The Coming Economic Collapse, Currency Induced Cost Push Inflation/Hyperinflation, Weimar Germany, Euro Collapse,
Zimbabwe Hyperinflation, Survival in Economic Collapse, World Economic Collapse, Dollar Collapse,
What Would Happen If the Economy Collapsed,The Coming Economic Depression.
Gold and Silver Will Protect Your Wealth.
Last week, Zero Hedge first brought to readers the infamous UBS report,
which has since made the global rounds, and which essentially laid out
the binomial tree for Eurozone survival as follows: either the EUR
survives, or we get Civil war. In keeping with the schizophrenia of the
TBTF banks whose number one goal is to cover their ass by predicting
the two opposite possible outcomes, so as to avoid being sued by
sovereigns once the dominos start falling, here is the firm's much
respected economist George Magnus, who in his latest release of "By
George", does a comprehensive framing of the agenda in the Eurozone.
His conclusions: don't believe the European bureaucrat PhDs - there is
much more here than meets the eye. To wit: "The dilemma over where to
draw the lines between integration and sovereignty lies at the core of
the fiscal union debate. The policy agenda has to recognise this, and
not assume that fiscal union, one way or another, is eventually a
‘gimme’, even though logic would say it should be. Parallel to the logic
are the politics and vested interests, the German Constitutional Court
notwithstanding, which say fiscal union only one theoretical outcome,
and maybe a long shot. Most likely, the political limits to fiscal
integration have not yet been reached, but if there are further moves
towards but not reaching this goal, they will most certainly be on
German, and therefore, limited, terms. We may conclude that while the Euro system is not about to break up, its viability as it stands is far from assured." Maybe not "about" - give it a few weeks though...
Smart money has been accumulating gold at the expense of dumb money since
mid August. Perhaps it’s different this time in that retail money has
finally turned the tables on connected money (interests) by sending gold
lower? Short-term declines against the secular trend and unconfirmed by
leverage (money flows) are nothing more than noise masquerading as trend
information. Nothing has...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]
It is quite refreshing to see some real and objective
analysis come out of the sell side, particularly from one bank regarding
another, but I must admit that if I had to pick a bone with Lim's...
In order for a move of that caliber to occur in the US
Dollar, we’ll need to see a full-scale crisis to hit the markets (the
last two US Dollar rallies occurred during the 2008 collapse and the
2010...
Earlier today we reported that 3 Month USD Libor hit a year high of
0.343%, jumping from 0.338% on Friday. The reason we bring this up is
that the US Treasury just priced $32 billion in 3 Year Bonds (chart 1
below) at a yield that is below that of 3 Month Libor. As for what that
means we leave the explanation to anyone who believes that a 0.000% on
the 30 Year (which courtesy of Operation TurboTorque we may soon see)
is perfectly normal. For those who prefer empirical evidence, the last
time this spread inverted was back in early 2009 before the Fed bailed
out the world for the first time (chart 2 below). Now, on the question
who bails out the world this time around, with all the central banks
"all in" already, we are not too sure. Either way, completing the
auction details, was a Bid to Cover of 3.148, slighly lower than recent
averages, a Dealer take down of 53.7%, or more than half, and Indirects
accounting for 35.7% or about their average. The non-eventfulness of
the auction was confirmed by the lack of tail, with the When Issued
trading at 0.34% at 1pm.
With the US economy in free fall, European liquidity imploding, NASA
on beneficially inclined and extremely solvent extraterrestrial life
alert (someone has to bailout the world after all), at least we have
political circuses, if not so much bread... or cake. Here is what DC
has in store for us over the next five days. Luckily, we can forget our
trials and tribulations tonight when 8 pm brings with it the second
Republican presidential address in which Ron Paul will once again be
the undisputed winner and will be largely ignored by everyone in the
mainstream, financially-funded media.
We
now know that the US is an Onion Republic, which leaves open the
question: what is Greece... because we are getting very vegetably
challenged here. According to the Bank of Greece,
household and corporate deposits declined for the 7th month in a row,
dropping by €1 billion euros in the July. Since January 2010, total
deposits have declined from €233 billion to just €187 billion, or €46
billion, or 20% of the entire deposit base. Once again, we make it very
clear that no matter what the government does with sovereign tax
collections, spending cuts and stop gap liquidity boosts, as long as the deposits outflow continues, nothing else matters.
And speaking of tax collections, according to Dow Jones, completing
the unbelievable Greek farce, is the news that tomorrow in addition to
the now standard customs officials and taxi drivers, among those
striking will be the country's tax collectors as well. So.... just how
will Greece collect those so very precious taxes it needs to pretend it
is in compliance with the Troika's demands for deficit cut compliance
in order for the country to get the next IMF tranche which will stave
off bankruptcy for one more month. As a reminder, Greek cash runs out
on October 17.
One justification for bailing out Wall Street was that it would ultimately help Main Street. ast time we
looked at the diamond price index for 1-ct diamonds. Today we
investigate the effects of QE2 on that most Main Street of
businesses--the high-end diamond retailer. At the prices quoted, a
single diamond of this size would set you back about $110,000. Hopefully
she's worth it. There are two significant periods of rising
prices--early 2010, and November 2010 to June 2011, during which time
prices rose about 30%. The official CPI (excluding food and energy) was 1-2% over the same interval.
We note that this last interval corresponds approximately with the
timing of QE2, and congratulate the Federal Reserve for aiding Main
Street business.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
No comments:
Post a Comment