Now it's not easy to do because you'll immediately reduce the amount of leverage in the system which is a catastrophic event for the system but over time I think that's the biggest development, I think it's the biggest single use of blocks chain technology or bitcoin itself is in that custody of financial assets because these things are cesspools of risk that nobody understands. They are slightly arrogant as organizations because they have a backstop by the central banks if they go wrong because they are too big to fail but the problem is, is the mechanism by which they would do that means that they would end up pledging customer collateral to the central banks which is terrifying.
It means that even though you're a safe bond fund with no leverage and you've got the stuff nicely in custody you suddenly find-- and you've got your bonds to protect against bad events and then suddenly you find out that the D.T.C.C. or Euroclear has pledged your bonds to the central bank for liquidity injections and you could lose all of your bonds. So I don't like the whole situation. I definitely think it moves was block chain. I think that’s going to be a fascinating development.
Erik: I couldn't agree more. I think that that would be wonderful if we actually saw some progress in block chain technology being adopted by governments and official institutions. Another subject that we discussed back in September, soft commodities especially grains. Your recommendation at the time was it looked like maybe there was a buy there but perhaps hedged by a short on copper just in case there was a downturn in the economy and a change in your outlook for soft commodities.
Raoul: You know I’ve been waiting for something to change in soft commodities and basically there's been no great opportunity yet but I think its coming. You know they tend to be quite cyclical I mean most of them have rallied since we last spoke but we've not had one of those accelerated moves and that needs a weather event generally whether it's Russian grain harvest or Australian grain harvest or Argentinian crops, it is set up slightly that because of the la-Nino from last year there is a shortfall in various crops in South America which had the real issues.
There was a potential to see in-- sorry the El-Nino we have a potential for a La-Niña event coming this year but it looks like it's going to be very weak if it comes at all.
So I'm watching and waiting. I don't see the great opportunity that I was expecting to see but they’ll probably trend higher over time anyway.
Erik: Raoul that concludes my list of topics that we discussed last time I want to move forward now to looking forward towards 2017 and talk about what the opportunities that you see on the horizon are. I don't see a lot of directional trades right here. I'm kind of on the sidelines on the equity market. Where do you see opportunity as we look ahead to 2017?
Raoul: I'm kind of with you Erik. I don't see an obvious trade. If you look at the bond market you know my bias which is I think yields become lower but is here the opportunity probably not. So there's nothing I can do there. I don't see a huge back up in yields to make me a fortune if rates go higher, I don't see rates yet falling until we see some economic changes, some economic weakness I don’t really know.
