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While many investors have been distracted by the goings on in Europe, China has been making a dent in the global gold market by making it easier for investors to buy and invest in the yellow metal.
The goal: To dominate the global gold market and carve out a new role for its currency, the yuan
World Gold Council (WGC) Far East Managing Director Albert Cheng, who predicted in March 2010 that Chinese gold demand would double by 2020, noted: "We now believe this doubling may, in fact, be achieved far sooner."
China is pushing gold because it wants the government and citizens to build financial reserves in assets stronger than the U.S. dollar, euro, and other weakening currencies. It also increases China's role in the precious metals market.
But there's another effect of this push for gold ownership: it's dislodging the dollar as the world's main reserve currency.
More Moral Hazard on the way
Brought to us courtesy of senators Kay Hagan of North Carolina and one of the banking lobby's most obedient lap dogs, Bob Corker of Tennessee;
The United States Covered Bond Act of 2011 is designed to allow bundling of any kind of debt including derivatives, into marketable securities guaranteed at full face value by the FDIC.
Asset classes eligible to be rolled into Covered Bonds are shown below including "H" which leaves the door open for anything left over, What would qualify would be the decision of one unelected official, the treasury secretary/Goldman Sachs representative.
(A) a residential mortgage asset class;
(B) a commercial mortgage asset class;
(C) a public sector asset class;
(D) an auto asset class;
(E) a student loan asset class;
(F) a credit or charge card asset class;
(G) a small business asset class; and
(H) any other eligible asset class designated by the Secretary, by rule
and in consultation with the covered bond regulators
The full text of the bill is here.
Thanks Bob Corker for working to build this new FDIC insured landfill where our TBTF banks can dump all of their unwanted financial refuse and collect 100 cents on the dollar on their way out.
Please write your congressman to stop this before it is too late. - Source
Originally posted by zorgon
Timing Questions Emerge on MF Global Cash
Hundreds of millions of dollars might have gone missing from customer accounts at MF Global Holdings Ltd. as far back as four days before the securities firm filed for bankruptcy protection, people familiar with the situation said Monday.
Wall Street Journal
I guess many US investors really don't like the trash been sold from the Countries in the EU anymore
It's pretty-much over at this point....
This morning Germany had a failed Bund auction. That's not particularly noteworthy; it happens from time to time.
But what's noteworthy is what happened to bond yields everywhere through Europe in response: They blew out.
The Greek and Italian "problem" is no longer about Greece and Italy. It has been creeping into Spain and more-recently France, but this morning jumped into Germany and everywhere else "all at once."
SARKOZY SAYS EURO ZONE MUST FURTHER INTEGRATE
SARKOZY SAYS TROUBLED EURO COUNTRIES DIDN'T UNDERTAKE REFORMS
SARKOZY SAYS EURO ZONE MEMBERSHIP IMPLIES OBLIGATIONS
SARKOZY SAYS EUROPE'S FUTURE REQUIRES CONVERGENCE
Chatter across European trading desks, since confirmed by the EBA, is that medium- and long-term funding in Europe is now completely frozen.
Fitch's Colquhoun says Japan action needed to head off negative pressure on ratings
Finnish finance minister says common Eurobonds could damage investors trust on healthy economies
French foreign minister says the issue of ECB intervention will be discussed at Sarkozy-Merkel meeting today
Gilts continue to outperform Bunds; reports suggest that Japanese funds are shifting their investment from Bunds to Gilts
Austrian Industrial Production (Sep) M/M -2.0% vs. Prev. 1.1%
Spanish Mortgages on Houses (Sep) Y/Y -42.0% vs. Prev. -41.7%
German Exports (Q3) Q/Q 2.5% vs. Exp. 1.6% (Prev. 2.3%)
German Imports (Q3) Q/Q 2.6% vs. Exp. 1.5% (Prev. 3.2%, Rev. to 2.9%)
German coalition may be open to Eurozone bonds
- German backing for issuance of joint Eurozone bonds is no longer being catorgorically ruled out in Merkel’s coalition
German finance minister says market turmoil will continue for few months, and convinced we need EU treaty change
French Manufacturing PMI (Nov P) M/M 47.6 vs. Exp. 47.8 (Prev. 48.5), lowest since June 2009
. This action follows Monday's Greek downgrade from C to CCC.
The last 5 minutes of today's somewhat tempestuous day saw a rather dramatic plunge in ES on very heavy volume which could easily be flash-crash-worthy in its description. Having tested VWAP a number of times during the day and been unable to make any progress above it (suggesting program selling was active), the final desperate straw broke the camel's back into the close as ES dropped 1% in less than 5 minutes as volume dwarfed the rest of the day with machines fighting each other to exit at a reasonable price.
While Ireland won’t seek debt discounts, the government might pursue other relief given to Greece, including cheaper interest payments on aid and longer to repay it, according to a person familiar with the matter who declined to be identified as no final decision has been taken." There is one very important addition here: "While Ireland won't seek debt discounts" yet."
The total output value of the U.S. financial services industry is composed of two major parts: one is the transferred production value, most of which comes from value distribution of participating in international production. Another part is the inflated value originated from credit innovation, which belongs to bubble value. In addition, due to the high economic financialization, more than half of the profits in the real economy come from the returns of financial activities. If we exclude the factor of virtual economy, the U.S. actual GDP is about 5 trillion U.S. dollars in 2009, per capita GDP about $ 15,000. Meanwhile, the total domestic consumption was 10.0 trillion U.S. dollars and government expenditure was 4.5 trillion U.S. dollars.
Irish PPI (Oct) M/M -0.3% vs. Prev. 1.2%
Irish PPI (Oct) Y/Y 2.5% vs. Prev. 0.2%
Originally posted by surrealist
Here's something though, if the do introduce Eurobonds and they turn sour and investors lose confidence in them, then it is all Eurozone countries equally that suffer the consequences of bad credit, is it not?
EU's Rehn says a leveraged EFSF and a faster ESM would be enough of a firewall
According to a source, Greece to begin Troika talks on new bailout on December 12
Deutsche Bank (DBK GY) does not plan capital increase and does not plan to cut lending according to a source
Originally posted by SpaceMonkeys
A couple of pages ago I said the west are going to poke Iran until they retaliate and posted the article headlined UK Severs Ties With Iranian Banks.
Well here's another article to support my theory:
France to stop buying Iranian oil
France to stop buying Iranian oil