While All Eyes Are On Europe, Japan Circles A Black Hole
While
all eyes are on the absurdist tragicomedy playing out in Europe, Japan
is quietly circling a financial black hole as its export economy is
destroyed by its strong currency and the global recession. There is a terrible irony in export-dependent nations being viewed as "safe havens."
Their safe haven status pushes their currencies higher, which then
crushes their export sector, which then weakens their entire economy and
stability, undermining the very factors that created their safe haven
status.
Two weeks ago we noted
the transmission channels that Mr. Draghi had pointed out having become
broken, clearly enunciating the chasm that is developing in the
interbank market. Goldman's Huw Pill takes this a step further and notes
a 'red line' - running along the Pyrenees and the Alps - that
has descended with banks south of this line having difficulty
accessing Euro interbank markets, whereas banks north of that
line remain better integrated and retain market access. This is the
exact segmentation that Draghi worries is interfering with policy
transmission (and thus affecting macroeconomic outcomes - in his view).
Banks in the periphery have been 'red-lined' and while last week's ECB
announcements initiated a policy response to this segmentation, the
obvious (to anyone who actually comprehends the situation) reality is that ECB purchases of government bonds does not eliminate this 'red line';
only convincing markets through fundamental adjustment (fiscal
consolidation, structural reform, and institutional building) will the
red-line be lifted. This is highly improbable in the short-term and
means an expectation of more direct intervention in bank funding
markets (with all its encumbrance) will occur soon enough (and perhaps
that is why European financial credit is underperforming).
Expansionary
monetary policy constitutes a transfer of purchasing power away from
those who hold old money to whoever gets new money. This is known as
the Cantillon Effect, after 18th Century economist Richard Cantillon
who first proposed it. In the immediate term, as more dollars are
created, each one translates to a smaller slice of all goods and
services produced. How we measure this phenomenon and its size depends
how we define money.... What is clear is that the dramatic expansion of
the monetary base that we saw after 2008 is merely catching up with
the more gradual growth of debt that took place in the 90s and 00s.
While it is my hunch
that overblown credit bubbles are better liquidated than reflated (not
least because the reflation of a corrupt and dysfunctional financial
sector entails huge moral hazard), it is true the Fed’s efforts to
inflate the money supply have so far prevented a default cascade. We should expect that such initiatives will continue, not least because Bernanke has a deep intellectual investment in reflationism.
It's
happening again. The euphoria is fading in the critical fulcrum
security markets but stocks remain oblivious in their momentum-heavy
liquidity-less way. Spanish and Italian sovereign bonds ended weaker
- quite notably weaker in the case of Spain with the curve flattening
significantly as the much-heralded front-end started to give some back
and 10Y spain leaked back up towards 7% yields. Compared to post
Draghi-'believe' (and post-Draghi 'reality') the Spanish and Italian
stock markets are cock-a-hoop - massively outperforming. European equity markets in general are now the Usain Bolt compared with the Derek Redmond of European credit markets
as once again stock holders are either last to get the joke or first to
be ignorant enough to play the ECB's game of chicken. Spain's IBEX is
now +13% from Thursday's close, followed by Italy +10% - but Italy and
Spain 10Y bonds are still wide of the pre-Draghi 'reality' trough in
spreads. German and Swiss rates increased modestly today but the latter
remains negative out to 6Y.
UPDATE: Added Santelli carefully negotiating LeBeau's awesome optimism.
Like everywhere else, quality collateral is increasingly being soaked away and nowhere is this more evident than in the auto industry. We recently noted the significance of the auto industry and its self-fulfilling (and destroying) channel-stuffing 'mandates' around the world but today we get confirmation of the depths the car industry will stoop to. Via Subprime News, we see that Preferred Automobile Credit Co. (PACCO) is 'expanding' both the age and mileage limits of vehicles eligible for collateral, as "the pool of quality used cars has been shrinking, making it more challenging for dealers to find quality inventory". Of course, any 'knock' on the risk management or honesty or sustainability of an auto industry so much a part of the US recovery would not be complete without CNBC's Phil LeBeau's rebuff that the entire industry sees things as golden (in all its rear-view mirror glory) - we wonder what subprime lenders were saying about the environment for loans in 2006? And of course they can carry that 20% interest-rate, car prices never go down right?
Exactly
one year ago, the short-interest in SPY (the S&P 500 ETF) reached
epic heights at over 536mm shares. At the same time, short-interest in
QQQ (the Nasdaq ETF) also short-term peaked at over 116mm shares short.
While QQQ has seen a gentle drift lower in general (somewhat
reflective of trading volumes in the last few years), since July of
last year SPY has seen a 62% drop in short-interest and QQQ 59%. QQQ short-interest is now its lowest since October 2000 and SPY short-interest its equal lowest since October 2007 and so ammunition for charging this market higher seems to be running out. This is even more highlighted by the 45% and 30% plunge in QQQ and SPY short-interest in the last six weeks alone.
From the opening of this latest book on the government’s (mis)handling
of the 2008-9 financial crisis, Neil Barofsky establishes his populist
narrative from his two-plus years as the “TARP cop” overseeing the $700
billion big-bank bailout officially known as the Troubled Asset Relief Program.
Mr. Barofsky, a former Manhattan prosecutor, is the idealistic alien sent in an emergency to Planet Washington, where he does battle with the self-important, self-serving powers entrenched there or simply taking a spin through its revolving door to Wall Street. He is SIGTARP (in Washington-speak, the Special Inspector General for TARP). But ultimately he is outmatched, and evil triumphs over good.
In the preface to “Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street,” it is April 2010, and after more than a year on the job, Mr. Barofsky is meeting for a clear-the-air drink with one of his nemeses, Herbert Allison, the former head of the financial giants Merrill Lynch, TIAA-CREF and Fannie Mae, who came out of retirement to run the bank-rescue program for the Treasury Department. Mr. Barofsky, wearing an unseasonal wool suit at odds with a “Washington-appropriate wardrobe,” is poised to let the hostess seat them at a front table of her choosing, but Mr. Allison insists on a private table in the rear. Then he gets down to business.
Read More @ NYTimes.com
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While
all eyes are on the absurdist tragicomedy playing out in Europe, Japan
is quietly circling a financial black hole as its export economy is
destroyed by its strong currency and the global recession. There is a terrible irony in export-dependent nations being viewed as "safe havens."
Their safe haven status pushes their currencies higher, which then
crushes their export sector, which then weakens their entire economy and
stability, undermining the very factors that created their safe haven
status.Europe's Mountainous Divide And Why Draghi's Words Fixed Nothing
Two weeks ago we noted
the transmission channels that Mr. Draghi had pointed out having become
broken, clearly enunciating the chasm that is developing in the
interbank market. Goldman's Huw Pill takes this a step further and notes
a 'red line' - running along the Pyrenees and the Alps - that
has descended with banks south of this line having difficulty
accessing Euro interbank markets, whereas banks north of that
line remain better integrated and retain market access. This is the
exact segmentation that Draghi worries is interfering with policy
transmission (and thus affecting macroeconomic outcomes - in his view).
Banks in the periphery have been 'red-lined' and while last week's ECB
announcements initiated a policy response to this segmentation, the
obvious (to anyone who actually comprehends the situation) reality is that ECB purchases of government bonds does not eliminate this 'red line';
only convincing markets through fundamental adjustment (fiscal
consolidation, structural reform, and institutional building) will the
red-line be lifted. This is highly improbable in the short-term and
means an expectation of more direct intervention in bank funding
markets (with all its encumbrance) will occur soon enough (and perhaps
that is why European financial credit is underperforming).Flight of Capital From Europe Reflects Brewing Crisis
Eric De Groot at Eric De Groot - 5 hours ago
Capital fleeing Europe has reached staggering sums. Flight from Spain alone
has exceeded one fourth of their approximately $1.4 trillion GDP. Capital
has been fleeing a collapsing economy created by a combination of excessive
debts and austerity. This combination has created a deflationary depression
in Spain. Individuals and corporations either not subject to or able to
circumvent the new...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]Meet The "Labor Pool" - The Greek Version Of The Permanent Paid Vacation
Moments ago, members of the Greek government, which likely won't last long once the thorny issue of "math" returns and not even selling Bills to local banks (which promptly repo said Bills back to the Greek central bank) so the country can fund its payment to the ECB via an ECB guaranteed ELA payment from a Greek central Bank (confused yet) satisfies the New Normal ponzi math, made a strong statement: the country will not let any more public workers go:- VENIZELOS SAYS STICKS TO PLEDGE NO LAYOFFS IN PUBLIC SECTOR
- KOUVELIS SAYS CAN'T ADD MORE UNEMPLOYED TO RANKS
The Cantillon Effect
Expansionary
monetary policy constitutes a transfer of purchasing power away from
those who hold old money to whoever gets new money. This is known as
the Cantillon Effect, after 18th Century economist Richard Cantillon
who first proposed it. In the immediate term, as more dollars are
created, each one translates to a smaller slice of all goods and
services produced. How we measure this phenomenon and its size depends
how we define money.... What is clear is that the dramatic expansion of
the monetary base that we saw after 2008 is merely catching up with
the more gradual growth of debt that took place in the 90s and 00s.
While it is my hunch
that overblown credit bubbles are better liquidated than reflated (not
least because the reflation of a corrupt and dysfunctional financial
sector entails huge moral hazard), it is true the Fed’s efforts to
inflate the money supply have so far prevented a default cascade. We should expect that such initiatives will continue, not least because Bernanke has a deep intellectual investment in reflationism.European Stocks End Green; Sovereigns And Credit Not So Much
It's
happening again. The euphoria is fading in the critical fulcrum
security markets but stocks remain oblivious in their momentum-heavy
liquidity-less way. Spanish and Italian sovereign bonds ended weaker
- quite notably weaker in the case of Spain with the curve flattening
significantly as the much-heralded front-end started to give some back
and 10Y spain leaked back up towards 7% yields. Compared to post
Draghi-'believe' (and post-Draghi 'reality') the Spanish and Italian
stock markets are cock-a-hoop - massively outperforming. European equity markets in general are now the Usain Bolt compared with the Derek Redmond of European credit markets
as once again stock holders are either last to get the joke or first to
be ignorant enough to play the ECB's game of chicken. Spain's IBEX is
now +13% from Thursday's close, followed by Italy +10% - but Italy and
Spain 10Y bonds are still wide of the pre-Draghi 'reality' trough in
spreads. German and Swiss rates increased modestly today but the latter
remains negative out to 6Y.Desperately Seeking: Subprime Collateral
UPDATE: Added Santelli carefully negotiating LeBeau's awesome optimism.
Like everywhere else, quality collateral is increasingly being soaked away and nowhere is this more evident than in the auto industry. We recently noted the significance of the auto industry and its self-fulfilling (and destroying) channel-stuffing 'mandates' around the world but today we get confirmation of the depths the car industry will stoop to. Via Subprime News, we see that Preferred Automobile Credit Co. (PACCO) is 'expanding' both the age and mileage limits of vehicles eligible for collateral, as "the pool of quality used cars has been shrinking, making it more challenging for dealers to find quality inventory". Of course, any 'knock' on the risk management or honesty or sustainability of an auto industry so much a part of the US recovery would not be complete without CNBC's Phil LeBeau's rebuff that the entire industry sees things as golden (in all its rear-view mirror glory) - we wonder what subprime lenders were saying about the environment for loans in 2006? And of course they can carry that 20% interest-rate, car prices never go down right?
Short Squeezeability Of Two Main Market ETFs Slides To Multi Year Lows
Exactly
one year ago, the short-interest in SPY (the S&P 500 ETF) reached
epic heights at over 536mm shares. At the same time, short-interest in
QQQ (the Nasdaq ETF) also short-term peaked at over 116mm shares short.
While QQQ has seen a gentle drift lower in general (somewhat
reflective of trading volumes in the last few years), since July of
last year SPY has seen a 62% drop in short-interest and QQQ 59%. QQQ short-interest is now its lowest since October 2000 and SPY short-interest its equal lowest since October 2007 and so ammunition for charging this market higher seems to be running out. This is even more highlighted by the 45% and 30% plunge in QQQ and SPY short-interest in the last six weeks alone.Geithner Sacrificed Pensions Of Non-Union Delphi Retirees
Back in 2009 when the government sacrificed GM and Chrysler bondholders just so labor unions (read voters) can be made whole, the media, for various reasons, decided not to pursue the decision-making process that left some workers with their pensions wiped out, while others were made whole and suffered no losses (with a comparable lack of investigation being conducted as to the decisions that shuttered some Chrysler dealers, but left others operating, a topic Zero Hedge had some say over). In fact, as the Daily Caller reminds us "The White House and Treasury Department have consistently maintained that the Pension Benefit Guaranty Corporation (PBGC) independently made the decision to terminate the 20,000 non-union Delphi workers’ pension plan...Former Treasury official Matthew Feldman and former White House auto czar Ron Bloom, both key members of the Presidential Task Force on the Auto Industry during the GM bailout, have testified under oath that the PBGC, not the administration, led the effort to terminate the non-union Delphi workers’ pension plan." Turns out they lied... Under oath.
by Jackie Calmes NY Times:
From the opening of this latest book on the government’s (mis)handling
of the 2008-9 financial crisis, Neil Barofsky establishes his populist
narrative from his two-plus years as the “TARP cop” overseeing the $700
billion big-bank bailout officially known as the Troubled Asset Relief Program. Mr. Barofsky, a former Manhattan prosecutor, is the idealistic alien sent in an emergency to Planet Washington, where he does battle with the self-important, self-serving powers entrenched there or simply taking a spin through its revolving door to Wall Street. He is SIGTARP (in Washington-speak, the Special Inspector General for TARP). But ultimately he is outmatched, and evil triumphs over good.
In the preface to “Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street,” it is April 2010, and after more than a year on the job, Mr. Barofsky is meeting for a clear-the-air drink with one of his nemeses, Herbert Allison, the former head of the financial giants Merrill Lynch, TIAA-CREF and Fannie Mae, who came out of retirement to run the bank-rescue program for the Treasury Department. Mr. Barofsky, wearing an unseasonal wool suit at odds with a “Washington-appropriate wardrobe,” is poised to let the hostess seat them at a front table of her choosing, but Mr. Allison insists on a private table in the rear. Then he gets down to business.
Read More @ NYTimes.com
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from DoomBoomGloom:
from, The Daily Bell:
Majority of Wall Street dealers still expect Fed QE3
… Despite improved hiring last month, most Wall Street economists still
expect the Federal Reserve to do more to stimulate growth this year,
with the majority looking for action as soon as September. The median of
forecasts from a Reuters
poll of 17 primary dealers – the large financial institutions that do
business directly with the Fed – showed a 63 percent chance the central bank
will for the third time expand its balance sheet via large-scale bond
purchases. If the Fed does act, 13 said they thought it would do so at
its next policy meeting in September, up from eight in a July 6 Reuters
poll of 16 dealers. There are 21 primary dealers. Friday’s poll was
conducted after a government report showed employers added 163,000 new
jobs. – Reuters
Dominant Social Theme: We are doing all we can to benefit the average consumer and job-holder.
Free-Market Analysis: Here is a question that needs answering: Why is the Fed giving away money freely to big professional investors that hold massive amounts of government bonds (“quantitative easing) while starving small businesspeople and investors of loans?
In this article, we’ll try to provide an answer. Let’s re-examine the business cycle in order to set the stage for our analysis.
Read More @ TheDailyBell.com
Majority of Wall Street dealers still expect Fed QE3
… Despite improved hiring last month, most Wall Street economists still
expect the Federal Reserve to do more to stimulate growth this year,
with the majority looking for action as soon as September. The median of
forecasts from a Reuters
poll of 17 primary dealers – the large financial institutions that do
business directly with the Fed – showed a 63 percent chance the central bank
will for the third time expand its balance sheet via large-scale bond
purchases. If the Fed does act, 13 said they thought it would do so at
its next policy meeting in September, up from eight in a July 6 Reuters
poll of 16 dealers. There are 21 primary dealers. Friday’s poll was
conducted after a government report showed employers added 163,000 new
jobs. – Reuters Dominant Social Theme: We are doing all we can to benefit the average consumer and job-holder.
Free-Market Analysis: Here is a question that needs answering: Why is the Fed giving away money freely to big professional investors that hold massive amounts of government bonds (“quantitative easing) while starving small businesspeople and investors of loans?
In this article, we’ll try to provide an answer. Let’s re-examine the business cycle in order to set the stage for our analysis.
Read More @ TheDailyBell.com
by Patrick J. Buchanan, Lew Rockwell:
“Apart from political maps of mankind, there are natural maps of
mankind. … One of the first laws of political stability is to draw your
political boundaries along the lines of the natural map of mankind.”
So wrote H.G. Wells in What Is Coming: A Forecast of Things to Come After the War in the year of Verdun and the Somme Offensive.
In redrawing the map of Europe, however, the statesmen of Versailles ignored Wells and parceled out Austrians, Hungarians, Germans and other nationalities to alien lands to divide, punish and weaken the defeated peoples.
So doing they set the table for a second world war.
The Middle East was sliced up along lines set down in the secret Sykes-Picot agreement. But with the Islamic awakening and Arab Spring toppling regimes, the natural map of the Middle East seems now to be asserting itself.
Sunni and Shia align with Sunni and Shia, as Protestants and Catholics did in 17th-century Europe. Ethiopia and Sudan split. Mali and Nigeria may be next. While world attention is focused on Aleppo and when Bashar Assad might fall, Syria itself may be about to disintegrate p.
Read More @ LewRockwell.com
“Apart from political maps of mankind, there are natural maps of
mankind. … One of the first laws of political stability is to draw your
political boundaries along the lines of the natural map of mankind.”So wrote H.G. Wells in What Is Coming: A Forecast of Things to Come After the War in the year of Verdun and the Somme Offensive.
In redrawing the map of Europe, however, the statesmen of Versailles ignored Wells and parceled out Austrians, Hungarians, Germans and other nationalities to alien lands to divide, punish and weaken the defeated peoples.
So doing they set the table for a second world war.
The Middle East was sliced up along lines set down in the secret Sykes-Picot agreement. But with the Islamic awakening and Arab Spring toppling regimes, the natural map of the Middle East seems now to be asserting itself.
Sunni and Shia align with Sunni and Shia, as Protestants and Catholics did in 17th-century Europe. Ethiopia and Sudan split. Mali and Nigeria may be next. While world attention is focused on Aleppo and when Bashar Assad might fall, Syria itself may be about to disintegrate p.
Read More @ LewRockwell.com
A silver treasure from the 12th century has been found on the Baltic island Gotland, where over 600 pieces of silver coins have been unearthed, according to reports in local media.
from The Local:
“This is an amazing find. It’s unbelievable that treasures of this
scale exist here on Gotland,” Marie Louise Hellquist of Gotland’s County
Administrative Board (Länsstyrelsen) told local newspaper Hela Gotland.
The medieval treasure was uncovered last Monday, as the landowner was moving soil. Some 500 pieces of coin were discovered in the field, and following further searches conducted once archaeologists arrived on Wednesday, that figure has swollen considerably. “In total we’ve reached 650 pieces, so far,” Hellquist said.
Silver coins were not the only items discovered, as both jewellery and a raw silver artifact, which archaeologists believe to be part of an ancient axe, have been found at the site.
All the items are believed to be from the 12th century. “We’ve found coins dated 1130,” Hellquist said. It’s still too soon to say what the treasure may be worth, she pointed out.
Read More @ TheLocal.se
The Federal Reserve Bank (Fed) has added $210 million to the coffers of
a bank in need of cash. The Fed can add bank reserves to the system by
requesting bonds as collateral; this is called a repo.
For the first time since its more liberal usage in December 2008, the Fed has resorted to this type of lending. This means there are players in the U.S. banking system who need the incremental cash. We of course suggest readers saving (as opposed to investing) as storm approaches, not in paper, but in gold and silver coin.
Below is the rate at which the Fed lent the cash out. 17 bps (basis points), or 0.17%:
Notice the fact that it would cost the same bank .225 bps (below) for an overnight loan in the shadow banking private market, as opposed to the cheaper, longer termed loan from the Fed (above). The repo data is from the New York branch of the Fed, and the General Collateral Finance Repo (GCF Repo) rate is from the Depository Trust & Clearing Corporation (DTCC). This is the same rate (see below) that has been suggested to replace LIBOR, and is the top choice for the reference rate used in the new Treasury securities issued, Floating Rate Notes.
Read More @ WealthCycles.com
from The Local:
“This is an amazing find. It’s unbelievable that treasures of this
scale exist here on Gotland,” Marie Louise Hellquist of Gotland’s County
Administrative Board (Länsstyrelsen) told local newspaper Hela Gotland.The medieval treasure was uncovered last Monday, as the landowner was moving soil. Some 500 pieces of coin were discovered in the field, and following further searches conducted once archaeologists arrived on Wednesday, that figure has swollen considerably. “In total we’ve reached 650 pieces, so far,” Hellquist said.
Silver coins were not the only items discovered, as both jewellery and a raw silver artifact, which archaeologists believe to be part of an ancient axe, have been found at the site.
All the items are believed to be from the 12th century. “We’ve found coins dated 1130,” Hellquist said. It’s still too soon to say what the treasure may be worth, she pointed out.
Read More @ TheLocal.se
from Wealth Cycles:
The Federal Reserve Bank (Fed) has added $210 million to the coffers of
a bank in need of cash. The Fed can add bank reserves to the system by
requesting bonds as collateral; this is called a repo.For the first time since its more liberal usage in December 2008, the Fed has resorted to this type of lending. This means there are players in the U.S. banking system who need the incremental cash. We of course suggest readers saving (as opposed to investing) as storm approaches, not in paper, but in gold and silver coin.
Below is the rate at which the Fed lent the cash out. 17 bps (basis points), or 0.17%:
Notice the fact that it would cost the same bank .225 bps (below) for an overnight loan in the shadow banking private market, as opposed to the cheaper, longer termed loan from the Fed (above). The repo data is from the New York branch of the Fed, and the General Collateral Finance Repo (GCF Repo) rate is from the Depository Trust & Clearing Corporation (DTCC). This is the same rate (see below) that has been suggested to replace LIBOR, and is the top choice for the reference rate used in the new Treasury securities issued, Floating Rate Notes.
Read More @ WealthCycles.com
by Jesse Eisinger and Jake Bernstein, Pro Publica:
As ProPublica has been detailing for two years, Wall Street banks and
the hedge fund Magnetar worked together to build mortgage-backed deals
that the hedge fund also bet against [1]. The more than $40 billion of deals helped fuel the crash of 2008.
Now, recently collected emails from bankers and a Magnetar executive involved in some of the deals appear to shed new light on how they did it.
Fiduciaries threatened with a loss of business if they didn’t cooperate. Prime movers behind a billion-dollar deal suggesting they need to keep their actions hidden. It’s all portrayed in the emails, which were included as part of a civil lawsuit [2] against Magnetar filed in New York’s Southern District Court in late June. (Our reporting is also cited in the complaint.)
The suit was brought by Italian bank Intesa San Paolo, which lost $180 million on an investment linked to a mortgage bond deal put together by Magnetar and French bank Calyon. The deal was “built to fail,” in the words of the complaint.
Read More @ ProPublica.org
As ProPublica has been detailing for two years, Wall Street banks and
the hedge fund Magnetar worked together to build mortgage-backed deals
that the hedge fund also bet against [1]. The more than $40 billion of deals helped fuel the crash of 2008.Now, recently collected emails from bankers and a Magnetar executive involved in some of the deals appear to shed new light on how they did it.
Fiduciaries threatened with a loss of business if they didn’t cooperate. Prime movers behind a billion-dollar deal suggesting they need to keep their actions hidden. It’s all portrayed in the emails, which were included as part of a civil lawsuit [2] against Magnetar filed in New York’s Southern District Court in late June. (Our reporting is also cited in the complaint.)
The suit was brought by Italian bank Intesa San Paolo, which lost $180 million on an investment linked to a mortgage bond deal put together by Magnetar and French bank Calyon. The deal was “built to fail,” in the words of the complaint.
Read More @ ProPublica.org
from RussiaToday:
RT’s Laura Smith interviews economist Roger Bootle, who won the Wolfson Prize for developing a practical plan to dissolve the Eurozone.
RT’s Laura Smith interviews economist Roger Bootle, who won the Wolfson Prize for developing a practical plan to dissolve the Eurozone.
by Lawrence Williams, MineWeb.com
In seven of the past 10 years, gold has seen double digit percentage growth between end July and December. Blanchard analysts see this happening again this year and are looking for new price records ahead..
Blanchard & Company, the New Orleans-based specialist retailer of
American rare coins and precious metals has an Economic Research Unit
which is reckoned to be a key source of precious metals market analysis
and continues to be an important resource for financial and consumer
media throughout the US, thus its findings – although perhaps a little
precious metals biased – are always worthy of note.
In its latest analysis of the gold market, it notes that gold has largely been out of the headlines recently despite the fact that it has nearly doubled in price since its breakout four years ago and that as it enters its strongest season of traditional growth, the analysts suggest that factors are in place for gold to hit new record highs into 2013 and beyond.
Over the past decade, the analysts note, gold has experienced double digit percentage growth during the July 31-December 31 period in seven of those years, increasing 11 percent per year on average over the entire time period. If gold performs on this average in 2012 as they expect, it could easily retake the $1,800 level over the balance of the year.
Read More @ MineWeb.com
In seven of the past 10 years, gold has seen double digit percentage growth between end July and December. Blanchard analysts see this happening again this year and are looking for new price records ahead..
Blanchard & Company, the New Orleans-based specialist retailer of
American rare coins and precious metals has an Economic Research Unit
which is reckoned to be a key source of precious metals market analysis
and continues to be an important resource for financial and consumer
media throughout the US, thus its findings – although perhaps a little
precious metals biased – are always worthy of note.In its latest analysis of the gold market, it notes that gold has largely been out of the headlines recently despite the fact that it has nearly doubled in price since its breakout four years ago and that as it enters its strongest season of traditional growth, the analysts suggest that factors are in place for gold to hit new record highs into 2013 and beyond.
Over the past decade, the analysts note, gold has experienced double digit percentage growth during the July 31-December 31 period in seven of those years, increasing 11 percent per year on average over the entire time period. If gold performs on this average in 2012 as they expect, it could easily retake the $1,800 level over the balance of the year.
Read More @ MineWeb.com
from KingWorldNews:
Today acclaimed commodity trader Dan Norcini told KWN, “One spark for gold may be at some point in August we begin to have rumors about what is going to happen at the Jackson Hole meeting. The first round of QE was announced during that Jackson Hole Summit in late 2008. So the upcoming meeting may wind up being very significant when it comes to which direction central planners are going to take.
You may very well get a lift in gold based on the type of monetary response that may come out of Jackson Hole. The other situation which could escalate and have a huge impact in the key markets, particularly crude oil and gold, is the disintegration that is taking place in Syria.
If the war begins to engulf a broader scope of the Middle-East, bringing Israel and Iran into conflict, that powder keg could create an explosion higher in the price of both crude oil and gold…. ”
Dan Norcini continues @ KingWorldNews.com
from Infowars:
It is possible that they are being shipped to an army base in Southern California to be painted with camouflage. But no Southern California civilians have ever seen so many tanks before.
Keep watching as they roll on and on (Warning – explicit language):
Last year, German exports rode to a new record, jobs were being created in massive numbers, real wages rose, housing and real estate boomed, the federal budget was nearly balanced, and consumers felt good and spent money. There were moments in 2012 that made people dream of a repeat performance—despite the havoc that the Eurozone debt crisis has been wreaking.
Whatever was happening, Germany would be able to make up for declining exports to the Eurozone with strong exports to Asia and the US. Internal demand would remain solid. And this illusion of durable economic strength and fiscal virtue has tainted the discussion about saving the euro, bailing out debt-sinner countries in return for austerity measures, and keeping the European Central Bank in check.
But now the crisis has moved from Germany’s front yard to its doorstep and is about to enter its living room. Beer sales, for example. That the German Federal Statistical Office tracks them shows just how crucial a staple beer is. Alas, beer sales to customers in Germany dropped 2.3% in the first half over the same period last year, and ominously, exports dropped 2.9% [for the worldwide beer phenomenon, beer consumption per capita, and where the growth really is, read.... Beer, A Reflection Of The World Economy?]
Read More @ TestosteronePit.com
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Today acclaimed commodity trader Dan Norcini told KWN, “One spark for gold may be at some point in August we begin to have rumors about what is going to happen at the Jackson Hole meeting. The first round of QE was announced during that Jackson Hole Summit in late 2008. So the upcoming meeting may wind up being very significant when it comes to which direction central planners are going to take.
You may very well get a lift in gold based on the type of monetary response that may come out of Jackson Hole. The other situation which could escalate and have a huge impact in the key markets, particularly crude oil and gold, is the disintegration that is taking place in Syria.
If the war begins to engulf a broader scope of the Middle-East, bringing Israel and Iran into conflict, that powder keg could create an explosion higher in the price of both crude oil and gold…. ”
Dan Norcini continues @ KingWorldNews.com
from Infowars:
It is possible that they are being shipped to an army base in Southern California to be painted with camouflage. But no Southern California civilians have ever seen so many tanks before.
Keep watching as they roll on and on (Warning – explicit language):
from Testosterone Pit.com:
Last year, German exports rode to a new record, jobs were being created in massive numbers, real wages rose, housing and real estate boomed, the federal budget was nearly balanced, and consumers felt good and spent money. There were moments in 2012 that made people dream of a repeat performance—despite the havoc that the Eurozone debt crisis has been wreaking.
Whatever was happening, Germany would be able to make up for declining exports to the Eurozone with strong exports to Asia and the US. Internal demand would remain solid. And this illusion of durable economic strength and fiscal virtue has tainted the discussion about saving the euro, bailing out debt-sinner countries in return for austerity measures, and keeping the European Central Bank in check.
But now the crisis has moved from Germany’s front yard to its doorstep and is about to enter its living room. Beer sales, for example. That the German Federal Statistical Office tracks them shows just how crucial a staple beer is. Alas, beer sales to customers in Germany dropped 2.3% in the first half over the same period last year, and ominously, exports dropped 2.9% [for the worldwide beer phenomenon, beer consumption per capita, and where the growth really is, read.... Beer, A Reflection Of The World Economy?]
Read More @ TestosteronePit.com
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