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On Romney, Bernanke, and Rajoy

Phoenix Capital Research's picture





 

 

Mitt Romney has stated repeatedly that he would fire Bernanke if elected.

 

If this does indeed happen, then the inflation trade and QE will be finished. The market is already sensing this. Gold topped out right around the first debate when Romney began to surge in the polls:

 

 

Right around that time, the US Dollar caught a bid.

 

 

Now, I’m not saying that Romney will win the election. But the movements in Gold and the US Dollar have been suggesting that he has a good chance ever since the first debate.

 

This also points to problems for Europe.

 

For certain, no matter who wins today, Europe’s a complete disaster. Greece is once again out of money and will need someone (though at this point it’s not clear who is willing to pony up the cash) to foot the bill.

 

Elsewhere, Spain continues to lurch to a full-scale collapse. We now have a sovereign debt crisis exacerbated by the fact that the primary buyers of Spanish bonds (Spanish banks) are now net sellers as they are forced to sell everything to free up cash to meet Spain’s massive bank run (18% of deposits have fled the country since the start of the year).

 

The country recently proposed creating a bad bank to buy up €60 billion worth of bad debts. Nevermind that Spain doesn’t have €60 billion (its regional bailout fund it out of funds and even if you include the €30 billion Spain has already received from its bailout, you’re still €30 billion short).

 

Now Prime Minster Rajoy is wanting to know if ECB intervention will bring Spanish yields down. Was this guy not paying attention throughout 2011 when the ECB intervened constantly and Spain still saw its bonds collapse?

 

I’ve said it many times before and I will say it again… Spain will take down the EU. It’s only a matter of time. By Rajoy’s own admission the country needs €500 billion (realistically it’s even more than that).

 

And somehow someone will be able to come up with that money?

 

On that note, if you’ve yet to prepare for Europe’s BIG collapse…we’ve recently published a report showing investors how to prepare for this. It’s called What Europe’s Collapse Means For You and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.

 

This report is 100% FREE. You can pick up a copy today at:

 

http://gainspainscapital.com/eu-report/

 

Best Regards,

 

Graham Summers

 

PS. We also offer a FREE Special Report detailing the threat of inflation as well as two investments that will explode higher as it seeps throughout the financial system. You can pick up a copy of this report at:

 

 http://gainspainscapital.com/gpc-inflation/

 

 

 

 


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Wed, 11/07/2012 - 08:42 | Link to Comment northerngirl
northerngirl's picture

Whenever you want to increase your circulation just print some bad news.

Wed, 11/07/2012 - 07:19 | Link to Comment Grand Supercycle
Wed, 11/07/2012 - 02:28 | Link to Comment Setarcos
Setarcos's picture

It never ceases to amuse me (perversely) that economic charts/graphs are fixed to give the impression of something dramatic having happened.

Take the gold chart of a 'plunge' from 1780 to 1680, or the USD chart of a 'plunge' from 82.5 to 79.

If the graphs were drawn in a legitimately scientific way, with the 'y' axis starting at zero - and if the 'x' axis covered a long-enough time-frame - then the lines would be virtually flat.  But then I guess that Graham and others would not be able hype theyselves, and whomever.

(Granted that robotraders and the "big boys" can make millions on quantities of fractions of the paper gold and dollars shifted, but I hardly think that Graham is in that league, nor readers of his pleas for customers in ZH.)

 

Wed, 11/07/2012 - 01:42 | Link to Comment andrewp111
andrewp111's picture

Well, Romney just lost, but the status-quo election result now guarantees that we are going right over that fiscal cliff - at ramming speed. Nothing can stop it now. Bernanke's QEternity will do no good when the Federal expenditure balance  is contracted by 1/2 a trillion dollars next year. Obama's second term is now guaranteed to be an absolute disaster - just like Bush's second term.

Wed, 11/07/2012 - 05:37 | Link to Comment bigbwana
bigbwana's picture

Andrew, President Obama WILL stop it! The Illuminati tried to assassinate him, and his family, several times. Your President is literally protected by God, humbly proclaim the Galactic Federation (Google). The GF inform us the Illuminati, and their evil plans for a NWO, have been crushed. The Iluminati know they are defeated, and nothing can stop Ascension on the 21 Dec/2012. Spread the wondrous news! God bless you all!

Wed, 11/07/2012 - 06:32 | Link to Comment falak pema
falak pema's picture

now that beats MDB! 

Wed, 11/07/2012 - 07:39 | Link to Comment Roandavid
Roandavid's picture

That was truly outstanding work.

Tue, 11/06/2012 - 15:46 | Link to Comment flight77
flight77's picture

People in NY are burning their furnitures to get some warmth and Graham S. is lamenting against Europe. And if I take a look at the balance sheet of the U.S.....

Tue, 11/06/2012 - 15:04 | Link to Comment No Euros please...
No Euros please we're British's picture

You know there's an old saying (and, God forbid, it was Keynes who said it).

"Markets can remain irrational a lot longer than you and I can remain solvent"

And Europe can remain insolvent and irrational longer than Phoenix Capital can keep posting this crap.

 

Wed, 11/07/2012 - 01:49 | Link to Comment andrewp111
andrewp111's picture

Something tells me that the status quo in Europe won't survive Obama's second term. Absolute disaster awaits. Whether the disaster is inflationary, deflationary, or civil war remains to be seen.

I'm rooting for an EU Civil War.  :)

Wed, 11/07/2012 - 06:34 | Link to Comment falak pema
falak pema's picture

like Donald Duck Trump is for revolution USA! 

Tue, 11/06/2012 - 19:32 | Link to Comment Zero Govt
Zero Govt's picture

"Europe’s a complete disaster. Greece is once again out of money and will need someone (though at this point it’s not clear who is willing to pony up the cash) .."

Superhero 'Bubbleman' to the rescue...

Bernankes Mad Contrarian Un-Hedged Fund

saviour of gambling junkie financiers and broke bankster bums, basically anyone who's caused the biggest trainwrecks in the US economy over the past 12 years

if you're a big-time loser and financial fraud, Ben thinks you're a 'Winner for America' ...he'll wipe your arse of your gambling debts, buy up all your soiled nappy stinky biz deals and support your junk paper with his junk toilet paper

Keep on gambling losers until we blow-up the World


that's Americas 'Recovery Plan'  . . . . . . . seriously???!!!

Tue, 11/06/2012 - 14:35 | Link to Comment markar
markar's picture

As usual GS you are a dime short & a day late. Odds are heavy on Obama victory today and gold throught the roof is reflecting that.

Tue, 11/06/2012 - 14:18 | Link to Comment Joebloinvestor
Joebloinvestor's picture

It will be France that takes down the EU.

Spain will be ignored and treated like a bigger example of Greece.

France will "seal the deal" by imploding.

Tue, 11/06/2012 - 20:22 | Link to Comment carambar
carambar's picture

what do you know about France mon ami??

the lack of understanding of people psychology is what makes most commentaries, that pretend

to know what people from any european country should do,  garbage.

 

Wed, 11/07/2012 - 09:38 | Link to Comment frenchie
frenchie's picture

La Fwance c'est l'urss qui a (aurait ?) réussi... (lol ?)

France is fucked for good now

Tue, 11/06/2012 - 14:05 | Link to Comment walküre
walküre's picture

Merkel (wirft) Handtuch (und wir) Drucken (soviel) Geld (wie nie zuvor)!

Tue, 11/06/2012 - 13:29 | Link to Comment John_Coltrane
John_Coltrane's picture

"18% of deposits have fled the country since the start of the year"

I'm amazed its only 18%.  Inertia is powerful principle, I guess.  I would have had my deposits out a couple of years ago.

Tue, 11/06/2012 - 15:07 | Link to Comment Stuntgirl
Stuntgirl's picture

18% of deposits (remaining after last year's and the year before's bank jogs) have fled the country since the start of the year.

In any case, the figures, again, are simply not true. The spanish central bank continuously reports conflicting bank run figures.

Tue, 11/06/2012 - 13:27 | Link to Comment NEOSERF
NEOSERF's picture

Obama wins 53% to 47%, Bernanke rides off into the sunset on his terms, QE every year until 1M new homes sold and Fed Debt goes well over $20T with little impact as the rest of the world is falling into the abyss faster than the world's reserve currency.  There is the next 4 years for you...

Tue, 11/06/2012 - 13:18 | Link to Comment AT
AT's picture

Graham Summers is a moron.

Tue, 11/06/2012 - 13:15 | Link to Comment Jack Sheet
Jack Sheet's picture

My dog craps better stuff than this.

Wed, 11/07/2012 - 02:53 | Link to Comment Manic by Proxy
Manic by Proxy's picture

Thank your dog for the commentary and the shovel ready job.

Tue, 11/06/2012 - 12:52 | Link to Comment semperfi
semperfi's picture

"Mitt Romney has stated repeatedly that he would fire Bernanke if elected. If this does indeed happen, then the inflation trade and QE will be finished."

Would you like to make a wager Graham?

Tue, 11/06/2012 - 18:29 | Link to Comment Bagbalm
Bagbalm's picture

Heck Mit will fire Ben and find a REAL Keynesian who will print fast enough to get ahead of the curve and save us all...

Tue, 11/06/2012 - 22:18 | Link to Comment Imminent Crucible
Imminent Crucible's picture

Exactly. Besides, the crumbs who are close to Bernanke say he is unlikely to stay on past the end of his term, no matter who is elected. Do you think he wants to ride this train into the flaming inferno he and Mr. Magoo created?

Suppose Romney gets elected. Suppose he follows through on his promise to fire Bernanke. Then what? Put Paul Volcker in and raise the target rate to 18% in a 1980's redux? Not likely. You know why? Because the Fed CAN'T let the bond markets normalize. If they do, Wall Street collapses, all the people who bought the 30YR at a 2.90 yield lose half their money (or much more), bond funds collapse, pension funds collapse, the economy sinks straight to China, and MOST IMPORTANT, the Treasury can no longer service its cosmic-scale obligations.

Fed policy will remain the same no matter who chairs the beast. It has only one course: Keep expanding the credit supply or die.

Tue, 11/06/2012 - 12:50 | Link to Comment gkumar
gkumar's picture

Hahahaha

You are back? Ideal company for Taylor.

Tue, 11/06/2012 - 12:46 | Link to Comment digitlman
digitlman's picture

More drivel.

Tue, 11/06/2012 - 12:45 | Link to Comment sunny
sunny's picture

You write that Europe is a mess, it's a disaster.  They are celebrating by the markets being totally green.  Same in the US.

Your record is competing with Bernanke, you might look for a job with the Fed.

sunny

Tue, 11/06/2012 - 12:41 | Link to Comment Mad Mohel
Mad Mohel's picture

No offense but you need to make an honest living man. Selling BS and calling it a newsletter is very petty.

Tue, 11/06/2012 - 12:36 | Link to Comment Jolly.Roger
Jolly.Roger's picture

Is it true that this halfwit PAYS ZeroHedge to have his drivel posted here?

Do NOT follow this link or you will be banned from the site!