Archive - Dec 2012 - Blog entry

In about five years the wheels will fall off the cart.

The US dollar's recent losses are being extended at the start of the new week.  The announcement of the details of the Greek bond buy-back scheme has triggered a sharp rally in peripheral bond yields, while the euro area Nov manufacturing PMI is reported at 8-month highs, even if still below the 50 boom./bust level at 46.2.  The euro has completely recouped the knee-jerk losses scored in thin activity just before the weekend when Moody's announced a cut in the ratings for the EFSF, which follows its recent downgrade of France.

"The problem is, if they think they're not doing anything that's wrong, they don't get to define that. The central government does."

The problem with this market is that it can't seem to sell off enough to produce a sustainable rally. There are not enough bears or bulls.

After all, it's about the money. Right?

Right now the world produces more Oil than it consumes each day, and it has for the past 16 months, this trend will only get worse in 2013.

Two critical developments give us clues that the days of Central Bank intervention holding the system together are coming to an end.

“The euro has profound economic advantages and is the most powerful symbol of European integration,” said 11 EU foreign ministers. What were they smoking?