Archive - Mar 2013 - Blog entry

Yi Gang, Vice Governor of the People's Bank of China (PBOC), recently made the headlines with his comments on Chinese gold reserves. On Wednesday, Mr. Yi stated that China's gold reserves remain static at 1,054 tonnes, and suggested that a sizeable increase in those reserves would be unlikely in the future. "We need to take into account both the stability of the market and gold prices," Mr. Yi stated, adding that as the world's largest gold producer and importer, China produces about 400 tonnes of gold annually, and imports an additional 500 to 600 tonnes of gold every year. "Compared with China's 3.3-trillion-U.S.-dollar foreign exchange reserves, the size of the gold market is too small," Yi said, rejecting speculation that China would further diversify its foreign reserve investments into the precious metal. "If the Chinese government were to buy too much gold, gold prices would surge, a scenario that will hurt Chinese consumers ... We can only invest about 1-2 percent of the foreign exchange reserves into gold because the market is too small," Yi stated.

Just a reminder: this time won't be different.

An update on Cyprus and what else the week has in store.

The root of the problem is the manufacture of counterfeit credit. Examples of counterfeit credit include Greek government bonds... Depositors are paid the lowest interest rate of all, and in return are promised to be made whole, even if it means every other class in the capital structure is utterly wiped out. In Cyprus, they were not. This reckless and politically-expedient decision has consequences.

Going visual postal on the Euro creeps...

What to make of this development?

Obama Is Worse than Bush In Favoring the Super-Elite, Bailing Out the Big Banks, Protecting Financial Criminals, Targeting Whistleblowers, Keeping Government Secrets, Trampling Our Liberties and Starting Military Conflicts In New Countries

Die you Banksta scum!

The smart folks are telling everyone to risk everything & jump on board the volumeless, momentum driven equity elevator and ignore those annoying doom & gloom blogs. 

If any person is too big to prosecute then your justice system is a sham, a lie, a farce, a joke, a bastardization of all that America used to stand for.

“Financial stability has not been assured”

A dispassionate discussion of developments in Cyprus and a few broader implications.

Asia has badly lagged U.S. and European stock markets this year and over the past 12 months. We explain why it's happened and why it may continue.

A weekly overview of the technical condition of a number of currencies against the US dollar. It is meant to compliment and supplement fundamental analysis. We retain a mostly favorable outlook for the US dollar, though skeptical of the scope for additional significant gains against the Japanese yen.