By Greg Hunter’s USAWatchdog.com
Legendary trader Yra Harris says, “The currency wars are real, and the game is on.” Harris says the global currency war is what helped Volkswagen gain market share in the last few years. So, what is Japan doing? It is cutting the value of its currency so Toyota will gain market share….
US to Win Currency War, Then ‘Implode’: Schiff
…”There is a currency war going on,” Schiff said at the Inside ETFs [...]
Slams Federal Reserve Policy
Sky News notes:
“According to the BIS’ latest Quarterly Review financial markets are starting to behave in some of the ways they behaved before the crash. In particular, investors seem to be chasing riskier and riskier assets, despite the fact that the economic prospects are hardly all that great.
Here is the key passage from the BIS report: “Some asset prices started to appear highly valued in historical terms relative to indicators [...]
The world’s economy is in peril, and it doesn’t look like Singapore will be spared.
The government knows it, saying we have to be prepared for slow growth and periods of recession in the advanced economies in the next three to four years. Ministers telling us to save money for a rainy day, a lowered economic projection, all of this happening recently.
And it looks like even the average person on the [...]
London Gold Market Report
from Ben Traynor
Tuesday 20 November 2012, 07:30 EST
Euro Holding Gains Despite France Downgrade, Indian Banks Banned from Lending for Gold Purchases
SPOT MARKET prices for buying gold traded above $1730 an ounce throughout Tuesday morning in London, up 1% for the week so far, while the Euro also held onto gains made yesterday despite news that a second ratings agency this year has downgraded France.
Gold rose by more than $20 [...]
Massive anti-austerity strikes and protests swept across Europe as millions took to the streets to express their frustration over rising unemployment and dire economic prospects. Many rallies ended with violent clashes with police.
Workers marched in 23 countries across Europe to mark the European Day of Action and Solidarity.
General strikes had been called in Spain and Portugal, paralyzing public services and international flights, in Belgium and France transport links were partially [...]
MORGAN STANLEY: The ECB’s New Plan Is ‘Quite Likely’ To Deepen Europe’s Recession
…the OMT will probably deepen the recession in Europe, according to Mutkin:
The paradox of sovereign thrift
Certainly, the near-term outlook for peripheral bond yields is greatly improved by the instigation of the OMT. But we are concerned that, taken as a whole, the architecture surrounding the OMT programme is pro-cyclical and therefore potentially self-defeating.
The prior condition for activation of [...]
Sep. 7, 2012
Markets are loving the ECB’s new bond-buying plan announced yesterday. Many Wall Street strategists have expressed cautious optimism since ECB President Mario Draghi revealed the details of the rescue program designed to bring government borrowing costs down in Italy and Spain.
Morgan Stanley rates strategist Laurence Mutkin is one of them – at least, for now. In a note today titled OMT – OMG!, Mutkin wrote that the ECB’s new plan provided “ample [...]
Is Italy Following the Footsteps of Greece? Does Italy or Germany Exit the Eurozone First?
As I watch the implosion of Greece, with shops closing everywhere and GDP plunging like a rock, I cannot help but wonder if we are witnessing the start of a similar trend in Italy.
To be sure, Italy has a manufacturing base that Greece does not have, but retail aspects and shop closings in Rome as compared [...]
Declining confidence in the nation’s economic prospects appears to be the most powerful force influencing voters as the presidential election gears up, undercutting key areas of support for President Obama and helping give his Republican challenger, Mitt Romney, an advantage on the question of who would better handle the nation’s economic challenges, according to the latest New York Times/CBS News Poll.
Despite months of negative advertising from Mr. Obama and his Democratic allies [...]
This means a comparable drop in store for Spanish bonds and all the related securities in Europe, which courtesy of the bailout are all now daisy-chained.
“Spain’s Housing Market May Need Four More Years To Rebalance
The unwinding has begun: House prices have dropped 22% in nominal terms between first-quarter 2008 and first-quarter 2012, according to the Organization for Economic Cooperation and Development. That’s more than in any other eurozone country except [...]
Bank of England policymakers may opt to inject a further £50bn of stimulus into Britain’s ailing economy this week, according to leading economists.
Worsening economic prospects could force the hand of the Bank’s Monetary Policy Committee, which last month voted to pause its purchase of government bonds after pumping £325bn into the market through quantitative easing.
Since then however, the data have painted a picture of a worsening, not improving outlook for [...]
MADRID — At least 100,000 Spaniards angered by grim economic prospects and the political handling of the international financial crisis turned out for street demonstrations in the country’s cities Saturday, marking the one-year anniversary of a movement that inspired similar pressure groups in other countries.
Tens of thousands of protesters in Madrid flooded into the central Puerta del Sol plaza in the evening and aimed to stay for three days. But [...]
Hillary Clinton sides with Palestinians over Republicans, Sara Sorcher of National Journal reports:
Secretary of State Hillary Rodham Clinton is allowing U.S. funds to flow to the West Bank and Gaza despite a hold by House Foreign Affairs Committee Chairwoman Ileana Ros-Lehtinen, R-Fla., a rare display of executive-branch authority sure to anger the key lawmaker concerned about protecting her congressional oversight role.
A State Department official said that the letter was delivered on Tuesday to key members of [...]
Seven months after the official announcement on 9/21/11 of “Operation Twist” not much progress has been made at the long end of the market to reduce yields. The yield on the 10-year T-note has gone from 1.88% to 2.3% and the 30-year bond went from 3.03% to 3.41%. The episode has been marred by hedge fund and sovereign selling, which has left the short end a little higher, but the [...]
There is growing chatter in economics circles about the unsettling possibility that the nation may never recover completely from the recent recession.
Recessions are generally regarded as abnormal disruptions and recoveries as inevitable returns to normalcy — in large part because that is how the economy has behaved for more than a century. Even after the Great Depression, growth returned to its long-term trend; it just took a while.
The bleaker view – [...]
Late last year we wrote that India’s economic decline was one of the most under reported stories of the year and showed that investors were fleeing India.
In a new note, Jefferies analysts Nilesh Jasani and Piyush Nahar write that India’s economic slowdown has been driven by a collapse in the investment cycle that is “far from being played out.”
Jasani and Nahar write that India suffers from having a risk-averse investor class, and [...]
The Atlanta branch of the privately owned Federal Reserve Bank has just released the incredibly timely opus on short-term stock trading titled “Playing the Field: Geomagnetic Storms and the Stock Market.” Thankfully, this piece of Federal Reserve brilliance was funded by taxpayers.
“Specifically, people affected by geomagnetic storms may be more inclined to sell stocks on stormy days because they incorrectly attribute their bad mood to negative economic prospects rather than [...]
Below is a note from Alan Boyce at Absalon regarding inverse floaters, a subject that goes to the heart of the debate over whether Fannie Mae and Freddie Mac are preventing millions of lower income home owners from refinancing. You can see my 2011 post on the Boyce-Mayer-Hubbard proposal for streamlined mortgage refinancing here:
Not only is the large bank-GSE cartel preventing millions of Americans from refinancing, but these same cartel players are [...]
As of Q3 2011, the citizens of less than 20% of the countries involved in Nielsen’s Global Consumer Confidence, Concerns, and Spending Intentions Survey were on average confident in their future economic confidence. Not surprisingly, Nic Colas of ConvergEx points out, six were in Asia, the least confident were in Eastern and Peripheral European nations, and furthermore overall global consumer confidence remains 9.3% below 2H 2006 (and 6.4% below Q4 2010) readings [...]
While economic data may be manipulated daily, and markets can be pumped in any of many different ways (such as the ongoing preparation by the ECB to accept any collateral for the upcoming LTRO which will bring the ECB’s deposit facility usage to $1 trillion), there is one true indicator of economic prospects: immigration. Long a target for immigrants from all over the world, something has changed very drastically for Italy in [...]
Paul Craig Roberts
January 6, 2012
Jobs offshoring, financial deregulation, and ten years of wars have severely damaged the US economy and the economic prospects of 90% of the American population. The signs are everywhere in front of our eyes. They are in the income distribution data, the BLS jobs data, the Census data, the poverty figures, and the high number of food stamp recipients.
There is no safety in a police state [...]
UK steel production at one of the largest remaining plants to be mothballed, with redundancies, as demand collapses:
The hot strip mill at Llanwern steelworks in south Wales is be temporarily mothballed, with the loss of 115 jobs.
Tata Steel blamed the move on “continuing poor UK steel demand”.
The GMB union described the decision as “a devastating blow for the UK steel industry”.
Welsh Secretary Cheryl Gillan said it was important that [...]
The Chinese government will boost its stakes in the country’s largest banks, as it attempts to shore up slumping financial stocks and to restore investor confidence.
Central Huijin, the domestic arm of China’s sovereign wealth fund, will purchase shares in Agricultural Bank of China, Bank of China, China Construction Bank and Industrial and Commercial Bank of China, the official Xinhua news agency announced on Monday. Xinhua [...]
Antonio Borges, IMF Europe director, recommends ‘changing economic policy’ away from austerity and back towards US and British-style stimulus. Photo: AP
Mr Borges, who was issuing the IMF’s economic outlook for Europe in Brussels, cited the possibility that “activity will turn downwards”.
The IMF still expects 1.1pc growth for the eurozone next year, but admits it got earlier 2011 forecasts wrong and angled the 100-page [...]
This article originally appeared in the Daily Capitalist. It was written by DoctoRx who writes market commentary for us.
On Monday, Sept. 19, I suggested that the price of gold was vulnerable, and also suggested that the stock prices of miners were a better intermediate-term bet. This was two days before the FOMC meeting, which much of the “smart money” expected would produce a Jobsian “one thing more” [...]
From the Handelsblatt:
At the meeting of the Shadow ECB Council on 1 September 2011, a three-fifths majority supported an unchanged policy stance of the ECB, but with a bias towards easing. Three of the 15 members favoured an immediate 50bp rate cut. There was a strong consensus that economic prospects had deteriorated markedly in the euro area. Members revised [...]
New York Mayor Michael R. Bloomberg and the hedge-fund tycoon George Soros have pledged $30-million each for a far-reaching new effort to improve educational and economic prospects for the city’s young black and Latino men, writes The New York Times.
The gifts from the two billionaire philanthropists will be part of a three-year, nearly $130-million City Hall-run program, which the mayor is to formally announce [...]
I mentioned in mid June how the ECRI had turned bearish on economic prospects in the intermediate to longer term [Jun 14, 2011: [Video] ECRI’s Achuthan – Prolonged US Slowdown Underway] and this morning on CNBC co-founder Lakshman Achuthan is sticking to his guns despite an ‘uptick’ in economic data the past week or so. Indeed, he is calling for the slowdown to continue through ‘at least’ [...]