend.