The Zimbabwe School Of Economics
posted by Blogger at Marc Faber Blog - 7 hours ago
"In the US, we have a totally new school, and it’s called the Zimbabwe school. And it’s founded by one of the great leaders of this world, Mr Robert Mugabe, that has managed to totally impoverish his own c...

We Have Inflation Now
posted by Blogger at Jim Rogers Blog - 7 hours ago
"We have inflation now. Everybody who shops knows there is inflation… prices are going up" in CNBC Jim Rogers is an author, financial commentator and successful international investor. He has been freque...

Six months to go until the largest tax hikes in history"Will hit families and small businesses in three great waves on January 1, 2011..."

Legendary trader Gartman: Gold is about to go "parabolic"Could take off when the public begins buying in "panic."

Patrick Heller: Massive drain of Comex silver inventories continues




Jim Rickards: Gold is money and probably manipulated for its deadly power




Euro State Insolvency Idea Not Ruled Out: EU's Rehn
European Monetary Affairs Commissioner Olli Rehn refused to rule out in a newspaper interview that a mechanism to allow euro zone member states to undergo "orderly insolvency" could be drawn up.





Markets Create Spun Reasons For Financial Reporting Posted: Jul 01 2010 By: Jim Sinclair Post Edited: July 1, 2010 at 9:30 pm
Filed under: General Editorial
My Dear Friends,
Markets create spun reasons for financial reporting. Reasons given by financial reporting do not make markets. Financial reporting is the basis for frantic interlopers to talk their position
As the day wore on, Financial TV today decided gold was down because there was no longer any chance of serious debt problems for Greece, Spain, Italy, Portugal or Italy. Their reason was that the Spanish debt offerings went so well even in the face of potential rating agency downgrades announced yesterday.
The euro took out the $1.24 to $1.25 resistance in a short covering panic thereby busting the dollar in its mirror image.
The gold banks piled on the Comex paper exchange, therein scaring the hell out of the super leverage guys, taking gold down hard.
This gives us certain points to consider:
1. You can clearly see that in this mirror image Forex market the US dollar can trade as easily at $1.72 as the euro can go to $1.35 on a simple short squeeze. This is a pure casino and needs no other reason than a crowded short position on the euro and a crowded long position on the US dollar. After that it is as easy to return to a hammered euro and a mirror image strong dollar.
The hedge funds and the major international banks are having their way with these markets until their frantic greed destroys ever thing they touch, no exceptions.
2. I have traded tops in the gold market successfully and know well what they look like. Today was not a top in the gold market. That is fact.
3. Volatility is only going to get worse. I am sure you will see gold range $300 in a day and trade into Asia, as there is no close, near unchanged.
4. As it become impossible for business and governments to select the right currencies consistently in these huge frantic greed driven operations, gold becomes more attractive as the asset of last resort as it has always been in similar situations.
5. Gold being the final refuge asset of the financial rape of the Western world, it will eventually be the final and huge profit for the profiteers.
6. The Western world economies will be in shambles for decades to come.
7. Gold will certainly trade at $1650 and most likely much, much higher.
8. Stay focused and check your emotions at the door.
9. Review the reasons given early today why we are in gold. This will serve to keep you focused and not a plaything of the profiteers.
Respectfully, Jim







Who bought the Spanish sovereign bond offering?


1. Enron?


2. New York State retirement fund?


3. The rescue the euro funds via beards?


US States will have a $62 billion budget deficit this July fiscal year end.
Can you imagine what next July is going to look like as the Formula grinds on? Intervention was not aimed at the cause, OTC derivatives, so therefore all those trillions have only enriched the wicked at the cost of Main Street.




Spain sells bonds a day after downgrade warning By HAROLD HECKLE (AP)
MADRID, Spain — Spain successfully raised euro3.5 billion ($4.3 billion) Thursday in an oversubscribed bond sale, a reassuring sign for markets a day after ratings agency Moody’s warned it may join others in downgrading the country’s debt.
The average interest rate for the five-year bonds was 3.65 percent, up from 3.53 percent at the last such auction in May, and the sale was 1.7 times oversubscribed, the Treasury Department said. The government had hoped to sell between euro2.5 and euro3.5 billion of the bonds.
A Treasury official said the oversubscription ratio showed the Moody’s warning went "totally unnoticed."
Moody’s Investors Service sent a shudder through financial markets when it said late Wednesday it has placed Spain’s AAA sovereign rating under review for a possible downgrade because of worsening economic prospects.
The agency said it will re-evaluate Spain’s credit rating over the next three months, adding it expects that any cut would only be by "one, or at most two, notches".
Spain’s borrowing costs have risen significantly this year, deepening worries among investors already fretting over the country’s ability to climb out of an economic slump while enacting deep spending cuts to reduce its budget deficit.
More…




National debt soars to highest level since WWII




Coming to a neighborhood near you...
Oregon city turns off streetlights to save money



Corruption Suspected in Airlift of Billions in Cash From Kabul.





a fascinating history piece on AIG, and its parent company, AIC.



Europe's Banks Still on Life Support



Roubini Says Greece Needs Orderly Debt Restructuring to Avoid "Inevitable Default"



Britain "Might Not Cope with Another Bank Emergency"



You Don't Recover from a Debt Crisis with More Debt



Fannie Mae to Charge Strategic Defaulters, with Everything







“This is the darkest hour before dawn and we should never underestimate monetary authorities' ability to deal with the adversity.” - Gideon Gono (Governor of the Reserve Bank of Zimbabwe, who helped orchestrate the world's highest currency inflation rate of 89.7 sextillion percent per year.)