China Can't Save Anything... Neither Can the Fed
In
what seems like the first honest words from a central banker in months
(albeit an ex-central banker), Mario Blejer (who presided over the
post-default Argentina in 2001) has some first-rate advice for G-Pap
and his fellow Greeks. From an interview in Buenos Aires, Bloomberg notes the following notable quotes:“Greece should default, and default big, you can’t jump over a chasm in two steps.”
While Goldman continues to resolutely predict that the EURUSD will any minute now go back to 1.50 (and 1.55 in 12 months or so), Morgan Stanley has for once decided not to ape its far more capable and client "fornicating" competitor Goldman and has thrown up all over the EUR, slashing its EURUSD forecast "significantly lower" to 1.30 by year-end and 1.25 in Q1 2012, before stabilizing in the second half of next year because the now second rate bank believes that "economic, political, constitutional and monetary policy developments in Europe have now become more challenging for the EUR, while international support is likely to decline." Its conclusion: "As a result, the EUR's attraction as an alternative reserve currency is likely to be reduced." So, let's do the math: EUR: not a reserve currency? Check. CHF: not a reserve currency? Check (and pegged to the former). USD: about to be gang banged by the windowless corner office at the Marriner Eccles building housing America's central planners? Check. So.... what is left if one is looking for a reserve currency?
09/13/2011 - 09:11
Eurozone Defaults & Euro FX Outlook
Admin at Jim Rogers Blog - 9 minutes ago
A Greece bankruptcy would actually be a good thing because it's time for
people to acknowledge reality. If you’re bankrupt, go bankrupt, reorganize.
Countries have been going bankrupt for centuries, there’s nothing new about
it.
If Greece defaults, some other countries will default too—Italy, Spain,
Ireland and a few others. If this happens the euro will go down a far
amount. But I would buy all the euro I could at that point because then that
would mean that Europe is going to have a very strong, sound currency.
People can not lie about their finances anyone, people have to run a t... more »
Some Kind Of A Silent QE3 Is Already Underway
Admin at Marc Faber Blog - 22 minutes ago
This time, I think they may not make an official announcement. But some kind
of a silent QE3 is already underway, considering that M1 growth (cash and
near-cash deposits) has accelerated to the fastest expansion in 35 years. I
have no idea what the Keynesian interventionists, led by Bernanke, Krugman &
Co will come up with next, except that they will further pursue their
erroneous economic policies. The only question is how far they will move and
what the impact might be on asset markets. - *in Business Standard*
*Marc Faber is an international investor known for his uncanny predicti... more »
Because The First Amendment Does Not Reach Across The Atlantic...
The idiocy just hit record highs:- BNP PARIBAS SAYS IT ASKED AMF TO INVESTIGATE WSJ OPINION PIECE - BLOOMBERG
'Totally Ridiculous' Greece Should Default Big Or Go Home
In
what seems like the first honest words from a central banker in months
(albeit an ex-central banker), Mario Blejer (who presided over the
post-default Argentina in 2001) has some first-rate advice for G-Pap
and his fellow Greeks. From an interview in Buenos Aires, Bloomberg notes the following notable quotes:“Greece should default, and default big, you can’t jump over a chasm in two steps.”Tim Geithner Tells Germany It Has To Sacrifice More Taxpayer Money To Protect The Status Quo
Tim Geithner, in his third third annual pilgrimage to Europe, the first two of which concluded with one after another more discredited stress tests (because in Mark-To-Unicorn America they worked sooooo well), has a slightly different message to the locals on how to run their failed monetary union. From Reuters: "Treasury Secretary Timothy Geithner is likely to urge euro zone finance ministers on Friday to speed up ratification of changes to their bailout fund and consider boosting its size, an EU source said on Tuesday. The official said Washington was worried that the euro zone was not acting fast enough to enhance the EFSF fund and that the stability of the global financial system was at stake. He is likely to tell the ministers that they should consider increasing the size of the EFSF to equip it better for the needs of potential bank recapitalization. "He will probably tell Germany to give up its resistance to an increase in the size of the EFSF," the source said. A well connected fund source told Reuters Geithner had been pushing for a solution for European banks along the lines of the TARP program in the United States, but had not made much headway." Translation: Germany has to immediately throw billions more of taxpayer money into the insolvent bank pit (just like America did), or else Tiny Tim will get angry. Well, if Germany's ruling class was against pledging over 100% of its GDP to bailout Greece and the other insolvents, it will surely be persuaded to commit political suicide after the last man standing from Obama's administration, who still inexplicably has not been fired for gross incompetence (and also prosecuted for tax evasion), has his say. And just as the short selling ban lasted all of one week before Europe's banks tumbled, even a favorable uptake of the idiot's proposals will at best lead to a 24 hour spike in prices followed by what will likely be the terminal tumble into the abyss of failed Keynesian-Bernankian experimentation.Broken Market Chronicles: An Update
This market seems completely broken. The S&P could be at 1,300 or 1,000 in a week, and neither move would be a complete surprise. One way or the other, moving 1% on a headline that really didn't seem to add any new information is scary. The S&P now seems to move in 5 pt increments. Certainly when credit markets get that illiquid they have at least one good move wider before providing some big relief rallies. The market for SOVX started exhibiting severe lack of liquidity back in June. Since liquidity broke down, it has generally traded wider, with some big sharp rallies. Almost all the other credit indices followed the same pattern as their liquidity broke down. I don't see any reason for equities not to follow. Some might argue that we are at levels where we are due for the relief rally. I'm betting that we aren't. The manic nature of the stock market seems to have increased lately and we are too far off the lows to be comfortable that relief rally is ready.Morgan Stanley Slashes EURUSD Target To 1.30, Says EUR Attraction As An Alternative Reserve Currency Ending
While Goldman continues to resolutely predict that the EURUSD will any minute now go back to 1.50 (and 1.55 in 12 months or so), Morgan Stanley has for once decided not to ape its far more capable and client "fornicating" competitor Goldman and has thrown up all over the EUR, slashing its EURUSD forecast "significantly lower" to 1.30 by year-end and 1.25 in Q1 2012, before stabilizing in the second half of next year because the now second rate bank believes that "economic, political, constitutional and monetary policy developments in Europe have now become more challenging for the EUR, while international support is likely to decline." Its conclusion: "As a result, the EUR's attraction as an alternative reserve currency is likely to be reduced." So, let's do the math: EUR: not a reserve currency? Check. CHF: not a reserve currency? Check (and pegged to the former). USD: about to be gang banged by the windowless corner office at the Marriner Eccles building housing America's central planners? Check. So.... what is left if one is looking for a reserve currency?
![[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)
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