A Shocking €1 Trillion LTRO On Deck? CLSA Explains Why Massive Quanto-Easing By The ECB May Be Coming Next Month
It is a pure coincidence that following the previous report of
stern condemnation of traditional ECB QE in the form of Large Scale
Asset Purchases (LSAP) by the Bundesbank, we should follow it up with
the latest analysis by Chris Wood of CLSA's famous Greed and Loathing
newsletter, in which the noted skeptic does an about face on his
existing short European financial trade and covers such exposure, while
observing the much-discussed major shift in ECB liquidity provisioning
as the catalyst. And while his trade reco may or may not be right (if
we were betting people we would put our money on the latter), what is
interesting is the basis for the material change in exposure which to
Wood is explained simply by the dramatic shift in the ECB approach
toward monetary generosity, courtesy of the arrival of ex-Goldmanite
Mario Draghi. The basis is the first noted here massive surge in the European balance sheet (Figure 2) which while not engaging in prima facie monetization,
has done so via indirect channels, in the form of an LTRO, which is
basically a 1%, 3-year loan, but more importantly, a balance sheet
expansion which while having failed to increase the velocity of money in
any way (with all of the LTRO and then some now having been
redeposited back at the ECB as reporter earlier), has at least fooled
the market for the time being that any sub 3 Year debt is "safe". So
just how large will the next LTRO be? "Market talk is focusing
on an even bigger amount to be borrowed at the next 3-year longer-term
refinancing operation (LTRO) due on 29 February. GREED & fear has heard guesstimates of up to €1tn!" That's right - it is possible that in its quanto monetary diarrhea (but at least it's not printing, so the Bundesbank will be delighted), the ECB is about to increase its balance sheet from €2.7 trillion to € €3.7 trillion, or a €1.7 trillion ($2.2 trillion) expansion in 8 months! And gold is where again?S&P Says Greek Default Imminent
Submitted by Tyler Durden on 01/16/2012 - 11:36 Creditors default Greece ratings Time for the dominos to fall where they may: head of sovereign ratings at S&P Kraemer spoke on Bloomberg TV, and said the following:
- KRAEMER: GREECE, CREDITORS `RUNNING OUT OF TIME' IN DEBT TALKS -BBG
- KRAEMER: EURO LEADERS HAVEN'T TACKLED CORE UNDERLYING PROBLEMS -BBG
- KRAEMER SAYS EUROPE MUST DEAL WITH IMBALANCES, COMPETITIVENESS -BBG
- KRAEMER SAYS HE BELIEVES GREECE WILL DEFAULT SHORTLY - RTRS
from Global Economic Analysis:
A Greek default appears likely soon as Greece Dispatches Officials to US Over Default Fears.
A Greek default appears likely soon as Greece Dispatches Officials to US Over Default Fears.
Greece sent senior
officials to Washington on Monday for meetings with the International
Monetary Fund as it raced against the clock to break a deadlock in debt
swap talks that has raised fears of an unruly default.
Barely a month after
an injection of bailout funds helped avert bankruptcy, Greece is back at
the centre of the euro zone crisis as fears of a default and a
subsequent euro zone exit overshadow a mass credit downgrade of euro
zone countries.
Cash-strapped Athens
needs a deal with the private sector within days to avoid going bankrupt
when 14.5 billion euros of bond redemptions fall due in late March.
Read More @ GlobalEconomicAnalysis.Blogspot.comJust Say Nein - Bundesbank On European QE: "Abandon The Idea Once And For All"
While it will hardly come as a surprise to many that after making it abundantly clear that Germany is in total disagreement with ECB monetary policies, culminating in the departure of Jurgen Stark from the European central printing authority, Germany will not permit irresponsible, Bernanke-esque monetary policies, it probably should be noted that even following the most recent escalation of adverse developments in Europe, which are now on the verge of unwinding the entire Eurozone and with it the affiliated fake currency, that the German central bank just said that any European QE could only come over its dead body. Today channeling the inscription to the gates of hell from Dante's inferno is none other than yet another Bundesbank board member, Carl-Ludwig Thiele, who said that "Europe must abandon the idea that printing money, or quantitative easing, can be used to address the euro zone debt crisis...One idea should be brushed aside once and for all - namely the idea of printing the required money. Because that would threaten the most important foundation for a stable currency: the independence of a price stability orientated central bank."The Churning Process In Gold Takes Out the Weak Hands
Eric De Groot at Eric De Groot - 6 hours ago
Sorry, but that's how this game is played. Global currency devaluation has
been holding equities in a depressionary box and coddling the illusion of
economic growth since late 1999. The purchasing power of the US dollar has
been sliding hard since 1934 (see chart 1) Chart 1: Purchasing Power of the
USD Global capital adapts to the currency devaluation by seeking inflation
hedges such as...
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content, and more! ]]
The Bubble Creators
Admin at Marc Faber Blog - 7 hours ago
“The lifetime achievement of Greenspan and Bernanke is really that they created a bubble in everythin...everywhere.” - *famous quote, in Big Goverment* *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.*
from Tekoa Da Silva’s Bull Market Thinking:
I once again had the chance to speak with Jim Willie, publisher of The Hat Trick Letter,
found over at GoldenJackass.com. It was a quite a fascinating interview
covering gold, the Shanghai Cooperation Organization(SCO), the
weakening global U.S. dollar infrastructure, and special attention was
paid to the recent banking sanctions levied against Iran by the United
States.
According to Jim, U.S. sanctions against Iran aren’t so single-faceted anymore. Other countries are beginning to defy U.S. sanctions in order to protect their own national security interests. Jim comments were, “What’s happening behind the scenes is that nations are coming to the stage with Iran, side by side, and saying, ‘We’re going to continue doing trade. We want Iranian oil. We want other Iranian products, and we will continue doing trade’…There are some pretty ugly things going on against that country[U.S. sanctions], and there are some pretty ugly things going on inside that country.”
Read More @ BullMarketThinking.com
Click Here for Parts 2 & 3 of the Interview…
Ever
since the European Central Bank began flooding the markets with cheap
money, European banks have rediscovered their taste for sovereign bonds.
But the crisis is far from over, as Standard and Poor’s recent raft of
downgrades showed. Some bankers are saying it’s just a matter of time
before yields on peripheral bonds shoot up again. By SPIEGEL Staff
by Alexander Jung, Spiegel.de:
During
his first press conference of the year, European Central Bank (ECB)
President Mario Draghi had been talking about the precarious state of
the euro zone for almost half an hour when someone in the audience asked
about Peer Steinbrück.
The former German finance minister had more or less said that the ECB was the EU’s only functioning institution and that it had to get more involved in managing the ongoing crisis. With a forgiving smile, Draghi closed his long response by saying that “obviously we are always very pleased when people say that the ECB is the only institution that works.”
Although it hasn’t even been three months since Draghi stepped down as the Bank of Italy’s governor to take over the reins of the ECB, he exudes the confidence of someone who has everything under control — and not only in relation to the ECB, where he has reshuffled responsibilities on its governing council, but also in terms of the euro crisis.
Read More @ Spiegel.de
from The Daily Bell:
London Wants to Tap Chinese Currency Market … Britain plans to turn London into a major foreign exchange trading center for the Chinese renminbi to benefit from faster growth in Asia while strengthening the city’s position as a financial center in the wake of the banking crisis. George Osborne, the chancellor of the Exchequer, said during a visit to Hong Kong on Monday that he was working with Chinese and British banks to establish London as a new hub for the renminbi market. – Deal Book/NY Times
Dominant Social Theme: London seizes an opportunity within the context of making the City grow. Just business, you know.
Free-Market Analysis: Suddenly, having pushed Europe away, the City is eagerly embracing China, as we can see from the New York Times article excerpt above. Do you believe this, dear reader? We don’t. To us it seems like one more step on the “long march” toward the much touted, elitist New World Order.
Read More @ TheDailyBell.com
| Part 1: |
According to Jim, U.S. sanctions against Iran aren’t so single-faceted anymore. Other countries are beginning to defy U.S. sanctions in order to protect their own national security interests. Jim comments were, “What’s happening behind the scenes is that nations are coming to the stage with Iran, side by side, and saying, ‘We’re going to continue doing trade. We want Iranian oil. We want other Iranian products, and we will continue doing trade’…There are some pretty ugly things going on against that country[U.S. sanctions], and there are some pretty ugly things going on inside that country.”
Read More @ BullMarketThinking.com
Click Here for Parts 2 & 3 of the Interview…
by Alexander Jung, Spiegel.de:
During
his first press conference of the year, European Central Bank (ECB)
President Mario Draghi had been talking about the precarious state of
the euro zone for almost half an hour when someone in the audience asked
about Peer Steinbrück.The former German finance minister had more or less said that the ECB was the EU’s only functioning institution and that it had to get more involved in managing the ongoing crisis. With a forgiving smile, Draghi closed his long response by saying that “obviously we are always very pleased when people say that the ECB is the only institution that works.”
Although it hasn’t even been three months since Draghi stepped down as the Bank of Italy’s governor to take over the reins of the ECB, he exudes the confidence of someone who has everything under control — and not only in relation to the ECB, where he has reshuffled responsibilities on its governing council, but also in terms of the euro crisis.
Read More @ Spiegel.de
London Wants to Tap Chinese Currency Market … Britain plans to turn London into a major foreign exchange trading center for the Chinese renminbi to benefit from faster growth in Asia while strengthening the city’s position as a financial center in the wake of the banking crisis. George Osborne, the chancellor of the Exchequer, said during a visit to Hong Kong on Monday that he was working with Chinese and British banks to establish London as a new hub for the renminbi market. – Deal Book/NY Times
Dominant Social Theme: London seizes an opportunity within the context of making the City grow. Just business, you know.
Free-Market Analysis: Suddenly, having pushed Europe away, the City is eagerly embracing China, as we can see from the New York Times article excerpt above. Do you believe this, dear reader? We don’t. To us it seems like one more step on the “long march” toward the much touted, elitist New World Order.
Read More @ TheDailyBell.com
The
gold price has picked up again this morning despite a weaker
Euro/Stronger Dollar which would normally mean a decline in the dollar
gold price.
by Julian Phillips, MineWeb.com:
With gold closing slightly down on Friday at $1,638, Asia lifted the gold price overnight $4 to $1,642. The euro fell to the €1: $1.2667 after the European credit downgrades after business on Friday. Hence, gold in the euro rose again to €1,296.28.
London Fixed the gold price at $1,643.50 and in the euro at €1,298.901. The euro stood at €1: $1.2653 at the time. Ahead of New York’s opening the gold price saw the gold price hold at these levels with the euro trying to inch stronger at €1: $1.2668, with the euro price of gold slipping down to €1,296.97.
Silver resumed Friday’s closing level at $29.82 to improve slightly in London’s morning. Ahead of New York’s opening silver stood at $29.95.
Read More @ MineWeb.com
by Julian Phillips, MineWeb.com:
With gold closing slightly down on Friday at $1,638, Asia lifted the gold price overnight $4 to $1,642. The euro fell to the €1: $1.2667 after the European credit downgrades after business on Friday. Hence, gold in the euro rose again to €1,296.28.
London Fixed the gold price at $1,643.50 and in the euro at €1,298.901. The euro stood at €1: $1.2653 at the time. Ahead of New York’s opening the gold price saw the gold price hold at these levels with the euro trying to inch stronger at €1: $1.2668, with the euro price of gold slipping down to €1,296.97.
Silver resumed Friday’s closing level at $29.82 to improve slightly in London’s morning. Ahead of New York’s opening silver stood at $29.95.
Read More @ MineWeb.com
from King World News:
Today
James Turk informed King World News that we are now headed into a
vortex, and the Lehman event was a warm-up to a much deeper, widespread
crisis and collapse which lies ahead. Here is how Turk described the
warning signs and what to expect: “There are all of these warning signs
out there and few people are paying attention. For example, hardly
anyone cares that the US has lost its AAA rating and most dismiss it as a
non-event. But even a cursory look at the US government’s financial
position should raise investors concerns that it will not be able to
meet all of its obligations.”
James Turk continues: Read More @ KingWorldNews.com
Today
James Turk informed King World News that we are now headed into a
vortex, and the Lehman event was a warm-up to a much deeper, widespread
crisis and collapse which lies ahead. Here is how Turk described the
warning signs and what to expect: “There are all of these warning signs
out there and few people are paying attention. For example, hardly
anyone cares that the US has lost its AAA rating and most dismiss it as a
non-event. But even a cursory look at the US government’s financial
position should raise investors concerns that it will not be able to
meet all of its obligations.”James Turk continues: Read More @ KingWorldNews.com
With the S&P massively downgrading the Eurozone nations Friday,
The Doc interviewed Jim Willie of goldenjackass.com today regarding his
thoughts on the Euro crisis and the implications to gold and silver.
Click Here for Parts 2 & 3…
Click Here for Parts 2 & 3…
The Greatest Truth Never Told: 44. Confiscation and Inflation
Maximum Bond Fraud!
from News.Yahoo.com:
A
senior International Monetary Fund executive warned on Monday that
Europe required bold action to avert a “downward spiral” that could drag
the world economy into “catastrophe”.
IMF First Deputy Managing Director David Lipton, in his first major speech since his appointment late last year, told a meeting of Asian finance and banking chiefs in Hong Kong that the world economy was in trouble.
“At the global level, the pace of economic activity is weakening, and the risks for Europe and the world are high,” he told the Asian Financial Forum.
“Rather than allow ourselves to be paralysed by pessimism, it is time to focus on the more hopeful perspective of working our way through this crisis.”
His comments came after US-based ratings agency Standard and Poor’s last week downgraded the sovereign debt ratings of nine eurozone countries including top-rated France and Austria.
Read More @ News.Yahoo.com
A
senior International Monetary Fund executive warned on Monday that
Europe required bold action to avert a “downward spiral” that could drag
the world economy into “catastrophe”.IMF First Deputy Managing Director David Lipton, in his first major speech since his appointment late last year, told a meeting of Asian finance and banking chiefs in Hong Kong that the world economy was in trouble.
“At the global level, the pace of economic activity is weakening, and the risks for Europe and the world are high,” he told the Asian Financial Forum.
“Rather than allow ourselves to be paralysed by pessimism, it is time to focus on the more hopeful perspective of working our way through this crisis.”
His comments came after US-based ratings agency Standard and Poor’s last week downgraded the sovereign debt ratings of nine eurozone countries including top-rated France and Austria.
Read More @ News.Yahoo.com
from The Daily Bell:
Greece dispatches officials to U.S., default fears grow … Greece sent senior officials to Washington on Monday for meetings with the International Monetary Fund as it raced against the clock to break a deadlock in debt swap talks that has raised fears of an unruly default. Barely a month after an injection of bailout funds helped avert bankruptcy, Greece is back at the centre of the euro zone crisis as fears of a default and a subsequent euro zone exit overshadow a mass credit downgrade of euro zone countries. Cash-strapped Athens needs a deal with the private sector within days to avoid going bankrupt when 14.5 billion euros of bond redemptions fall due in late March. But talks with its creditor banks broke down on Friday over the interest rate and a plan to enforce investor losses and are not expected to resume until Wednesday. Greece put a brave face on the standoff. “There is a little pause in these discussions,” Greek Prime Minister Lucas Papademos told CNBC television. “But I am confident that they will continue and we will reach an agreement that is mutually acceptable in time.” – Reuters
Dominant Social Theme: The Germans created the EU and Nazis run it.
Free-Market Analysis: Here, again, we see that the top elites are doing as they see fit and anyone who continues to maintain that there is some sort of schism between Europe, London and Washington is likely exaggerating what’s taking place.
Read More @ TheDailyBell.com
Greece dispatches officials to U.S., default fears grow … Greece sent senior officials to Washington on Monday for meetings with the International Monetary Fund as it raced against the clock to break a deadlock in debt swap talks that has raised fears of an unruly default. Barely a month after an injection of bailout funds helped avert bankruptcy, Greece is back at the centre of the euro zone crisis as fears of a default and a subsequent euro zone exit overshadow a mass credit downgrade of euro zone countries. Cash-strapped Athens needs a deal with the private sector within days to avoid going bankrupt when 14.5 billion euros of bond redemptions fall due in late March. But talks with its creditor banks broke down on Friday over the interest rate and a plan to enforce investor losses and are not expected to resume until Wednesday. Greece put a brave face on the standoff. “There is a little pause in these discussions,” Greek Prime Minister Lucas Papademos told CNBC television. “But I am confident that they will continue and we will reach an agreement that is mutually acceptable in time.” – Reuters
Dominant Social Theme: The Germans created the EU and Nazis run it.
Free-Market Analysis: Here, again, we see that the top elites are doing as they see fit and anyone who continues to maintain that there is some sort of schism between Europe, London and Washington is likely exaggerating what’s taking place.
Read More @ TheDailyBell.com
You remember that loathsome, constitutionally questionable provision of the recently passed National Defense Authorization Act that allows the U.S. military to indefinitely detain even American citizens only suspected of terrorist and other activities, right? Now comes its evil twin, the Enemy Expatriation Act, or H.R. 3166, which would strip you of your citizenship as well.
According to a summary of the bill, the act would amend “the Immigration and Nationality Act to include engaging in or purposefully and materially supporting hostilities against the United States to the list of acts for which U.S. nationals would lose their nationality. Further, the bill defines hostilities as any conflict subject to the laws of war.”
Like the language of the NDAA, the language of H.R. 3166 sounds innocuous, but when put together, the two pieces of legislation literally give the government the right to come into your home, arrest you on suspicion of illegal activity, and then, as a final act of humiliation, strip you of your citizenship and/or hold you indefinitely.
Read More @ NaturalNews.com
According to a summary of the bill, the act would amend “the Immigration and Nationality Act to include engaging in or purposefully and materially supporting hostilities against the United States to the list of acts for which U.S. nationals would lose their nationality. Further, the bill defines hostilities as any conflict subject to the laws of war.”
Like the language of the NDAA, the language of H.R. 3166 sounds innocuous, but when put together, the two pieces of legislation literally give the government the right to come into your home, arrest you on suspicion of illegal activity, and then, as a final act of humiliation, strip you of your citizenship and/or hold you indefinitely.
Read More @ NaturalNews.com
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