Many are the events, signals, and telltale clues of a real live actual systemic failure in progress. Until the last several months, such banter was dismissed by the soldiers in the financial arena. But lately, they cannot dismiss the onslaught of evidence, a veritable plethora of ugly symptoms of conditions gone terribly wrong and solutions at best gone awry and at worst never intended in the first place. My theory has been steady from the TARP Fund scandal and the Too Big To Fail mantra of deceit. The plan all along since the breakdown began in September 2008 has been to preserve power, to maintain intact the insolvent banks an operational crew of zombies, to aid the financial sector bound in Wall Street, to pay benign neglect to Main Street and businesses (expect for symbols like General Motors), to expand the propaganda of a fictional recovery, and to maintain the endless wars. The wars serve two purposes, to enable significant fraud from overcharged services, and to hold open the gateways for sizeable money laundering flows into the Wall Street banks, those hollow structures that closely resemble a coke addict with dark teeth, wretched bones, wasted organs, lost attention, and a listless gait. The Greek showcase is coming to a neighborhood near you in Western Europe and Great Britain, soon to feature debuts across North America. No, the United States is not immune from the horrors of ruin since its marquee billboards read Zero Percent. It only means the wrecking ball works from the inside out, serving as the central needle in the Black Hole. An outline of the End Game can be written. This article is not comprehensive by any means. But it serves as a decent posting on an outhouse wall. Consider the following as musings in observation of Uncle Sam on death row. They bear no logical flow, just random concepts.
Why Read: Because the referenced article is a well-balanced, well-written, very brief - albeit somewhat simplistic - overview of the economic models of the United States and the Eurozone. The article also speaks to China and briefly references Brazil and India. Featured Article: An article Monday written by Robert Samuelson, a Washington Post syndicated columnist. In this article, Mr. Samuelson describes the economic model of:
Nouriel Roubini and Ian Bremmer of Eurasia Group appeared on "Bloomberg Surveillance" with Tom Keene, Sara Eisen and Ken Prewitt today to discuss Europe's debt crisis. On Germany bailing out other euro zone countries, Roubini said, "The Germans say, 'you lost your virginity. Now you sign a contract. You say, 'I'm a born again virgin.' Be abstinent for the next two years. Show me your soul and two years from now, we're going to get married. But today, I commit to marriage today? Forget it.'
A fiscal union, a banking union, a United States of Europe has arrived! Don’t believe it? Just like many newborns, this one has its shares of wrinkles, but what you see is what you get. We discuss a tough love approach to move forward in Europe, as well as implications for currencies.
The global economy continues to falter and the pace of that slowdown is picking up. Recent data showed that German consumer confidence dropped the most since 1998, as Italian confidence dropped to an all-time record low. The level of Spain's non-performing loans reached the highest since 1994. And Chinese consumer loan demand fell to the lowest since 2004, as their PMI continues to drop further below the line of expansion. To round things out, U.S. job openings fell by 325k, the most since September 2008. Meanwhile, the Philadelphia PMI fell the most in nearly a year and despite record low borrowing costs, Existing Home sales fell 1.5% in May.
In July 2010 we published a piece suggesting the two year cycle low in Tech was scheduled to bottom in August. It did, and the stock market soared. This year, two years later, we are expecting it to bottom in July. Typically during bull markets it bottoms in Q3, and in Q4 during bear markets.
U.S. DOLLAR gold prices dropped as low as $1565 an ounce during Wednesday morning's London trade – 1.4% down on this week's high – before recovering some ground by lunchtime, while stock markets posted slight gains ahead of tomorrow's European Union summit. Silver prices traded below $27 an ounce for most of this morning, while other industrial commodities were broadly flat on the day by lunchtime.
Today's AM fix was USD 1,567.50, EUR 1,255.31, and GBP 1,003.39 per ounce. Yesterday’s AM fix was USD 1,583.25, EUR 1,267.41, and GBP 1,013.73 per ounce. Silver is trading at $26.85/oz, €21.59/oz and £17.87/oz. Platinum is trading at $1,416.00/oz, palladium at $580.00/oz and rhodium at $1,190/oz.
Don Miller writes: Despite the efforts of Federal Reserve Chairman Ben Bernanke and his cohorts, it looks like gridlock in Congress will push us into a recession in 2013, if not sooner. In case you haven't been paying attention, "Taxmageddon," and election-year politics have driven the economy to the edge of a "fiscal cliff." This means the start of next year, unless drastic measures are taken in Washington, is looking precarious for investors.
Peter Krauth writes: Something's afoot in the world of high stakes finance. The Basel Committee for Bank Supervision (BCBS) is about to decide something crucial to bankers, sovereign nations, and gold investors alike.