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China Just Threatened a Currency War If the Fed Doesn’t Stop Printing

by Phoenix Capital Research

The tension between Central Banks that we noted yesterday continues to worsen. This time it was China and the EU, not just Germany, that fired warning shots at the US Fed.

A senior Chinese official said on Friday that the United States should cut back on printing money to stimulate its economy if the world is to have confidence in the dollar.

Asked whether he was worried about the [...]

An outrageous holiday scandal could push the euro crisis back into the headlines again

From Bloomberg:

Just before Christmas, I met with former Greek Finance Minister George Papaconstantinou, and he talked about how excited he was to spend the holidays abroad, where – unlike in Greece – he could roam freely without a security detail. His holiday didn’t go quite as expected.

On Dec. 28, Papaconstantinou was accused of removing names from a list of Greeks with Swiss bank accounts – the so-called Lagarde list – [...]

Euro Holding Gains Despite France Downgrade, Indian Banks Banned from Lending for Gold Purchases

London Gold Market Report

from Ben Traynor

BullionVault

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 [...]

France Faces Major Test as It Enters ‘Danger Zone’

Having been in power for less than two months Francois Hollande is facing the first major test of his pro-growth election (related: 10 Game-Changing Elections) commitments after a warning from the national audit office that France’s economy is in the “danger zone” and risks falling into a “debt spiral.”

Late on Monday the national audit office said the French budget deficit will overshoot by 6-10 billion euros ($7.56-12.6 billion) this year and by 33 [...]

Spain Seeks United Effort on European Banks; Pressure Builds on Merkel

Spanish Prime Minister Mariano Rajoy said European leaders should reinforce efforts to protect euro- area banks, ratcheting up pressure on German Chancellor Angela Merkel to back new ideas for a resolution of the debt crisis.

With markets bracing for further deterioration in Spain’s finance sector and a possible Greek departure from the 17-member euro area, Rajoy on June 2 added his voice to calls for a more robust “banking union” in Europe, lending his support for [...]

Revealed: IMF boss who said Greeks should not be given tax relief earns $460,000 tax-free salary, more than Mr Obama and Mr Cameron combined for running a country!

Questioned about Greek crisis head of IMF said country can help itself collectively ‘by paying all their tax’
Suggests that IMF’s money would be better spent on African children than on people in Athens
Lagarde takes home £298,675-a-year untaxed
Receives further tax-free allowance package of £52,000

The head of the International Monetary Fund who controversially proposed that struggling Greeks should pay taxes contributes nothing herself to the public purse.

Christine Lagarde openly criticised citizens of [...]

Christine Lagarde, scourge of Greek tax evaders, pays zero tax

IMF boss who caused international outrage when she suggested that Greeks should pay their taxes earns a tax-free salary

Kim Willsher
Guardian
May 29, 2012

Christine Lagarde, the IMF boss who caused international outrage after she suggested in an interview with the Guardian on Friday that beleaguered Greeks might do well to pay their taxes, pays no taxes, it has emerged.

As an official of an international institution, her salary of $467,940 (£298,675) a year plus $83,760 additional allowance [...]

We can’t time the total collapse, but as the leaders of the world become more insane by the day (and they are), it could be close.

France just went bonkers again with their commie government:

PARIS (AFP)–Greece’s exit from the eurozone risks causing an “unpredictable” spread of the debt crisis, a scenario which France will work to avoid at all cost, French Finance Minister Pierre Moscovici said Tuesday.
“Everything must be done to help pro-European and pro-euro forces in Greece,” ahead of repeat elections due next month, Moscovici said, citing “measures to boost growth and give back hope [...]

With Europe Broken Again, Sarkozy And Lagarde Are Back To Begging

by ZH

 

What a difference a month makes. About 4 weeks ago the European crisis was “over” – French President Sarkozy exclaimed that: “Today, the problem is solved!” Christine Lagarde, former French finance minister, and current IMF head following the framing of DSK, added that “Economic spring is in the air!”… Fast forward to today when following the inevitable end of the transitory favorable effects of the LTRO (remember: flow not stock, a/k/a the [...]

Geithner endorses Merkozy plan

French President Nicolas Sarkozy (R) shakes hands with US Treasury Secretary Timothy Geithner (L) while French Finance Minister Francois Baroin looks on at the Elysee Palace in Paris on December 7, 2011. Geithner is in Europe to hold talks with EU leaders about the state of the eurozone ahead of an emergency summit in Brussels later this week. UPI/David Silpa

BRUSSELS, Dec. 8 (UPI) — U.S. Treasury Secretary Timothy Geithner endorsed a plan [...]

FRANCE WARNS OF EURO ‘EXPLOSION’

US Treasury Secretary Timothy Geithner voiced confidence that Europe will beat its …

 

By Michael Mainville

(AFP) French Finance Minister Francois Baroin, left, welcomes US Treasury Secretary Timothy …

Economic powerhouse Germany played down hopes Wednesday that a crucial debt summit will save the euro as French President Nicolas Sarkozy warned the risk of a eurozone ”explosion” was very real.

Piling the pressure on EU leaders due to meet in Brussels from Thursday, Standard and Poor’s put a number [...]

The European crisis explained:

The European Banking Crisis: Assessing the Damage and a Look Ahead

Editor’s Note: This is the first installment in a two-part series on the European banking crisis.

Related Links

Special Series (Part 2): Looking Ahead in the European Banking Crisis
Europe: The State of the Banking System
Navigating the Eurozone Crisis

Europe faces a banking crisis it has not wanted to admit even exists.

The formal authority on financial stability, International Monetary Fund (IMF) chief Christine Lagarde, [...]

France and Germany Split on Crisis Solution

A French-German split over Europe’s rescue strategy emerged as finance ministers prepare to meet in Brussels tomorrow under pressure to craft a solution to the region’s debt crisis.

With a summit scheduled two days later, a disagreement over theEuropean Central Bank’s role threatens to stymie progress on the banking and economic questions needed to deliver the comprehensive strategy demanded by global policy makers. Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group [...]

Drowning in debt, EU hits moment of truth

Nearly two years in, Europe’s leaders bid to draw a line under the debt crisis this week and deliver a “lasting” solution to ring-fence their money and prevent EU disintegration.

The stakes are high, in the run-up to marathon Brussels talks amid global pressure to end in-fighting and avert the “scary” future US President Barack Obama fears otherwise awaits us all.

But Europe remains steadfast. “The results [...]

Deadline set for eurozone solution

By Europe correspondent Emma Alberici, wires

http://www.abc.net.au/news/2011-10-16/de…

Finance ministers at the G20 meeting in Paris have given the leaders of eurozone nations a deadline of next week to come up with a solution to the crippling debt crisis.

The summit of EU leaders in Brussels next weekend is seen as the final chance for the eurozone leaders to agree on a way to stop the spiralling debt problems from [...]

8 DAYS

(Reuters) – The world’s leading economies pressed Europe on Saturday to act decisively within eight days to resolve the euro zone’s sovereign debt crisis which is endangering the world economy.

In unusually direct language, finance ministers and central bankers of the Group of 20 major economies said they expected an October 23 European Union summit to “decisively address the current challenges through a comprehensive plan”.

French Finance [...]

Europe rejects U.S. approach to financial crisis, stirring doubts about plan

European officials have rejected key recommendations from the United States and the International Monetary Fund, casting doubt on whether an emerging plan to address the region’s financial crisis will be as broad or fast acting as hoped.

As crisis negotiations continued this weekend, European officials said they had reached general agreement on a response they were confident would restore faith in European banks and government [...]

Telegraph: G20 finance ministers gather as time runs out

Telegraph

Top of the agenda will be ratification of the European Financial Stability Facility’s new powers. Photo: Patrick Frilet / Rex Features

By Philip Aldrick, Economics Editor

Global imbalances are as entrenched as they ever were. Budget deficits dominate the political agenda, with countries from the US to Italy to Greece still grappling unsuccessfully with their debts. Trade imbalances continue to warp economies, as [...]

Meltdown Part 2: A global financial tsunami

In the second episode of Meltdown, we look at how the financial tsunami swept the world. We hear about a renegade executive who nearly destroyed the global financial system and the US treasury secretary who bailed out his friends.

Henry ‘Hank’ Paulson, the former CEO of Goldman Sachs and later an economic advisor to the US government; refused to bail out global financial services firm – the [...]

Europe Weighs Speedier ESM Enactment to Stem Crisis, Draft Shows

By James G. Neuger September 23, 2011, 1:53 PM EDT

 

(Bloomberg) — European governments are exploring speeding the setup of a permanent rescue fund as the urgency mounts to halt the debt crisis, an internal working paper shows.

Drawing on paid-in capital, the fund will wield a 500 billion-euro ($677 billion) war chest that could help shield countries like Italy. It also includes provisions for sharing costs with [...]

GLOBAL ECONOMY PUSHED TO BRINK

From FT:

Time is running out to find a solution to the eurozone crisis and prevent another global recession, finance ministers warned on Friday, as they hinted that discussions were under way to boost the firepower of European rescue funds.

Financial markets experienced another day of intense volatility as investors struggled to interpret an emergency statement from the Group of 20 leading economies, which met on [...]

LAGARDE: ‘Real risk major economies will slip back’

 

WASHINGTON (AP) — The head of the International Monetary Fund called Thursday for bold and collective action to combat a slowing global economy and a worsening European debt crisis.

IMF Managing Director Christine Lagarde also said she welcomed President Barack Obama’s U.S. job-creation plan in light of the unemployment crisis in the United States.

Lagarde will preside at her first annual meeting of the 187-nation lending [...]

Merkel Will Press Obama And The Fed To Help Bail Out The Eurozone.

We’re at the end of “extend and pretend.” The crisis of the Eurozone is now acute. The headlines are specific. The best analysis suggests that only extraordinary action can keep it afloat. And even that would work only to delay the inevitable for a month or two more.

The reality is that the Eurozone no longer offers any good option for continued unity. As an Italian [...]

Crunch time for G7

France’s ancient city of Marseille seems the perfect setting for people without a care in the world. But for those at this weekend’s meeting of the G7 it is the backdrop to a deeply gloomy global economic outlook with finance chiefs under heavy pressure to come up with solutions. As delegates began to arrive for the talks, France called for a coordinated response [...]

News That Matters – 8/29/11

By www.thetrader.se

Ft.com
European officials rounded on Christine Lagarde on Sunday, accusing the managing director of the International Monetary Fund of making a “confused” and “misguided” attack on the health of Europe’s banks. Ms Lagarde, the former French finance minister who replaced Dominique Strauss-Kahn as head of the IMF in July, used her address at an annual meeting of central bankers in Jackson Hole, Wyoming, to call for [...]

CHINA: ‘Good old days’ of borrowing are over; Call for another global reserve currency

* China renews call for another global reserve currency

* G7 major powers to confer on markets crisis – source

* Obama says let’s work together

 

(Adds German reaction, analyst, ECB sources on Italy bonds)

By Walter Brandimarte and Melanie Lee

NEW YORK/SHANGHAI, Aug 6 (Reuters) – China bluntly criticised the United States on Saturday one day after the superpower’s credit rating was downgraded, saying the “good old days” of borrowing were over.

Standard & Poor’s [...]

IMF head Lagarde concerned that shares would fall if US debt ceiling isn’t raised soon, she also says it could cause a so called ‘jobless recovery’:

The new head of the International Monetary Fund (IMF), Christine Lagarde, has warned the “clock is ticking” on a deal to tackle the US deficit and raise its debt ceiling.

Unless politicians agree a package by 2 August the US may be unable to pay its bills, triggering an economic crisis.

On Tuesday the dollar fell against the euro whilst US shares closed down.

But Ms Lagarde warned against [...]

IMF could pick Lagarde as soon as today

WASHINGTON (AP) — French Finance Minister Christine Lagarde is expected to be chosen as early as Tuesday to be the new leader of the International Monetary Fund.

Lagarde would be the first woman to lead the lending organization. She would replace Dominique Strauss-Kahn, who resigned last month after being charged with sexually assaulting a New York City hotel housekeeper. Lagarde was opposed by Agustin Carstens, a Mexican central [...]

IMF poised to choose Lagarde as next leader

WASHINGTON (AP) — French Finance Minister Christine Lagarde is expected to be chosen as early as Tuesday to be the new leader of the International Monetary Fund.

Lagarde would be the first woman to lead the lending organization. She would replace Dominique Strauss-Kahn, who resigned last month after being charged with sexually assaulting a New York City hotel housekeeper. Lagarde was opposed by Agustin Carstens, [...]

Uncertainty persisted over the outcome of Greece’s 5-Year austerity package vote in the Parliament on Wednesday as lawmakers continued to switch sides

by ZH

From Ran Squawk:

Uncertainty persisted over the outcome of Greece’s 5-Year austerity package vote in the Parliament on Wednesday as lawmakers continued to switch sides
French Finance Minister Lagarde said that the government has a first draft for a deal with French banks on a Greek debt rollover
According to ING, Fitch could downgrade Italy after Moody’s placed the country’s sovereign rating on watch negative earlier this month
According [...]