Euro shorts smell blood

from Gold Money:
Within the eurozone there are great stresses. At one extreme there are punitive costs of borrowing for Greece, Cyprus, Portugal, Ireland, Spain and Italy; at the other there is zero or negative interest rates for Germany, the Netherlands and Finland. Doubtless the first group begets the second, as captive investors in euros have to buy government bonds, and this requirement is being funnelled away from risk into safety.
This is the opposite of the convergence intended behind the creation of the euro. The euro itself, as can be seen from the chart below, is not looking too healthy either, and this is surely no coincidence. Furthermore, if it breaks the 1.2000 level to the US dollar, the chart will look very bad indeed.
Read More @ GoldMoney.com

Paul Craig Roberts: World financial system now can be sustained only by fraud

The Russian Default Scenario As Script For Europe's Next Steps

Russia and the southeast Asian countries are analogs for Greece, Spain, and Cyprus, with no particular association between their references within the timeline.  The timeline runs through the Russian pain; things begin to turn around after the timeline ends. This is meant to serve as a reference point: In retrospect it was clear throughout the late-90s that Russia would default on its debt and spark financial pandemonium, yet there were cheers at many of the fake-out "solution" pivot points.  The Russian issues were structural and therefore immune to halfhearted solutions--the Euro Crisis is no different.  This timeline analog serves as a guide to illustrate to what extent world leaders can delay the inevitable and just how significant "black swan event" probabilities are in times of structural crisis.  It seems that the next step in the unfolding Euro Crisis is for sovereigns to begin to default on their loan payments.  To that effect, Greece must pay its next round of bond redemptions on August 20, and over the weekend the IMF stated that they are suspending Greece's future aid tranches due to lack of reform.  August 20 might be the most important day of the entire summer and very well could turn into the credit event that breaks the camel's back.

T-30 Days To 10Y Treasuries Yielding Less Than 1%

While many have discussed the extreme analogs of the last few years in equity market performance, few have looked at the relative performance of the most explicitly impacted asset class of Central Bank largesse - the US Treasury bond market. Based on the almost perfect correlation between 2010, 2011, and this year's yield movements over the past few months, traders could be forgiven for considering that the 10-year yield will be below 1% by the end of August - no matter how many times they are told  "but rates cannot fall any more" or this time it's different. One has to wonder just how long the Fed can control this herding of cats (by forcing everyone to front-run it) and what the hyper-inflating solution to asset-deflation expectations will look like this time.

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Key Events In The Coming Week: Stalling Global Q2 GDP Update

The week ahead brings a batch of Q2 GDP prints, which will provide guidance on the strength of activity in that quarter, as well as a bunch of business survey data which will offer insights into the strength of momentum at the start of Q3. Starting with the GDP data, the main attraction is likely to be the print from the US. Goldman expects a below trend print of 1.1%qoq, vs the consensus at 1.5%qoq. The Q2 print from the UK is expected to be negative. While only a few Q2 prints have been published so far, only China has recorded a recovery on Q1. The consensus expects soft prints for the business surveys out this week. The Euroland flash PMIs are expected to be unchanged, leaving them at levels consistent with a continued contraction in activity. The German IFO is expected to fall slightly, as is the Swiss KoF. There are no consensus expectations for the China flash PMI, however if it does not pick up from current levels around 48, questions over the extent/effectiveness of stimulus in China will remain.

Why A 9-Year Trade-Weighted Low In The Euro Won't Help EU GDP

The euro has depreciated to its lowest level in nearly nine years when measured in trade-weighted terms. Common wisdom is to assume that this might trigger a GDP forecast upgrade for the common currency area. UBS says "no", while at first sight, this 'devaluation' should boost output, the exchange rate response is simply part of the bigger, well-known picture of economic stress in the common currency region. Simply put, the currency has depreciated on fear and risk aversion - and economic growth tends to suffer rather than flourish in that environment - and furthermore, the two structural measures that help determine the outlook for the currency - the internal balance (output gap) and the external balance (current account) - point to further weakness.

Fukushima contractor forced workers to fake radiation readings

by Info Wars:

A company charged with decontaminating the devastated Fukushima Nuclear Power Plant encouraged its workers to falsely lower their radiation dosimeter readings by covering the devices with lead, according to a leaked tape of an internal meeting.
Nuclear plant workers are not allowed to be exposed to more than 50 millisieverts of radiation a year. But managers at Build-up, a company that provided insulation on the pipes that would pump irradiated water out of the plant, believed that doses experienced inside the plant, which suffered a meltdown, meant workers would quickly reach their limit.
Read More @ InfoWars.com

Report: at least $20.3 trillion hidden in offshore banks by global elite

by Madison Ruppert, Activist Post
According to the most detailed study of the so-called offshore economy to date, conducted by James Henry, former chief economist with the consultancy McKinsey, the world’s richest people have taken advantage of cross-border tax laws in order to put away a shocking $20.31 trillion in offshore banks.
While this likely isn’t all that crazy to those who are familiar with the massive conflicts of interest in the Federal Reserve and the fact that the Federal Reserve works with banks to put Americans on the line for the failures of banks, it might be surprising to those who have no clue how the international financial system works.
The astounding sum uncovered by the Henry is slightly less than the 2011 Gross Domestic Product (GDP) of Japan ($5.87 trillion) on top of the 2011 United States GDP ($15.09 trillion).
Read More @ Activist Post





Please CALL your Representative on MONDAY and urge him/her to vote YES on HR 459.

HR 459, Audit the Fed, Vote on Tuesday, July 24

from The Daily Paul:
The House will be voting on Ron Paul’s HR 459, the Federal Reserve Transparency Act, on Tuesday, July 24.
Please CALL your Representative on MONDAY and urge him/her to vote YES on HR 459.
To call your Representative or find their phone number, enter your zip code here:
http://action.freedomworks.org/7388/tell-your-congressman-to…
HR 459 has 271 cosponsors. To check if your Representative is a cosponsor:
1. Find your Representative here:
http://www.house.gov/representatives/find/
2. Check the cosponsor list below for your Representative:
Read More @ DailyPaul.com

HSBC Scandal: Rampant Drug Money Laundering, Deals With Iran, Record Billion Dollar Fine Rumored

from Jesse’s Café Américain:
“And remember, where you have a concentration of power in a few hands, all too frequently men with the mentality of gangsters get control. History has proven that.”
John Dalberg Lord Acton
This HSBC scandal is being overshadowed by LIBOR a bit in the States at least, and the usual diversions of the day to day, but it seems about to explode into the headlines of the insular major media.
There is chatter in banking circles that HSBC is about to be handed a record fine of one billion dollars, or more. At least this is what I hear. Obama will point to it as a ‘get tough’ approach to the rampant fraud and bad behaviour that is still plaguing the US recovery and financial system.
Read More @ Jesse’s Café Américain:

Confidence Man Jamie Dimon Increases Personal Share in the Morgue

from Silver Vigilante:
The Chief Executive Officer of JPMorgan Chase & Co, Jamie Dimon, purchased this week about $17 million of common shares at $34 to $34.46 per share and sold preferred shares, according to the U.S. Securities and Exchange Commission. Although many mainstream wires would have you believe that Dimon simply moved from a cash position into $17.1 million shares, the truth is, while he purchased 110,000 common shares at about $34.43 per share on Thursday and another 250,000 shares at $34.02 a share on Friday, as well as another 65,000 shares for his wife and 75,000 shares for a limited liability company, these moves followed on the heels of the sale of 12,142 preferred shares at $1,110 a piece, for a total of $13.48 million. This means that Dimon’s overall position in the company increased approximately $4m. So, while the mainstream wires read that “Dimon Buys $17m in JPMorgan,” the truth here is that he increased his stake in the bank by a quite conservative $4m, and he probably did it not only to inspire confidence in The Morgue, but also to help his chances in the potential legal battles he might face. Let’s take a look at the headlines regarding this $4m increase in stake reported as a $17m increase on the surface:
Read More @ Silver Vigilante

Silver Undervalued

from Adam Hamilton, Zeal Speculation and Investment:
After being sucked into the general commodities correction, silver has been relentlessly drifting lower since late February. But this weakness has forced the white metal down to a very bullish place technically. Silver is now quite undervalued compared to prevailing gold prices, its primary driver. Thus it has great potential to rally mightily in the coming months to regain much lost ground relative to gold.
Silver is a fascinating commodity that has won a fanatical following among traders. It is extremely volatile, with big spikes or plunges always possible. This makes it irresistibly alluring to speculators, who alternately pile in to ignite huge rallies before running for the exits to spawn near-crashes. The perpetual back-and-forth struggle between greed and fear is the essence of speculation, and silver embodies it.
But what drives these winds of sentiment that buffet silver around? Gold. Silver traders constantly look to the yellow metal’s fortunes to figure out whether they should buy or sell the white metal. While there are rare and short-lived exceptions, the vast majority of the time silver only rallies significantly when gold is strong and only sells off materially when gold is weak. Gold is the key to silver’s price action.
Read More @ zealllc.com

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