Sunday, November 6, 2011

Advance Look At This Week's Key Events: All About Europe, All Over Again

They say a week is a long time in politics. Last week, quite frankly, a day seemed a long time with the rapidly unfolding events surrounding the European sovereign situation and the G20 summit generating a lot of market volatility. Greek PM Papandreou survived the vote of confidence on Friday with a majority of three and is now trying to form a government of National Unity. With opposition leader Samaras still calling for elections, this political impasse may well continue for the time being. Greece is widely considered to ‘run out of money’ in mid-December; while this may continue to unnerve the market over the possibility of a hard default, a month is probably an eon in politics and a lot could change very quickly. The same could be said for developments in Italy. PM Berlusconi remains under pressure and media reports suggest he has lost his parliamentary majority after a party rebellion on Friday. European and international policy makers continue to pressure Italy to undertake the necessary reforms to reduce the country’s debt level. The IMF will step in to monitor Italy’s efforts to implement austerity and growth-boosting measures, but the fund’s offer of a loan was rejected by the prime minister. Relatedly, over the weekend, ECB’s Mersch was quoted as saying that the ECB had debated whether to continue buying Italian debt if a step-up in the reform effort was not forthcoming.

The Greek "Chicken or Egg Problem" Emerges: No Resignation Without Coalition Government; And Vice Versa

With Greece once again likely to dominate newsflow, the question of whether G-Pap will step aside, as he promised, will be one everyone will demand to see answered. Especially Europe. As Reuters reports, "the European Union turned up the heat on bickering Greek politicians on Sunday to agree a crisis coalition, demanding progress towards backing an international bailout deal in the next 24 hours. In a sign that Greece's political deadlock may be easing under EU pressure, a senior socialist said Prime Minister George Papandreou had made clear he would resign once a coalition deal was done, possibly as soon as Sunday night." Yet the career politician has pulled the last gambit and has thrown the "coalition" government choice straight in the arms of his nemesis, New Democracy's Antonis Samaras, and the president: "Greek Prime Minister George Papandreou has asked the president to host talks between himself and opposition leader Antonis Samaras after a Sunday cabinet meeting, a source at the prime minister's office quoted the premier as telling his cabinet." In other words, if nothing is resolved, G-Pap can tell a furious Europe, "we tried" and blame the opposition, in yet another attempt to simply win political brownie point. Yet time is running short for a final solution: "With euro zone finance ministers due to meet on Monday, senior socialist lawmaker Telemachos Hitiris said: "Everything must be done within the day, otherwise tomorrow it will be hell." How many times have we heard that before. And it very well may be hell, however it will no longer come from Greece but from Italy, whose 10 Year bonds closed at the lowest price ever and where a margin raise by LCH now appears imminent, making another step function move lower almost inevitable. Either way, Greece will be fun to watch as all the hopium has been spent and no more cans can be kicked.

Laissez-faire: The Best Fed Policy Is To Stand Pat
11/05/2011 - 23:06
Laissez-faire or 'leave it along' is probably a hard concept for the U.S. Keynesian policy makers to swallow, but it is what needs to happen for the greater good of the consumer economy vs. the Wall... 
11/06/2011 - 06:55
What’s at risk, of course, is the whole concept of post-World War II universal  European representative government after the fall of Communism. 

Ron Paul Wins Illinois Republican Straw Poll

The End Crisis: Sovereigns Going Bankrupt

Admin at Marc Faber Blog - 6 hours ago
The end crisis will be postponed until the sovereigns go bankrupt. - *in CNBC, Oct 27* *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.* 

Lessons Of History

Admin at Jim Rogers Blog - 7 hours ago

Not one country in existence today has had the same borders and government for as long as two hundred years. The world will continue changing. - *in A Gift to My Children: A Father's Lessons for Life and Investing* *Jim Rogers is an author, financial commentator and successful international investor. He has been frequently featured in Time, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and is a regular guest on Bloomberg and CNBC.*

REAL Capitalists Move Our Money from Big Banks to Credit Unions
George Washington
11/05/2011 - 17:17
Believe in free market capitalism? Then move your money...

Citigroup Finds Obeying the Law Is Too Hard: Jonathan Weil

The link is here.

Goldman Sachs and Occupy Wall Street's bank: the real story

The link is here.





The World from Berlin: 'The Common Currency Endgame Has Begun'

the link is here.





Greece Offers to Repay Bailout with Giant Horse

the link is here.





Chart of the Day: gold vaults filling up fast

and the link is here. The graph alone is worth the trip.





Inflation and German sensibilities: Alasdair Macleod

The link is here.





Weimar inflation expert Adam Fergusson is interviewed by GoldMoney's James Turk

the link is here.





The Death of Money

the link is here.



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