10 & 30 Year US Treasuries Are A Suicidal Investment

Marc Faber Blog - 44 minutes ago

It’s a suicidal investment to own 10-year or 30-year U.S. Treasuries. U.S. government bonds are junk bonds. As long as they can print, they can pay the interest. But another way to default is to pay the interest and principal in depreciating currency.- *in MarketWatch.com* *Related: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF) * *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.*

Did Someone Just Leak QE3? USDJPY Plunges To Fresh All Time Low 75.95, Stocks Soar

Yen surges, USDJPY plunges to a new record low of 75.97 (yes, YNoda is looking, looking, looking although better word is panicking, panicking, panicking), and the ES soared promptly. So... did someone finally leak it? Does the market still not get that it has to be lower the day of Jackson Hole for QE3 to work? Frontrunning any QE3 announcement merely makes it redundant. Bernanke needs stocks around 1000 on August 26, not higher. In the meantime, buy that Sony flat screen today. At this rate of Yen appreciation, the company may not exist in a few months.





Here's some of the same old corruption you will get if you are Dumb enough to vote for Perry...
This would NEVER Happen with Ron Paul...Period...

Bank of America's Dead Drop To Rick Perry: "We Will Help You Out"

Should we be surprised, frightened, disgusted or simply say "we knew it", that in the informal mixer just after Texas Governor and Republican presidential candidate Rick Perry spoke at a Politics and Eggs breakfast in Bedford, New Hampshire, an unknown gentlemen approaches a casual Perry like an Ian Flemming character, and proceeds to dead drop the following: "Bank of America... We will help you out"... and silently moves on. At least we know now who is funding what, and whose interests potential future president Perry will be paid to defend.

Education is what you get from reading the small print. Experience is what you get from not reading it.

  I supply the small Print...

If you find useful information here, please consider making a small donation, to help cover cost of running this blog. Without your support I will be forced to shut down this blog soon.

Thank You

I'm PayPal Verified

 

Head Of Citi Global Equity Markets: The Market Wipeout Cometh

And so another bank steps up calls for a market crash (and push for the logical Fed response which would be, well, you know the story). Market commentary from Citi's head of equity trading who just said that "in absence of any earth shattering news flow we trade to the lows for a proper test of sentiment." Yes, you read that right: US banks are now openly demanding a market crash simply to force the Chairsatan's hand.

Apple Is Now 75% Of The Market Cap Of Europe's Entire Banking Index

First Apple overtook Exxon as the biggest company in America, now its market cap just hit 75% of the market cap of the entire European bank stock index (that's right: one maker of phones and fads is worth almost as much as all of Europe's banks). We expect parity within a few months. Since Apple's cash generation of about $10 billion per quarter, and growing at ~100% each quarter, means that the firm will have more than a trillion in a few short years, and not a penny in debt on the other side, we are going to go ahead and say what everyone is thinking: Steve Jobs for lifetime Federal Reserve chairman.

Is A Thunderous Flock Of Black Swans Imminent, Or The "Price Stability" Redux

For today's chart of the day we once again look to Bloomberg, which has compiled a fascinating dataset looking at the frequency of 4 sigma+ events in the S&P500 since 1951. The trend is unmistakable, as is that the cumulative total now looks glaringly like a swan itself (paging William Banzai). What is also glaringly obvious is that all those claiming central planning under a monetary authority leads to market stability need to have their head examined: what the central bankers of the world do is merely push back ever more disastrous events into the future. Sorry: physics can not be circumvented with a printer, and a crash deferred today, is double the crash that can not be deferred tomorrow. Yet for all their brain power, all those Hewlett Packard fans in the Marriner Eccles building still can not comprehend this one so simple fact.

SNB Refuses To Identify Bank Using FX Swaps, Says "Repo Already Unwound"

More on the biggest market moving story from last night. According to a blast from Bloomberg, minutes ago SNB spokesman Werner Abegg announced that a bank sought USD through the SNB FX swap with the FRBNY, via a repo operation. Abegg added that the repo has already been unwound. But, but, it was only $200 million so what's the big deal? There is no stigmata to micro amounts... Oh wait there is stigmata to any amounts. And sorry, this is just the first of many times that not only the SNB but all other central banks will very soon be scrambling to the Fed to bail out their dollar collateral short banks. Unfortunately, the 2008 redux is only just starting.

Federal Reserve Prediction Error Rate: 33% In Under 3 Months... Or 133%+ Annualized

Today, Sandra Pianalto, president of the most irrelevant Fed in the US, the Cleveland one, confirmed why when it comes to economic predictions, one may want to take anything uttered by the rocket scientists at the Fed with a pinch of salt... and why in general anytime an economist speaks it is best to run away. Specifically, in her prepared remarks to whoever it is that is dumb enough to listen, she just said that she expects the US economy to grow by 2% in 2011. Funny, because a simple google search reveals the following glaring headline from those long ago days of June 1, 2011...

Perfect Storm Sees Gold & Silver Surge – Chavez Gold Action Leads To Backwardation, Short Squeeze And ‘Havoc’ Concerns

There is a small degree of backwardation developing in the gold market with certain near term futures contracts now trading at higher prices than longer term contracts. The near term August ’11 contract was trading at $1871.40/oz while June ’12 contract is trading at $1,870/oz (1216 GMT). The spread between spot and longer term contracts has fallen suggesting that gold may soon join silver in backwardation. The possibility of backwardation in gold suggests that major investors are concerned about the supply of physical gold. Buyers are concerned about securing supply in the future and are willing to pay a premium for spot or immediate delivery. It could indicate that the short squeeze anticipated by many is taking place and we could see a sharp upward move in gold prices. This would not be surprising considering the very small size of the physical bullion markets versus the size of the overall financial and currency markets and considering the high demand coming from investors and central banks globally. It is worth remembering what happened when silver went into backwardation some months ago. It led to a price surge from $30/oz to over $50/oz in 10 weeks. Backwardation rarely happens in the gold and silver bullion markets. Since gold futures first started to be traded in 1972 (on the Winnipeg Commodity Exchange), there have only been momentary backwardations of a few hours. It suggests that larger gold bars are difficult to acquire in volume and that the physical market is becoming stressed and less liquid.

Official Swiss Bank Denials Of SNB/Fed Dollar Swap Line Usage Sends Gold To New Record Just $120 Away From $2000

When we first presented yesterday that the SNB had used $200 million in FX swaps with the New York Fed, we speculated that this "means that it is not some usual PIIGS suspect, but one of the two "big ones." Obviously by this we meant Credit Suisse or UBS. It took the banks about 12 hours to come out and deny officially that it had been either of them. Well, it simply it is someone else, and hence someone with far less in deposit-based capital buffers. And then, of course, you know what they say about official denials... Anyway, whoever it was, Europe is not waiting to find out: this morning most European bourses are down between 2 and 4%, Dax down 3.7%, CAC down 2.8% and the FTSE down 2.8% at last check, as the specter of a pan-European bank run is back. The net result: spam continues to be a drag in the gold-canned food pair trade, hitting a new old time high of $1878 in the spot market minutes ago, and just $122 away from $2000. Should the market rout persist, we may well see $2000 in the next 48 market hours.

Europe's Last Resort: The (Very Much Doomed) Maginot Line Part Deux

As those who have studied some history know all too well, any mention of the Maginot Line usually does not have a Hollywood ending. Alas, the same can be said for the highly unique analysis by JPM's Michael Cembalest who looks at Europe's latest "Maginot Line", this time however for the insolvent, 21st century, generation. "Rather than focus on what EU politicians said at yet another summit this week, let’s look at the lines of defense they may eventually have to rely on to defend the European Monetary Union. For illustration’s sake, we have superimposed these defenses on a map of the Maginot Line constructed by France in the early 1930’s to defend against an attack from the East." The 8 steps outlined present, from start to finish, the flow chart of what will happen in the next few months as Europe scrambles to avert one crisis after another, which as we pointed out months ago, ends with the "last resort" federalization of Europe, via the Eurobond paradigm. Alas, the response to that is (or isn't) revolution, in which the people finally tell their treasonous (there, we also used that word) governments they have had enough of funding other people's greed, gluttony, and overall mistakes. Just as the idiotic Maginot line, praised back in its day as a work of genius, was circumvented in one simple move when the German army simply invaded France through the Ardennes forest and took over in hours, so this latest Maginot line will do absolutely nothing to prevent the final outcome which even Europe's deranged bureaucrats know is coming: the end of the most flawed generational experiment in globalization history.





Want to Smack Down the Criminal Global Banking Cartel? Here’s How to Use Gold & Silver to Do It

Posted by: smartknowledgeu

Post date: 08/19/2011 - 06:13

If you have ever wondered how we can fight back against the financial insanity that Central Bankers are attempting to impose upon us, implement these three steps, and we’ll be off to a solid start.