Keyword: currency

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  • U.S. Dollar Teetering On The Abyss

    11/15/2011 9:10:18 AM PST · by blam · 12 replies
    TMO ^ | 11-15-2011 | Toby Connor
    U.S. Dollar Teetering On The Abyss Currencies / US Dollar Nov 15, 2011 - 03:01 AM By: Toby Connor We all better hope I'm wrong on this one, but I think the CRB just put in its three year cycle low in October. I'm also afraid that Bernanke has done irreparable damage to the dollar. If I'm right about both of those assumptions then we are on the brink of a historic inflationary period. I've marked the major three year cycle bottoms in both the CRB index and the dollar index on the chart below with blue arrows. (Actually the...
  • “Currency Wars: The Making of the Next Global Crisis” By Jim Rickards

    11/13/2011 12:09:04 PM PST · by Razzz42 · 11 replies
    King World News ^ | November 11th, 2011 | Jim Rickards
    In this interview Rickards discusses his extraordinary new book Currency Wars: The Making of the Next Global Crisis. He also lets King World News listeners know what to expect regarding gold manipulation, the ongoing currency wars and much more. The KWN audio interview with Jim Rickards is available now...
  • Pope’s Top Cardinal Forbids Justice & Peace From Issuing Documents Without Permission

    11/10/2011 12:03:07 PM PST · by Publius804 · 16 replies
    American Papist ^ | 11/10/11 | Thomas Peters
    Very notable news, via Vatican expert Sandro Magister, following the aftermath of the Justice & Peace’s ill-advised white paper (emphasis mine) Precisely when the G20 summit in Cannes was coming to its weak and uncertain conclusion, on that same Friday, November 4 at the Vatican, a smaller summit convened in the secretariat of state was doing damage control on the latest of many moments of confusion in the Roman curia. In the hot seat was the document on the global financial crisis released ten days earlier by the pontifical council for justice and peace. A document that had disturbed many,...
  • Strong CAD, Investors Shy from Left-leaning US Government

    11/04/2011 11:56:22 AM PDT · by next media · 7 replies
    USBC News ^ | 2011, 11, 05 | USBC Wire
    ..."John Curran, senior vice-president at a Canadian foreign exchange firm seemed confused about the results saying:"If the Bank of Canada is telling us things are going to slow down due to global scenarios, I don't see why the market is not listening to the officials that are involved with the issues”. Other experts, taking a broader view have noted that the weakness of economic situations in the left-led governments of the US and Europe are a likely cause of the strengthening of confidence in Canada’s economy to continue to do outperform"....
  • Krugman Warns of “Gigantic Bank Run”, “Emergency Bank Closing” and “New Lira”

    11/02/2011 8:33:06 PM PDT · by blam · 19 replies
    TMO ^ | 11-2-2011 | GoldCore
    Krugman Warns of “Gigantic Bank Run”, “Emergency Bank Closing” and “New Lira” Commodities / Gold and Silver 2011 Nov 02, 2011 - 07:09 PM By: GoldCore Gold is trading at USD 1,727.10, EUR 1,254, GBP 1,080, JPY 134,790, AUD 1,669.20 and CNY 10,978 per ounce. Gold’s London AM fix this morning was USD 1,731.00, GBP 1,081.27 and EUR 1,257.35 per ounce. Yesterday's AM fix was USD 1,702.00, GBP 1,067.69 and EUR 1,243.06 per ounce. Cross Currency Table Gold is higher in most major currencies but especially the US dollar this morning. Although gold has lost some of its early gains...
  • Europe's grand plan risks slow death by a thousand cuts

    10/13/2011 2:39:48 PM PDT · by bruinbirdman · 2 replies
    The Telegraph ^ | 10/13/2011 | Jeremy Warner
    <p>Is Europe's planned programme of banking recapitalisations going to work?</p> <p>It depends how it is done, but the omens aren't good. The message from bankers at the Association for Financial Markets in Europe (AFME) annual dinner in London this week was a concerning one.</p>
  • Senate Passes Bill to Sanction China Over Currency

    10/11/2011 3:50:42 PM PDT · by traumer · 17 replies
    The Senate has voted to punish China for keeping its currency undervalued against the dollar. Many see China's currency policy as a big factor in the flood of Chinese imports that has led to American factories shutting down and workers getting laid off. The 63-35 vote Tuesday evening shows the growing anger over the U.S. trade relation with China. The Asian nation built up a $273 billion surplus last year bolstered by monetary policy that makes its exports cheaper and American sales to China more expensive. But the bill to punish China is likely to hit a dead end in...
  • Populist Winds Blowing

    10/07/2011 3:23:18 PM PDT · by Sick of Lefties · 5 replies
    Noman Says ^ | 9/7/11 | Noman
    Senators--mostly Democratic, but not exclusively--are incensed at China's artificially low currency, which reduces the value of its exports to the US, and increases American firms' propensity to source overseas. Taken as an isolated phenomenon, this costs the US manufacturing jobs. Critics of China specifically, and global sourcing generally, are reluctant to recognize the domestic benefits flowing from outsourcing, e.g., lower domestic consumer prices; money flowing to more efficient and competitively advantageous domestic uses thereby creating jobs in new growth industries. Neither do they care that a stronger Chinese Yuan will merely shift the venue of sourcing, not its incidence. The...
  • Martin A. Armstrong (Audio Interview)

    10/02/2011 8:14:34 PM PDT · by Razzz42 · 8 replies · 1+ views
    King World News ^ | 10.2.2011 | Martin A. Armstrong interview
    [Go to the site link then look for the 'Listen to MP3' icon on the lower left-hand side and click on that to listen to the interview after it loads.]
  • US Senate to take up China currency bill

    10/02/2011 3:55:28 AM PDT · by TigerLikesRooster · 12 replies
    US Senate to take up China currency bill Posted: 02 October 2011 0958 hrs WASHINGTON: The US Senate this week takes up a bill to punish China for its alleged currency manipulation, a measure that has divided the Republican presidential field and put the White House in a bind. The legislation -- backed by Democrats and Republicans in the polarized Congress, but opposed by Beijing and potent US business groups -- faces a key procedural vote set for 5:30 pm (2130 GMT) Monday. Democratic Senator Chuck Schumer, a key author of the measure, predicted the bill would clear that hurdle...
  • U.S. mulls Canadian border fence

    09/29/2011 12:07:42 PM PDT · by Free ThinkerNY · 21 replies
    The Canadian Press ^ | Sept. 29, 2011
    The United States is looking at building fences along the border with Canada to help keep out terrorists and other criminals. The U.S. Customs and Border Protection agency has proposed the use of "fencing and other barriers" on the 49th parallel to manage "trouble spots where passage of cross-border violators is difficult to control." The border service is also pondering options including a beefed-up technological presence through increased use of radar, sensors, cameras, drones and vehicle scanners. In addition, it might continue to improve or expand customs facilities at ports of entry. The agency considered but ruled out the possibility...
  • Paper or coin? In Congress, a battle over George Washington’s face

    09/28/2011 8:04:43 PM PDT · by decimon · 53 replies
    The Ticket ^ | September 28, 2011 | Chris Moody
    There is a movement brewing among House Republicans to replace the traditional $1 bill with metal coins, which supporters say will save the country billions because of their longer circulation life. Arizona Republican Rep. David Schweikert introduced the Currency Optimization, Innovation and National Savings (COINS) Act last week, which would require the Federal Reserve Banks to end production of the $1 paper currency within four years of passage. > In the Senate, Massachusetts Sens. John Kerry, a Democrat, and Scott Brown, a Republican, introduced the Currency Efficiency Act, aimed at preserving the paper dollar bill. The reason to stick with...
  • The Great Euro Swindle [In truth, Eurosceptics were only too sane: Margaret Thatcher..]

    09/22/2011 12:05:35 PM PDT · by fight_truth_decay · 3 replies
    Telegraph.co.uk ^ | 12:00PM BST 22 Sep 2011 | Peter Oborne, Frances Weaver
    Very rarely in political history has any faction or movement enjoyed such a complete and crushing victory as the Conservative Eurosceptics. The field is theirs. They were not merely right about the single currency, the greatest economic issue of our age – they were right for the right reasons. They foresaw with lucid, prophetic accuracy exactly how and why the euro would bring with it financial devastation and social collapse. Meanwhile, the pro-Europeans find themselves in the same situation as appeasers in 1940, or communists after the fall of the Berlin Wall. They are utterly busted...
  • The Defining Issue Of The 2012 Elections: Jobs Through Gold?

    09/19/2011 8:06:44 PM PDT · by DeaconBenjamin · 4 replies
    Forbes ^ | 9/12/11 | Ralph Benko
    ...Meanwhile, a credible key to explosive jobs growth begins to come to the fore: a credible monetary policy prescription for a seriously stable dollar. A sure signal of a rising policy vector? The Washington Post sends forth a top gunslinger to attack the gold standard and the GOP candidates for considering it. See Steven Pearlstein's Sept. 10 column, “The magical world of voodoo ‘economists’“: If you came up with a bumper sticker that pulls together the platform of this year’s crop of Republican presidential candidates, it would have to be: Repeal the 20th century. Vote GOP. They reject as thoroughly...
  • $1.2 Trillion Of Nervous Money Floods Into U.S. Banking System

    09/18/2011 3:34:36 PM PDT · by fightinJAG · 55 replies
    Problem Bank List ^ | Sep 9, 2011 | Staff
    With the European banking system tottering on the brink of collapse, nervous holders of cash have flooded the U.S. banking system with $1.2 trillion of deposits. Panicky holders of large amounts of cash are taking advantage of a provision of the Dodd-Frank Act that provides unlimited FDIC insurance coverage on noninterest-bearing transaction accounts. The Dodd-Frank Act provides unlimited deposit insurance coverage regardless of the account balance or type of ownership. [snip] After the near total meltdown of the financial system in 2008, investors are taking steps to move their money into government guaranteed accounts. The revelation that money market funds...
  • Deflation Is Here

    09/12/2011 12:27:46 AM PDT · by blam · 27 replies
    Seeking Alpha ^ | 9-12-2011 | Graham Summers
    Deflation Is Here Graham Summers September 12, 2011 I’ve been warning that the markets were on the verge of another round of Deflation. By the looks of things, it’s here with the US Dollar breaking out of its massive wedge pattern. The ultimate target for this pattern is the mid-80s. So consider this latest breakout the first leg up of a much larger move that will affect all other asset classes in a big way. In order for a move of that caliber to occur in the US Dollar, we’ll need to see a full-scale crisis hit the markets (the...
  • Greece budget watchdog warns 'debt is out of control'

    09/02/2011 12:06:45 AM PDT · by bruinbirdman · 4 replies
    The Telegraph ^ | 9/1/2011 | AFP
    The Greek finance ministry went on the defensive after a new budget watchdog released an internal report warning that debt was "out of control". Students protest outside the Greek Parliament in Athens The Greek finance ministry went on the defensive after a new budget watchdog released an internal report warning that debt was "out of control". Evangelos Venizelos, the Finance Minister who earlier this week had to explain to auditors from the EU, ECB and IMF why the debt-laden country had missed targets, put the report down to inexperience. He said in a statement: "All responsible international organisations know in...
  • Gold is the World's Currency

    08/25/2011 7:08:12 AM PDT · by Kaslin · 14 replies
    Townhall.com ^ | August 25, 2011 | Mike Shedlock
    Central bank and government actions around the globe increasingly prove that gold is the place to be. Here is an interesting Bloomberg headline that shows what I mean:Central Banks to Retain Gold to Manage Debt in Crisis
  • BIG MONEY & THE ECONOMIC DEPRESSION

    08/16/2011 9:56:30 PM PDT · by Razzz42 · 16 replies
    ...There is a danger of a MASSIVE WORLD DEPRESSION perhaps far greater than the HYPERINFLATION scenarios. The presumption of hyperinflation is based (1) that money is not backed by gold, and (2) somehow government will print uncontrollably. There are rising forces in the wings that counter-balance that notion. In Germany, the national philosophy is etched in its soul by its hyperinflation of the 1920s just as everything Americans believe is etched into their soul by the Great Depression. The USA fears a depression and monetizes to desperately try to stimulate, while Germany imposes austerity to prevent a hyperinflation that is...
  • The 40 year Anniversary of the Floating Exchange Rate System and The Week From Hell

    08/16/2011 9:43:11 PM PDT · by Razzz42 · 4 replies
    ...Today the crisis lies in Europe. The European Central Bank revealed Monday that it purchased €22 billion euro ($32 billion) last week, which was more than it has ever done before in a desperate measure to prop up the bond markets of Italy and Spain. The ONLY solution to save the euro is to consolidate all the debts into a single euro bond. The next step will be to introduce economic reform. As long as the ECB continues to buy the debt of the weaker states, they will eventually blow themselves up because they cannot support such a market in...
  • Bernanke has thrown in towel on economy

    08/10/2011 11:36:58 AM PDT · by Signalman · 27 replies
    CNN Money ^ | 8/10/2011 | Paul R. La Monica
    NEW YORK (CNNMoney) -- Is the Federal Reserve waving the white surrender flag? It sure looks that way. The Fed made the unusual (and unprecedented) move on Tuesday to tell the market in plain English that it intends to keep rates near zero for the next two years! That is disappointing on many levels. First and foremost, it is a crystal clear sign from Ben Bernanke and other Fed members that they think the economic recovery (if one could still call it that) will remain tepid for a long time. That is probably one of the reasons that the post-Fed...
  • U.S. Dollar Is The Next Financial Shoe To Drop (Foreign Flight If USD loses global reserve status)

    08/09/2011 9:39:01 AM PDT · by SeekAndFind · 8 replies
    Forbes ^ | 08/09/2011 | Jonathan Sherman
    There are a lot of headlines lately about the debt issues in the United States (not to mention Europe and Japan). But what does this issue mean for the investor? It appears that the whole system of fiat currencies is being challenged. In other words, the real issue here is how long will the Dollar (and Euro and Yen) remain viable currencies? A little historical background is useful. By definition, fiat currency only has value because of government regulation or law; it is not convertible into anything, like silver or gold, and is declared as legal tender by the issuing...
  • Geithner: S&P showed terrible judgment

    08/07/2011 6:57:45 PM PDT · by Justaham · 65 replies
    Associated Press ^ | 8-8-11 | MARTIN CRUTSINGER
    WASHINGTON – The credit rating agency Standard & Poor's showed "terrible judgment" in lowering the U.S. government's credit rating, Treasury Secretary Timothy Geithner said Sunday. "They've handled themselves very poorly. And they've shown a stunning lack of knowledge about the basic U.S. fiscal budget math," Geithner said in his first public comments about the credit rating decision. Interviewed on CNBC, Geither said that U.S. Treasury securities were just as safe now as they were before S&P announced its downgrade. He predicted that China and investors would remain strong purchasers of U.S. government debt. Republicans have blamed President Barack Obama for...
  • $2 trillion error in S&P calculations: US (treasury challenging)

    08/05/2011 8:37:42 PM PDT · by STARWISE · 66 replies
    The US Treasury has hit back against a Standard and Poor's downgrade of its AAA credit rating, saying there was a $2 trillion dollar error in the agency's calculations. "A judgment flawed by a 2 trillion dollar error speaks for itself," a Treasury spokesman said, just after the US lost its AAA rating for the first time ever and was downgraded to a AA+. *snip* Moody's and a third ratings agency, Fitch, say they continue to study the deficit plan to see if the US merits being kept in their ranks of AAA countries. Earlier, an official close to the...
  • 'No risk' the US will lose its top credit rating, says Treasury's Geithner (Flashback!)

    08/05/2011 6:47:47 PM PDT · by Nachum · 30 replies · 1+ views
    The Hill ^ | 8/5/11 | Michael O'Brien
    Treasury Secretary Tim Geithner said Tuesday there is "no risk" the U.S. will lose its top credit rating amid a new analysis that revised its outlook on American debt to "negative." Geithner took to the airwaves of financial news networks to push back against a report Monday by Standard & Poor's that lowered its outlook on U.S. debt to "negative," reflecting political uncertainty over whether lawmakers will reach an agreement to address long-term debt.
  • Currency Devaluation via Higher Minimum Wage ?

    08/05/2011 4:53:03 PM PDT · by Kellis91789 · 16 replies
    FreeRepublic | 08/05/2011 | kellis91789
    Conventional thinking would say the minimum wage interferes with free markets for labor and should therefor be opposed by any right thinking capitalist conservative. However ... it occurs to me that a really LARGE increase in the minimum wage (say to $25/hr) could actually be used to screw the public employee unions and creditors of the Debt. It would have the following effects that are worth pondering: 1) It would cause prices to skyrocket and then stabilize at a new higher level, as more money chased the same amount of goods and services. Overall, prices would go up such that...
  • Switzerland pays price for fiscal sanity. (Huh? Alert)

    08/05/2011 2:39:02 PM PDT · by garybob · 11 replies
    Associated Press ^ | 8/5/2011 | Frank Jordans
    GENEVA (AP) — Switzerland has a balanced budget, low unemployment and a strong currency. On the face of things, the pristine Alpine nation has much to be proud of amid the economic turmoil in surrounding Europe and the United States. But as investors rush to trade U.S. dollars and euros for Swiss francs, sending the currency to record highs in recent weeks, Switzerland's enviable economic record has become a heavy burden.
  • This Too Will Pass

    08/04/2011 7:10:06 PM PDT · by Kaslin · 53 replies
    IBD Editorials ^ | August 4, 2011 | Staff
    Free Fall: The stock market is highly perceptive, and what it's perceiving now is that (1) the mediocre recovery of the last two years is stalling out and (2) our leaders in Washington haven't the vaguest idea of what to do about it. A big part of this pathetic recovery has to be laid at government's doorstep. Our top elected and appointed officials try to blame it on everyone else, but it's their incompetence that has brought us low. The weak 1.2% average GDP growth since the end of 2008 is a direct result of the financial crisis of 2007...
  • An Historically Weak Recovery: Outright Economic Contraction Imminent

    07/31/2011 9:03:02 PM PDT · by blam · 17 replies
    Seeking Alpha ^ | 7-31-2011 | Erik McCurdy
    An Historically Weak Recovery: Outright Economic Contraction Imminent by: Erik McCurdy July 31, 2011 The Bureau of Economic Analysis (BEA) released its advanced estimate of second quarter growth, forecasting a real annualized growth rate of 1.3%, well below consensus expectations for 1.9%. More significantly, major downside revisions to data for the past few years indicate that the last recession was much worse than originally reported. The following graph (click to enlarge images) from Shadow Government Statistics displays real GDP data for the past five years. The three data sets represent the 2009, 2010 and 2011 benchmarks. As expected, the earlier...
  • A Short History of US Credit Defaults

    07/26/2011 6:18:41 PM PDT · by foundedonpurpose · 12 replies
    Mises Institute ^ | July, 15, 2011 | A Short History of US Credit Defaults
    On July 13th, the president of the United States angrily walked out of ongoing negotiations over the raising of the debt ceiling from its legislated maximum of $14.294 trillion dollars. This prompted a new round of speculation over whether the United States might default on its financial obligations. In these circumstances, it is useful to recall the previous instances in which this has occurred and the effects of those defaults. By studying the defaults of the past, we can gain insights into what future defaults might portend. The Continental Currency Default of 1779 The first default of the United States...
  • A Short History of US Credit Defaults

    07/24/2011 8:00:03 PM PDT · by foundedonpurpose · 14 replies
    http://mises.org/ ^ | July 15, 2011 | John S. Chamberlain
    On July 13th, the president of the United States angrily walked out of ongoing negotiations over the raising of the debt ceiling from its legislated maximum of $14.294 trillion dollars. This prompted a new round of speculation over whether the United States might default on its financial obligations. In these circumstances, it is useful to recall the previous instances in which this has occurred and the effects of those defaults. By studying the defaults of the past, we can gain insights into what future defaults might portend. The Continental-Currency Default The first default of the United States was on its...
  • GOP leaders say the nation can't afford to default

    07/13/2011 5:21:23 PM PDT · by NormsRevenge · 49 replies
    Yahoo ^ | 7/13/11 | Andrew Taylor - ap
    WASHINGTON (AP) — Hope dimming for a broad debt-limit deal, Congress and the White House scrambled Wednesday to salvage deficit-reduction talks while top congressional Republicans said the nation cannot afford to default on its obligations — for economic reasons and their party's own good. Ahead of a fourth negotiating session at the White House in as many days, Senate Republican leader Mitch McConnell defended his proposal to give President Barack Obama new powers to increase the nation's borrowing limit without GOP support. "I refuse to help Barack Obama get re-elected by marching Republicans into a position where we have co-ownership...
  • Europe steps back from the abyss, for a day

    07/13/2011 5:27:26 PM PDT · by bruinbirdman · 9 replies
    The Telegraph ^ | 7/14/2011 | Ambrose Evans-Pritchard
    The European Union has reached "crunch time" in the words of George Papandreou, Greece's despondent premier. Its leaders can longer allow themselves the luxury of "indecisiveness, errors and tactical politics" as the debt crisis engulfs 40pc of the eurozone's economy and almost half its population. Tour de euro "Let us be clear: if there is no relief we are going straight into the abyss," said Romano Prodi, Italy's ex-premier and former head of the European Commission. Relief came just in the nick of time at 9.15 on Tuesday morning when somebody – most likely the European Central Bank (ECB) –...
  • Eric Cantor: Obama abruptly walked out of debt meeting

    07/13/2011 5:34:07 PM PDT · by ColdOne · 126 replies
    Politico ^ | 7/13/11 | JONATHAN ALLEN
    “Eric, don’t call my bluff,” the president said, warning Cantor that he would take his case “to the American people.” He told Cantor that no other president — not Ronald Reagan, the president said — would put up with the treatment he was getting from the House majority leader. The latest and sharpest in a series of harsh exchanges between the two leaders heightened concern that markets could crash at any time amid fear of a reduction in the rating on once-ironclad U.S. debt. Cantor accused the president and congressional Democrats of progressively low-balling, over the last several days, the...
  • Chinese investment in Europe

    07/02/2011 2:25:36 PM PDT · by AfricanChristian
    A RIDE in a London taxi from Canary Wharf, a financial district, to the Bank of England sounds like an inimitably British experience. It is also a Chinese one. London’s black cabs are made by Manganese Bronze, which is part-owned by Geely, a Shanghai-based carmaker that also owns Volvo, a Swedish company. China Investment Corporation (CIC), a sovereign-wealth fund, has the third-largest stake in Songbird Estates, which controls Canary Wharf Group, the property firm behind the towers that dominate the city’s eastern skyline. CIC may soon become an investor in the Citigroup building, another landmark skyscraper, which is for sale....
  • ‘The Federalist Papers for a Gold Standard’ Is First Book Issued by The New York Sun

    06/27/2011 7:34:57 AM PDT · by statestreet · 15 replies
    The New York Sun ^ | June 27, 2011 | The New York Sun
    NEW YORK — “This brilliant book is The Federalist Papers for a gold standard,” says Steve Forbes of the first anthology of editorials of The New York Sun. “It succinctly, dazzlingly — and convincingly — makes the irrefutable case for re-linking the battered dollar to gold.” The book — “It Shines for All: The Gold Standard Editorials of The New York Sun” — is edited by famed author David Pietrusza and contains a foreward by one of America’s most distinguished writers on markets and money, James Grant, editor of Grant’s Interest Rate Observer. “It Shines for All” is being published...
  • China's Hard-Money History(back to their gold and silver roots)

    06/26/2011 7:12:08 PM PDT · by sickoflibs · 10 replies
    Mises Institute ^ | June 20, 2011 | Dan O'Connor
    Until recent centuries, the Chinese people were disconnected from places in the world such as Europe and Africa. China was either unknown or considered very distant from Europe and Africa; few ships attempted to explore that far. Most Chinese people were not familiar with Western civilization, just as few in the West were familiar with Chinese civilization. In fact, the word "China" in Chinese is Zhong Guo, meaning "center" (Zhong) and "nation/land" (Guo). Chinese people believed that their land was the center of the world, not out of arrogance, but rather out of unawareness of the rest of the world....
  • Is the cryptocurrency Bitcoin a good idea?

    06/19/2011 6:17:10 AM PDT · by Salman · 12 replies
    Quora ^ | 6/2/2011 | Adam Cohen
    No. Bitcoin is a ludicrously bad idea. It is a scam. A Scam. It is not a currency. The economic assumptions underpinning the Bitcoin ecosystem are laughable, and ignore hundreds of years of accumulated understanding of how currencies work with each other.
  • China ratings house says US defaulting: report

    06/10/2011 5:54:20 AM PDT · by RummyChick · 48 replies
    yahoo ^ | 6/10 | afp
    A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order.
  • THE ECONOMIC ICE AGE

    06/10/2011 3:47:01 PM PDT · by blam · 1 replies
    Pragmatic Capitalist ^ | 6-10-2011 | Cullen Roche
    THE ECONOMIC ICE AGE 10 June 2011 by Cullen Roche Some pretty interesting thoughts here from Societe Generale on the economic “ice age”. This is what their analysts refer to as the period after a bubble bursting has occurred. They’ve used the same Japan analogy that I am fond of. Pretty pessimistic thoughts (more so than mine), but I think they’ve got the macro situation understood better than most: “In the aftermath of last week’s stunningly weak economic data the market is now beginning to acknowledge that, without a further round of QE a relapse back into economic stagnation or...
  • Dow, S&P slide for sixth week

    06/10/2011 2:17:36 PM PDT · by Signalman · 2 replies
    CNNMoney ^ | 6/10/2011 | Ken Sweet
    NEW YORK (CNNMoney) -- Stocks retreated broadly on Friday, with the Dow ending below 12,000 for the first time in three months and the Nasdaq erasing all of its gains for the year. Insurance and financial stocks started the selling spree, but it quickly spread to all sectors. Commodities were hit hard. Oil and silver prices slumped nearly 3%. * 180 * * * Print Late in the session, bank stocks turned higher, helping the broader market pare losses. The Federal Reserve issued a proposal to increase capital requirements on large banks by 5%, which was far less than investors...
  • Cut, Cap, and Balance: The GOP Debt Ceiling Strategy

    06/10/2011 9:33:28 AM PDT · by Kaslin · 3 replies
    Pajamas Media ^ | June 10, 2011 | Peter Roff
    A plan to attach the three debt-reduction musts to any bill raising the debt ceiling appears to be the chosen path of the GOP.With nearly half of all Americans, according to the latest CNN poll, saying they fear America is on the verge of another “Great Depression,” Barack Obama and Congress continue their debt-ceiling tango.It’ not just that the various groups involved — the Keynesians, the Cloward-Pivenists, the green eye-shade deficit hawks, and the supply-siders — want to lead, it’s that they all want to conduct the band.The debt ceiling, the legal limit on borrowing by the federal government, is...
  • Debt talks to speed up, taxes still a hurdle (credit card maxed, need more loot)

    06/10/2011 9:45:07 AM PDT · by Libloather · 2 replies
    Yahoo ^ | 6/10/11 | Andy Sullivan and Deborah Charles
    Debt talks to speed up, taxes still a hurdleBy Andy Sullivan and Deborah Charles – 2 hrs 10 mins ago WASHINGTON (Reuters) – Top lawmakers aiming to reach a deficit-reduction deal agreed on Thursday to step up the pace of their talks with a series of meetings next week but said they still disagreed over the need to raise taxes. Vice President Joe Biden and six leading Democratic and Republican lawmakers have now met a half-dozen times as they try to work out their differences and reach a deal to reduce trillion dollar budget deficits. Thursday's Capitol Hill meeting took...
  • Some Say No Downside to Default, Ron Paul Predicts Cave-In

    06/10/2011 8:11:58 AM PDT · by Kaslin · 13 replies
    Townhall.com ^ | June 10, 2011 | Mike Shedlock
    Chris Whalen says “No Downside” to Not Raising the Debt Ceiling Geithner Cries WolfThe U.S. Congress has a little less than two months to raise the $14.3 trillion debt ceiling or possibly default on its debt. Treasury Secretary Timothy Geithner says not allowing the Treasury to raise the debt limit would be "catastrophic" for the economy. Geithner is crying wolf according to Chris Whalen, a banking industry analyst and co-founder of Institutional Risk Analytics. Whalen argues Congress should vote against raising the debt ceiling unless they agree to major spending cuts. "Congress has the right to say 'no' and the...
  • Gold & Money In America

    06/10/2011 8:37:32 AM PDT · by Ohioan · 31 replies
    Truth Based Logic Domain ^ | June, 2011 | William Flax
    The Founding Fathers established a gold standard, . . They specifically forbad the States (Constitution, Article I, Sec. 10) from making anything but gold or silver an acceptable medium for the discharge of debt. Comparing the present fiat "dollar's" performance against gold, then, is both fair & particularly American. In a separate Addendum, "Capital Gains Tax," to our February, 2009 Feature on "The Function of Money," we calculated that at an $860 an ounce price, the fiat dollar had depreciated at a compound rate of 4.18% per year against gold over the then 75 years since Roosevelt had confiscated America's...
  • The Choice With Currencies Today: Fixed Or Floating? Fooling with currencies is always destructive

    06/03/2011 7:47:50 AM PDT · by SeekAndFind · 6 replies · 1+ views
    Forbes ^ | 06/03/2011 | Nathan Lewis
    Technically, pegging a currency to gold--via some automatic mechanism like a currency board--is no different than pegging it to the euro or dollar. There's nothing inherently difficult about it. Eventually, one might conclude that gold is a better thing to peg to than the euro or dollar. Just read the newspapers and see what Ben Bernanke or the ECB are doing with their floating fiat currencies. Who wants to be a part of that? The Keynesians, at first, will typically try to insist that this is not possible at all. They insinuate that currencies are naturally free-floating, and that to...
  • They can try to ‘delay and pray’ but the euro is running out of time

    05/29/2011 10:07:55 PM PDT · by Carismar · 8 replies
    London Telegraph ^ | May 29, 2011 | Roger Bootle
    Giving up sovereign currencies is a serious challenge. Exchange rates act as a safety valve. When you remove them, the pressure either has to be reduced or it will find some other way out. In a fixed exchange rate system, such as the ERM, currency speculation could and did break the system. Advocates of the euro project drew comfort from the fact that, by contrast, a full monetary union is immune from such attacks. It was recognised that economic and financial pressure might still find an outlet as countries which diverged from the core had to face higher bond yields....
  • When Faith In U.S. Dollars And Debt Is Dead, The Game Is Over – That Day Is Closer Than We Think

    05/29/2011 8:51:21 AM PDT · by SeekAndFind · 38 replies
    The Economic Collapse ^ | 05/29/2011 | Michael Snyder
    A day is coming when the rest of the world will decide that it no longer has faith in U.S. dollars or in U.S. debt. When that day arrives, the game will be over. Traditionally, two of the biggest things that the U.S. economy has had going for it were the U.S. dollar and U.S. Treasuries. The U.S. dollar has been the default reserve currency of the world for decades. All over the globe it was seen as a strong, stable currency that was desirable for international trade. U.S. government debt has long been considered the "safest debt" in...
  • Belarus devaluation spreads panic

    05/26/2011 5:28:17 PM PDT · by dynachrome · 9 replies
    AP via Seattle Post-Intelligencer ^ | 5-25-11 | YURAS KARMANAU,
    MINSK, Belarus (AP) — A sharp devaluation of the Belarusian ruble has spread panic across the country, with people rushing on Wednesday to buy dollars, euros, toasters and canned goods — anything that will not lose its value as quickly as the national currency. Belarusians swept store shelves and queued for entire days at currency exchange offices in a desperate attempt to protect their savings from the country's sinking fortunes. President Alexander Lukashenko promised that the national currency will remain stable following the devaluation ordered a day earlier, but experts warned it will continue its nosedive if Russia doesn't provide...
  • U.S. Currency Backed by Gold and Silver? Yes, But the 'U' Stands for Utah

    05/26/2011 2:36:22 PM PDT · by SeekAndFind · 2 replies
    Daily Finance ^ | 05/26/2011 | Eamon Murphy
    Earlier this year, the Utah state legislature passed a law making gold and silver coins legal tender. Now, a Salt Lake City-area numismatist hopes to set up a system that will allow Utahans to use those precious metals to pay for anything they want. Craig Franco, CEO and president of Pacific Rarities, specializes in the evaluation, purchase and resale of rare U.S. coins and collectibles, and plans to open the Utah Gold and Silver Depository on June 1. His business model, according to the Associated Press: "Store your gold and silver coins in a vault, and Franco issues a debit-like...