It's Official - The Fed Is Now Buying European Government Bonds
As
if the 'risk-less' dollar-swaps the Fed has extended to any and every
major central bank were not enough, William Dudley just unashamedly
admitted that the Fed now holds 'a very small amount of European Sovereign Debt'. Explaining this position, as Bloomberg notes:
by Christian Rickens, Spiegel International:
Some
economists warn that the German central bank faces hidden liabilities
of 500 billion euros in the form of unsettled claims within the European
payments settlement system, and could lose that sum if the euro zone
breaks apart. According to SPIEGEL, the German government has said it
sees no such risks. But a Greek euro exit could still cost the German
central bank billions.The federal government in Berlin has denied a
warning from the president of Germany’s Ifo economics institute,
Hans-Werner Sinn, that the German central bank, the Bundesbank, may face
hidden risks of half a trillion euros ($660 billion) in the form of claims amassed under the Target2 European interbank payments system.
Sinn and other critics have been arguing that the Bundesbank has
extended that sum in loans to southern countries within the euro zone
and that the bank could be left with claims on its books if a country
like Greece were to leave the euro zone.
Read More @ Spiegel.de
In a brief but as usual succinct statement, MEP Daniel Hannan
points out the country that decided to say no to establishment-rules
and stuck to its guns by taking losses, devaluing its currency, and
growing its way out of its pit of despair. The eloquent Englishman notes
Iceland's current enviable position in terms of not just growth but Debt to GDP and proffers upon his European Parliamentarian peers that perhaps, just perhaps, there is a lesson in here for all European governments (cough Greece/Portugal cough). 67% of 'shrewd and canny' Icelanders are now against joining the Euro.
With
today's less than stellar consumer confidence number and continued
path of missed expectations on key macro data over the past few weeks,
it is perhaps wondrous that our brain-trust of analysts and economists continue to forecast higher expectations across the board.
While this may not come as a surprise to readers used to comprehending
the magic of the Birinyi ruler's extrapolation and the inevitable and
clockwork 'miss' of turning points of any and every educated
talking-heads model, this chart from Deutsche Bank's asset allocation
group should contextualize where we are actually versus where LaVorgna
and friends see us going. The sad truth is - we have seen this play out
again and again and as the printing-press-pressure drives up
asset prices (providing confirmation bias upon anchoring bias for any
and every economist or long-only manager quoting the 'recovery' or
decoupling), the truth is that as prices (and expectations)
distend from value and actual reality, the central bank's efforts to
'maintain' the status quo simply create a larger and larger vacuum for asset prices to fall through when sad reality is finally peeked.
Law-abiding
taxpayers are treated like criminals while the criminal class of
financiers and State apparatchiks are free to loot and pillage muppets
and taxpayers alike. It's actually very simple: whatever the state or Federal government does to you, that's legal.
Whatever action you take to protect your rights is illegal. In case
you have any doubts about where our "leadership" is taking us, please
review these Assorted quotes by Fascists or about Fascism.
Consumer
Confidence fell for only the second time since this unerring rally
began and basically met expectations but it is under the covers that is
concerning. Expectations for high inflation in the next six months has reached its highest level in six months jumping considerably from the previous month. Combine this with the overall drop in the expectations subindex of the consumer confidence index which fell for the first time in 5 months and all is not well in the 'stocks are going up so we are all doing great and the economy must be awesome'-transmission mechanism. On top of this wonderful news, the Richmond Fed missed expectations (with its biggest miss in 10 months) - taking us to 15 of 17 (removing the consumer confidence and S&P Case Shiller meets) missed economic data prints now. 7 of the 9 subindices of the Richmond Fed index dropped precipitously with only wages rising notably (more inflation?) even as 'number of employees' slumped by more than half and expectations for 'number of employees' in six months fell to its lowest since September.
It would appear that higher gas prices are much more of a detrimental
impact on the individual's confidence than a rising equity market is a
boost - whocouldanode?
from Gold Money:
Precious
metal bulls have got used to being “saved” by Federal Reserve Chairman
Ben Bernanke in recent years. Frequent spurts higher in the gold price
often coincide with Bernanke press conferences, in which the chairman
vows to maintain easy money policy at the Federal Reserve. Yesterday was
a classic case of this, with gold gaining around $20 in a matter of
minutes just after 12GMT following Bernanke’s comments
that more progress on unemployment will require “more-rapid expansion
of production and demand from consumers and businesses, a process that
can be supported by continued accommodative policies.”
As Trader Dan Norcini comments, pity the poor Fed Funds Futures traders. No sooner do we have glimmers that rates are going to rise as the US economy picks up pace and inflation rises, than do we have the Fed Chairman himself come out and quash these rumours. Dan correctly notes that Bernanke is terrified of rising rates. The US is in a debt trap from which there is no escape without considerable economic pain.
Read More @ GoldMoney.com
by Tess Pennington, Ready Nutrition:
With the current world economic situation, wise people understand that paper money is simply the illusion of money. It is a representation of wealth of which the value can be rapidly manipulated. The US Federal Reserve randomly prints off bills with no commodity backing them, making the only value of these bills the worth that is allowed by the banksters and the elite
So in light of this, how do we save for the rainy days to come?
Once you’ve established the basics of your survival preparedness, you can protect your personal wealth by investing in precious metals. There are many different ways to acquire gold and silver. Here are a few:
• Purchase the pieces from mints or exchanges
• Purchase old pieces of jewelry or coins from yard sales, estate sales, thrift stores and Craigslist
• From trusted sellers on EBay
Mints and exchanges offer a sure thing. These businesses are built on trust and integrity. However when you purchase from everyday people or take a gamble on buying something at the thrift store, you need to be able to identify and test the metals yourself.
Read More @ ReadyNutrition.com
by Chris Christoff, Bloomberg.com:
Detroit (9845MF) has 10 days to agree to a financial recovery plan that would forestall the appointment of an emergency manager by Michigan (STOMI1) Governor Rick Snyder, a state review panel decided.
Snyder said he’s close to a deal with the city that would avoid a manager. He said he had “fruitful” discussions with six of nine City Council members today. A final agreement is possible by March 30, said state Treasurer Andy Dillon, who led the review team.
“My goal is for the state to provide a supporting resource, to be a partner in helping achieve success,” Snyder, 53, told reporters before the review team met.
Detroit, whose population fell by a quarter in the past decade, has at least $12 billion in long-term debt. The fight to keep it solvent has pitted the white, Republican governor against Mayor Dave Bing, a black Democrat in a city that is 83 percent African-American.
Read More @ Bloomberg.com
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As
if the 'risk-less' dollar-swaps the Fed has extended to any and every
major central bank were not enough, William Dudley just unashamedly
admitted that the Fed now holds 'a very small amount of European Sovereign Debt'. Explaining this position, as Bloomberg notes:- *DUDLEY: FED HOLDS OVERSEAS SOVEREIGN DEBT TO MANAGE RESERVES
- *DUDLEY: HIGH BAR FOR ADDITIONAL PURCHASES OF EUROPE DEBT
Some
economists warn that the German central bank faces hidden liabilities
of 500 billion euros in the form of unsettled claims within the European
payments settlement system, and could lose that sum if the euro zone
breaks apart. According to SPIEGEL, the German government has said it
sees no such risks. But a Greek euro exit could still cost the German
central bank billions.The federal government in Berlin has denied a
warning from the president of Germany’s Ifo economics institute,
Hans-Werner Sinn, that the German central bank, the Bundesbank, may face
hidden risks of half a trillion euros ($660 billion) in the form of claims amassed under the Target2 European interbank payments system.Read More @ Spiegel.de
Got Gold?
Dave in Denver at The Golden Truth - 12 minutes ago
*We have entered the most favourable era for gold prices in our lifetime,
and the share prices of the great mining companies will eventually
outperform bullion prices...central banks are printing money and creating
liquidity beyond the forecasts of all but the most paranoid goldbugs a year
ago* - Don Coxe, Strategy Advisor BMO (Bank of Montreal) Financial Group
By now a lot of you have either heard about or read Bernanke's statements
about gold in a speech he delivered at George Washington University. The
speech was part of a series of five speeches which are part of the Fed's
n... more »
Recognize Change And React Accordingly
Admin at Jim Rogers Blog - 48 minutes ago
“Those who can not adjust to change will be swept aside by it. Those who
recognize change and react accordingly will benefit.” ― Jim Rogers, 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.*
A Brief Look at the 2012 French Political Landscape
A Lesson For Europe: Why Iceland Won't Join The Euro
In a brief but as usual succinct statement, MEP Daniel Hannan
points out the country that decided to say no to establishment-rules
and stuck to its guns by taking losses, devaluing its currency, and
growing its way out of its pit of despair. The eloquent Englishman notes
Iceland's current enviable position in terms of not just growth but Debt to GDP and proffers upon his European Parliamentarian peers that perhaps, just perhaps, there is a lesson in here for all European governments (cough Greece/Portugal cough). 67% of 'shrewd and canny' Icelanders are now against joining the Euro.The Gap Between Reality And Consensus Is Growing Fast
With
today's less than stellar consumer confidence number and continued
path of missed expectations on key macro data over the past few weeks,
it is perhaps wondrous that our brain-trust of analysts and economists continue to forecast higher expectations across the board.
While this may not come as a surprise to readers used to comprehending
the magic of the Birinyi ruler's extrapolation and the inevitable and
clockwork 'miss' of turning points of any and every educated
talking-heads model, this chart from Deutsche Bank's asset allocation
group should contextualize where we are actually versus where LaVorgna
and friends see us going. The sad truth is - we have seen this play out
again and again and as the printing-press-pressure drives up
asset prices (providing confirmation bias upon anchoring bias for any
and every economist or long-only manager quoting the 'recovery' or
decoupling), the truth is that as prices (and expectations)
distend from value and actual reality, the central bank's efforts to
'maintain' the status quo simply create a larger and larger vacuum for asset prices to fall through when sad reality is finally peeked.Guest Post: Welcome to the United States of Orwell, Part 2: Law-Abiding Taxpayers Treated As Criminals
Law-abiding
taxpayers are treated like criminals while the criminal class of
financiers and State apparatchiks are free to loot and pillage muppets
and taxpayers alike. It's actually very simple: whatever the state or Federal government does to you, that's legal.
Whatever action you take to protect your rights is illegal. In case
you have any doubts about where our "leadership" is taking us, please
review these Assorted quotes by Fascists or about Fascism.Confidence Drops As Consumers Brace For Surge In Inflation
Consumer
Confidence fell for only the second time since this unerring rally
began and basically met expectations but it is under the covers that is
concerning. Expectations for high inflation in the next six months has reached its highest level in six months jumping considerably from the previous month. Combine this with the overall drop in the expectations subindex of the consumer confidence index which fell for the first time in 5 months and all is not well in the 'stocks are going up so we are all doing great and the economy must be awesome'-transmission mechanism. On top of this wonderful news, the Richmond Fed missed expectations (with its biggest miss in 10 months) - taking us to 15 of 17 (removing the consumer confidence and S&P Case Shiller meets) missed economic data prints now. 7 of the 9 subindices of the Richmond Fed index dropped precipitously with only wages rising notably (more inflation?) even as 'number of employees' slumped by more than half and expectations for 'number of employees' in six months fell to its lowest since September.
It would appear that higher gas prices are much more of a detrimental
impact on the individual's confidence than a rising equity market is a
boost - whocouldanode?Precious
metal bulls have got used to being “saved” by Federal Reserve Chairman
Ben Bernanke in recent years. Frequent spurts higher in the gold price
often coincide with Bernanke press conferences, in which the chairman
vows to maintain easy money policy at the Federal Reserve. Yesterday was
a classic case of this, with gold gaining around $20 in a matter of
minutes just after 12GMT following Bernanke’s comments
that more progress on unemployment will require “more-rapid expansion
of production and demand from consumers and businesses, a process that
can be supported by continued accommodative policies.”As Trader Dan Norcini comments, pity the poor Fed Funds Futures traders. No sooner do we have glimmers that rates are going to rise as the US economy picks up pace and inflation rises, than do we have the Fed Chairman himself come out and quash these rumours. Dan correctly notes that Bernanke is terrified of rising rates. The US is in a debt trap from which there is no escape without considerable economic pain.
Read More @ GoldMoney.com
With the current world economic situation, wise people understand that paper money is simply the illusion of money. It is a representation of wealth of which the value can be rapidly manipulated. The US Federal Reserve randomly prints off bills with no commodity backing them, making the only value of these bills the worth that is allowed by the banksters and the elite
So in light of this, how do we save for the rainy days to come?
Once you’ve established the basics of your survival preparedness, you can protect your personal wealth by investing in precious metals. There are many different ways to acquire gold and silver. Here are a few:
• Purchase the pieces from mints or exchanges
• Purchase old pieces of jewelry or coins from yard sales, estate sales, thrift stores and Craigslist
• From trusted sellers on EBay
Mints and exchanges offer a sure thing. These businesses are built on trust and integrity. However when you purchase from everyday people or take a gamble on buying something at the thrift store, you need to be able to identify and test the metals yourself.
Read More @ ReadyNutrition.com
from Silver Doctors:
Breaking
reports state that JP Morgan received a $200 million margin call on
London’s LIFFE exchange 3 days prior to the MFG Bankruptcy over naked
euro put options. The margin call came when the Dallas Fed refused
to offer JPM a line of credit due to JPM’s use of TARP funds to write
euro derivatives. The report alleges that a panicked Jamie Dimon called
Tim Geithner, Ben Bernanke, and Gary Gensler demanding the problem be
taken care of and within the hour, the CME re-issued the $200 million
margin call to the counter-party on the derivatives trade (MF Global),
and the rest is history.
These are the most serious allegations of fraudulent activity in the entire financial collapse to date. If proven true, while Jon Corzine still deserves serious hard time for using client funds to meet said margin call; sulfur, fire, and brimstone would be too light a judgement for one JPMorgan CEO.
It can now be reported that the U.S. Senate Committee on Banking has new evidence showing that JP Morgan had a $200 million overdraft aka a second margin call on the London LIFFE Exchange three days before the MF Global bankruptcy fiasco was triggered.The second margin call (the first margin call was four days earlier for $175 million) dealt with cross-collateralized, compounded naked euro currency put options that were written by JP Morgan with the transactions being placed through the CME Group and the aforementioned London LIFFE Exchange.
We can now divulge that, thanks to PROMIS software, MF Global took the opposite side of the trade.
Read More @ SilverDoctors.com
Breaking
reports state that JP Morgan received a $200 million margin call on
London’s LIFFE exchange 3 days prior to the MFG Bankruptcy over naked
euro put options. The margin call came when the Dallas Fed refused
to offer JPM a line of credit due to JPM’s use of TARP funds to write
euro derivatives. The report alleges that a panicked Jamie Dimon called
Tim Geithner, Ben Bernanke, and Gary Gensler demanding the problem be
taken care of and within the hour, the CME re-issued the $200 million
margin call to the counter-party on the derivatives trade (MF Global),
and the rest is history. These are the most serious allegations of fraudulent activity in the entire financial collapse to date. If proven true, while Jon Corzine still deserves serious hard time for using client funds to meet said margin call; sulfur, fire, and brimstone would be too light a judgement for one JPMorgan CEO.
It can now be reported that the U.S. Senate Committee on Banking has new evidence showing that JP Morgan had a $200 million overdraft aka a second margin call on the London LIFFE Exchange three days before the MF Global bankruptcy fiasco was triggered.The second margin call (the first margin call was four days earlier for $175 million) dealt with cross-collateralized, compounded naked euro currency put options that were written by JP Morgan with the transactions being placed through the CME Group and the aforementioned London LIFFE Exchange.
We can now divulge that, thanks to PROMIS software, MF Global took the opposite side of the trade.
Read More @ SilverDoctors.com
Detroit (9845MF) has 10 days to agree to a financial recovery plan that would forestall the appointment of an emergency manager by Michigan (STOMI1) Governor Rick Snyder, a state review panel decided.
Snyder said he’s close to a deal with the city that would avoid a manager. He said he had “fruitful” discussions with six of nine City Council members today. A final agreement is possible by March 30, said state Treasurer Andy Dillon, who led the review team.
“My goal is for the state to provide a supporting resource, to be a partner in helping achieve success,” Snyder, 53, told reporters before the review team met.
Detroit, whose population fell by a quarter in the past decade, has at least $12 billion in long-term debt. The fight to keep it solvent has pitted the white, Republican governor against Mayor Dave Bing, a black Democrat in a city that is 83 percent African-American.
Read More @ Bloomberg.com
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