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Monday, July 8, 2013
The Last Mystery of the Financial Crisis
Coincidentally, Warren Buffett's Berkshire Hathaway was a major shareholder of Moody's. But we all know the octogenarian billionaire, the so-called Oracle from Omaha, walks on water when it comes to integrity, right?
http://www.rollingstone.com/politics/news/the-last-mystery-of-the-financial-crisis-20130619
http://www.rollingstone.com/politics/news/the-last-mystery-of-the-financial-crisis-20130619
Sunday, July 7, 2013
China Radio: "The U.S. And Europe Have Always Suppressed The Rising Price Of Gold"
We all know Bradley Manning will never see the light of day. Here is a big reason.
http://www.zerohedge.com/news/2013-07-06/china-radio-us-and-europe-have-always-suppressed-rising-price-gold
http://www.zerohedge.com/news/2013-07-06/china-radio-us-and-europe-have-always-suppressed-rising-price-gold
A Bubble So Big We Can't Even See It
http://www.zerohedge.com/news/2013-07-07/guest-post-bubble-so-big-we-cant-even-see-it
Greenspan expressing confidence in the stock market is a reliable contrary indicator.
Global Markets Now On The Verge Of Total Panic & Meltdown
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/7_Global_Markets_Now_On_The_Verge_Of_Total_Panic_%26_Meltdown.html
What happened on Friday certainly suggests that something major could be just around the corner. It is well known that a rise in interest rates beyond certain levels will lay naked the insolvency of governments around the world.
While we certainly do not relish the chaos that would result from a meltdown of the bond market, it will not come as a shock to those who have studied financial history. It is always the result of the fiscal and monetary policies which have been irresponsibly pursued, whether well-intended or not.There are no examples in history of any paper currency not culminating in a violent collapse. None. It has been tried by all of our ancestors throughout human history. All examples resulted in failure. The lesson never learned is that humans cannot be trusted with the ability to create money out out thin air. The list of those who have come before us include the Mongols, Chinese, French, Germans, Romans, Hungarians, etc. It is not about a particular culture or a period in time. It just does not work.If the carnage in the bond market continues next week, we could finally be at that moment where the system reacts chaotically and violently. It is sad, but it is the predictable end to the financial path that was chosen in the mid-1960s.For those who are dispirited by the action in the energy and precious metals markets, a true panic out of financial assets into so-called real assets will cause those markets to skyrocket when denominated in fiat currency. Today was a warning that this moment might finally be at hand.
Saturday, July 6, 2013
Bundesbank Warns China's Currency "On Its Way To Becoming Global Reserve Currency"
Folks, myself and the blogosphere have been warning of this imminent shift in reserve currencies. The cat is now out of the bag. The USDollar will lose its global reserve currency status. The loss may not be complete--it may share that privileged status with other currencies. But it is inevitable.
Be prepared for much higher import and domestic prices--on everything. The outcome may not be immediate, as the USDollar may continue to temporarily strengthen as geopolitical fires emerge in other parts of the world. But the dollar's safe haven status will eventually be challenged as the rest of the world wakes up to its debasement. Counterfeiting--even if "legalized" or institutionalized, will have market consequences, intended or otherwise.
http://www.zerohedge.com/news/2013-07-06/bundesbank-warns-chinas-currency-its-way-becoming-global-reserve-currency
Be prepared for much higher import and domestic prices--on everything. The outcome may not be immediate, as the USDollar may continue to temporarily strengthen as geopolitical fires emerge in other parts of the world. But the dollar's safe haven status will eventually be challenged as the rest of the world wakes up to its debasement. Counterfeiting--even if "legalized" or institutionalized, will have market consequences, intended or otherwise.
http://www.zerohedge.com/news/2013-07-06/bundesbank-warns-chinas-currency-its-way-becoming-global-reserve-currency
Switzerland Will Join Race to Be Trading Hub for China’s Yuan
Notice London, Frankfurt, and Switzerland have joined the race to become the hub for trading of the Chinese Yuan. So has Toronto. The notable absence is New York, who normally aspires to be the trading center of any asset class. Given the Yuan will be a likely challenger to the USDollar as a global reserve currency, does this surprise anybody?
http://www.bloomberg.com/news/2013-07-06/switzerland-will-join-race-to-be-trading-hub-for-china-s-yuan.html
http://www.bloomberg.com/news/2013-07-06/switzerland-will-join-race-to-be-trading-hub-for-china-s-yuan.html
JPMorgan Mimics The Goldman Sachs View Of An Improving Commodity Outlook
The too-big-to-fail banks have been short commodities for two years. This is a significant reversal.
http://www.forbes.com/sites/timtreadgold/2013/07/02/jp-morgan-mimics-the-goldman-sachs-view-of-an-improving-commodity-outlook/
http://www.forbes.com/sites/timtreadgold/2013/07/02/jp-morgan-mimics-the-goldman-sachs-view-of-an-improving-commodity-outlook/
Goldman Sach’s views were reported here last week with the key comment being: “We are not forecasting a return to expansion, but we believe the sector is starting to look interesting.”
JP Morgan’s view which reached clients this week represent an increase in the optimism noting that its new-found enthusiasm represents its first “overweight” call on commodities since 2010.
“Though we may be a little early, we do not think we are very early,” JP Morgan said. “We would rather be premature in our pretend portfolio than you be late in your real portfolio.”
Like Goldman Sachs, JP Morgan argues that most commodities have fallen far enough and for long enough to force involuntary production cuts.
JP Morgan said it had recommended an underweight position in commodities as an asset class in November, 2011, but that view had changed.
“We move to recommend a net long, overweight exposure for institutional investors (in commodities) for the first time in more than two years,” JP Morgan said.
Ex-Russian spy Anna Chapman tweets marriage proposal to Edward Snowden
This Snowden affair is getting more bizarre by the day.
http://www.nydailynews.com/news/national/ex-russian-spy-hots-snowden-article-1.1389534#ixzz2YBSK5fF9
http://www.nydailynews.com/news/national/ex-russian-spy-hots-snowden-article-1.1389534#ixzz2YBSK5fF9
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