{"id":1351,"date":"2014-11-10T09:38:48","date_gmt":"2014-11-10T14:38:48","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1351"},"modified":"2014-11-10T09:38:48","modified_gmt":"2014-11-10T14:38:48","slug":"oftwominds-charles-hugh-smith-where-will-risk-erupt-this-time","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1351","title":{"rendered":"oftwominds-Charles Hugh Smith: Where Will Risk Erupt This Time?"},"content":{"rendered":"<p><a href=\"http:\/\/charleshughsmith.blogspot.ca\/2014\/11\/where-will-risk-erupt-this-time.html\">oftwominds-Charles Hugh Smith: Where Will Risk Erupt This Time?<\/a>.<\/p>\n<p style=\"display: inline; height: 0px; overflow-x: visible; overflow-y: visible; padding: 1px 0px 1px 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><i style=\"background-color: white; padding: 0px; margin: 0px;\">So where has all the risk pooled up in the system? In foreign exchange (FX) markets, that&#8217;s where.<\/i><\/span><\/p>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><b style=\"padding: 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><br style=\"padding: 0px; margin: 0px;\" \/><\/span><\/b><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><b style=\"padding: 0px; margin: 0px;\">One of the precepts of this blog is that\u00a0<i style=\"padding: 0px; margin: 0px;\">risk cannot be disappeared, it can only be transferred or temporarily hidden from view.<\/i><\/b>\u00a0This runs counter to\u00a0<i style=\"padding: 0px; margin: 0px;\">modern portfolio management<\/i>, which holds that all risks can be hedged with counterparty-issued securities, i.e. options, futures contracts, derivatives, etc.<\/span><br style=\"padding: 0px; margin: 0px;\" \/><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><br style=\"padding: 0px; margin: 0px;\" \/><\/span><\/div>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\">This also runs counter to the\u00a0<i style=\"padding: 0px; margin: 0px;\">Central Banking Cargo Cult<\/i>, which holds that any eruption of risk can be smothered by the unlimited liquidity spewed by omnipotent central banks.<\/span><br style=\"padding: 0px; margin: 0px;\" \/><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><br style=\"padding: 0px; margin: 0px;\" \/><\/span><\/div>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><img decoding=\"async\" style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: #ffffff; background-position: initial initial; background-repeat: initial initial; padding: 5px; margin: 5px; border: 1px solid #eeeeee;\" src=\"http:\/\/www.oftwominds.com\/photos2013\/ultimate-power.jpg\" alt=\"\" align=\"center\" border=\"0\" \/>&#8230;click on the above link to read the rest of the article&#8230;<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>oftwominds-Charles Hugh Smith: Where Will Risk Erupt This Time?. So where has all the risk pooled up in the system? In foreign exchange (FX) markets, that&#8217;s where. One of the precepts of this blog is that\u00a0risk cannot be disappeared, it can only be transferred or temporarily hidden from view.\u00a0This runs counter to\u00a0modern portfolio management, which [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,303,504,690],"class_list":["post-1351","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-market-risk","tag-risk"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1351"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1351\/revisions"}],"predecessor-version":[{"id":1352,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1351\/revisions\/1352"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}