Today's currency intervention: Switzerland tries to kick traders out of its franc

 

Egan Jones Just Downgraded Italy's Most Troubled Banks To BB+

Q. What is the last thing that panic driven market plunges need? A: The Truth, this time brough to you by the only credible rating agency: Egan-Jones.

• Banca Monte dei Paschi: EJR lowered BBB to BB+ (S&P: A-) (BMPS IM)
• Intesa Sanpaolo SpA: EJR lowered BBB- to BB+ (S&P: A+) (ISP IM)

Watch Berlusconi Address Parliament Live

Those wishing to watch the guaranteed comedy that is Berlusconi address the lower house of Italy's parliament can do so here. As a reminder, the time of the original address was strategically rescheduled to after the Italian market close. Too bad the US market will be open for the duration of the entire address unless of course it is rescheduled to after 10 pm local time (oops, it may impact Asian trading then...)






The Next Crisis is at Our Doorstep

Posted by: Phoenix Capital...

Post date: 08/03/2011 - 11:44

For 80+ years, the US financial system has operated under the belief that the Federal Reserve could handle any problem. This belief was put to the ultimate test in 2008 when the Fed faced off against...

I Fully Expect More Social Unrest In The World

Admin at Jim Rogers Blog - 2 hours ago

I fully expect more social unrest in the world, I fully expect more turmoil, but I didn't expect it to happen this quickly because food prices are somewhat depressed. It will slow growth but some people are going to benefit - Brazil's booming, Canada's booming, Australia's booming, you're going to see some people benefit and some people suffer, that's the way the world works. - *in a interview to an Australian newspaper* *Related ETFs: iShares MSCI Brazil Index (ETF) (NYSE:EWZ), iShares MSCI Australia Index Fund (ETF) (NYSE:EWA), iShares MSCI Canada Index (ETF) (NYSE:EWC)* *Jim Rog...

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Will China let HSBC paperize its gold market?

SNB to Flood Money Markets, Gold Remains Only Currency with Stable Supplies

Author: goldnews | Filed under: Central Bank News, Forex News, Precious Metals News The Swiss National Bank recently announced that they will lower their target rate’s range to 0%-0.25% and flood money markets with Swiss francs, more than doubling bank’s sight deposits, in order to drive down the value of their currency. The SNB does not mince words saying that they… Read the rest of this entry »

Korea and Thailand Add to Gold Reserves, Central Banks Prepping

Author: goldnews | Filed under: Central Bank News, Precious Metals News Data out from the Bank of Korea and the Bank of Thailand shows more evidence that central bank’s across Asia are preparing against dollar tail risks. Read the rest of this entry »

It's Baaaaaack: Interactive Brokers Just Hiked Silver Margins

Here we go again...

Deficit Will Grow While Economy Shrinks

August 3, 2011, at 9:30 am
by Jim Sinclair 

Greg Hunter’s USAWatchdog.com
 
Dear CIGAs,
I appreciate what the Tea Party and folks like Congressman Paul Ryan are trying to do.  Mr. Ryan, who is the House Budget Committee Chairman, said when the debt deal passed, “This is a down payment on the problem and it’s a good step in the right direction.”  Ryan went on to make what is probably the most important point, “And it is a huge cultural change to this institution.”  Amen to that Mr. Congressman, but this debt reduction bill is like trying to bail water out of a battleship with a thimble.
This “step” should have been taken a long time ago.  The new legislation will add $2.4 trillion to the $14.3 trillion national debt in a little over a year.  And we don’t even start saving money until after the debt reaches $16.7 trillion!  This bill doesn’t even cut the deficit.  It just slows the growth of government spending to around 8% a year!  So, even if Congress cuts $2.1 trillion out of the budget over the next 10 years, we will still be running annual deficits of more than $1 trillion.  That rosy scenario is only possible if the economy does not get any worse.  Recent economic data is signaling American business activity is about to take another cliff dive.  Housing is bottom bouncing with a shadow inventory that is now 3.35 million homes and growing.  The true unemployment rate is now 22.7% (if computed the way BLS did it in 1994).   The recent year over year 1.6% growth reported by the Bureau of Labor Statistics in the Gross Domestic Product (GDP) is a statistical crock, according to economist John Williams of Shadowstats.com.  In his most recent report, Williams said, “The SGS Alternate-GDP estimate for second-quarter 2011 is an approximate annual contraction of 2.8% versus the official estimate of a 1.6% gain.  Such is more negative than the alternate 2.6% annual contraction (2.2% official gain) in the first-quarter.”  Double-dip here we come.  
So, in reality, the economy is contracting at an increasing rate compared to last year–not expanding.  Things have turned so negative recently; there is increasing chatter on mainstream media about a third round of quantitative easing, or money printing (QE3.)  You might remember a post I wrote this past January where I said, “In summary, all the experts I polled think QE Will Not End.  That will surely mean an imploding U.S. dollar and exploding inflation.  This is scheduled to happen by the end of June, making this the most predictable financial calamity in history.”  (Click here for the complete post from January 2011.) What is happening today?  The dollar is tanking, gold is on a tear, and the economy is headed for another fall.
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Guest Post: Remind Us Again Why Anyone Should Own Stocks For the Next Two Years

The case for "buying and holding" stocks boils down to four words: don't fight the Fed. Forget moral hazard and all the fancy stuff; the reason to load the truck with stocks is that the Fed is invincible, and its mighty machinery of manipulation can drive stocks higher no matter what else is happening. Put another way: when the Fed succeeds in driving the dollar to near-zero, the value of stocks will be near-infinite. The case to dump stocks now and not even look at the market for two years is based not on worship of the Federal Reserve's infinite wisdom and power but on the charts. The abject, pathetic, remarkably complete failure of QE2 has driven a stake through the heart of the Fed's political power and its reputation for wisdom; it has been revealed as a clueless cabal, basing policy on textbook models of what "should happen when we do this." Alas, real life doesn't follow moldy old PhD theses, and it doesn't worship the Fed or listen to the cargo-cult incantations of the Keynesians.

Emerging world buys $10 billion in gold as West wobbles

 

 

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