Burkhardt's blog

The EU is a sinking ship; even Germany is under fire as this crisis continues to escalate. If European leaders are not going to make sound decisions, at least we can.

Europe’s new mantra has become that of “why just one”? Spain is returning to the table asking for yet another bailout. Of course you will hear the cries of conditions this, targets that… With rampant unemployment and an untenable political position, expect Rajoy to nod his head in acquiescence to the ECB while at the same time ignoring his pledge the very next minute.

The Fed had been using “QE hype” to rally the markets. Every time we were on the verge of a collapse another QE announcement would be made bringing us a few feet back from the fiscal cliff. But that tactic wont work anymore…

Federal Chairman Ben Bernanke made a strong case for more easing in his Jackson Hole speech last month so the outlook is positive. IF the Fed declines additional easing then it could send the markets into a tailspin especially due to the fact that the EU just got the “green-light” on the European Stability Mechanism (ESM) from the German courts.

Where does the AUD.USD go from here?

Greece’s climb towards solvency is steep and the underlying question remains; can the country return to growth and reduce its debt before it’s too late?

Even the strong falter. As the dynamics within this global economy become more severe, the strengthening local economies find it more difficult to remain on course. The situation in Australia is that the country’s currency appears to be overvalued which impedes their ability to compete in the global market place.

The 200 Pip move was purely based on speculation or a hope that Draghi’s statement would render the same affect as the Calvary riding in to save the day. That’s just not how these things work. Draghi will have to put his money where his mouth is in order to see a move like this sustain itself in the long-term.

Strength is fading. Parity is visible. Reform is the only option. European markets are tumbling and the euro has slipped to record lows against several major currencies. The market is in reaction mode responding Spain and Greece in the headlines.

Global Crunch: Central Banks Anemic Response - A doubtful boost in investor confidence.

The Euro Takes the Road Well Traveled: Paths emerge. The EU has options. Yet they continually choose the well-beaten road of fiscal suicide.

Market Turbulence As Global Economies Falter: The European debt-crisis, the derailing of Chinese economic growth and an underemployed United States all point toward a “global crunch”. 

Empire Interrupted: Short-Selling Europe - How Far Will This Empire Fall?