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Saturday, 31 March 2012

Emerging markets performance

The ten year performance history of emerging markets is summarised nicely in this "Periodic table of emerging markets", courtesy of US Global Markets, who contend that performance varies over time in consistence with "reversion to the mean".

Saturday, 24 March 2012

Money printing can not cease

Massive money printing, in the order of tens of trillions of dollars, can not cease because of the financially destructive psychological impact that would have on market sentiment, according to Jim Sinclair.

Friday, 23 March 2012

Problems with a gold standard

The chairman of the US Federal Reserve Bank, Ben Bernanke, enumerated the problems with a gold standard, should one be considered as a replacement for the currently deteriorating western fiat currency system.

Thursday, 22 March 2012

China tightens totalitarian control

China has ordered lawyers to pledge their allegiance to the Chinese Communist Party, according to Reuters.

Wednesday, 21 March 2012

SWIFT's act of war will damage US dollar

Jim Sinclair's interview with Ellis Martin explains the consequences of SWIFT's selective exclusion of nations and banks from the international settlement system, and elaborates the ideas reported in February's posting here.

US exempts Japan, ten EU nations from Iran oil sanctions

The US has exempted eleven nations from Iranian oil sanctions, in an acknowledgement of western allies' energy needs.

Wednesday, 14 March 2012

ECB representative can not explain why Irish should pay billions for European banks

The European Central Bank's Klaus Masuch was left speechless unable to answer Irish journalist Vincent Browne's repeatedly restated question of why the Irish people should pay billions for unguaranteed bonds to support European financial institutions which have no bearing upon the Irish people, in a press conference video.

Saturday, 10 March 2012

CDS bond insurance will cover Greek haircuts

The ISDA (International Swaps and Derivatives Association) has declared that a Greek sovereign debt "credit event" has occurred, clearing the way for CDS (credit default swap) and other insurance instruments to be called upon to make good bondholders' losses.

Seabed mining progresses

Nautilus' revolutionary seabed mine continues to progress, 1600 metres beneath the Bismarck sea.

Thursday, 8 March 2012

US Fed focuses on printing more money

The US Federal Reserve continues to consider printing more US money.  Despite "spinning" the announcement to create the perception that it would not contribute to inflation, the fact remains that money printing is inflation.

Wednesday, 7 March 2012

European Central Bank facing "sizeable" possible losses

Should Greece default, the European Central Bank (ECB) would face "sizeable" losses of 177 billion euros, which would amount to over 200% of the ECB's capital base, according to the International Institute of Finance (IIF) in a Financial Times report.  And on top of that, the ECB's need to buy more risky European sovereign debt would increase.

Tuesday, 6 March 2012

Gold mining stocks will be utility stocks

Jim Sinclair argues that gold mining companies will become high yielding utility stocks in the future.

Icelanders consider replacing krona with Canadian dollar

Some Icelandic business leaders have proposed that Iceland adopt the Canadian dollar as their national currency, to improve stability and ease capital flows.  It is significant that the proposal was not to adopt the US dollar, which has traditionally been the global reserve currency, but whose status is now diminished.

Friday, 2 March 2012

Commodities price inflation likely

"It remains uncertain how the banks will use the cheap money" provided by the European Central Bank (ECB), which has lent 530 billion euros to European banks, according to Der Spiegel.

ISDA conflict of interest

The International Swaps and Derivatives Association (ISDA) is responsible for determining whether or not losses from failed bonds are covered by insurance.  It is surprising to note that some voting ISDA members appear to be the sellers of that insurance, and therefore would have a conflict of interest.

Greece fails to implement required reforms for second bail-out

Negative market sentiment towards the euro currency is likely to be amplified by polarising European disunity.  Some European finance ministers are not satisfied that all Greece's political party leaders are fully behind the reforms, according to Reuters.

Greek bondholder losses uninsurable

The ISDA (International Swaps and Derivatives Association) voted unanimously that no "credit event" has occurred with respect to the Hellenic Republic.

Thursday, 1 March 2012

Gold's relationship with the US dollar

I find Julian Phillips' explanation of gold's historic relationship with the US dollar most informative.

Gold price slammed down by $100

Some speculate that often a sharp fall in the gold price reflects orchestrated central bank selling to manipulate the gold price downwards, to support fiat currencies, and to foster positive global financial sentiment.  A report about central bank gold price manipulation has been deleted from the internet.