Sunday, January 15, 2012

Jim Willie: UniCredit Failure is on Tap, Will Result in a Dozen Western Bank Failures OVERNIGHT

With the S&P massively downgrading the Eurozone nations Friday, The Doc interviewed Jim Willie of today regarding his thoughts on the Euro crisis and the implications to gold and silver.
When asked to clarify the timing for his call for an Italian bank to fail and initiate a domino like reaction in the banking system Jim responded:
Timing questions are the hardest- definitely the hardest. I don’t know, it could be a month. Back in early December I thought it was going to be early in the new year, like in the middle of January- late January that the first Italian bank would go. And it looks like it’s going to be UniCredit. UniCredit is just hanging on by threads. We don’t have full access to what their portfolio is but all indications are that they’re holding a lot of toxic paper and they’re shedding a lot of probably government bonds, and they’re selling a lot at the ECB window.
He continues further: Read More @

It would appear that the German public (and political class to some extent) are beginning to see the European project in the same manner as we described back in July. As the increasing burden of saving the eurozone from its own excess falls on the shoulders of every Tobias, Dirk, and Heike taxpayer in Germany, even industry leaders, such as Wolfgang Rietzle, the CEO of Linde, this weekend according to Reuters, are suggesting a line in the sand has to be drawn and that "if we do not succeed in disciplining countries then Germany needs to exit." This has been very much a view we have held for months, that instead of the periphery limping away one-by-one, the very core of the foundation will simply decide enough is enough or as Reitzle notes (among many other critically insightful comments) "the willingness of countries to reform themselves is abating if, in the end, the European Central Bank steps in." This morning Germany's FinMin Schaeuble added to the potential separation rhetoric with his comments, via Bloomberg:
Hardly reassuring given the dreams of every GGB owner and BTP-exposed insurance company are banking on the ECB cranking the presses to 'secure' nominal returns in the real world. Friday's mass downgrade (and S&P's more interesting Q&A) have perhaps left Germany on the hook for up to 56% of its GDP via the EFSF support mechanisms and as we noted six months ago, the moment for Atlas to shrug draws closer with every downgrade and SMP action.

UK Seeks Saudi Arabia Support to Attack Iran?



Everyone Endorses Ron Paul for President! [Even Clint Eastwood & Vince Vaughn]



Financial Tyranny: Defeating the Greatest Cover-Up of All Time

[Ed. Note: Many have dismissed the following as mis-info or dis-info, and frankly we've had our doubts. But given the recent mysterious deaths-by-fire of investigator David Hutlzer and his eight year old son Mackie on January 6th, our suspicions have been piqued.]
by David Wilcock,
A 122-nation alliance is backing a lawsuit that could free the Earth from financial tyranny. This investigation reveals who the perpetrators are and what we can do to solve the problem.
2012 has begun as a year of rampant paranoia and hopelessness on the Internet and throughout mainstream media.
The economy appears to be in a dire predicament — ready to go over a cliff into an abyss few can even allow themselves to consider.
The Euro has been teetering on the brink of total collapse. A frantic bailout of the entire European Union, proposed by the Federal Reserve, has done very little to relieve the fears of the public.
On December 19th, 2011, Britain announced they will refuse to participate in this bailout — showing how tense and uncertain the situation really is.
Simultaneously, very aggressive and blatant moves are being made to start World War III in the Middle East — with imminent, ever-increasing threats from Israel and the United States to attack Iran.
Since 9/11, Americans and much of the Western world have been led to believe that the biggest enemy they face is terrorism from Islamic extremists. Nonetheless, there is now overwhelming, undeniable evidence that the true enemy… is within.
Read More @



The NDAA: Just One More Link In The Chain Of Tyranny

Traders Brace For Eurozone Crisis Fallout

Global markets are set for a rocky day of trading after German leader Angela Merkel warned that it could take many months to rebuild confidence in the eurozone and schisms over financing the bloc’s bail-out fund re-emerged.
by Emma Rowley,
The German chancellor warned that Standard & Poor’s decision to downgrade nine eurozone countries on Friday evening demonstrated that politicians needed to step up their efforts to resolve the crisis, warning that it was a “longer process” that would take more than a few months.
“The decision confirms my conviction that we have a long way ahead of us before investor confidence returns,” she said in a radio address. Germany was not among the countries downgraded.
The downgrades, after markets closed on Friday, marked a further escalation of the debt crisis, which has seen investors lose faith in euro governments’ ability to service their debts.
Stalled talks over “haircuts”, or writedowns, of Greek government debt will further worry investors, as they pose the threat of Athens making a disorderly default.
Read More @

World Food Association Has Enormous Amounts of Gold Bullion

[Ed. Note: Thanks to our pal ACB for bringing this interesting story to our attention. One wonders what the real story is here. "Recently, an investor donated five tons of gold bullion to the company," the article states. ]
[This is a picture of their actual gold holdings.]

World Food Association has a massive amount of Gold Bullion. The Company has been trading future crop rights in exchange for Bullion. World Food has exclusive rights to the Gold Bullion. World Food is currently selling the gold in Zurich, Switzerland to qualified parties.
World Food Organization has recently finalized a contract for fifty tons of gold bullion trading. World Food Association Organization has long been in the business of gold trading. However this contract is significant because World Food now represents the interest of some of the largest gold bullion traders worldwide. World Food founded the company Agrigolden LTD. to support its excavation of gold from Ghana, Mali, Togo and Cameroon. The normal capacity for World Food has been limited to 200 kilograms of Dore bars monthly from more than 300 mines throughout West Africa.
Mr. Henry Ford, Public Relations manager for World Food Organization and a Director of Agrigolden Ltd., stated, “Often times novice gold brokers speak of trading huge amounts of gold but have absolutely no experience in the gold markets. It takes excavating two-three tons of earth to mine one ounce of gold and people that state they have 3,000 kilograms of raw dust, Dore bars and mined gold just isn’t feasible.” Mr. Ford went on to say, “Any company that represents they can buy or sell Gold for greater than 3% to non-registered company is usually advertising a false claim. Gold is not hard to sell. Any person or company can sell at full market value minus 1% so there simply is not need to offer such discounts.”
Read More @

Dead On Arrival: SOPA Shelved Indefinitely, Obama Succumbs to Pressure, Issues Official Veto Threat

Amid significant pressure from tens of thousands of internet users and major web behemoths like Google, Facebook, and Reddit, the Stop Online Piracy Act (SOPA) is, in its current form, Dead on Arrival:
Misguided efforts to combat online privacy have been threatening to stifle innovation, suppress free speech, and even, in some cases, undermine national security. As of yesterday, though, there’s a lot less to worry about.
The first sign that the bills’ prospects were dwindling came Friday, when SOPA sponsors agreed to drop a key provision that would have required service providers to block access to international sites accused of piracy.
Read More @

Michael Pento: US to Default, Crushing Dollar & Creating Gold Explosion

With investors nervous about the price of gold, today Michael Pento, of Pento Portfolio Strategies, writes for King World News to warn about a coming US default and subsequent gold explosion. Pento had this to say about the situation: “If you ask most investors what is the main driver for the price of gold they are likely you tell you that it’s the direction of the U.S. dollar. Therefore, the only due diligence most investors perform is a perfunctory glance at the Dollar Index (DXY). While it is true that the purchasing power of the dollar is a key metric to judge the direction of gold prices, the DXY will only tell you what the dollar is doing against a basket of 6 other flawed fiat currencies.”
Michael Pento continues: Read More @

The Enemy Expatriation Act, No Different Than the Nazi Nuremberg Laws (H.R. 3166; S. 1698)

The Enemy Expatriation Act (H.R. 3166; S. 1698), an act that the U.S. Congress is now considering, that will allow the U.S. Government to take away citizenship of anybody that is considered a hostile enemy or supporting hostility towards the U.S. Government, is similar to the Nazi Factions Nuremberg laws where Adolf Hitler took away Germans citizenship based on race, bloodtypes, and those against the Hitler regime.
“If the Enemy Expatriation Act passes in its current form, the legislation will let the government strike away citizenship for anyone engaged in hostilities, or supporting hostilities, against the United States” in a news article by RussiaToday News.
The United States Government is actively passing laws mirroring the Nazi regime before they started killing anybody who was Jewish, Jehovah’s Witnesses, Politically against the Nazis or even Hitler himself, and attacked those that helped Jews and other political fugitives escape or hide in Nazi Germany.
Chuck Baldwin posted on Infowars that the “Congress is considering HR 3166 and S. 1698 also known as the Enemy Expatriation Act, sponsored by Joe Lieberman (I-CT) and Charles Dent (R-PA). This bill would give the US government the power to strip Americans of their citizenship without being convicted of being ‘hostile’ against the United States. In other words, you can be stripped of your nationality for ‘engaging in, or purposefully and materially supporting, hostilities against the United States.’ Legally, the term ‘hostilities’ means any conflict subject to the laws of war but considering the fact that the War on Terror is a little ambiguous and encompassing, any action could be labeled as supporting terrorism.”
Read More @

Stocks Open Down As EURJPY Hits Fresh 11-Year Low

UPDATE: ES leaking lower as Packers fans sell (and China's Shanghai Composite -0.8% at open and Hang Seng -1%)
Following EURUSD's modestly weak opening (though managing to hold above Friday's lows and inching higher), EURJPY has pushed to fresh new 11-year lows (and JGB yields at one-year lows). Asian equities are trading notably lower with Japan's Nikkei down 1.6% in early going (coming back a little now) and South Korea's Kospi down 1.1% so far. ES (the e-mini S&P 500 futures contract) opened lower, tried to get back up to Friday's close, failed and is now down around 6pts (at 1285) - still shy of where broad risk assets (CONTEXT) would expect - around 1280 for now - though AUD strength (housing data not totally dire), JPY weakness (government comments on the flatness expected in Japan's recovery) and Treasuries not open is maintaining some support for stock futures so far. The economically-sensitive commodities are leaking lower with Silver having given back its earlier gains and Copper down 0.75%, Oil is holding near $99 and Gold is down a smidge (and more stable than the rest) at -0.23% ($1635). The market's message is risk-off for now and we would expect Bunds to benefit (as JGBs are for now while corporate credit leaks wider) as without Treasuries open, where is risk capital going to flow.

As Two Thirds Of Companies Report EPS In The Next 3 Weeks, Talk Of "Record Earnings" Is About To Hit Mute

Just like back in the first half of 2011, when GDP experienced a premature climax to coincide with the end of QE2, only to tumble promptly afterwards, so just as two thirds of the S&P by market cap prepare to announce earnings starting tomorrow, Q4 EPS forecasts have hit the lowest they have been at in the past 12 months. While the general economy has been lagging the contraction of Europe and Asia, yet finally hit a downward inflection following the disappointing data of the past week (more on that shortly, as we explain why with the Fed set to begin an easing bias in 10 days, all economic indicators are about to take a dive), it has been corporate results that have so far managed to keep the market afloat. This may be coming to an end, courtesy of a perfect storm of negative earnings preannouncements (which have soared to a ratio of 3.5x compared to positive ones; the highest since Q1 2008) together with outright coincident misses. Because as the chart below shows, at $24.09 and pointed decidedly downward, Q4 EPS and its transition to Q1 2012 does not portend anything good for the world economy or markets. In fact, with the EUR plunging, while the news is welcomed by German exports, the adverse impact to US companies, via FX losses and otherwise, is about to be unveiled.

Please consider making a small donation, to help cover some of the labor and cost for this blog.

Thank You

I'm PayPal Verified

No comments:

Post a Comment