VIDEO: Remember The Last Run On The Dollar?

Thursday, October 28, 2010

History repeats itself. It only gets more expensive with every time. Watch this video (h/t @fiatcurrency) on the turmoil 30 years ago when OPEC members withdrew a mere $5.5 billion in money market funds, sparking golds vertical move to $850.
This time not even $5.5 TRILLION will help if institutions like JP Morgan sit on $45 Trillion in derivatives.
And you still think there will be any other end to this than an unorderly unwind, to say the least? Think again, the flicker of bad headlines looks increasingly as history will repeat itself again.

Remember, we are now in the 4th year of the financial crisis and there has not been a single measure of regulation that has gone into effect.
Derivatives? Not a single step taken!
Hedge funds? EU regulations will come in 2018!
Banks? Basel 3 will set into motion in 2019!
But we have a crisis TODAY!
Those responsible for the crisis are still in office! Why?

Austria Gets Lower Rating From Chinese Rating Agency Dagong

Tuesday, October 26, 2010

Austria was only rated AA+ by Chinese Rating Agency Dagong, Bloomberg reported last week. Note the focus on decreased financial strength.
From Bloomberg:
Dagong Global Credit Rating Co., the Chinese firm seeking to become an alternative to Standard & Poor’s, Moody’s Investors Service and Fitch Ratings, graded Austria’s government debt lower than that of Hong Kong.
Austria is rated AA+, Dagong’s second-highest ranking and a step below Hong Kong’s top AAA grade, the Beijing-based company said in an e-mailed statement today. Austria, Europe’s 14th- biggest economy, has the highest ratings from Moody’s, S&P and Fitch
Austria’s "financial strength has noticeably decreased. The export destination structure which relies heavily on the internal market of the eurozone encumbers its economic growth," Dagong said in the statement.

20.10.2010 - The Day The EU Started Dying

Thursday, October 21, 2010

20.10.2010. Mark this date red. It will be historically regarded as the day the concept of the European Union (EU) started dying. The old continent gets engulfed in protest waves that span from Portugal to Romania and will soon reach probably every member state with the exception of micro-sized Luxembourg once the public receives more information on austerity cuts in the 2011 budgets.
The situation is now getting hairier with every day and it exceeds this blogger's capacities to list all stumbling blocks on the way to a kind of European Orwellian integration envisioned by its leaders, but increasingly resisted by the sovereigns.
I once started this blog to be 5 years ahead of Moody's to ask whether the US' AAA-rating was in jeopardy. It was an easy world then. All you had to do was to lip-read Alan Greenspan's mysterious descriptions of markets to arrive at the conclusion that gold had only one way: upwards on the back of the decline of today's major fiat currencies.
Today's bullet points in OpenEurope's daily email digest of Europa discordia would have yielded several blog posts then. This is beyond the capacity of a single blogger.
Check yourself and remember this is only one day of bad news:
  1. The FT has a memo from Trichet’s office, which says Trichet does not like the deal on the stability pact;
  2. leak shows that there a serious differences over policy at the top level of the eurozone;
  3. Merkel has obtained an assurance from Sarkozy to support the idea of replacing the EFSF with a tough anti-crisis mechanism (in addition to a treaty change to withdraw voting rights, as already reported);
  4. vote on French pension reform is delayed, as protests continue;
  5. in Portugal, uncertainty over the budget continues;
  6. Commission proposes new EU watchdog to deal with cross-border banks in trouble;
  7. Commission also proposes EU-wide taxes to fund EU budget;
  8. Berlusconi and Tremonti plan a big reform of Italy’s budget process;
  9. James Hamilton considers the arguments against QE, and finds some of them convincing;
  10. a Spanish municipality, meanwhile, has become the first to suspend payments to its debtors.

Wikinvest Wire