Meltdown - The Conclusion: "After The Fall"

Previously, we brought you parts one, two and three of the Canadian must see documentary "Meltdown." In this final episode "After the Fall", we hear about the sheikh who says the crash never happened; a Wall Street king charged with fraud; a congresswoman who wants to jail the bankers; and the world leaders who want a re-think of capitalism. As one world leader handles the crisis through denial, other leaders try to re-think capitalism. Even though the causes of the 2008 meltdown are now clear, there is no magic formula to stop it from happening again. The world has to start planning for the next crisis, even as we recognise that this one is not over yet.

 

 

Currency Peg Causes 50% Surge In Swiss National Bank Balance Sheet, Major FX Losses

The September Swiss National Bank balance sheet update is out and while it reportedly indicates balances at the end of August, it appears that the SNB intervention in the FX market (i.e. the currency peg) started early, which would make sense as the first peg rumor hit on August 11. As a result, as the chart below shows, the latest central bank balance sheet to be completely devastated as a result of currency wars is that of Switzerland, where both Foreign Currency Investments and the total balance sheet increased by just under 50%, the biggest such monthly increase. In fact, in September, "aggregate short and long positions in forwards and futures in foreign currencies vis-a?-vis the domestic currency (including the forward leg of currency swaps)" increased by $92 billion CHF or just about $100 billion - a whopping 20% of Swiss GDP! And this is the capital at risk for Switzerland to avoid having its currency trading a parity with the euro since the bulk of this increase is due almost certainly purely to EUR purchases. And here is the bad news: since the bulk of the purchases were made in the 1.40+ area, we can't wait to find out just how NZZ and other Swiss financial publications will react tomorrow when they learn that the SNB has experienced an immediate 5% drop in its "assets" courtesy of the subsequent plunge in the EUR. And with the SNB's total balance sheet at a record (?) CHF 365 billion, something tells us that the days of this latest attempt at repegging the Swiss Franc to some arbitrary number are coming to an end, and with that Hildebrand's futile attempts at preventing parity.

 

 

Financial Times lets someone say something good about gold

How the heck did THIS get in the paper?

http://www.ft.com/intl/cms/s/0/843aa42e-e9f2-11e0-b997-00144feab49a.html





The desperation of the global monetary powers that be are reaching such heights that they are willing to perform any fiscal or monetary form of atrocity to (they hope) hold things together. Meanwhile, on the paper investment markets, the participants are literally at their wits end. And whenever that happens, their "faith" in the "system" is all they have left to sustain them, so they retreat to the US Dollar and US government debt paper. After all, if THAT folds up, so will the system. - Bill Buckler, Gold This Week, 01 October 2011

Alasdair Macleod: EU elite lost at sea

 

 

Dear Daily Readers (500-750).

I run this blog to help keep you informed and ahead of the herd. 

I make Nothing for this service. (Not to mention the 4 hours a day labor 7 days a week).

In 2009 I had a loss of $60.00 running this blog. 2 months internet access. (I wouldn't need this as my phone has internet)

In 2010 $360.00 internet access + $150.00 computer repair/hard drive.(I only use the laptop for the blog).

In 2011 $360.00 internet access + $400.00 Cheap laptop + $100.00 replacement modem/router (old ones died).

Total -$1430.00

Donations from Tim, Hui, James, David and Shaun +$130.00 (Thank You your donations are greatly appreciated).

That leaves a loss of  - $1300.00

Any help would be Greatly Appreciated.

Please consider making a small donation, to help cover some of the hard costs for running this blog.

Thank You

I'm PayPal Verified

 

 

Robert Lenzner: Even after smashdown, gold surpasses everything else

 

 

There was another big sales report from the U.S. Mint to cap off the month. They reported selling another 4,500 ounces of gold eagles...500 one-ounce 24K gold buffaloes...and 460,000 silver eagles. Baring any further update on Monday, total sales for September are as follows: 91,000 ounces of gold eagles...13,000 one-ounce 24K gold buffaloes...and a whopping 4,460,500 silver eagles, which is the second largest sales month for silver eagles in all of 2011...to date.

Year-to-date, the U.S. Mint has used 843,500 ounces of gold in their gold eagle program...132,500 ounces of gold in their 24K gold buffalo program...and an eye-opening 33,411,500 silver eagles.

 

 

 

This economic collapse is a 'crisis of bigness'

Leopold Kohr warned 50 years ago that the gigantist global system would grow until it imploded. We should have listened. The link is here.

Gold Price Slump Stokes Jewelry, Investment Demand in India

  The link is here.

Gold is STILL a buy  

The link is here.

 

 

 

The Anglo-American Precious Metals Derivatives Duopoly: Quarterly OCC Report

the link is here.

 

 

 

Don't worry, gold's correction is 'about over' Lassonde tells King World News

the link is here.