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Here Comes The Non-Boring Weekend: G7 Says "Central Banks Ready To Provide Liquidity As Required"
The G-7 is in full panic mode. The organization for the prevention of harm to the Status Quo was expected to release a communique possibly over the weekend, but the speed with which one was dropped for mass circulation is stunning and confirms that its members are in full meltdown as the weekend comes. It is now certain that the G-7 will attempt some major intervention over the next 48 hours to inject a last dose of hope into capital markets, or else the Monday open will be an epic collapse.
G-7 Statement on Tackling Slowdown, Supporting Banks
“We met at a time of new challenges to global economic recovery, with significant challenges to growth, fiscal deficits and sovereign debt, stemming from past accumulated imbalances.
This is reflected in heightened tensions in financial markets.
There are now clear signs of a slowdown in global growth. We are committed to a strong and coordinated international response to these challenges.
“We are taking strong actions to maintain financial stability, restore confidence and support growth. In the U.S., President Obama has put forward a significant package to strengthen growth and employment through public investments, tax incentives and targeted job measures, combined with fiscal reforms designed to restore fiscal sustainability over the medium term. Euro area countries are implementing the decisions taken on July 21 to address financial tensions, notably through the flexibilization of the EFSF, reaffirming their inflexible determination to honor fully their own individual sovereign signatures and their commitments to sustainable fiscal conditions and structure reforms. Japan is implementing substantial fiscal measures for reconstruction from the earthquake while ensuring the commitment to medium-term fiscal consolidation.
“Concerns over the pace and future of the recovery underscore the need for a concerted effort at a global level in support of strong, sustainable and balanced growth. We must all set out and implement ambitious and growth-friendly fiscal consolidation plans rooted within credible fiscal frameworks.
Fiscal policy faces a delicate balancing act. Given the still fragile nature of the recovery, we must tread the difficult path of achieving fiscal adjustment plans while supporting economic activity, taking into account different national circumstances.
“Monetary policies will maintain price stability and continue to support economic recovery. Central Banks stand ready to provide liquidity to banks as required. We will take all necessary actions to ensure the resilience of banking systems and financial markets. In this context we reaffirm our commitment to implement fully Basel III.
“We reaffirmed our shared interest in a strong and stable international financial system, and our support for market- determined exchange rates. Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We will consult closely in regard to actions in exchange markets and will cooperate as appropriate.
“We look forward to working with our colleagues in the G20 and the IMF in the coming weeks to rebalance demand and strengthen global growth. As previously agreed, structural reforms will make an important contribution in this regard.”
Translation: the great experiment in encroaching statism, failed monetary policy and central planning continues... Until imminent failure.
And select soundbites of last ditch desperation courtesy of Reuters:
FRENCH FINANCE MINISTER FRANCOIS BAROIN
"The G7 reaffirmed its comittment to safeguarding the solidity of sovereign ratings."
"We have to get away from the idea there is only one solution for all... It's not rigour versus growth."
"It was a G7 where everything was raised. There was no dead time."
BANK OF FRANCE GOVERNOR CHRISTIAN NOYER
"There is an extreme tension on the markets, what's important is that very strong measures are taken by governments concerned."
"It was really a meeting of great cohesion and force. There was a determination by everyone to meet challenges."
G7 OFFICIAL
"The G7 sees a need for a concerted effort at global level in support of strong, sustainable and balanced growth.
"We must all set out and implement ambitious and growth-friendly fiscal consolidation plans rooted within credible frameworks.
"The G7 affirmed its interest in a strong, stable international financial system."
EARLIER COMMENTS
U.S. TREASURY SECRETARY TIMOTHY GEITHNER
"It is completely within the capacity of the stronger members of the euro area to absorb those costs. Those costs would be much, much greater for them and their economies if they sit here and do nothing and they recognize that."
CANADIAN FINANCE MINISTER JIM FLAHERTY
"I hope we would all agree we have to stay the course, that we have to go through the pain of fiscal consolidation. It's not easy, it creates stresses in some countries, but it's necessary, we have to get through this rough patch.
"There's no point kicking the can down the road. If we don't deal with it now we'll have to deal with it later and we know that these problems do not get better with the passage of time."
EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN
"We support the United States in its work so that the U.S. recovery can continue, while in Europe we have our own challenges related to fiscal consolidation and restoring confidence in the European economy."
On bank funding:
"Solutions should be found from private markets, from private investors and if that is not is possible there should be national backstops in place to ensure recapitalisations or restructuring for these banks."
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Until they storm the Bastille.
Where are all the mercaenaries,
Paid for by the king?
Have they joined the mob you say,
Doesn't money mean anything?
-apologies, Jack Traylor, Flowers of the Night
EUROTARP IS COMING!!!
Silver to $1200, bitchez!
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/9_Eric_Sprott_-_From_Here_Silver_is_a_30_Bagger_to_%241%2C200.html
90% of the posters here are gold bulls.
Given that huge percentage, I don't understand why all you guys are not cheering for more money printing, more bailouts, more rescues, more monetizations, bigger deficits, and more G-7 collusion to prop up stocks.
That is why you guys should be cheering and high-fiving for Dow 15,000, not 5,000.
Actually, the higher the CDS spreads blow out, that means an even higher probability that the ultimate rescue/bailout package is going to be a stunner.
So I should correct myself and say you guys should be calling for a "cliff edge collapse", then a monstrous equity rally afterwards.
Flawed reasoning as always. What can we feed you today, troll?
http://nowandfutures.com/us_weimar.html
See, specifically, #2 for 1923.
Reality won't change just because you don't like something. Stocks will explode along with PMs, but the problem is that the real value is going to continue to drop while the nominal value increases. PMs are the better trade, because gold or silver will not be needing to add layers of bureaucrats and accountants to deal with the issues raised by severe inflation- they just sit there and hold value.
It's not a good trade, in real terms- but it can be a good trade in nominal terms. There's room in there to make fortunes, but it's stupidly dangerous, and would require the luck and timing of the devil himself.
As you well know, they got to be gold bulls through disillusionment. We all wish it were different, but make investment decisions based on our respective views of reality.
Well, regardless of what we cheer for, a lot of people here are expecting a major decline, followed by money printing, followed by another leg up in gold, and probably the indexes as well. At least thats the sense I get from reading a lot of the posts. Although I think there is a lot of skepticism about whether the indexes will rally like they did with qe 2.
We established weeks ago that there is no relationship between the dow and gold...
If they're both manipulated, does that count as a relationship?
ONLY IF THEY'RE MANIPULATING EACH OTHER
Touche, Delacroix.
Unless that word has manipulative connotations in French.
In my case, you are confusing need with desire. In the end, I desire whats good for all of humanity.
In the mean time, get ready to play what might be a 1,000 point swing in the Dow come Monday. If my dollar was worth anything and I was compensated for SAVING, I wouldn't need to play.
Where is the reverse HS on XLF? It's more like a regular HS a I called out, lol/
robo - i have no idea why folks get down on you on this blog. I'm a trader at heart (I've been burned for the last time by buy and hold strategies) and have done OK in both up and down markets. If you want to pass a few of your trading insights my way I'd be glad to receive them.
I have not made a ton of money on the way up but I sure haven't lost much on the way down (and even profited at times in falling markets) and I am somewhat comfortable with my financial net worth.
I try to take what the market gives but I must admit that's getting harder all the time - at least for me. Volitility is good - as long as you are positioned on the right side of it (or out of the market). For the gold and silver bulls its true that I keep a core position in the metals but trade around them and also trade the miners. Works out OK for me. But I also like to trade stocks, bonds and currencies. Even core positions in these I trade around or hedge from time to time.
The idea of being a bit more balanced is an idea that appeals to me. I think it might be good for nations and central bankers. If there was not so much debt in the world we could probably all get by with a bit less growth (and that might even be better for the planet). If we had no debt it wouldn't be the end of the world if there was no growth for a while, or heaven forbid even a recession. We'd find a way to get through it, like our parents and grandparents did, and the sun would eventually shine again and a better day would dawn. Instead we have urgent meetings all over the planet, hosted by the most auspicious Keynesian clowns, who make urgent proclamations affirming the absolute necessity of, and their support for, unending growth and prosperity for ever and ever - at any cost. History does not suggest that such ideas correspond to reality (for instance, if someone habitually spends more than they make it often leads to bankruptcy instead of great wealth). But who knows, maybe its a new day and things really are different (especially for nations as opposed to individuals). But color me sceptical for now.
Excuse the ramble. It's Friday and I just had a beer and I'm ready for another.
As an aside - I prefer Dow 15,000 BUT I think I can live with 5000 (but then again, I hope we don't have to validate that assumption.)
Cheers!
have taken
the other side
of robos trades ..
2 out of 3 times banked profits
While I work, hope and pray for the best,
I now plan for the worst.
Suppose I own 100 oz of gold. And then suppose the Fed prints up a bunch of fiat so that the price of gold goes up by 10X. I still only own 100 oz of gold. So how am I any better off? Actually, if I ever need to trade that gold for something, I have to pay taxes on the phoney "profits" that I made from merely trying to preserve my purchasing power.
Also, as more and more people become aware of what the Fed is doing, gold starts to approach its true value and becomes less and less of a bargain. I really liked the 90's when everyone thought that goldbugs were crazy and no one wanted to own boring gold.
Well, I disagree to a small extent. The gold I own through PHYS has gone up roughly 20% in the last 2 months, while the price of food, seeds, tools and rent has stayed about the same. So if the price of gold (minus taxes on profits) goes up faster than the price of things you want to buy with gold, then the gold going up matters. I have used a small portion of profits to buy multiple years worth of dried food.
In the end, I don't care about how much gold I have. I care only about what it does for my survival, enjoyment, etc.
Of course, if food starts going up as fast as gold, then you're absolutely right.
RT is right, in the sense that deflation is here we are going, and gold will decline in value as with all other assets. That does not mean that, relatively speaking, it will not serve as a constant in terms of value, it's just that all the other assets or currencies against which gold is measured will decline. Reflation has not succeeded and it cannot overcome the overwhelming forces of deflation caused by debt destruction.
Deflation, bitchez.
I have more gold than any 500 of your friends and neighbors put together.
I would trade it all for an honest, stable government that operates within the bounds of the powers we've granted them.
I do not wish for the financial fall, I just know it's coming, and I know how to protect my wealth.
If you have that much gold, why don't you just go out buy yourself some honest politicians?
I smell bullshit.
Adios, Greece. Hope the drachma works out for you. The central banks of the world will ensure that the TBTF banks don't bite the dust. It'll all be done very quietly,too.
This is my favorite part...
“We met at a time of new challenges to global economic recovery, with significant challenges to growth, fiscal deficits and sovereign debt, stemming from past accumulated imbalances."
"Challenges" is like saying Chernobyl meltdown was a bit difficult in particular at the outset.
How about a release that starts "We are fucked but we see a chance to enjoy the whole thing if you ignore the 'lack' of appropriate lubrication...which we are happy to provide-at a price"
Yup, we're fucked. All we need now are the bear cavalry.
Robottrader...
that was the single most intelligent comment I have seen from you...
They can't stop printing now!!! That would ruin everything!!!!!!!!
Because he's starting to freak a little.
There's a fine line between challenge and frustration.
Problems are opportunities in disguise, OTOH opportunities are often problems in disguise.
Like Mr. Cashin says, this weekend I will "melt a few ice cubes" bitchez!
It's like in a movie, this guy on the driver seat of a truck balancing off the edge of a bridge after a car accident. The best way is to do nothing or try to get out (the consequence is grave)?
All you guys dont know by now the alchymists of many many years ago for example Nicholas Flamel , written in the pages of Lenglet du Fresnoy, Roger Bacon, and Joseph Francis Borri knew the secrets of the philosophers stone. Many monarchs sought this knowledge. Anyhow this well kept secret to turn base metal into precious metals is hidden from the public. Sorry guys. gold drooling serfs.
As far as I know, no one has discovered a way to turn lead into gold. But central bankers discovered long ago how to turn gold into paper.
And thence dispensing with the barbarous relic, thin air into fiat embossed linen.
No more need for the gold; simply store it in some of the most secure locations known to mankind.
Anything about turning sand into oil?
Nah. There's not enough sand.
Alchemy is not what you think it is.
Who knows
http://www.youtube.com/watch?v=izQB2-Kmiic
I am hoping for no more moustaches - please.
Bye Bye Greece: http://themeanoldinvestor.blogspot.com/2011/09/bye-bye-greece.html
While they may claim to provide liquidity there is a decided lack of credibility.
deflationary depression
hyper inflationary depression
which trail
will the dead horse follow ?
G-20. BINGO. The Great Intervention is near. Be ready for rebalancing, debt restructuring/forgiveness, and resource confiscation. It will be swift and immense. This action will be so large that the concomitant derivative implosion will be quite muffled to all those who are not directly taken out.
If they really feel "liquidity" is warranted and is in the best interest of the citizens of the world, then why the fukk will they wait for the most opportune moment to execute it as to extract the most OPM from the most suckers?
IOW, what the fukk are they waiting for?
Sustainable is to growth as dry is to waterfall and one handed is to clap. Translaton - OXYMORON. OUR LEADERS ARE COMPLETE MORONS THAT FAILED GRADE 10 SCIENCE AND DON'T UNDERSTAND THE MOST BASIC LAWS OF PHYSICS THAT WERE BLATANTLY OBVIOUS WHEN ALCHEMISTS REALIZED YOU CAN'T MAKE GOLD FROM LEAD --THE LAW OF CONSERVATION OF MATTER AND ENERGY. MORONS!!!!
Hence the inherit flaw in Kapitalism. Infinite growth is impossible.
I don't care what they do, I don't like peas.
Answer me this...why won't we just wind up like Japan? JapanAmerica.
The set up is almost identical. Printing without the intended consequences, short term lift to asset prices only to be met by greater and more ferocious falls in asset prices. I know many on here think there's going to be that "ah-ha" moment. Somthing of a total collapse of our economy. I'm of the mind set that we'll just keep grinding. No "ah-ha's"...just a slow dry hump to much, much lower asset prices across the board.
Patience. We have shitty nuke plants built on fault lines, too. Give it some time.
How amny more meetings and summits to define failure. Hang the bitchezz. Heck tell them to start running and lets hunt the fuckers down.
Most of you dolt(z) won't recognize the collapse until Tyler tells you it happend (think Lehman). What will the collapse look like? A slow roll'in bulldozer - think present. The patient has been on morphine drip for the last 4 years (maybe we died when we thought we won the cold war and hit cruise control) so it is likely that the punctuated equilibrium that we had coming to us will not come to pass...a slow (painful) swirl to the bottom is my bet. In four years when you fill-up your Accord for > $25.00 you will know we are close......regression is a beautiful bitch. My southern girl.
In a month I'll have my Nissan Leaf EV powered by 2013 by solar panels on the roof of the house in summer, and by a sterling engine on the wood stove in winter. $25 gas? Bring it on, it'll only make my EV worth even more.
http://www.wired.co.uk/news/archive/2011-01/31/land-art-pyramids
Jesus Christ. What a crock of shit.
Forr the record: forget hyperinflation - it's deflation that we are facing. Big time.
Isn't hyperinflation deflation? They print money to fill the deflationary hole with worthless fiat cash? Isn't that what they have been doing?
Biflation. Food and gas up, houses, boats and other big assets down.
Oh good because I want to buy a sailboat when the gold stocks skyrocket, then sail away to Alaska and let the rest of the world fall apart while I am away.
Guess what happens to the Euro when you raise interest rates on fragile economy? Trichet listened to the gold bugs and... pow!
Ignore the gold bugs. They know nothing but destruction.
He was only playing extend and pretend. And the game goes on and on.
Feds Visit Homes of Solyndra CEO, Execs
http://abcnews.go.com/Blotter/obama-officials-sat-solyndra-meetings/stor...
Maybe if Obama gives stimulus funds to al-Qaeda, it will go out of business, too
al-CIAduh has its own stimulus funding via Afghanistan & Columbia, O'b is just for show.
G7 is another group of worthless idiots who are taxpayer funded. G20 is not far behind in public exposure of complete incompetence.
Time capsule - October 1998
Declaration of G7 Finance Ministers and Central Bank Governors
http://www.imf.org/external/np/g7/103098dc.htm
Comedy gold. Some high-priced apparatchiks have spent the last 10 years snoozing. Makes you all warm and fuzzy, doesn't it?
Celente admits he bought silver two days ago....mainly because he believes "they" will put price controls on gold as has been done in the past.....just an FYI for ya....
Now when Denninger admits to having purchased gold, be afraid ..... be very afraid .......
Wash, rinse and repeat social engineered crisis plans.
August 2011, during US credit downgrade soapbox
Financial crisis: G7 finance ministers to hold emergency conference this weekend
http://www.telegraph.co.uk/finance/financialcrisis/8685952/Financial-crisis-G7-finance-ministers-to-hold-emergency-conference-this-weekend.html
If you're looking for financial terrorists, look no further.
But who will be in the lead to win "Dancing with the Stars 2014"?
...and who will be the next American Idle?
and who shot JR?
Colonel Bernanke, in the drawing room, with a printing press.
Admit it--your rough draft for that post was in crayon.
But the United States of America reorganizes as the United Green Zones of America. Just like the Israeli settlements: gated communities; compulsatory military service untill 55; women in more combat roles; and the right of 'shoot to kill' outside the zone. On the down side, the food isn't much better than Tel Aviv hotel food.
Lets get a pool going to try and dream up what TPTB will do next to avert a total implosion next week.
Here's my guess: The PBoC will suddenly emerge out of nowhere and drop the RR rates and announce "extra liquidity measures to ensure price stability and growth"....
Heh, NOBODY is expecting that.
OK, anyone else got any ideas?
Germany and France are both downgraded, but announce 5 Trillion backstop to EFSf !
Obviously NO ONE seems to have gotten the memo..... the Recession is over!!!.
Seeing this escalating barage of news about sovereign debt crises coming in rapid succession now, along with continual promises of more currency printing to keep these sovereign debt ponzi schemes going, is anyone still foolish enough to think currencies won't be printed to oblivion?
Currency printing is the ONLY way they can keep the worldwide sovereign debt ponzi going now. America or Greece, it makes no difference. America can keep the debt ponzi going longer than Greece. That's the only difference.
Both will collapse eventually, or their respective currencies will be printed to worthlessness trying to keep them going. It's one or the other. There is no 3rd choice.
And round the pedestal, these words appear:
"My name is Ozymandias, King of Kings.
Look upon my works, ye mighty and despair!"
Nothing beside remains.
Round the decay of that colossal wreck,
Boundless and bare,
The lone and level sands stretch far away.
And round the printing press, these words appear:
"My name is Bernankias, King of Bankers.
Look upon my monetary works, ye peons and despair!"
Nothing beside remains.
Round the decay of that colossal wreck,
Boundless and bare,
An infinity of green paper litter stretches far away.
Delusioal Imperialist Fuck Wadds.
"market determined exchange rates"....????????
Huh.......
IS THIS A BANKERS JOKE.......????
Just what I was thinking.
The following are 20 quotes from European leaders that prove that they know that the financial system in Europe is doomed....
#1 Polish finance minister Jacek Rostowski: "European elites, including German elites, must decide if they want the euro to survive - even at a high price - or not. If not, we should prepare for a controlled dismantling of the currency zone."
#2 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Under the current structure and with the current membership, the euro does not work. Either the current structure will have to change, or the current membership will have to change."
#3 EU President Herman Van Rompuy: "The euro has never had the infrastructure that it requires."
#4 German President Christian Wulff: "I regard the huge buy-up of bonds of individual states by the ECB as legally and politically questionable. Article 123 of the Treaty on the EU’s workings prohibits the ECB from directly purchasing debt instruments, in order to safeguard the central bank’s independence"
#5 Deutsche Bank CEO Josef Ackerman: "It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels."
#6 ECB President Jean-Claude Trichet: "We are experiencing very demanding times"
#7 International Monetary Fund Managing Director Christine Lagarde: "Developments this summer have indicated we are in a dangerous new phase"
#8 Prince Hermann Otto zu Solms-Hohensolms-Lich, the Bundestag's Deputy President: "We must consider whether it would not be better for the currency union and for Greece itself to go for debt restructuring and an exit from the euro"
#9 Alastair Newton, a strategist for Nomura Securities in London: "We believe that we are just about to enter a critical period for the eurozone and that the threat of some sort of break-up between now and year-end is greater than it has been at any time since the start of the crisis"
#10 Former German Chancellor Gerhard Schroeder: "The current crisis makes it relentlessly clear that we cannot have a common currency zone without a common fiscal, economic and social policy"
#11 Bank of England Governor Mervyn King: "Dealing with a banking crisis was difficult enough, but at least there were public-sector balance sheets on to which the problems could be moved. Once you move into sovereign debt, there is no answer; there's no backstop."
#12 George Soros: "We are on the verge of an economic collapse which starts, let's say, in Greece. The financial system remains extremely vulnerable."
#13 German Chancellor Angela Merkel: "The current crisis facing the euro is the biggest test Europe has faced for decades, even since the Treaty of Rome was signed in 1957."
#14 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Member states would be economically better off if they had never joined. European monetary union was generally mis-sold to the population of the Europe."
#15 Professor Giacomo Vaciago of Milan's Catholic University: "It's clear that the euro has virtually failed over the last ten years, even if you are not supposed to say that."
#16 EU President Herman Van Rompuy: "We’re in a survival crisis. We all have to work together in order to survive with the euro zone, because if we don’t survive with the euro zone we will not survive with the European Union."
#17 German Chancellor Angela Merkel: "If the euro fails, then Europe fails."
#18 Deutsche Bank CEO Josef Ackerman: "All this reminds one of the autumn of 2008"
#19 International Monetary Fund Managing Director Christine Lagarde: "There has been a clear crisis of confidence that has seriously aggravated the situation. Measures need to be taken to ensure that this vicious circle is broken"
#20 German Chancellor Angela Merkel: "The euro is in danger ... If we don't deal with this danger, then the consequences for us in Europe are incalculable."
Most of the individuals quoted above desperately want to save the euro. They are not going to go down without a fight. The overwhelming consensus among the political and financial elite in Europe is that increased European integration in Europe is the answer
Courtesy of the MAN, Mr. Jim's site..............
http://www.telegraph.co.uk/finance/financialcrisis/8736204/Central-bank-flight-to-Federal-Reserve-safety-tops-Lehman-crisis.html
Nemesis,
"The only thing one can know about God is that nothing can be known about him."
You can know all you need to know, if you just look at HIS history book, it starts at Day One, ENDS for many, and starts over at Rev 21-1.
My friend, doesn't everyone have different beliefs? Some of us share beliefs and are backed by billions of co-religionists and some of us go it alone like Siddhartha.
You have chosen the Bible as the history book of God. That's a good choice. I have read quite a bit of it and find parts of it to be exactly right, I find other parts of it to say: "Don't take me literally all the time". And that's what I do.
The earth is only a couple of months old with a population of 2 and the serpent appears in Eden. 2 peeps, 2 months old and evil incarnate shows up. And God doesn't or can't stop it That's where the Bible looses me..
The serpent was created on the 6th day and by the 16 or the 26th day he is the reptilization of Dick Cheney. Genesis 3:1 the serpent was just another creature which God created, except he was more subtil. I guess God had not yet created the head trader of a large Wall Street Investment Bank.
If you want to drag "Paradise Lost" into this to get some preBiblical background into the History of God, go right ahead. It was written in 1667., In my belief system, there is nothing that operates independent of God's will.
I like you DZ, but let me have my understanding of creation and you have yours.
Peace
I got spiked twice in the yen over 10 days.. That 77.4-835 area is the new area for exporters. I just started trading some more NOK ( norway/usd over the last couple of months... That Brent /WTI contango got me going. Minus interest rates and transaction taxes ( hypothetically) scared me out of western /south Europe.
I like the gbp though! BoE soverign, and taking the acid pills early! Just get rid of Merve the Swerve! ( Mervyn King : BoE head)
Updated SP500 monthly chart at blog.
My long term indicators continue to warn of significant USD strength and AUD / NZD / EUR etc weakness and these signals have increased since 2009.
Unfortunately the March 2009 equity lows eventually will be breached.
http://stockmarket618.wordpress.com