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One way or another, losses incurred by the central bank will end up on the taxpayer’s plate,” said Brosens.

QE3 next month and the ECB buying up bonds in the euro zone, analysts at ING in Amsterdam have been asking if it is possible for a central bank to go bust.

“With governments increasingly unable or unwilling to further stimulate the economy, eyes are turning to the central banks once again,” said Teunis Brosens, a senior economist at ING in notes sent to [...]

Gold’s Seasonal Strength – July to December Could See $1,800/oz Challenged and Deepening Eurozone and U.S. Debt Crisis

Gold is trading at $1,504.13/oz, €1,039.34/oz and £933.89/oz.

Gold is higher today and showing particular strength against the euro and the Japanese yen. The relief rally seen in equities since the latest Greek ‘bailout’ is under pressure as S&P have said the debt rollover proposal would be a “selective default”. The ECB may selectively reject the S&P Greek downgrade and arbitrarily select the best credit rating being [...]

Portuguese, Spanish, Irish, and Italian 10-Year Yields (Mish)

1) Stress Increases in Eurozone; Portuguese, Spanish, Irish, and Italian 10-Year Yields All Make New Highs (Mish)

“Eurozone sovereign debt yields pushed higher across the board today. Irish debt has topped 12% for the first time, Italian debt topped 5% and most Euroland debt yields are at all times high spreads compared to Germany.

Significantly, yields are at fresh new highs for Spain, Italy, Ireland and Portugal.

If by any chance [...]