Financial Crisis

[churchill]

Same translated ... http://www.marketwatch.com/story/ecb-eu-rescue-fund-plan-joint-action-report-2012-07-27?link=MW_home_latest_news

Edited July 27, 2012 by churchill

[midas]

thin end of the wedge ..... tick tock .....

NEW YORK–The Federal Reserve Bank of New York said it supports limiting some types of money-market fund withdrawals in a bid to protect those funds from suffering the equivalent of a bank run.

In an unhealthy society fewer and fewer things are risk-free. The banks can no longer be trusted to survive, governments run out of money, and even the currency stops functioning as a store of value.

http://dollarcollapse.com/capital-controls/still-think-that-money-market-fund-is-cash/

[churchill]

http://m.bbc.co.uk/n...siness-18858444

Nestl頣hief sights the "financialisation" of food markets as one of the major contributing factors sustaining higher prices and especially their greater volatility.

using grains to produce bio fuel is a crime!

Couldn't agree more. What next? Will they be making the water and air that sustains universal life just another market commodity as well?

Malaysia water "crisis" signals fierce fight for richest state

http://www.reuters.com/article/2012/07/29/us-malaysia-politics-idUSBRE86S02320120729

[Naam]

water

last saturday i received some extensive research on "water" from my bank. if anybody is interested PM me with an e-mail address and i will forward the paper.

excerpt:

• Many sectors have either water-intensive production processes or

water-dependent supply chains, or face heavy water discharge

tasks. Often these issues are not well covered in financial

statements.

• We consider that such risks can easily materialize and cause

companies to face growing investment budgets and costs. In such

a scenario, water prices should rise closer the to value that water

actually generates. An environment of increased water prices should

bode well for companies with water business exposure.

• We advise investing in a well diversified investment vehicle that gives

global exposure to the entire water value chain.

[Naam]

La BCE prépare une action concertée avec les Etats-Le Monde

http://www.investir....onde-446566.php

Le président de la BCE, Mario Draghi, a dit jeudi que son institution était "prête à tout pour préserver l'euro".

talk is cheap although i am convinced Draghi meant what he said. but the ECB's capital is not infinite and it cannot be expanded ad infinitum without the major partners' consent. there are contradicting news. initially it was reported that Schäuble agrees with Draghi but later Schäuble denied and added "limited actions and only under certain circumstances" which invalidates Draghi's "prête à tout".

politicians...

[Naam]

sometimes i like what Evans-Pritchard writes:

We are beyond the point where a quarter point rate cut will achieve anything. Nor will it help to launch a fresh round of "temporary and limited" bond purchases - to use the self-defeating language that Mr Draghi is forced to utter.

The only issue that matters at this late stage is whether Germany is willing to let the ECB step up to its responsibility as a global central bank after two years of ideological posturing and take all risk of sovereign default in Spain and Italy off the table - which it can do easily enough once it stops playing politics and obeys the “financial stability” clause (Article 127) of the Lisbon Treaty.

http://www.telegraph...ear-is-out.html

[mccw]

An MP who represents the United Russia majority party has prepared legislative amendments that would make the Russian ruble the only valid currency in the country, and put an end to dependency on the US dollar and the Euro.

Yevgeniy Fyodorov described the initiative in an interview with the Izvestia daily newspaper. He promised that the proposed bill would be made public in autumn, and declined to provide any details before then. Fyodorov said that the bill could require changes to the constitution, and that currently the rouble is tied to the dollar and therefore cannot be the national currency.

Fyodorov has a degree in economics, but has been a politician since the late 80s. He is currently a member of the Supreme Council of the United Russia party, and the chairman of the State Duma Committee for Economic Policy and Entrepreneurship.

The MP has already made several controversial legislative proposals in the State Duma this year, including introducing the foreign agents bill and the bill banning state officials from owning foreign property. Both initiatives found no support in the Lower House.

Fyodorov claims that his currency project is backed by the first deputy head of the Russian Central Bank, Andrey Ulyukayev: Ulyukayev says that half of the gold and foreign currency reserves (over $250 billion) are not only of no good, but actually cause harm. Real resources were paid for this. We should change the national currency system in principle launch the mechanism that will give no support to the US dollar and will not contribute to the US budget, that we had filled with about 10 Russian budgets, but support internal investment instead.

The MP went on to claim that, since all investment in Russia is made through foreign credit organizations, Europe and America are financing the global financial crisis at Russias expense. Not only this is a burden, this is unacceptable, Fyodorov argued.

The idea was sharply criticized by other MPs and financial experts. Anatoly Aksakov, a State Duma deputy and the chairman of the Association of Russian Regional Banks, said that the government should promote ruble investment, but any bans in the economic sphere would only lead to capital drain. Administrative regulation would only undermine the peoples trust in the ruble everyone perceives the restrictions as a signal that all is lost, he said.

[midas]

i am not a billionaire but i share this guy's sentiments 100% !

over the past few months, it’s become clear that rich people are very, very afraid.

I don’t think they understand what people can go for when they are at the end of their line

" This is my fear, and it’s a real, legitimate fear,” Greene says, revving up the engine. “You have this huge, huge class of people who are impoverished. If we keep doing what we’re doing, we will build a class of poor people that will take over this country, and the country will not look like what it does today. It will be a different economy, right , all that stuff will be different.”

“You’re in Palm Beach, you’re in the Hamptons, you think you’re so secure,” Greene says. “Do you really think if you had 50,000 angry people coming across the river, you think you’re safe?”

http://nymag.com/pri...-greene-2012-8/

Edited August 1, 2012 by midas

[midas]

This video is 53 minutes long but is an example of a country where law and order has totally broken down

[yoshiwara]

Best thing to do is rent a copy of Battleship Potemkin and dream that this time the struggle will prevail.

[waza]

Bring on the revolution.........

[canuckoverseas]

This video is 53 minutes long but is an example of a country where law and order has totally broken down

Its Africa, a libertarians paradise! Been hopping around Africa for 8 years and love it.

Sent from my iPad using ThaiVisa app

Edited August 2, 2012 by canuckoverseas

[churchill]

This video is 53 minutes long but is an example of a country where law and order has totally broken down

Its Africa, a libertarians paradise! Been hopping around Africa for 8 years and love it.

Sent from my iPad using ThaiVisa app

Did you watch it ... horrible , depressing ..

[Naam]

perhaps those Liberian warlords are responsible for the prevailing financial crisis and quantitative easing?

[manarak]

perhaps those Liberian warlords are responsible for the prevailing financial crisis and quantitative easing?

of course, otherwise they wouldn't get discussed in detail in this thread, right?

[midas]

Its Africa, a libertarians paradise! Been hopping around Africa for 8 years and love it.

Sent from my iPad using ThaiVisa app

ha ha - libertarianism... that is another way of looking at it

But i wonder if the people in Flint, Michigan feel the same way ?

It’s not that the cops here are scared; it’s just that they’re outmanned, outgunned and flat broke.

What Flint is now is one of America’s murder capitals. Last year in Flint, population 102,000, there were 66 documented murders. The murder rate here is worse than those in Newark and St. Louis and New Orleans. It’s even worse than Baghdad’s.

http://theeconomiccollapseblog.com/archives/these-12-hellholes-are-examples-of-what-the-rest-of-america-will-look-like-soon

[yoshiwara]

The Knight Capital Trading mess is a hoot.

[ronz28]

I haven't been to Baltimore, Maryland, but have never seen or heard anything that is all that bad and it's the hometown of Olympian Michael Phelps.

Liberia is apparently a real hellhole per the video and nothing in America is like that unless its just been hit by a hurricane, tornado or a flood.

Tea Party/Libertarian-ism advertising money, propaganda and scare tactics only objective is to scare enough of the people in the US into putting the Tea Party in power to shield certain wealthy from paying taxes. My only fear is of the fascist leanings of the Tea Party Republican cult and its willingness to bankrupt America to keep from paying taxes regardless of the financial crisis we face.

[Naam]

Aug. 2 (Bloomberg) -- Pacific Investment Management Co.’s Mohamed El-Erian

called recent declines in purchasing manager indexes in Europe and Asia

“frightening” and said the world economy is suffering its severest slowdown

since the global recession ended in 2009.

El-Erian, who is chief executive officer of the Newport Beach,

California-based Pimco, predicted global growth of 2.25 percent over the next 12

months. That’s down from the 3.9 percent in 2011 and 5.3 percent in 2010

recorded by the International Monetary Fund. The world economy contracted 0.6

percent in 2009.

“This is a serious, synchronized slowdown,” El-Erian said in an interview

today.

His forecast highlights the troubles the global economy is facing as the

euro area struggles to contain its debt crisis and growth in the U.S. and China

slows. Separate surveys of purchasing managers released yesterday showed

manufacturing in the 17-nation euro area shrinking by the most in 37 months

while Chinese factories teetered on the edge of contraction.

The global slowdown is weighing on the U.S. at a time when its economy is

already struggling, El-Erian said. He sees U.S.

growth of 1.5 percent over the next 12 months, dangerously close to what may be

considered “stall speed,” and puts the odds of an American recession at roughly

25 to 33 percent.

“While a recession is not my baseline forecast, it certainly is a serious

risk,” said El-Erian, whose firm manages the world’s largest bond fund.

U.S. Economy

The U.S. economy slowed last quarter as consumers curbed their spending

while state and local governments cut back. Gross domestic product expanded at a

1.5 percent annual rate in the second quarter, down from 2 percent in the first,

according to Commerce Department data.

El-Erian said he expects the euro area’s economy to contract by 1.5 percent

over the coming year. It grew 1.5 percent in 2011, according to the

Washington-based IMF.

European Central Bank President Mario Draghi said at a press conference in

Frankfurt today that the region’s economy looks to have stayed weak in the

second quarter and into the third after being essentially flat in the first

three months of the year.

He told reporters that the central bank may wade forcefully into bond

markets in tandem with Europe’s rescue fund, stepping up its efforts to fight

the area’s financial crisis.

The euro declined and Spanish bond yields rose on disappointment that

Draghi didn’t signal imminent ECB action.

El-Erian said that Draghi had good reasons to postpone action. The ECB

chief wants to pressure governments into taking more steps on their own to

resolve the crisis and may want to conserve the central bank’s limited

resources.

Draghi, though, risks allowing the crisis to worsen by not acting now,

El-Erian suggested.

“When they act in a month’s time, they will be less effective than if they

acted today,” he said.

He put the odds of the currency zone breaking apart over the next six

months at 35 percent.

[mania]

The U.S. economy slowed last quarter as consumers curbed their spending

while state and local governments cut back

It always appears to me that the folks writing these articles are some how surprised at less spending.

It is as if the consumers or the local governments had a choice to spend less or not.

Do the real UE numbers mean nothing to these writers?

Does the continued lack of income/employment not suggest less consumer spending will continue to rise & is the new normal?

Does the lack of employment which begets foreclosures not suggest both less income & property taxes for the local governments?

Edited August 3, 2012 by mania

[12DrinkMore]

Aug. 2 (Bloomberg)

He put the odds of the currency zone breaking apart over the next six

months at 35 percent.

I guess that means he reckons there is a 65% chance of it holding together for the next six months.

[canuckoverseas]

This video is 53 minutes long but is an example of a country where law and order has totally broken down

Its Africa, a libertarians paradise! Been hopping around Africa for 8 years and love it.

Sent from my iPad using ThaiVisa app

Did you watch it ... horrible , depressing ..

I was being sarcastic. There is great beauty and potential all over Africa, but stay long enough and the place will break your heart.

Sent from my iPad using ThaiVisa app

Edited August 4, 2012 by canuckoverseas

[Naam]

Aug. 2 (Bloomberg)

He put the odds of the currency zone breaking apart over the next six

months at 35 percent.

I guess that means he reckons there is a 65% chance of it holding together for the next six months.

i guess so.

[Naam]

I was being sarcastic. There is great beauty and potential all over Africa, but stay long enough and the place will break your heart.

wife and i spent our happiest years in Africa!

[manarak]

Friday has seen quite a short squeeze, glad I got out the day before.

Shows how nervous markets are now that the EUR has fallen so much.

Everyone expects something from Draghi or from Germany to throw all their pearls to the swines, err.. the PIIGS to save the EUR.

A statement by Draghi such as "we will do everything (within our mandate) to save the EUR" is enough to cause market moves of more than 1%.

But there has only been talk talk talk so far.

Yet in Germany, even journalists begin to understand. One statement was: "if the ECB applied today the policies of the Bundesbank, the EUR would break up within a week".

So... what do you think will happen?

[Naam]

So... what do you think will happen?

i think we will see the €UR around for a much longer time than the pessimists expect. whether in its present form is a different story.

[Tolley]

It is not just about the EURO either as you also have a China slowdown, the USA stuttering along with debt it can never repay and finally to top it all off Japan has debt it can never pay off and is on the verge of financial collapse as well. Japan spends 50 percent of its tax take on paying of its loans and that is with almost zero interest rates so where do you think that is likely to go?

GFC2 is only a matter of time and it is going to make GFC1 look like a tea party.

There could be more financial stimulus both in Europe and the US but that will only delay things for a little while and of course make the bubble even bigger when it bursts.

[Naam]

oh dear!

[JSixpack]

It is not just about the EURO either as you also have a China slowdown, the USA stuttering along with debt it can never repay and finally to top it all off Japan has debt it can never pay off and is on the verge of financial collapse as well. Japan spends 50 percent of its tax take on paying of its loans and that is with almost zero interest rates so where do you think that is likely to go?

GFC2 is only a matter of time and it is going to make GFC1 look like a tea party.

There could be more financial stimulus both in Europe and the US but that will only delay things for a little while and of course make the bubble even bigger when it bursts.

Suicide is the only answer.

[midas]

A man walks into a bank

http://www.ft.com/cms/s/2/93a47a62-daf0-11e1-8074-00144feab49a.html#axzz22hG6G4oG