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Frontrunning: September 8
- Gold rallies past $1,000 an ounce on momentum and dollar (Reuters)
- Dollar falls to 11 month low, Bernanke will not be satisfied until it hits 0 (FT)
- Oil follows gold higher as dollar gets hammered (AP)
- And another nail in the USD's coffin: Beijing issues first 6 billion, non-dollar denominated renminbi bond sale (FT)
- The next financial crisis: It's coming and we just made it worse (New Republic)
- UN wants new global currency to replace dollar (Telegraph)
- European countries call on G-20 to curb banker bonuses (USA Today)
- Public or private, excessive debt must eventually be lanced (Telegraph)
- Michael Moore declares all-out war on capitalism (LA Times)
- Time running out for bipartisan health compromise (AP)
- Broken record: LSE welcomes HFT as source of liquidity (FT and LSE)
- Regulators agree tough rules on bank capital (FT)
- Bernanke: Central bankers' Bob The Builder (Merk Mutual Funds)
- RBS hires Goldman to seek buyer for aircraft-leasing unit. They should consider trouble free and Goldman Conviction Buy Textron (WSJ)
- Update on "A Tale Of Two Depressions" (Vox, h/t Geoffrey)
- Bankers and beavers (Cumberland Advisors)
- McDonald's loses trademark fight against McCurry; McMansion still available (AP)
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You mean that the current financial crisis is over? Far from it.
"The UK and the US do, however, have one large and significant advantage over the worst affected countries in South and East of Europe, and this lies in the fact they can issue debt in their own currency, and they can allow that currency to devalue, and that in fact is the road that both these countries are now going down. But remember, the result of this is that US and UK consumers will now play little part in facilitating headline growth in the global economy, since they themselves will now be net savers. But most of the worst affected East European economies are either locked-into currency pegs with the euro (the Baltics and Bulgaria), or cannot devalue very far due to the strong dependence on forex loans (Romania and Hungary) or both. Nor can these countries realistically expect to issue debt in their own currencies. So they are in effect in a very parlous situation, on financial life support from the EU and the IMF, while unable to make sufficient adjustments sufficiently quickly to stop unemployment rising out of hand, and non performing loans piling up in the banking sector."
Link: http://fistfulofeuros.net/afoe/economics-and-demography/there-is-another...
Tyler: And another nail in the USD's coffin: Beijing issues first 6 billion, non-dollar denominated renminbi bond sale
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This isn't the first issuance of panda bonds. They started in 2005, with the IFC issuing panda bonds with the funds on lent to Chinese companies. http://www.ifc.org/ifcext/treasury.nsf/content/imh_pandabond. Then this summer, the first non-PRC companies (HSBA and STAN) started to issue panda bonds. http://www.reuters.com/article/rbssFinancialServices%20-%20Diversified/idUSSHA27639720090618
PRC allowing non-PRC companies (especially banks) to issue panda bonds is the real news. That is a real step toward making the RMB a reserve currency. Of course, knowing how crappy investors most governments are, it wouldn't surprise me one bit if PRC is screwing itself by selling treasuries and lending RMB at a point when USD and treasuries are cheap.
If China makes a play for becoming reserve currency they will get a whole lot of scrutiny they don't want...
http://video.iptv.org/video/1218530801
http://www.foreignpolicy.com/articles/2009/09/03/how_china_cooks_its_boo...
Followed this website for awhile. Great read. Finance is not my field but I am vividly interested in money management. I am not sure if anyone has discussed the following on this board. The little things the government does to keep this stock market afloat -- in today's news -- Tax Notes Today - "Obama Unveils Guidance Aimed at Boosting Individual Savings for Retirement"
It has been in the works and now it is reaffirmed that retirement plans will become opt out instead of opt in. In my book this means retail liquidity inflow will be up (aka - dumb money in the system). Soon you will have to tell your employer that you do not want any of your salary to go to the garbage being sold on wall street. Good day.
Thanks for the link to the Simon Johnson piece at New Republic. Great read.
All we need now is a supermodel to declare she will no longer accept payment in dollars and an Economist cover stating "The End of the US Dollar" and we'll have a turnaround.
All we need now is for some supermodel to declare that she's done taking dollars as payment and will accept only Euros. That, and a cover on the Economist that says "Death of the US Dollar". Then we're at a turning point.
some of you may have to hold your nose when clicking, but there's actually a really good article on the puffington host on Lehman and the possibility that GB/AD/UK may have something to do with its demise:
http://www.huffingtonpost.com/ellen-brown/economic-9-11-did-lehman_b_278...
Dollar sliced right through that support huh
Green shoots from 1930- this one says it all
http://blog.rebeltraders.net/2009/09/07/wispers-from-the-past-september-3-6-1930/comment-page-1/#comment-12412
The funniest part is from Dollar to Renmibi. What a joke. Not much of a choice, devil and the deep sea. Well, you have a chance to fight the devil, in deep sea, there is nothing to do.shark fodder. What if China breaks up? What if millions and millions of chinese decide to do something on their own volition. Now read the news below. Indian stock market rose to a higher point on the cliff. What if 500million Indians decide that they want a change. Wives on sale!! Anywhere else in the world,has that happened openely?
http://www.deccanpost.in/view_news.php?flag=1&cid=1&sid=1&nid=11567