Archive - Apr 22, 2011

Not content with rising by a dollar during all recent regular work days, silver is now up a buck on a holiday. Doesn't make much sense, but we'll take it.

If rising oil pushes the real economy over the cliff, voters will not be re-electing incumbents in 2012. Welcome to reality, Ben. Your "let's pretend the recovery is real" game is nearing an end. If you push the dollar down any more, then oil will go up and tip the real economy into a recession that QE3 will only make worse as you send the dollar into freefall. If the dollar rises, then your beloved "wealth effect" dies a horrible death on the rocks below. Take your pick, but choose wisely.

It appears rumors that Greece is set to restructure its debt are about to come true. According to Greek daily Ta Nea, reported by the Guardian, "the government was mulling "a velvet restructuring" that would include extending outstanding debt and a voluntary agreement with lenders to modify repayment terms." More: "Greece  is considering ways to restructure its debt – such as by extending the life of its loans – two national newspapers claimed on Friday, joining a flurry of recent reports on the prospect that Athens might be forced to default." Not surprising, this comes hot on the heels of continued lies about the stability and viability of the eurozone and the euro, which recently surged to nosebleed levels only to allow it to drop from the highest possible position when the realization that the dominoes are falling finally sets in. But never one to be bound by the confines of reality, where one is accountable and responsible for their actions¹ (1: except all millionaires and billionaires bailed out by the Bernanke Put), Greece is now calling in Interpol to put the blame for its latest and greatest bankruptcy on a Citigroup trader: "A London trader working for US bank Citigroup  is to be questioned by investigators over an email at the centre of an investigation by the Greek authorities into rumours that Athens could be forced to restructure its national debt as early as this weekend." So, it is a trader fault for pointing out the market's reaction to what is so glaringly obvious even a caveman finance minister from Athens will realize it, and not the fact that one needs to apply a new Excel #Ref! patch in order to express Greek debt to GDP. The lunacy. The lunacy.

It has been done before (here, here and here) and it certainly will be done again. In the meantime, here is Adolf, reprising in his now traditional role as Jamie Dimon, learning that the Comex is out of silver.

Over the past two days we reported (here and here) on the Shanghai trucker protests over high has prices and low wages, which from peaceful promptly turned violent as more people joined the clashes against police (it appears only in America do people not protest these things). Today we present a first person recount of what is really happening in China, as unfortunately nothing coming out of the world's "fastest growing" economy can be relied upon.

According to incoming reports, a protest in Damascus has turned violent and possibly deadly after security forces used teargas and live ammo to disperse protesters. Reuters reports: "At least three protesters were injured on Friday when Syrian forces fired live rounds at a large pro-democracy demonstration in the Damascus suburb of Douma, a witness said. "Thousands took to the streets in Douma. I helped carry three people the bullets hit in the leg," the witness said." Sky News adds: "Syrian security forces have used teargas to disperse protesters in the capital Damascus, according to reports. It follows reports the Syrian army was deployed overnight in the city of Homs - ahead of Friday prayers. Syria's protest movement has promised a day of demonstrations on what it is calling 'Great Friday'." Ironically all this happens just after the country's age old emergency laws were lifted earlier this week "to herald a new era in human rights." Perhaps rights to get shot in the head? Either way, with Syria oil production minimal, do not expect any imminent intervention by the globocops in the imminent future, unless violence threatens to spill over into the Golan Heights.

Is Canada's largest pension fund manager building a future on solid foundations? You bet it is...