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Frontrunning: June 21
- China turns tables on AAA debt time bomb nations (Bloomberg)
- Gold at new record high after Saudi reserves double (FT)
- Germany and France examine two-tier euro (Telegraph)
- So that's why investors can't think for themselves (WSJ)
- Failed AAA-deal rated Rembrandt spurs outcry (Bloomberg)
- Medvedev sees chance for new world order (FT)
- Amid the crisis, Wall Street touted BP stock (Reuters)
- Gold reclaims its currency status as the global economy unravels (Telegraph)
- Romania's health service on bring of collapse (WSWS)
- Adjustments to the Basel II market risk framework announce by the Basel Committee (BIS)
- An important podcast on shadow money and the boom and bust cycle (Taking Hayek Seriously)
- Out, damned spill, out: BP's hypocrisy problem - and ours (NY Mag)
- London's Citi buys BP as Wall Street flees risk in US (Bloomberg)
- And more entertainment: Papandreou says budget cuts will overcome investors' skepticism (Bloomberg) - sure, if by investors he means the ECB and the IMF
- Broken Keynesian record: Spend now, save later (NYT)
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aah the sweet taste off iressponsible governement ...................
Plus Ca Change...
Even with the depegging of the yuan from the dollar, most traders are maintaining forecasts for the yuan to rise a maximum 3 percent in 6 months and 5 to 6 percent in a year.
http://www.reuters.com/article/idUSTRE65K2CQ20100621
Krugman, like a broken record, spend, spend, spend. -13 Trillion votes....
Paul, where is the stopping point 20 or 30 Trillion. Or is it actually infinity.
Keynesian economics will be totally discredited when this is over!
Keynesian economics will be totally discredited when this is over!
i am afraid it will not only be a matter of keynesian versus the world when this is over, what i mean is that we might face a shitload of political dumbness and irresponsability .
it will be good for my portfolio of gold and other assets yet the situation we are facing will bring a lot of social unrest and geopolitical tension and thats the thing that really keeps me awake
Krugman and his Keynesian pals forget one simple fact. Most consumers, formerly known as citizens, are tapped out and QE1 is wearing off fast.
China has just announced 'Check'. When QE2 wears off, China will announce 'Check Mate'...though it will not be verbal...simply deafening silence.
The admin will try to talk tough on the deficit, making token changes, and the Fed will behave dovishly of course and implement QE 2.
Meanwhile Merkel (http://www.thelocal.de/article.php?ID=27969&print=true) and Harper (http://www.ft.com/cms/s/0/2c15e9fc-7bc1-11df-aa88-00144feabdc0.html?ftcamp=rss) appear to be telling Obama to "stuff it".
Should be a "fun" G20 meeting, this.
Obamatron should heed Candide's (Voltaire) advice and: "Tend to his own garden."
Guess China is thinking the US might be a bad investment. Let's see if they begin to seriously shed their USTs. If they can create their own domestic demand...the US will become somewhat useless.
What would happen to the USD if the Yuan became the next world currency?
'What would happen to the USD if the Yuan became the next world currency?"...not soon to happen but...
Like pigeons coming home to roost...Treasuries and FRNs coming home to the US. Lots and Lots of them. Think prisioners dilemma...first out the door gets best price.
Got gold?
The Bloomberg link above is an extrodinary piece for Bloomberg. Worth a read. Points the finger where it belongs. In the mirror.
For those that do not subscribe to FT:
Saudi Gold
http://www.cnbc.com/id/37818810
Medvedev
http://www.infowars.com/medvedev-sees-chance-for-new-world-order/
Thanks for the FT article.
From AP:
The increases, recorded in SAMA's April Monthly Statistical Bulletin, however fail to even remotely explain the more than doubling of its gold reserves, as reported by the World Gold Council.I wonder what that means. Possibly they were accumulating on the sly?
Read more: http://www.idahostatesman.com/2010/06/21/1239334/saudi-gold-reserves-over-twice.html#ixzz0rVFItCJD
Guten Morgen my fellow traders...I have an elementary question, folk lore has it that if one anticipates inflation to "load up" on Gold, Silver, and Oil. I'm trying to figure out why Saudi Arabia, who seems to have more than it's share of abundance in the latter, would need to load up on the former?
Another question, I'm assuming that dark pools that operate off the exchanges seem to match large block buys and sells. I'm further assuming since these prices aren't published to all, and access to them is restricted, that they might be immune to high frequency trading?? It seems to me that if I'm trying to work off a 50,000 share order, it would be in my best interest to just go to a dark pool and try to find a match, rather than to try to unload in 5000 share blocks where HFT's would be nickel and diming each step of the way. If so, I could see where dark pools would actually be beneficial to mutual funds, pensions, etc.
Thanks for the info.
Biff
" I'm trying to figure out why Saudi Arabia, who seems to have more than it's share of abundance in the latter, would need to load up on the former?"
Why not load up on gold when one loses faith in all fiat?
Dark pools? If they can be accessed only by CBs, IMF, World Bank, BIS, why would they let you or I play in their game?
Why not load up on gold when everyone loses faith in fiat, and oil demand falls off a cliff as credit continues to contract... and political pressures and public sentiment from the largest oil consumer demand alternative energy sources...
Saudi's oil reserves are dwindling. Oliver North wrote a book detailing this, and I think others have documented it as well. The Saudi fortune of oil will not last forever. Since gold is the best store of wealth, the Saudi's are apparently interested in storing their fortune instead of spending it all since it won't last forever.
for the dark pool, go to their sites check who the members are. more than likely they will even then only take the business if you are a "Wealth Management" client
Crossing Arizona
In a press conference ignored by the American national media, the sheriff described how his deputies were outmanned and outgunned by the cartel smugglers who increasingly operate using military tactics and weapons. The result, said Sheriff Babeu, was that a wide corridor of Arizona from the border North to the outskirts of Phoenix is effectively controlled by the cartels. "We do not have control of this area," the sheriff said.
http://www.economicroadmap.com/2010/06/crossing-a-dangerous-threshold.html
Well theres the problem. The sign says if you see suspicous activiity do NOT CONFRONT. It should say. If you see suspicious actiivity watch it through binoculars till you know what's going on then fire off till all the people doing bad things are dead.
Front run this too
"China can disconnect parts of its internet in times of war, and we need to have that here too."... politician and all-American Joe Lieberman
http://www.youtube.com/watch?v=P1caZvxMUWk
Alex Jones on Lieberman - http://www.infowars.com/lieberman-china-can-shut-down-the-internet-why-cant-we/
Great line from the "Failed AAA-deal rated Rembrandt spurs outcry" article describing Wall St. as:
"the bewilderment machine"
I like that. I'm going to use it every chance I get.
Too bad Paul Krugman sounds just like a drug addict when he states quite clearly; Give me my medicine because the idea of withdrawal is too painful to contemplate.
No crap withdrawal is gonna hurt Mr. Krugman. Each day your policies remain in effect we risk monetary death and ever greater pain when we must withdrawal from our collective addiction to those Goldman Sachs of pixie dust which is your and the collective "our" drug of choice.
Two tier Euro? More like Germany will be the top tier and every other EU country will sink to their own level. The advantage of knowing the country of origin for each Euro is that is that there can be a different exchange rate between countries. The Greek Euro can sink to the level required. Only Germany and France have the ability to export their way out of the EU abyss. Everyone else is going to have to inflate their way out. France will be lucky if they can hold onto the second position. This will require the French to start exporting to countries on the US embargo list. For example, the Iranians needs a lot of stuff. France is one of the few countries that could supply much of it. When push comes to shove you can kiss old allegiances goodbaye.
Cheap vacation in one of the PIIGS anyone?
"This will require the French to start exporting to countries on the US embargo list. For example, the Iranians needs a lot of stuff. France is one of the few countries that could supply much of it."
I really like the learning that comes from reading and considering these posts.
Letting the US dictate your foreign policy has not been a winner for many countries. The Turks lost huge due to the US embargo and invasion of Iraq. The Europeans could be selling lots of stuff to the Iranians. Airbus planes and helicopters, satellites, cars, heavy trucks, construction, medical, telecomunications and refining equipment. You name it and the Iranians need it. The only winners I see are Israel and the Chinese.
The advantage of knowing the country of origin for each Euro is that is that there can be a different exchange rate between countries.
Then why not go back to DeutschMarks, Francs, Drachmas, etc?
front run this too.
Introducing Euphoria Drive and the "road to nowhere".
http://www.youtube.com/watch?v=R4biMclPsYQ
the dumbesttt idea I have heard, so after the second and third tier fails, we will have deutsche marks ha::))