ABN Amro Complains About Interbank Liquidity Crunch, As CEO Says End Of Euro Would Make 1930s Seem Like "A Trifle"

As we have been writing for a while now, it is not in the arcania of shadow banking that one needs to look to find increasing signs of the collapse in interbank lending. No: something as simple as Libor, especially its USD variant, which is so crucial to USD-crunched European banks, is more than sufficient to determine that not just Greece, or the PIIGS, but now the entire Eurozone is becoming completely dependent on the dollar generosity of the ECB, and the various other regional central banks. This by implication means that the Fed will once again be forced to step in, "in size" and bail out the world, only this time it is far more debatable if the world believes that even the Fed alone is sufficient to prevent a rising global insolvency tsunami. And confirming how bad it is, we now have none other than ABN AMRO's CEO on the tape, complaining loudly about liquidity: this is and always has been a move of total desperation as the last thing a bank wants to do is give any indication of funding weakness. Furthermore, since ABN Amro is not a USD LIBOR reporting bank, we can safely say that the dollar liquidity crunch has spread far and wide from the 18 BBA member banks, where it is hardly any easier to procure the former reserve currency.

Antal Fekete outlines the gold-suppression, bond-support scheme

 

The First EURUSD Print Is In...

And it's not pretty. Furthermore, without US vacuum tubes to step in tomorrow and fix what appears set to be a major overnight rout, the next 48 hours could be very interesting indeed.

Haynes and Norcini review metals' week at King World News

Gold is for Wealth Preservation and Silver is for Bartering




US Department of Energy devises security system to thwart rampant copper thefts




US economy created no job growth in August, data show: First time since 1945 that government has reported net monthly job change of zero




The Future of the European Union May Be Decided in Less than a Week




Gold wedding bands get dumped for tungsten.





Natural Gas Rises as Power Demand Returns to East




Double-dip Fears Across the West as Confidence Crumbles




Americans Turn to Gold Over Stocks




Fed's COBRA Subsidy to End




Stocks Plunge After US Hiring Dries Up in August




Experts Downbeat on Global Economy

If you find useful information, please consider making a small donation, to help cover some of the labor and cost for this blog.

Thank You

I'm PayPal Verified