Sept. 7 - Renowned NYU economics professor, Nouriel Roubini, says the ECB's plan to buy government bonds will help the euro zone, but will not solve all its problems.
http://www.youtube.com/watch?v=hz2cIaGwidg
Visar inlägg med etikett bonds. Visa alla inlägg
Visar inlägg med etikett bonds. Visa alla inlägg
onsdag 12 september 2012
måndag 10 september 2012
onsdag 10 augusti 2011
UK gilts: curb your enthusiasm?
Despite the scenes of rioting in London, UK gilts remain popular as a safe haven for overseas investors. But Jennifer Hughes, investment editor, warns the mood may be changing as downward pressure on sterling builds
http://video.ft.com/v/1101170917001/UK-gilts-curb-your-enthusiasm-
In a letter sent out by Olli Rehn to the European parliament on August 9, Rehn, in attempting to defend the fact that the ECB has now become Europe's "bad bank" and is thus nothing but a political vehicle to be used and abused by Germany which is the only one that can fund the ECB's non-existent equity capital, said that this ongoing intervention is critical in "dysfunctional" markets. He also completely fabricated the claim that the bond buying program is compatible with the EU Treaty. Supposedly he was envisioning the no bailout clause in the EU treaty. And to punctuate his point, the ECB proceeded to buy Italian and Spanish bonds for the third day this week, earlier today. Yet all that is boring, bureaucratic rhetoric. Where you should prepare to have your frontal lobe turn to jelly is the following: in defending why the expanded SMP program, which may soon hit hundreds of billions in onboarded toxic bonds, Rehn said the central bank’s investments are safe because “the bonds are purchased in the secondary market at market price -- i.e. the credit risk is already factored in,” according to a response dated yesterday to a query by an EU lawmaker. We will repeat this.... because it bears repeating: there is no risk of loss to the ECB's loan portfolio because they are purchased in the open market. In other words, if you, or a central bank, or an alien from Uranus, buys something in the open market, it is a risk free transaction....
http://www.zerohedge.com/news/and-now-dumbest-thing-you-will-ever-hear
Strange then that no risk makes German bond rates increas. Clearly there is a cost associated for this what actually is a real fiscal union implemented i Europe. Something no one ever had the option to vote for.
ECB moves towards a fiscal union
http://video.ft.com/v/1098606225001/ECB-moves-towards-a-fiscal-union
as economic fundamentas deteriorate seems the markets more or less anticipate QE3.
QE3 ahoy!
The agreement on raising the US debt ceiling, assuming it is voted through, won't see any appreciable spending cuts kick in until after the next presidential election in 2013. But it will prevent any new stimulus for the economy. This leaves any nurturing down to the Federal Reserve if need arises. As James Mackintosh, investment editor, points out, the economy is crying out for help, and the markets are already sighting QE3, the next round of quantitative easing, on the horizon
http://video.ft.com/v/1089934276001/QE3-ahoy-
from a QE3 perspective what would happen if that was released with a gold price at an ATH? Mayby thats the one issue the FED has to monitor before embarking on a new round of stimuli. "Gold is in a bubbel and has to pop and when it does it will be painfull" according to Mr Hadas. Clearly there is nothing Central banks look to "manage" more than precious metals as a high gold price is the ultimate vote against the fiat currency system.
Gold bubble
The Lex column has believed there's a bubble in gold for several years. The yellow metal meantime has climbed to record levels. Lex's Sarah O'Connor and Edward Hadas debate the column's bubble theory.
http://video.ft.com/v/1090408630001/Gold-bubble
http://video.ft.com/v/1101170917001/UK-gilts-curb-your-enthusiasm-
In a letter sent out by Olli Rehn to the European parliament on August 9, Rehn, in attempting to defend the fact that the ECB has now become Europe's "bad bank" and is thus nothing but a political vehicle to be used and abused by Germany which is the only one that can fund the ECB's non-existent equity capital, said that this ongoing intervention is critical in "dysfunctional" markets. He also completely fabricated the claim that the bond buying program is compatible with the EU Treaty. Supposedly he was envisioning the no bailout clause in the EU treaty. And to punctuate his point, the ECB proceeded to buy Italian and Spanish bonds for the third day this week, earlier today. Yet all that is boring, bureaucratic rhetoric. Where you should prepare to have your frontal lobe turn to jelly is the following: in defending why the expanded SMP program, which may soon hit hundreds of billions in onboarded toxic bonds, Rehn said the central bank’s investments are safe because “the bonds are purchased in the secondary market at market price -- i.e. the credit risk is already factored in,” according to a response dated yesterday to a query by an EU lawmaker. We will repeat this.... because it bears repeating: there is no risk of loss to the ECB's loan portfolio because they are purchased in the open market. In other words, if you, or a central bank, or an alien from Uranus, buys something in the open market, it is a risk free transaction....
http://www.zerohedge.com/news/and-now-dumbest-thing-you-will-ever-hear
Strange then that no risk makes German bond rates increas. Clearly there is a cost associated for this what actually is a real fiscal union implemented i Europe. Something no one ever had the option to vote for.
ECB moves towards a fiscal union
http://video.ft.com/v/1098606225001/ECB-moves-towards-a-fiscal-union
as economic fundamentas deteriorate seems the markets more or less anticipate QE3.
QE3 ahoy!
The agreement on raising the US debt ceiling, assuming it is voted through, won't see any appreciable spending cuts kick in until after the next presidential election in 2013. But it will prevent any new stimulus for the economy. This leaves any nurturing down to the Federal Reserve if need arises. As James Mackintosh, investment editor, points out, the economy is crying out for help, and the markets are already sighting QE3, the next round of quantitative easing, on the horizon
http://video.ft.com/v/1089934276001/QE3-ahoy-
from a QE3 perspective what would happen if that was released with a gold price at an ATH? Mayby thats the one issue the FED has to monitor before embarking on a new round of stimuli. "Gold is in a bubbel and has to pop and when it does it will be painfull" according to Mr Hadas. Clearly there is nothing Central banks look to "manage" more than precious metals as a high gold price is the ultimate vote against the fiat currency system.
Gold bubble
The Lex column has believed there's a bubble in gold for several years. The yellow metal meantime has climbed to record levels. Lex's Sarah O'Connor and Edward Hadas debate the column's bubble theory.
http://video.ft.com/v/1090408630001/Gold-bubble
tisdag 9 augusti 2011
Netherlands joins Germany in opposing bigger EFSF
AMSTERDAM -(MarketWatch)- The Netherlands joined Germany Monday in warning against boosting the volume of the euro zone's rescue fund, saying it won't solve the problems in the currency area, and it even may hurt the solvency of guarantornations.
In a letter to lawmakers, Finance Minister Jan Kees de Jager said that an increased European Financial Stability Facility is "no panacea" to solve the mounting troubles in the euro zone. "Any significant increase of the EFSF can...have consequences on the creditworthiness of guarantor nations," he said.
A bigger EFSF therefore shouldn't be seen as an alternative to achieving structural reforms and debt sustainability, he added.
His comments echoed those of German officials, who earlier Monday voiced similar statements. A spokesman for German Chancellor Angela Merkel said the fund will stay as agreed at a July 21 euro zone summit. "The EFSF will remain what it is, and keep the volume it had before July 21," he said at a press conference, removing hopes of a more robust EFSF.
The positions of Germany and the Netherlands clash with the European Commission, which has called for a massive increase in the EFSF's current lending capacity of EUR440 billion guaranteed by euro-zone governments.
Market watchers have said a new volume of up to EUR1.5 trillion or more might be needed to reassure investors that the fund can offset threats to the solvency of governments.
http://www.marketwatch.com/story/netherlands-joins-germany-in-opposing-bigger-efsf-2011-08-08
'Euro on edge, will collapse by November if no new crisis plan'
http://www.youtube.com/watch?v=T1Qd-oohi5c&feature=player_embedded
SDR .. anyone..?
In a letter to lawmakers, Finance Minister Jan Kees de Jager said that an increased European Financial Stability Facility is "no panacea" to solve the mounting troubles in the euro zone. "Any significant increase of the EFSF can...have consequences on the creditworthiness of guarantor nations," he said.
A bigger EFSF therefore shouldn't be seen as an alternative to achieving structural reforms and debt sustainability, he added.
His comments echoed those of German officials, who earlier Monday voiced similar statements. A spokesman for German Chancellor Angela Merkel said the fund will stay as agreed at a July 21 euro zone summit. "The EFSF will remain what it is, and keep the volume it had before July 21," he said at a press conference, removing hopes of a more robust EFSF.
The positions of Germany and the Netherlands clash with the European Commission, which has called for a massive increase in the EFSF's current lending capacity of EUR440 billion guaranteed by euro-zone governments.
Market watchers have said a new volume of up to EUR1.5 trillion or more might be needed to reassure investors that the fund can offset threats to the solvency of governments.
http://www.marketwatch.com/story/netherlands-joins-germany-in-opposing-bigger-efsf-2011-08-08
'Euro on edge, will collapse by November if no new crisis plan'
http://www.youtube.com/watch?v=T1Qd-oohi5c&feature=player_embedded
SDR .. anyone..?
måndag 8 augusti 2011
When the Chines revalue - thats then what will put the foundation under the global economy
"What Trichet has spoken to tonight and on Friday was that they would implement a significant bond purchase program for Spain and Italy...We're expecting $2 billion to $3 billion a day in terms of ECB bond purchase. How many days and weeks that continues, I am not sure. They might eventually have an actual interest rate target in mind. We are not sure of that either and they probably won't divulge it."
"[The Chinese] will not show up when it does not serve their best interests. They're beginning to sense, and I'm sure they've sense for a number of years, that the U.S. has a number of weapons to use against them in terms of their purchasing of treasuries. That would be low interest rates relative to the rate of inflation -- in other words, financial repression.
"To the extent the U.S. continues to employ that, it becomes an increasing cost for the Chinese. Their number one priority has been to put their people to work. In effect, the whole world is trying to put their people to work, but the Chinese especially. So what they have done is to fix their currency on a relative basis to the dollar, to buy U.S. treasuries and doing so to put their people to work. When those treasuries yield them nothing and become vulnerable from the standpoint of the dollar currency-wise, then that there might be something in the works. That is the most significant rebalancing effort. The ECB can buy bonds. The U.S. can do another QE 2.5. IF and when the Chinese basically revalue their currency significantly, that is a rebalancing effort that might ultimately put a foundation under the global economy."
http://www.zerohedge.com/news/bill-gross-tells-truth-sp-finally-got-it-right-they-are-enforcing-some-discipline-my-hat-them
Question - as the chinese revalue how much infaltionary preassure will that then cause the OECD countries that earlier to qute a large extend could rely on cheap chinese imports of cloths and high tech in order to maintan a decent purhasing power. Thats then a process that could be quite significants as the chinese reflate and the OECD deflate.
"[The Chinese] will not show up when it does not serve their best interests. They're beginning to sense, and I'm sure they've sense for a number of years, that the U.S. has a number of weapons to use against them in terms of their purchasing of treasuries. That would be low interest rates relative to the rate of inflation -- in other words, financial repression.
"To the extent the U.S. continues to employ that, it becomes an increasing cost for the Chinese. Their number one priority has been to put their people to work. In effect, the whole world is trying to put their people to work, but the Chinese especially. So what they have done is to fix their currency on a relative basis to the dollar, to buy U.S. treasuries and doing so to put their people to work. When those treasuries yield them nothing and become vulnerable from the standpoint of the dollar currency-wise, then that there might be something in the works. That is the most significant rebalancing effort. The ECB can buy bonds. The U.S. can do another QE 2.5. IF and when the Chinese basically revalue their currency significantly, that is a rebalancing effort that might ultimately put a foundation under the global economy."
http://www.zerohedge.com/news/bill-gross-tells-truth-sp-finally-got-it-right-they-are-enforcing-some-discipline-my-hat-them
Question - as the chinese revalue how much infaltionary preassure will that then cause the OECD countries that earlier to qute a large extend could rely on cheap chinese imports of cloths and high tech in order to maintan a decent purhasing power. Thats then a process that could be quite significants as the chinese reflate and the OECD deflate.
söndag 7 augusti 2011
The infinite force of central planning meets the immovable object of capital markets
Yu Yongding, a former member of the Monetary Policy committee of the Chinese Central Bank has just said
"the situation is ultimately unsustainable. The longer it continues, the more violent and destructive the final adjustment will be. "
He is referring to the relentless recycling of Chinese trade surplus in the form of US paper which is increasingly looking like it will never get repaid. His chief rhetorical question is key: "The question is: what losses is China willing to bear in its foreign exchange reserves in order to slow the pace of the renminbi appreciation?"
His conclusion:
If there is any lesson China can draw from the US debt ceiling crisis, it is that it must stop policies that result in further accumulation of foreign exchange reserves. Given that many large developed countries are simply printing money (and the recent rumours are that the US might return to quantitative easing) China must realise that it can no longer invest in the paper assets of the developed world.
The People’s Bank of China must stop buying US dollars and allow the renminbi exchange rate to be decided by market forces as soon as possible. China should have done so a long time ago. There should be no more hesitating and dithering. To float the renminbi is not costless. However, its benefits for the Chinese economy will vastly offset those costs, while being favourable to the global economy as well.
http://www.zerohedge.com/news/former-pboc-member-situation-unsustainable-longer-it-continues-more-violent-and-destructive-fin
Meanwhile the Japanese are now supposed to act tomorrow in order to support the dollar:
Just out from Bloomberg: Finance ministers and central bankers are preparing a statement to release before the open of Asian markets, the Nikkei newspaper reported, without citing anyone. Japan may intervene in currency market if dollar falls. G-7 finance ministers, central bankers expected to express confidence in dollar, pledge liquidity. U.S. to explain fiscal rebuilding efforts." [so no more sniping at S&P and actually doing its job eh?] "Japan to express intention to maintain Treasury holdings. G-7 expected to show support for EU fiscal efforts."
As is the ECB in order to support Italian and Spanish bonds:
And while the G7 is about to realize that when faced with a $100 trillion (equities plus debt) market onslaught its printing powers are next to laughable, Dow Jones reports that the "ECB is weighing Italian, Spanish bond buying on a massive scale." Two take homes: i) the Fed has just lost its competitive advantage of doing idiotic things on a massive scale as the world wake up to tits trickery (unless of course the Fed resumes said thing on a massiver scale, which it will), and ii) tomorrow is the day when the infinite force of central planning meets the immovable object of capital markets. We will find out who blinks first in a few hours.
http://www.zerohedge.com/news/g7-preparing-statement-support-dollar-eu-fact-everything-would-otherwise-collapse-tomorrow-asia
Guess who told em to..? Yupp our friends Goldman Sachs:
As expected, Goldman, who came up with the promptly imploding plan of using the EFSF as a EUR rescue mechanism, is now scrambling to come up with yet another Eurozone rescue plan. Below is the full text of what Francesco Garzarelli just released as a prompt to Trichet. Gone are the days of nuance: the note is titled brutally enough Europe Should Say That BTPs Are ‘Cheap’.
Just in case anyone is confused of course. We expect the ECB head to pretty much read from this note to "clients" verbatim. In a nutshell, Goldman's view is that, "Italian government bonds are fundamentally attractive, but we have reached a point where only the European authorities can credibly signal this is the case. Secondary bond market purchases by the ECB are needed to stabilize markets in the near term. The 10-yr BTP spread to Bunds could fall back to around 200-250bp in such a scenario." Sure. It will work. For a week or so. Then what?
http://www.zerohedge.com/news/goldman-scrambles-tell-ecb-what-say-later-today
And then of course well see what FED has up its sleve.. Q3 anyone?
Isn’t these interventions the sign a wonderful free market and the natural work of the market forces and invincible hand? Or am I missing something? Fact is 80 years of soviet central planning coulden't acheive anything even remotley - well planned...
Personaly I really do think Germany - sorry EFSF takes on a very substatial risk by getting involved in these Italian and Spanish endevours.
Anyway seems to be intervention week starting Monday?
"the situation is ultimately unsustainable. The longer it continues, the more violent and destructive the final adjustment will be. "
He is referring to the relentless recycling of Chinese trade surplus in the form of US paper which is increasingly looking like it will never get repaid. His chief rhetorical question is key: "The question is: what losses is China willing to bear in its foreign exchange reserves in order to slow the pace of the renminbi appreciation?"
His conclusion:
If there is any lesson China can draw from the US debt ceiling crisis, it is that it must stop policies that result in further accumulation of foreign exchange reserves. Given that many large developed countries are simply printing money (and the recent rumours are that the US might return to quantitative easing) China must realise that it can no longer invest in the paper assets of the developed world.
The People’s Bank of China must stop buying US dollars and allow the renminbi exchange rate to be decided by market forces as soon as possible. China should have done so a long time ago. There should be no more hesitating and dithering. To float the renminbi is not costless. However, its benefits for the Chinese economy will vastly offset those costs, while being favourable to the global economy as well.
http://www.zerohedge.com/news/former-pboc-member-situation-unsustainable-longer-it-continues-more-violent-and-destructive-fin
Meanwhile the Japanese are now supposed to act tomorrow in order to support the dollar:
Just out from Bloomberg: Finance ministers and central bankers are preparing a statement to release before the open of Asian markets, the Nikkei newspaper reported, without citing anyone. Japan may intervene in currency market if dollar falls. G-7 finance ministers, central bankers expected to express confidence in dollar, pledge liquidity. U.S. to explain fiscal rebuilding efforts." [so no more sniping at S&P and actually doing its job eh?] "Japan to express intention to maintain Treasury holdings. G-7 expected to show support for EU fiscal efforts."
As is the ECB in order to support Italian and Spanish bonds:
And while the G7 is about to realize that when faced with a $100 trillion (equities plus debt) market onslaught its printing powers are next to laughable, Dow Jones reports that the "ECB is weighing Italian, Spanish bond buying on a massive scale." Two take homes: i) the Fed has just lost its competitive advantage of doing idiotic things on a massive scale as the world wake up to tits trickery (unless of course the Fed resumes said thing on a massiver scale, which it will), and ii) tomorrow is the day when the infinite force of central planning meets the immovable object of capital markets. We will find out who blinks first in a few hours.
http://www.zerohedge.com/news/g7-preparing-statement-support-dollar-eu-fact-everything-would-otherwise-collapse-tomorrow-asia
Guess who told em to..? Yupp our friends Goldman Sachs:
As expected, Goldman, who came up with the promptly imploding plan of using the EFSF as a EUR rescue mechanism, is now scrambling to come up with yet another Eurozone rescue plan. Below is the full text of what Francesco Garzarelli just released as a prompt to Trichet. Gone are the days of nuance: the note is titled brutally enough Europe Should Say That BTPs Are ‘Cheap’.
Just in case anyone is confused of course. We expect the ECB head to pretty much read from this note to "clients" verbatim. In a nutshell, Goldman's view is that, "Italian government bonds are fundamentally attractive, but we have reached a point where only the European authorities can credibly signal this is the case. Secondary bond market purchases by the ECB are needed to stabilize markets in the near term. The 10-yr BTP spread to Bunds could fall back to around 200-250bp in such a scenario." Sure. It will work. For a week or so. Then what?
http://www.zerohedge.com/news/goldman-scrambles-tell-ecb-what-say-later-today
And then of course well see what FED has up its sleve.. Q3 anyone?
Isn’t these interventions the sign a wonderful free market and the natural work of the market forces and invincible hand? Or am I missing something? Fact is 80 years of soviet central planning coulden't acheive anything even remotley - well planned...
Personaly I really do think Germany - sorry EFSF takes on a very substatial risk by getting involved in these Italian and Spanish endevours.
Anyway seems to be intervention week starting Monday?
torsdag 4 augusti 2011
The Least Valuable Currencies In History
Morgan Stanley reported in 2009 that there’s “no historical precedent” for an economy that exceeds a 250% debt-to-GDP ratio without experiencing some sort of financial crisis or high inflation. Our total debt, including the present value of future liabilities like Social Security and Medicare, now exceeds GDP by more than 400%.
Investment legend Marc Faber reports that once a country’s payments on debt exceed 30% of tax revenue, the currency is “done for.” On our current path, analyst Michael Murphy projects we’ll hit that figure by October.
Peter Bernholz, the leading expert on hyperinflation, states unequivocally that “hyperinflation is caused by government budget deficits.” This year’s U.S. budget deficit will end up being $1.5 trillion, an amount never before seen in history.
Read more:
http://www.businessinsider.com/a-thousand-pictures-is-worth-one-word-2011-8#ixzz1U5oT7JAh
Investment legend Marc Faber reports that once a country’s payments on debt exceed 30% of tax revenue, the currency is “done for.” On our current path, analyst Michael Murphy projects we’ll hit that figure by October.
Peter Bernholz, the leading expert on hyperinflation, states unequivocally that “hyperinflation is caused by government budget deficits.” This year’s U.S. budget deficit will end up being $1.5 trillion, an amount never before seen in history.
Read more:
http://www.businessinsider.com/a-thousand-pictures-is-worth-one-word-2011-8#ixzz1U5oT7JAh
Investments as the finanial turmoil escalates - is war an option?
In order to get rid of all of this simply astonishing debt levels in all parts of the financial system regardless of where you look e.g. bank debt, shadow bank debt, private debt, municipal debt, official country debt and off balance sheet country debt there are only two ways. Either hyper inflate and/or write the debt off.
This as nobody will be able to take on all of this debt there simply aren’t enough taxpayers in the world. Real-estate will deflate but everything else will go up in price like nothing you have ever seen before.In fact the US now desperately want to hyper inflate, print more paper money, as does all other countries deep in debt but the US at the same time need to maintain the petro dollar so that "satellite states" with recourses like oil will continue to accept the dollar as payments for commodities.
In order to maintain this system the US needs a huge military capacity and thus runs on a budget deficit as today some 40% of all military expenses today is taken of the debt.If and when they don’t that will cause massive inflation as US consumers have to begin to pay 5-6 times more for gas at the pump.
Then also in the cards is that the Chinese Renmimbi will appreciate vs. the dollar further down the line again causing prices in the US of from china primarily imported consumer technology and clothing to soar.
Basically everything you'll need to stay alive will cost more. As bonds clearly is the mother of all bubbles, as interest rates increase and worldwide bond markets become saturated with bond auctions, there will only be one safe haven for investors and that is commodities.If you want to protect your purchasing power you choose precious metals that can be used as payment.
Remember gold and silver really are very puny markets very easy to manipulate and as Gold in particular only have but quite limited use other than as payment is also the easy in insert new regulation if authorities want to get rid of the notion of gold/silver as an alternative to the status quo monetary system.
Most certainly and already they have tried already e.g. by implementing trade limits on a scale never seen before. Real serious however it will become whey /if they try to demonetize as has happened before in the US in regards of silver.
Also blatant confiscation has happened e.g. 1933 in the US but this time I do believe they will do all in their power to demonetize gold basically all over the world via trading and legal restriction. Making it virtually impossible to trade or to use these precious metals as payment in any way, shape or form.
So I believe you need to focus on real hard assets that are in fact needed in the real economy and in particular where there are coming and possible supply issues vs. demand. Regardless of what will happen in the financial system people still have to eat, travel, transport, build, construct and get warmth and heat and there will be industrial capacity requesting these as input.It’s going to get crowded as investors flee in to e.g. zinc producers to protect themselves for inflation as all currencies in most OECD countries depreciate in a very coordinated manner.
In regards of zinc some 25% of the real zinc supply is expected to evaporate coming years as old mines deplete and not enough new mines are in the pipe anywhere near to compensate for that fall off.As far as oil is concerned you can soon expect a real serious supply crunch as early as by 2013 when basically there will be almost no spare capacity left. Soon what will be the real issue for the markets certainly isn’t possible oil demand destruction but rather supply destruction. On an annual basis some 6% of all oil world production is depleted. Just keeping up with this fact and maintain current production capacity will require huge efforts as well as investments on a scale never seen before.
All economic activity, transportation, construction, manufacturing as well as food production and distribution depends on oil. As our current monetary system is based on creating money, via debt, and as it’s only possible to create debt in a growing economy. It’s thus clear to see the fact that oil actually is the real currency.If prices for these recourse get to low new projects simply will not come online as they are needed in the economy well then the economy cannot faction.
They may get down there a while pricevice but longer term they will be kept at a level needed to get new production projects going. As these new project for a depleting recourse will be more complex, further away and deeper down that price overtime will increase until it will cost more to take it up than what you may earn. At that point that’s then when the real economy crash.
These commodities needed in the real economy not only will protect your worth and purchasing power and act as a hedge against inflation. As they also in many cases in fact are depleting and are not renewable thy will in addition and over time increase their worth relative everything else in the economy. Worth noting here is that gold maintains your wealth and purchasing power relative everything else in the economy. But that’s it noting more, nothing less.
For ordinary people then the implications of this is they have to pay far more than today in relative terms as part of their budget for items such as food and energy.
Last but not least one way unfortunately to clear debt is to go to war. The US certainly has that striking capability today, but not for very long..as its financial status deteriorates. So will the US be able to launch a war quick enough..? And is that really an option today? Well you be the judge.
Certainly a strike against e.g. Iran implying an escalated conflict agains china would make the oil price skyrocket. But let’s hope and pray war this time not is seen as the option history has told us is usually is in times like these.
Debt Deal – Economy Sacrificed for Military Bias
http://michael-hudson.com/2011/08/debt-ceiling-economy-sacrificed-for-military-bias/
This as nobody will be able to take on all of this debt there simply aren’t enough taxpayers in the world. Real-estate will deflate but everything else will go up in price like nothing you have ever seen before.In fact the US now desperately want to hyper inflate, print more paper money, as does all other countries deep in debt but the US at the same time need to maintain the petro dollar so that "satellite states" with recourses like oil will continue to accept the dollar as payments for commodities.
In order to maintain this system the US needs a huge military capacity and thus runs on a budget deficit as today some 40% of all military expenses today is taken of the debt.If and when they don’t that will cause massive inflation as US consumers have to begin to pay 5-6 times more for gas at the pump.
Then also in the cards is that the Chinese Renmimbi will appreciate vs. the dollar further down the line again causing prices in the US of from china primarily imported consumer technology and clothing to soar.
Basically everything you'll need to stay alive will cost more. As bonds clearly is the mother of all bubbles, as interest rates increase and worldwide bond markets become saturated with bond auctions, there will only be one safe haven for investors and that is commodities.If you want to protect your purchasing power you choose precious metals that can be used as payment.
Remember gold and silver really are very puny markets very easy to manipulate and as Gold in particular only have but quite limited use other than as payment is also the easy in insert new regulation if authorities want to get rid of the notion of gold/silver as an alternative to the status quo monetary system.
Most certainly and already they have tried already e.g. by implementing trade limits on a scale never seen before. Real serious however it will become whey /if they try to demonetize as has happened before in the US in regards of silver.
Also blatant confiscation has happened e.g. 1933 in the US but this time I do believe they will do all in their power to demonetize gold basically all over the world via trading and legal restriction. Making it virtually impossible to trade or to use these precious metals as payment in any way, shape or form.
So I believe you need to focus on real hard assets that are in fact needed in the real economy and in particular where there are coming and possible supply issues vs. demand. Regardless of what will happen in the financial system people still have to eat, travel, transport, build, construct and get warmth and heat and there will be industrial capacity requesting these as input.It’s going to get crowded as investors flee in to e.g. zinc producers to protect themselves for inflation as all currencies in most OECD countries depreciate in a very coordinated manner.
In regards of zinc some 25% of the real zinc supply is expected to evaporate coming years as old mines deplete and not enough new mines are in the pipe anywhere near to compensate for that fall off.As far as oil is concerned you can soon expect a real serious supply crunch as early as by 2013 when basically there will be almost no spare capacity left. Soon what will be the real issue for the markets certainly isn’t possible oil demand destruction but rather supply destruction. On an annual basis some 6% of all oil world production is depleted. Just keeping up with this fact and maintain current production capacity will require huge efforts as well as investments on a scale never seen before.
All economic activity, transportation, construction, manufacturing as well as food production and distribution depends on oil. As our current monetary system is based on creating money, via debt, and as it’s only possible to create debt in a growing economy. It’s thus clear to see the fact that oil actually is the real currency.If prices for these recourse get to low new projects simply will not come online as they are needed in the economy well then the economy cannot faction.
They may get down there a while pricevice but longer term they will be kept at a level needed to get new production projects going. As these new project for a depleting recourse will be more complex, further away and deeper down that price overtime will increase until it will cost more to take it up than what you may earn. At that point that’s then when the real economy crash.
These commodities needed in the real economy not only will protect your worth and purchasing power and act as a hedge against inflation. As they also in many cases in fact are depleting and are not renewable thy will in addition and over time increase their worth relative everything else in the economy. Worth noting here is that gold maintains your wealth and purchasing power relative everything else in the economy. But that’s it noting more, nothing less.
For ordinary people then the implications of this is they have to pay far more than today in relative terms as part of their budget for items such as food and energy.
Last but not least one way unfortunately to clear debt is to go to war. The US certainly has that striking capability today, but not for very long..as its financial status deteriorates. So will the US be able to launch a war quick enough..? And is that really an option today? Well you be the judge.
Certainly a strike against e.g. Iran implying an escalated conflict agains china would make the oil price skyrocket. But let’s hope and pray war this time not is seen as the option history has told us is usually is in times like these.
Debt Deal – Economy Sacrificed for Military Bias
http://michael-hudson.com/2011/08/debt-ceiling-economy-sacrificed-for-military-bias/
måndag 1 augusti 2011
Glada lånebesked – banken höjer lånetaket
Familjen Medelsson i Trollhättan kommer att kunna bo kvar i sitt hus. Marknadsvärdet av huset idag uppgår till ca 2.500.000 kr men problemet är nu att familjen har lån på mer än 90% av marknadsvärdet och banker ringer nu stup i kvarten och vill att familjen skall amortera av på lånet då de hävdar att marknadsvärdet redan har sjunkit och ännu värre kommer att sjunka än mer.
Lalle Medelsson som själv och även hans fru jobbar på SABB nästgårds är dock övertygad om att denna nedgång bara är tillfällig och att det kommer att vända med besked när Viktor Muller får ordning på biltillverkningen och försäljningen kan ta fart.
- ”I alla husen häromkring bor det Saab anställda och det kommer bli kanon, alla kommer bli super glada” säger Lalle och Laila hans fru instämmer ivrigt nickande. ”Just nu i alla fall är det omöjligt att beta av något på lånet för vi har inget sparat” – fortsätter han.
- ”Visserligen fick ingen av oss lön nu i somras och SAAB vill att vi avvaktar efter semestern med att börja jobba igen men snart så rullar hjulen igen – Kineserna är som tokiga i våra bilar” säger Laila.
Men det riktigt glada beskedet är nu att familjen i förra veckan fick meddelande om att de kommer att kunna få ytterligare lån på 2.500.000 med huset som säkerhet.
- ”Visst det blir en del ränta på alla dessa lån för just nu amorterar vi inte av någe alls men det betalar vi av i ett nafs så fört vi kan börja jobba igen och då räknar i alla fall jag med en rejäl löneökning dessutom, och nu med det nya lånet så kommer vi klara av alla räntebetalningarna.” avslutar Lalle.
Nu under sista sommarveckorna och pga det dåliga vädret så har hela familjen bokat en resa till Kreta. – ”Det skall bi jätteroligt” ropar familjens två barn Josefin och Helmut från gungan.
Oops.. riktigt så här går det nog inte till när det börja tryta men det verkar funkar för en stat som USA..eller? Allt under devisen småfolk skall betala skatt och sättas år, bankfolk är frifrälse med ränteprivilegier.
Men i alla fall jag och många med mig börjar nu undra hur eller om vi skall klara oss undan detta skuldberg..? Absurt och nu definitivt overkligt hur detta vårt finansiella system idag fungerar.
Sedan om det är någon som håller tummarna för SAAB så är det undertecknad.
Lalle Medelsson som själv och även hans fru jobbar på SABB nästgårds är dock övertygad om att denna nedgång bara är tillfällig och att det kommer att vända med besked när Viktor Muller får ordning på biltillverkningen och försäljningen kan ta fart.
- ”I alla husen häromkring bor det Saab anställda och det kommer bli kanon, alla kommer bli super glada” säger Lalle och Laila hans fru instämmer ivrigt nickande. ”Just nu i alla fall är det omöjligt att beta av något på lånet för vi har inget sparat” – fortsätter han.
- ”Visserligen fick ingen av oss lön nu i somras och SAAB vill att vi avvaktar efter semestern med att börja jobba igen men snart så rullar hjulen igen – Kineserna är som tokiga i våra bilar” säger Laila.
Men det riktigt glada beskedet är nu att familjen i förra veckan fick meddelande om att de kommer att kunna få ytterligare lån på 2.500.000 med huset som säkerhet.
- ”Visst det blir en del ränta på alla dessa lån för just nu amorterar vi inte av någe alls men det betalar vi av i ett nafs så fört vi kan börja jobba igen och då räknar i alla fall jag med en rejäl löneökning dessutom, och nu med det nya lånet så kommer vi klara av alla räntebetalningarna.” avslutar Lalle.
Nu under sista sommarveckorna och pga det dåliga vädret så har hela familjen bokat en resa till Kreta. – ”Det skall bi jätteroligt” ropar familjens två barn Josefin och Helmut från gungan.
Oops.. riktigt så här går det nog inte till när det börja tryta men det verkar funkar för en stat som USA..eller? Allt under devisen småfolk skall betala skatt och sättas år, bankfolk är frifrälse med ränteprivilegier.
Men i alla fall jag och många med mig börjar nu undra hur eller om vi skall klara oss undan detta skuldberg..? Absurt och nu definitivt overkligt hur detta vårt finansiella system idag fungerar.
Sedan om det är någon som håller tummarna för SAAB så är det undertecknad.
lördag 19 mars 2011
Global revolution-On the Edge with Max Keiser-03-18-2011
In this episode, Max Keiser discusses the global revolutions and focuses on the revolutions sweeping the Arab world with Gonzalo Lira from Chile.
Part 1
http://www.youtube.com/watch?v=iOwLMO2AJJ8&feature=player_embedded
Part 2
http://www.youtube.com/watch?v=4O-KmiWBNlM&feature=player_embedded
Behind the 2011 Orgy of Destabilizations: Pre-Emptive Coups by the CIA to Halt an Exodus of US Satraps and Viceroys Leading to a Multipolar World
The stage for the 1848 upheaval was set – just like today — by a severe economic depression, which had broken out in 1847. Events of 1848 got going on January 12 with a rebellion in Sicily seeking independence for the island. Sicily is within sight of Tunisia, and this was the Tunisia of 1848. Naturally, the British Admiralty had long paid close attention to the Mediterranean islands, of which Sicily was one of the most important. But then the insurrection spread rapidly. Barricades went up in Paris on February 22, 1848, and within two days King Louis Philippe, who had been in power since July 1830, abdicated and fled to London. The Second French Republic came into existence. On March 13, 1848 workers and students started an insurrection in Vienna, the capital of the Austrian Empire, and soon invaded the Imperial Palace. The Austrian regime became hysterically disoriented, and Prince Metternich absconded in disguise, also to London. On March 15, rioting began in Berlin, where King Frederick William IV immediately promised a written constitution. The governments of most of the other 37 German states also quickly collapsed. Also on March 15, the Hungarian assembly declared its total separation from Austria, although the Habsburg Emperor was still kept as head of state. Bohemia demanded the same status a few days later. In Milan, Italy, the richest city of Austrian Empire, the revolt began on March 18 and by March 22 the Austrian garrison had been ejected. Venice declared its return to the status of an independent republic. The grand Duke of Tuscany was toppled by revolt. King Charles Albert of Sardinia, the only independent Italian state, declared war on Austria on March 23 with the intent of adding Milan and Venice to his realms, although this attempt to begin Italian unification would be defeated by military means.
This series of events was much more dramatic, more rapid, and more breathtakingly stunning for contemporary observers then the events in Tunisia, Egypt, Bahrain, Yemen, and Libya we have seen since the beginning of 2011. The flight of Louis-Philippe and Metternich amounted to much more than the ouster of Ben Ali and Mubarak, since France and Austria were among the five great powers of Europe. The events of 1848 also exceeded in geographic scope the fall of the Communist regimes of Poland, Hungary, East Germany, Czechoslovakia, and Romania in the summer and autumn of 1989.
As Palmer summed it up: “In the brief span of these phenomenal March days, the whole structure based on Vienna went to pieces: the Austrian Empire had fallen into its main components, Prussia had yielded to revolutionaries, all Germany was preparing to unify itself, and war raged in Italy. Everywhere constitutions had been wildly promised by stupefied governments, constitutional assemblies were meeting, and independent or autonomous nations struggled into existence.” (Palmer, p. 480)
http://tarpley.net/2011/03/15/behind-the-2011-orgy-of-destabilizations/#more-2217
Part 1
http://www.youtube.com/watch?v=iOwLMO2AJJ8&feature=player_embedded
Part 2
http://www.youtube.com/watch?v=4O-KmiWBNlM&feature=player_embedded
Behind the 2011 Orgy of Destabilizations: Pre-Emptive Coups by the CIA to Halt an Exodus of US Satraps and Viceroys Leading to a Multipolar World
The stage for the 1848 upheaval was set – just like today — by a severe economic depression, which had broken out in 1847. Events of 1848 got going on January 12 with a rebellion in Sicily seeking independence for the island. Sicily is within sight of Tunisia, and this was the Tunisia of 1848. Naturally, the British Admiralty had long paid close attention to the Mediterranean islands, of which Sicily was one of the most important. But then the insurrection spread rapidly. Barricades went up in Paris on February 22, 1848, and within two days King Louis Philippe, who had been in power since July 1830, abdicated and fled to London. The Second French Republic came into existence. On March 13, 1848 workers and students started an insurrection in Vienna, the capital of the Austrian Empire, and soon invaded the Imperial Palace. The Austrian regime became hysterically disoriented, and Prince Metternich absconded in disguise, also to London. On March 15, rioting began in Berlin, where King Frederick William IV immediately promised a written constitution. The governments of most of the other 37 German states also quickly collapsed. Also on March 15, the Hungarian assembly declared its total separation from Austria, although the Habsburg Emperor was still kept as head of state. Bohemia demanded the same status a few days later. In Milan, Italy, the richest city of Austrian Empire, the revolt began on March 18 and by March 22 the Austrian garrison had been ejected. Venice declared its return to the status of an independent republic. The grand Duke of Tuscany was toppled by revolt. King Charles Albert of Sardinia, the only independent Italian state, declared war on Austria on March 23 with the intent of adding Milan and Venice to his realms, although this attempt to begin Italian unification would be defeated by military means.
This series of events was much more dramatic, more rapid, and more breathtakingly stunning for contemporary observers then the events in Tunisia, Egypt, Bahrain, Yemen, and Libya we have seen since the beginning of 2011. The flight of Louis-Philippe and Metternich amounted to much more than the ouster of Ben Ali and Mubarak, since France and Austria were among the five great powers of Europe. The events of 1848 also exceeded in geographic scope the fall of the Communist regimes of Poland, Hungary, East Germany, Czechoslovakia, and Romania in the summer and autumn of 1989.
As Palmer summed it up: “In the brief span of these phenomenal March days, the whole structure based on Vienna went to pieces: the Austrian Empire had fallen into its main components, Prussia had yielded to revolutionaries, all Germany was preparing to unify itself, and war raged in Italy. Everywhere constitutions had been wildly promised by stupefied governments, constitutional assemblies were meeting, and independent or autonomous nations struggled into existence.” (Palmer, p. 480)
http://tarpley.net/2011/03/15/behind-the-2011-orgy-of-destabilizations/#more-2217
fredag 11 mars 2011
European Peripheral Bonds Go Berserk
The market has been acting very weird all morning, with the oddness culminating in peripheral European bonds as of several minutes ago. Something odd is happening in the shorter end of Portuguese and Irish bonds, where a sudden move sent the curve to an unprecedented inverted levels as if by a fat finger across the board. Note the dramatic move in the 5 Year of both countries' bonds without any catalytic newsflow, which sent the Portuguese 5 Year to a lifetime high 7.93%. Have the stock HFT algos gone rogue and are now taking over the sovereign bond space?
http://www.zerohedge.com/article/fat-finger-portugal-irish-bonds
http://www.zerohedge.com/article/fat-finger-portugal-irish-bonds
torsdag 10 mars 2011
Private Investors Shy Away from Bonds - Demands Higher interest rates
Right now it's all about what the Central Banks and the FED are up to. People are trying to figure out what will happen now as QEII effects starts to fade away..me is anticipating a tsunami in to commodities within some 6 months..All dips are buying opportunities.
Isn’t this simply just ol' fashioned bond vigilantes? Mr Gross Pimco isn’t willing to buy any treasuries at these obscenely dirt low interest levels and thus is arguing for an interest hike (or he won't buy). And given the humongous amounts of debt and liabilities now accumulated by the Government buying bonds sure seems like a risky business.
Without any interest hike dollar is going to tank. This then as nobody will be willing to buy treasuries and thus full steam ahead towards QE3 as the FED will be the only one buying all these treasuries needed in order to finance the deficit.
With an interest hike dollar is going to tank as the cost for the deceit will escalate and thus offset any possible budget cuts -big time.
So where then will Mr Gross put all of that cash he’s currently holding as he now is all out on treasuries? Will he hoard cash and look forward to an unavoidable future dollar devaluation combined with increased inflation to take it's toll or will he buy in to the stock market or commodities in anticipation of a new round of QE?
If he manages this well he might benefit from a now weakening commodities markets, a possible but temporary dollar strengthening with a lot of cash at hand as deflation (again temporarily) as the effects of QEII now starts to fade away and well before expectations of QEIII starts to get more momentum start reentering the markets. My bet then is not the dollar or bonds paper markets but in to realt tagible stuff like hard assets (real estate excluded).
By the way that's exactely what JP Morgans did after that Blyte Masters had created the worst financial tsumani disaster ever seen. They used the paper markets (derivates, Credit Default Swaps) to get all paper markets down to severely depressed levels and then at that wery same point they then reentered in to commodeties and real hard assets.
This time Max Keiser and co-host, Stacy Herbert, talk about fake rice and real inequality and about a 'new model' that looks a whole lot like an old model called capitalism. In the second half of the show, Max talks to Pierre Jovanovic, author "Blythe Masters," about credit default swaps, the Queen of commodities and Marie Antoinette.
http://www.youtube.com/watch?v=i-B2V2l_6QE&feature=player_embedded
"Yields on Treasuries may be too low to sustain demand for U.S. government debt as the Federal Reserve approaches the end of its second round of quantitative easing, Gross wrote in a monthly investment outlook posted on Pimco’s website on March 2. Gross mentioned that Pimco may be a buyer of Treasuries if yields rise to attractive levels.
Treasury yields are about 150 basis points too low when viewed on a historical context and when compared with expected nominal gross domestic product growth of 5 percent, he wrote in the commentary. The Fed is scheduled to complete purchases of $600 billion of Treasuries in June.
Gross in his February commentary urged investors to reduce holdings of Treasuries and U.K. gilts and buy higher-returning securities such as debt from emerging-market nations. “Old- fashioned gilts and Treasury bonds may need to be ‘exorcised’ from model portfolios and replaced with more attractive alternatives both from a risk and a reward standpoint,” Gross wrote."
http://www.bloomberg.com/news/2011-03-09/gross-drops-government-debt-from-pimco-s-flagship-fund-zero-hedge-reports.html
These guys thinks Mr Gross is betting on the Dollar.
http://www.businessinsider.com/is-bill-gross-betting-on-a-vicious-move-higher-on-the-dollar-2011-3
Me thinks Mr Gross is avoiding treasuries. Same outcome (avoiding treasuries) but entirely different motives. Given that nobody but the FED now will help out finance the US deficit, I cannot even perceive what then the world would look like without a continuation of the QE initiative. Not however saying is good, simply it's politically insane not to.
By the way remember there is nothing in this world even close to being as inflationary as printing new money out of thin air in order to buy bonds in order to finance a deficit. Bottom line dollar IS gonna tank.
Then is now becoming evident for more and more people how evident the discrepancy between the availability of real hard assets and valuations on the paper markets. In a situation where the demand for tangible stuff like food, precious metals and oil just mentioning a few is higher than ever the corresponding paper valuation of these very same assets can become more than depressed.
What's really going on here is in fact the absence of "Rule Of Law" in the paper markets.
A society without rule of law is a society doomed. A society as ours today in the Western World based on e.g. lobbying, contributions, revolving doors, privatizations and deregulations all follow the same pattern.
You start with a society where taxpayers finance infrastructure healt and education. You create a deregulated financial market with no insight, oversight or regulation. With that backup great paper wealth is generated for the few and they then start to demand more and more also of that previously owned by the public domain. Thus demanding privatization of basically all infrastructural parts and aspects of society including Healt Care and education. After that privatization they demand deregulation and no regulatory insight in to these markets. Then at that point for sure there is no society worth the name ruled by law.
At times when you know how difficult it is to get physical delivery of silver and when you know that supply is a real constrain in the oil markets and when you in that very same time note the valuations of these very same paper markets decline, you know these paper markets are all just a big scam.
This as anything valued on paper in a society without proper Rule of Law simply is a scam. Of course that includes money that today is defined not by rule of law but as debt. Given the tremendous importance of money in our society having started of by defining it in an inappropriate way, well then you’re lost in the very beginning of trying to construct a free, just and fair society.
The Warning - Brooksley Born's side of the financial collapse
Brooksley Born, former appointed head of the CFTC (Commodity Futures Trading Commission) talks about the derivatives dark hidden market. Also about disagreements with Alan Greenspan and his cohorts. This documentary should be seen by every person who uses money to better understand what happened when the economy collapsed. The full broadcast can be viewed at
www.pbs.org/wgbh/pages/frontline/warning/view/
Global Correction on the Way
"In the developed world we have huge debt to GDP, in terms of government debt to GDP and unfunded liabilities that will come due," Faber said in a live interview via telephone. "These unfunded liabilities are so huge that eventually these governments will all have to print money before they default."
http://www.cnbc.com/id/35332965
Who is the Irish bailout really for?
Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=DtdEhVk55i4
The banks' big lie - Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=Jy9yluyizGo&feature=related
Are the banks solvent? Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=PD0YCSNdo8w&feature=channel_video_title
Ireland - Democracy for sale - Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=kYD7IpF5p0Y&feature=relmfu
Do we still live in a democracy? Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=Lj0aETOwxbw&feature=channel_video_title
Stephen Zarlenga works with Rep. Kucinich on The American Monetary Act, designed to resolve the banking crisis. This clip from a longer film defines 3 steps: In addition to nationalizing the Fed. and removing the power of banks to create money as debt out of thin air, the Act reminds us of the Constitution, Article I, Sec. 8, that states that our government has the sovereign power to issue money and spend it into circulation. Whatever you think about point 3 - the government could not possibly do any worse than the banks.
http://www.youtube.com/watch?v=V_kbyAl3-AM&feature=related
Isn’t this simply just ol' fashioned bond vigilantes? Mr Gross Pimco isn’t willing to buy any treasuries at these obscenely dirt low interest levels and thus is arguing for an interest hike (or he won't buy). And given the humongous amounts of debt and liabilities now accumulated by the Government buying bonds sure seems like a risky business.
Without any interest hike dollar is going to tank. This then as nobody will be willing to buy treasuries and thus full steam ahead towards QE3 as the FED will be the only one buying all these treasuries needed in order to finance the deficit.
With an interest hike dollar is going to tank as the cost for the deceit will escalate and thus offset any possible budget cuts -big time.
So where then will Mr Gross put all of that cash he’s currently holding as he now is all out on treasuries? Will he hoard cash and look forward to an unavoidable future dollar devaluation combined with increased inflation to take it's toll or will he buy in to the stock market or commodities in anticipation of a new round of QE?
If he manages this well he might benefit from a now weakening commodities markets, a possible but temporary dollar strengthening with a lot of cash at hand as deflation (again temporarily) as the effects of QEII now starts to fade away and well before expectations of QEIII starts to get more momentum start reentering the markets. My bet then is not the dollar or bonds paper markets but in to realt tagible stuff like hard assets (real estate excluded).
By the way that's exactely what JP Morgans did after that Blyte Masters had created the worst financial tsumani disaster ever seen. They used the paper markets (derivates, Credit Default Swaps) to get all paper markets down to severely depressed levels and then at that wery same point they then reentered in to commodeties and real hard assets.
This time Max Keiser and co-host, Stacy Herbert, talk about fake rice and real inequality and about a 'new model' that looks a whole lot like an old model called capitalism. In the second half of the show, Max talks to Pierre Jovanovic, author "Blythe Masters," about credit default swaps, the Queen of commodities and Marie Antoinette.
http://www.youtube.com/watch?v=i-B2V2l_6QE&feature=player_embedded
"Yields on Treasuries may be too low to sustain demand for U.S. government debt as the Federal Reserve approaches the end of its second round of quantitative easing, Gross wrote in a monthly investment outlook posted on Pimco’s website on March 2. Gross mentioned that Pimco may be a buyer of Treasuries if yields rise to attractive levels.
Treasury yields are about 150 basis points too low when viewed on a historical context and when compared with expected nominal gross domestic product growth of 5 percent, he wrote in the commentary. The Fed is scheduled to complete purchases of $600 billion of Treasuries in June.
Gross in his February commentary urged investors to reduce holdings of Treasuries and U.K. gilts and buy higher-returning securities such as debt from emerging-market nations. “Old- fashioned gilts and Treasury bonds may need to be ‘exorcised’ from model portfolios and replaced with more attractive alternatives both from a risk and a reward standpoint,” Gross wrote."
http://www.bloomberg.com/news/2011-03-09/gross-drops-government-debt-from-pimco-s-flagship-fund-zero-hedge-reports.html
These guys thinks Mr Gross is betting on the Dollar.
http://www.businessinsider.com/is-bill-gross-betting-on-a-vicious-move-higher-on-the-dollar-2011-3
Me thinks Mr Gross is avoiding treasuries. Same outcome (avoiding treasuries) but entirely different motives. Given that nobody but the FED now will help out finance the US deficit, I cannot even perceive what then the world would look like without a continuation of the QE initiative. Not however saying is good, simply it's politically insane not to.
By the way remember there is nothing in this world even close to being as inflationary as printing new money out of thin air in order to buy bonds in order to finance a deficit. Bottom line dollar IS gonna tank.
Then is now becoming evident for more and more people how evident the discrepancy between the availability of real hard assets and valuations on the paper markets. In a situation where the demand for tangible stuff like food, precious metals and oil just mentioning a few is higher than ever the corresponding paper valuation of these very same assets can become more than depressed.
What's really going on here is in fact the absence of "Rule Of Law" in the paper markets.
A society without rule of law is a society doomed. A society as ours today in the Western World based on e.g. lobbying, contributions, revolving doors, privatizations and deregulations all follow the same pattern.
You start with a society where taxpayers finance infrastructure healt and education. You create a deregulated financial market with no insight, oversight or regulation. With that backup great paper wealth is generated for the few and they then start to demand more and more also of that previously owned by the public domain. Thus demanding privatization of basically all infrastructural parts and aspects of society including Healt Care and education. After that privatization they demand deregulation and no regulatory insight in to these markets. Then at that point for sure there is no society worth the name ruled by law.
At times when you know how difficult it is to get physical delivery of silver and when you know that supply is a real constrain in the oil markets and when you in that very same time note the valuations of these very same paper markets decline, you know these paper markets are all just a big scam.
This as anything valued on paper in a society without proper Rule of Law simply is a scam. Of course that includes money that today is defined not by rule of law but as debt. Given the tremendous importance of money in our society having started of by defining it in an inappropriate way, well then you’re lost in the very beginning of trying to construct a free, just and fair society.
The Warning - Brooksley Born's side of the financial collapse
Brooksley Born, former appointed head of the CFTC (Commodity Futures Trading Commission) talks about the derivatives dark hidden market. Also about disagreements with Alan Greenspan and his cohorts. This documentary should be seen by every person who uses money to better understand what happened when the economy collapsed. The full broadcast can be viewed at
www.pbs.org/wgbh/pages/frontline/warning/view/
Global Correction on the Way
"In the developed world we have huge debt to GDP, in terms of government debt to GDP and unfunded liabilities that will come due," Faber said in a live interview via telephone. "These unfunded liabilities are so huge that eventually these governments will all have to print money before they default."
http://www.cnbc.com/id/35332965
Who is the Irish bailout really for?
Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=DtdEhVk55i4
The banks' big lie - Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=Jy9yluyizGo&feature=related
Are the banks solvent? Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=PD0YCSNdo8w&feature=channel_video_title
Ireland - Democracy for sale - Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=kYD7IpF5p0Y&feature=relmfu
Do we still live in a democracy? Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=Lj0aETOwxbw&feature=channel_video_title
Stephen Zarlenga works with Rep. Kucinich on The American Monetary Act, designed to resolve the banking crisis. This clip from a longer film defines 3 steps: In addition to nationalizing the Fed. and removing the power of banks to create money as debt out of thin air, the Act reminds us of the Constitution, Article I, Sec. 8, that states that our government has the sovereign power to issue money and spend it into circulation. Whatever you think about point 3 - the government could not possibly do any worse than the banks.
http://www.youtube.com/watch?v=V_kbyAl3-AM&feature=related
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