Cyprus: Will We Ever Learn?
by Miguel Perez-Santalla, BullionVault
Monday, 25 March 2013
So Cyprus got its IMF-ECB bail out. But have bank savers elsewhere got the message yet…?
OVER the last 30 years I have seen a lot of changes in the financial markets.
One of the biggest changes by far was the formation of the European single currency – the Euro. Prior to its existence all of today’s 17 member countries had their own currencies. Italy, [...]
from Bullion Street:
Marking the onset of a multi-currency reserve system and a new era in world money, the IMF formally classified two commodity-rich currencies, Australian and Canadian dollar, as official reserve assets.
From next year, the International Monetary Fund can ask member countries to include the Aussie and Loonie (Australian and Canadian dollars respectively) in statistics supplied by reserve-holding nations on the make-up of their central banks’ foreign exchange reserves.
Presently, the IMF [...]
NY Times: CATALONIA may be the catalyst for a renewed wave of separatism in the European Union, with Scotland and Flanders not far behind. The great paradox of the European Union, which is built on the concept of shared sovereignty, is that it lowers the stakes for regions to push for independence.
While a post-national European Union may be emerging out of the euro zone crisis, with a drive for more fiscal [...]
One in five people in recession-hit Spain would like to ditch the euro and return to the peseta, a poll published on Sunday showed.
Twenty-one percent of Spaniards said they would like to return to the peseta, the country’s currency until it switched over to the euro in 2002, according to the Metroscopia survey published in daily newspaper El Pais.
Seventy percent of those surveyed said Spain should stay within the common [...]
September 3, 2012
Former Malaysian First Minister Harris Saleh: “The Security Council will pave the way to setting up of a World Parliament and a World Cabinet making the UN the most powerful and having full authority on earth.”
Yesterday the Malaysian Daily Express reported on a plea by former Malaysian “first minister”, Harris Salleh calling on the United Nations to reform itself, changing the current system to a single “World Parliament with [...]
While ever so politically correct in their response and positive about the need to protect an ailing banking system, the Finns have said ‘ei’ - which means ‘no’ – to the pooling of funds.
“Finland considers that the proposed directive is called for but does not support any national funding arrangements would be required to borrow funds for national funding arrangements in other member countries.”
Posturing? maybe. Negotiating? perhaps. An unequivocal show of support for [...]
Jens Weidmann makes the cover of Der Spiegel
* German central bank concerned at ECB’s changing role
* Says bond proposal looks like printing cash to fund govts
* Interview published ahead of Sept. 6 ECB meeting
FRANKFURT, Aug 26 (Reuters) – The head of Germany’s Bundesbank stepped up his opposition to the European Central Bank’s latest moves to battle the euro zone’s debt crisis on Sunday, saying that plans to buy bonds [...]
ALEXANDROUPOLIS, Greece — At the train station here, an unshaven man with a weary look leaned against the brick wall of a building, taking in the morning sun.
He said that his name was Zulifoar Baht; that he was 38, from Pakistan; and that his train for Athens would not arrive until midafternoon. So there was nothing to do but wait, along with a dozen or so other illegal immigrants who [...]
Euro zone stocks could plummet up to 50 percent if Greece makes a disorderly exit from the euro zone, a research note from Societe Generale said on Friday.
In the note, Claudia Panseri, head of equity strategy at Societe Generale, said the DJ Euro Stoxx 50 [.STOXX50E 2161.87 --- UNCH ], an index of leading euro zone shares, could halve if a disorderly Greek exit caused two years of declining profits in the euro zone, plus risingbond yields and [...]
In an interview in The Daily Telegraph, Theresa May says “work is ongoing” to restrict European immigration in the event of a financial collapse.
People from throughout the EU, with the exception of new member countries such as Romania and Bulgaria, are able to work anywhere in the single market.
However, there are growing concerns that if Greece was forced to leave the euro, it would effectively go bankrupt and millions [...]
Earlier we mentioned that the finalists for the latest Wolfson Economics Prize have been revealed.
The prize is offering a substantial amount of money to the contributor who offers the best idea for a breakup of the Eurozone.
One paper, which we had read previously, is Jens Nordvig and Nick Firoozye’s Planning for an orderly break-up of the European Monetary Union.
Before it was a submission to a contest, it was a Nomura research paper that came out [...]
At this weekend’s G20 meeting, European countries are likely to press for an increase in the International Monetary Fund’s resources as a means to bolster the firewalls against the eurozone debt crisis. The other G20 members must resist such pressure until Europe starts showing more signs that its getting its act together.
The balance sheet of the IMF is already heavily exposed to the eurozone crisis. Greece, Ireland and Portugal [...]
(Reuters) – The World Bank on Friday launched the nomination process to select a new president to succeed Robert Zoellick when he steps down in June, inviting names from any of its 187 member countries.
The board said in a statement nominations had to be submitted by March 23 and it hoped to select its top choice by the time of the World Bank and IMF meetings in April.
It said it [...]
With gold and silver on the move, and growing concerns about the health of the banking system on both sides of the Atlantic, today King World News interviewed Chris Whalen, from Tangent Capital. When asked about the record demand for gold and panic in Europe, Whalen stated, “Well they should be. We have paralysis, in terms of fiscal policies, as you know. Most of the EU governments are still not willing or [...]
by Simone Foxman
One of your New Year’s resolutions is probably to better balance your professional life with your personal life. If not, it should be.
So how do you accomplish this?
Perhaps the easiest thing to do is move to a country where the locals are already very happy with their work-life balance.
In October, the Organization for Economic Cooperation and Development (OECD) published the results of a survey of Work-Life Balance in its member countries. It [...]
Thu Dec 22, 2011 7:41pm EST
(Reuters) – IMF chief Christine Lagarde on Thursday urged member countries to quickly sign off on an agreement last year to double IMF resources and give under-represented nations, such as China, greater voting power in the global lender.
The changes to members’ quotas, which determine how much each country contributes to the IMF and their voting shares, are critical as aeuro zone debt crisis escalates and is set [...]
In his latest weekly letter, hedge fund manager John Taylor says that for all the experimentation and aggression that Ben Bernanke has exhibited, the risks to the Fed don’t hold a candle to the risks facing the ECB right now.
Even the name European Central Bank should catch in our throats as there is no Europe. There is no
country, no Treasury standing behind this bank. The only thing that unites its seventeen member
countries is [...]
Nov 1 (Reuters) – Iran’s oil minister said on Tuesday that current international crude prices are “good” and predicted that prices will remain unchanged until March.
“The current oil prices are good … we are not expecting the prices to change in winter,” Rostam Qasemi told a news conference.
Brent crude has averaged over $111 this year and traded over $109 a barrel on Monday.
Oil prices slipped on Tuesday on a stronger [...]
October 11, 2011 | 12:00 am
It’s all Greece’s fault. That’s what a lot of Europeans secretly—or not so secretly—think as they grumble at the prospect of coming up with yet more money to bail the eurozone out of its debt crisis. But what if that easy view of how Europe landed in its current predicament is not just simplistic, but wrong?
Nonsense, argue the grumblers. [...]
By William L. Watts
FRANKFURT (MarketWatch) — Slovakia’s Freedom and Solidarity party said it won’t participate in a Tuesday vote on revamping the 440 billion euro ($601.2 billion) European Financial Stability Facility, likely leaving the ruling coalition short of the votes needed to win approval. Earlier, Prime Minister Iveta Radicova tied the vote to a no-confidence motion in the government, upping pressure on Freedom and [...]
If there is one thing that matches John Paulson’s dramatic conversion to the anti-Midas of our times, it is Tim Geithner’s uncanny ability to say something only to be proven to be a pathological liar within months if not weeks (who can possibly forget: “Is there a risk that the United States could lose its AAA credit rating? Yes or no?” “No risk of that.”). [...]
France on Sunday staked the future of the European Union on the fate of the euro, saying the economic and political union at the heart of Europe would be at risk if the single currency were allowed to be torn apart by the region’s sovereign debt crisis.
French Foreign Minister Alain Juppe gave a frank assessment on Sunday of the consequences of a [...]
With gold prices hitting a record high on Wednesday, here are the 10 countries holding all the cards when it comes to gold reserves, according to the World Gold Council.
The United Kingdom lags well behind in 17th place in the world league table. Britain currently holds 310.3 tonnes of gold, valued at $13.8bn.
As Chancellor of the Exchequer, Gordon Brown sold 395 tonnes of UK reserves between [...]
Following its admission yesterday that it is now buying oil by telling clients to sell Brent to $105-107 a monther after advising anyone who cares Brent was on its way to $130, today we learn that Goldman is actively dumping its prop, pardon, there we go again, flow, FLOW, inventory of oil equities to idiots, pardon, clients. As to how dropping crude prices and [...]
(Reuters) – Secretary of State Hillary Clinton has been in discussions with the White House about leaving her job next year to become head of the World Bank, sources familiar with the discussions said Thursday.
The former first lady and onetime political rival to President Barack Obama quickly became one of the most influential members of his cabinet after she began her tenure at State [...]
Members of armed police force wait for inspection during a joint anti-terror drill in Kaxgar, northwest China’s Xinjiang Uygur Autonomous Region, May 6, 2011. China, Kyrgyzstan and Tajikistan, all member states of the Shanghai Cooperation Organization (SCO), Friday conducted a joint anti-terror drill in Xinjiang, according to a statement issued by China’s Ministry of Public Security. Code-named “Tianshan-II (2011),” the exercise involved law enforcers [...]
PARISâ€”Top officials from the Group of 20 industrialized and developing nations have agreed to draw up a “limited set” of indicators aimed at curbing global economic imbalances and better coordinate economic policies, but have yet to decide what those indicators will be, according to an early draft of a statement due to be released by the G-20 on Saturday.
Finance ministers of G-20 countries, joined [...]
Some sober data on who are the top 5 contributors to IMF:
#1 – US with $106 bil
#2 – Japan with $102 bil
Distant #3 – China with $48 bil
Distant #4 – Germany with $39 bil
Distant #5 – France with $28 bil
A â€œWho Is Whoâ€ Of Countries About To Fund The IMFâ€™s Bail Out Of Europe
Courtesy of Tyler Durden
When back in April we wrote about the huge expansion in the [...]
Total PIIGS funding needs (defined as the sum of debt maturities and budget deficits) over the next 3 years amount to $2 trillion. Total PIIGS funding needs in 2010 alone amount to $600 billion. Total IMF bail out capacity: around $700 billion. Sorry – it simply does not compute.
The IMF primarily funds itself through payments of quotas from member countries, which is based on the countryÃ¢â‚¬â„¢s relative size in the [...]
The scientist and researchers from Oxford University argue that official figures are inflated because member countries of the oil cartel, OPEC, over-reported reserves in the 1980s when competing for global market share.
Their new research argues that estimates of conventional reserves should be downgraded from 1,150bn to 1,350bn barrels to between 850bn and 900bn barrels and claims that demand may outstrip supply as early as 2014. The researchers claim it is [...]
U.S.-owned assets abroad
U.S.-owned assets abroad increased $294.1 billion in the third quarter,
following a decrease of $37.4 billion in the second.
U.S. claims on foreigners reported by U.S. banks and securities brokers
increased $240.1 billion in the third quarter, following an increase of $27.2
billion in the second. (Examples of these claims are U.S. residentsÃ¢â‚¬â„¢ deposits at
banks abroad and loans by U.S. banks and securities brokers to foreigners.)
Net U.S. purchases of foreign securities were [...]