The G20 communique agreed that all countries should ensure taxpayers are not stuck with the bill when banks fail - but left it up to individual countries to decide how they want to do that. Read more: http://www.dailymail.co.uk/news/article-1290152/G20-SUMMIT-Banks-told-hoard-130bn-case-crisis.html#ixzz0sIq0Lf00
Markets Make A Definitive Statement Posted: Jun 29 2010 By: Jim Sinclair Post Edited: June 29, 2010 at 8:02 pm
Filed under: General Editorial
Equity markets are sharply lower, the Euro is sharply lower, commodities are under significant pressure. Gold opens lower and recovers $16 from the low to be up on the day.
1. The type on inflation being discounted by Gold requires business activity to be putrid.
2. This type of inflation is hyperinflation, which is a currency event, not an economic demand phenomenon.
3. Rather than a singular currency loss of confidence igniting hyperinflation, it will be all Western currencies moving against each other with intolerable to business volatility.
4. All Western governments will practice QE to infinity, as we return to credit market problems. The statement of the G20 and Prince Charles cutting down on caterers is all smoke and MOPE.
5. Gold is NOT a commodity.
6. Gold is a currency
7. Gold is the currency of choice.
8. Gold is going to becoming the reserve asset of choice by central banks
9. Ownership of gold means you are your own central bank.
The arguments between inflation and deflation revealed itself today to be purely semantical.
Gold is headed in this move to $1650 with its normal drama.
Jim Sinclair’s Commentary
If you feel comfortable being in the US dollar you would feel comfortable in Chernobyl.
The virtual reserve currency to come cannot survive as a huge index of world fiat paper unless it is tied to gold in the manner I have reviewed with you many times.
The virtual world currency reserve will be tied to gold, not as a convertible, but in a ratio of value to the level international liquidity after the storm.
UN calls for scraping dollar Wed, 30 Jun 2010 00:40:31 GMT
A UN report released on Tuesday calls for abandoning the US dollar as the main global reserve currency to achieve greater stability in the world financial system.
"The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency," said the World Economic and Social Survey 2010.
The use of the dollar for international trade came under increasing scrutiny when the US economy fell into recession.
The report said a new global reserve system should be created, which "must not be based on a single currency or even multiple national currencies." Instead, the report advocates using assistance from the International Monetary Fund to create a standardized international system for liquidity transfer.
The report added that developing countries have been hit hard by the US dollar’s loss of value in recent years.
"Motivated in part by needs for self-insurance against volatility in commodity markets and capital flows, many developing countries accumulated vast amounts of such (US dollar) reserves during the 2000s," it said.
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