Kyle Bass Best Summarizes The "Profligate Idiots" In Europe: "They Have A German Pope And An Italian Central Banker"
Anyone
needing a quick summary of the main tension lines in Europe as they
currently stand can probably not do any better than the attached 3
minute explanation by Kyle Bass. And while he just participated in a far
longer Q&A with BBC's Hardtalk program, which we will bring to you
shortly, the attached video explains more in 150 seconds than a full
day of watching the financial funny channel from basic cable. In a
nutshell: Europe is about to see trillions in debt written down (the only mathematical explanation which makes sense, as presented for the nth time earlier by Charles Hugh Smith),
the "profligate idiot" spenders of Southern Europe are not going to be
bailed out by Germany, which has decided it has had enough of the
"Mexican standoff" within the Eurozone, and will not be held by the
short hairs any longer. And as for the quote that captures the total and
utter chaos in Europe: "they have a German pope and an Italian central banker." Nuf said.The EUR-USD Rollercoaster Goes Down As The Goldman Stop Losses Are Triggered
Earlier we warned everyone that the Goldman stop loss triggers were if not hot then would be any minute. That just happened and the EURUSD tumbled a good 40 pips in seconds as soon as the several supporting bids just below 1.35 were finally eradicated, bringing the Euro to a 5 week low. And as a reminder, tomorrow we have some very interesting Spanish and French bond auctions (for full list see here). As another reminder, both closed at record spreads. Better set that alarm for 2:45 am: things are getting dramaminy once again.
Gold bull has far to go, Agnico-Eagle's Sean Boyd tells King World News
Hmmm...Does Herman Cain = Sara Palin (Katie Couric interview)
"Let me try to determine so as to ascertain just what exactly you be axing
me so I can assess my opinion based upon the nature of what it is we're
talking about so that I can tell you what it is that I'm trying to say"
Farm Land - the Latest Bubble
In private conservations with various friends I have been discussing the
very real possibility of a bubble-like price increase in farm land across
this nation. There are several reasons but suffice it to say that soaring
grain prices have led not only farmers, but investors to hit the trail
looking high and low for tracts of good farmland that they can scoop up.
Farmers acquiring top quality farm land to increase their production is a
normal response to higher food prices as supply will need to increase in
order to keep up with the growing global demand for food. I do however have
s... more »
Italian Bond Yields Surpass 7% again/Spanish bonds rise to 6.34%/Belgium bonds close to 5%
Good evening Ladies and Gentlemen: I was suspecting a bloodbath today in North American markets due to the Italian 10 yr bond rising above 7% today. This was coupled with Spanish 10 yr bonds surpassing 6% and Belgium bonds approaching the 6%. Even Austrian bonds rose due to problems with their banks as these guys have been the providers of credit to Eastern Europe. However the stock markets in
Presenting Europe's Remaining 2011 Bond And Bill Auctions... All 104 Of Them
The primary reason for today's (and last week's) dramatic overnight market weakness was the fact that several auctions, either Italian, or Spanish, went off about as badly as they possibly could. But luckily that's over, right: all the auctions in the near term are over and there is nothing to worry about for at least a few more days so traders don't have to get up at 3 am Eastern to see just how abysmally bad the latest Italian Bill issuance was? Uhm, no. Below we present the balance of Europe's bond auctions for November, for December... oh, and Bills as well, because apparently issuing 3 Month paper in Europe is about as difficult as selling 30 Years.Congress Shocked To Find That Being CEO Of A Bankrupt Company Is The New Killing It
Two weeks ago we reported with sheer disgust that the outgoing CEO of bankrupt Freddie Mac, Ed Haldeman, was to pocket over $4 million for his brief two year stay at the nationalized GSE, which money was to reward him for lots of hard work collecting bail out cash from the Treasury. $21 billion to be precise. Apparently it is not easy to beg from Tim Geithner which explains the compensation for a task which is essentially supervising a financial black hole with an attached run off portfolio. Nonetheless the optics of this farce are rather unpleasant which is why we said that this is the (one of many) reason "why people in America are very, very pissed." Today Congress, which has yet to ban itself from trading on inside information, has decided to at least rectify this one sticking point, and moved forward with a "bill to block multimillion-dollar executive pay packages at Fannie Mae and Freddie Mac even as their regulator defended them as necessary to retain top talent and limit taxpayer losses at the bailed-out companies." And where are they going to go: MF Global? Morgan Stanley? RBS? Jefferies? As for what new pay wil be: "The committee adopted an amendment that would use the pay scale that applies to independent financial regulators, such as the Federal Deposit Insurance Corp, which allows for higher pay than at most federal agencies. Representative Al Green, who offered the amendment, said this would have the effect of limiting the highest salaries to about $260,000 per year." While still about 3 times more than what they deserve, this is a good start. And an even better one would be to if not unwind the GSEs, then to at least recognize that their $7 trillion in debt should be counted toward the US Federal debt, as Peter Orzsag suggested once. Naturally were that to happen US total debt/GDP would be over 150%, and the bond vigilantes would suddenly be confused whether their time is not better spent on this side of the Atlantic. Yet the biggest twist in this story, is that not only are the GSEs bankrupt, but as the NYT reported earlier, the FHA itself has a "close to 50% chance of requiring a bailout." Add to that that the corporate retirement guys (PBGC) and the post office (USPS) are now effectively broke as well, and very soon being the CEO of a bankrupt company will be the new killing it.You Decide...
$$$ THE NEW US DOLLAR IS UNDERWAY reports Bob Chapman
[HatTrickLetter snippet from the Golden Jackass]
◄$$$
THE NEW USDOLLAR IS BEING PLANNED. INFORMATION HAS BEEN SHARED WITH
LARGE AND MIDSIZED US-BANKS. ITS LAUNCH IS EXPECTED TO OCCUR IN 12 TO 18
MONTHS. EXPECT A LARGE DEVALUATION AND VANISH OF MUCH WEALTH. THE OLD
(CURRENT) USDOLLAR WILL NO LONGER SERVE AS GLOBAL RESERVE CURRENCY, NOR
THE STANDARD FOR GLOBAL TRADE SETTLEMENT. BOB CHAPMAN REPORTS A NEW
USDOLLAR IS UNDERWAY.
$$$Bob Chapman has reported some potentially important news. Whether its timetable is soon
or distant, nobody knows since the path traveled is an event driven
scenario. He broke the story three weeks ago. He claims to have received
the information directly from people at the top of the banking
profession, but from the leading mid-sized banks. He does not have a
line of information from the top major banks. These mid-sized executive
bankers attend meetings directed by the USFed and they pass details to
Chapman. He reports, "The big US banks are being told to clear safe
secure storage, because they are getting ready to print a new currency.
It is not the Amero. It is a new Dollar, probably different from what
you have already. It is underway. It may not be in the printing stage
yet, but the plans are there. The USFed is expecting, as is the
USDept Treasury, that the USDollar is not going to be the reserve
currency of the world in about a year and a half, maybe less." The
report is not specific, but the blueprint is clear that a response is
planned for the death or rejection of the USDollar. See the Chapman
weblog (CLICK HERE).The
Jackass reaction follows. Plans are being shared with mid-sized US
banks, since they are subservient. They talk to mere mortals like
Chapman since they too are mortals, ranking minions in the banking
industry. A new USDollar is due to launch in 12 to 18 months, the
American response to crisis. A very big devaluation comes in my opinion,
complete with nasty price inflation in the domestic USEconomy. Built in
will be considerable debt writedowns, perhaps directly applied,
probably forceably to the foreign creditors with enormous resentment.
Tremendous complications are involved, since the USDollar is used in
global contracts and commerce, like trade settlement. The end of the
USDollar is near. The beginning of the Third World Dollar is fast
approaching. Its birth will be the final cold water in the face of
Americans, all too sleepy for years, as they will awaken in horror. They
will see their pensions, life savings, and more perhaps cut in half.
Ramifications and impact will be broad, as a ticket to Third World will
be issued and used without a choice. The initial devaluation might be 30% to 35%, but more loss is assured after time passes.
My
forecast is for a follow-up devaluation of another 15% to 20% after a
period of time, like six to nine months. The deficits are too great, for
both trade and the government budget. The hemorrhage will deal
crippling blows to the new USDollar, which will not be supported by the
printing press any longer. If in effect, the new USD will not be readily
accepted for trade, since it will be toxic, a true reflection of the
horrendous fundamentals for the USEconomy and USGovt. If in effect,
financing the USGovt debt will not be easy, since the printing press
will be mothballed. The domestic US interest rates will rise past 10%
quickly, matching the true rate of price inflation. The price of food
will double quickly, gasoline too, and all utilities. The reckoning will
result in total 50% USD devaluation down the road 2 or 3 years. The
overall impact from birth of a new USDollar is its ticket to the Third
World, a tourniquet on the US national neck. Some caution must be given
concerning Bob Chapman. He is bold and intrepid, but half of his
shocking calls have been nothing more than hot wind that passed to the
desert hills. For three years, he has been warning of bank shutdowns and
bank holidays. The Jackass has expected them eventually, but Chapman
gave at least three such wrong calls. He has been alarmist at times, but
his calls are surely contingency plans in the shadowy conference rooms
where the elite meet and the security agencies map out logistics. At
times Chapman seems to lack some comprehension of practical
implications. But he does have some deep sources. The best approach for
this information is to plan on it in the future, but that door might not
open for some time. The timetable will be dictated by events, which are
unquestionably turning more toward chaos and disorder.
We
now have more news on the MFGlobal scandal where it seems that Gerald
Celente has lost money on
commodity trading. MFGlobal was his broker:
Pays to know who your broker actually trades with
http://www.examiner.com/
http://www.examiner.com/
Bix Weir comments:
As
JPM and friends continue to loot the 150,000 accounts held by MF Global
there are war stories leaking out all over. Case in point, a guy who
really should have known better, Gerald Celente, is the latest casualty
to come forward with stories of his gold being absconded by the Bad Guys
(...he should have stayed on the Road to Roota!)
There
is also word that inventories at the London Metal Exchange are being
liquidated as MFG had a very large presence in the UK trading pits. What
is going on behind the scenes is a "911" type of orchestrated terrorist
event that will have repercussions throughout the financial markets for
decades to come.
Note: Surely
the Bad Guys will try to attack silver again before option expiration
on Nov 22nd as there are very few silver traders with access to their
trading accounts.
end
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