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Originally posted by Vitchilo
reply to post by brohes
Yeah, just watch, people are so retarded they will make a 200 points rally. It wouldn't be the first time.
The ratings company issued a stark warning to bond investors exposed to the region's banks. In a nutshell, demographic demands (Europe's population is ageing fast, its birth rate is plunging and its retirement benefits are increasing) have pushed the European project ever-Eastward, bringing Poland, Hungary and the Czech and Slovenia Republics into the fold four years ago, with Bulgaria and Romania following in 2007.
With enlargement has, of course, come economic and monetary expansion; Europe's banks have lent billions to lift the region's prospects, lifting foreign currency debt-to-GDP ratios from an aggregate 30 percent in 2000 to a current 47 percent.
Currency declines, according to Credit Suisse, could take that figure to 65 percent. Put another way: the region’s on the hook for $1 trillion -- a fifth of it due for refinancing this year.
That might be a task too far when emerging Europe is expected to contract by as much as 10 percent and currencies like the Polish Zloty (down 15 percent against the Euro) and the Czech Koruna (down 13 percent) continue to free-fall. Add to that the fact that the US Treasury is set to flog $2 trillion in paper at the same time.
So, what’s left? Gold, that's what. Central and Eastern Europe are sitting atop 730 metric tonnes of bullion, with a current market value of $259 billion. The IMF needs member approval to shift it 400-plus tonnes and Western European banks have cut a deal to limit sales until next year.
They'd have to be tempted: commodity prices are sitting at 6-year lows while Gold's climb continues apace. At $1,000 an ounce, the price spread, and the lure of hard currency, might be too much to resist.
Originally posted by ::.mika.::
the problem there, to my understanding is that swiss franc is the last currency backed by gold, so these two evolving in such a different way seems really "unatural" to me
Berne as swiss franc was so low for no explainable reasons.
Thus Swiss authority will push in everobody else situation; Bailouts... or else.
Originally posted by ::.mika.::
reply to post by Nimrod
thks for explanation
I' m sorry, I posted too quickly.
Authority ?
well Like Here, Puppet Governements and puppet central banks.
These Folks will have to bail-out like we do.
Originally posted by redhatty
Market Ticker - Source
8:17 CT
I do not know what is going on here, and I don't think I want to.
Someone, apparently someone in Asia, wants dollars. A LOT of dollars. There is a forced-liquidation event underway that is massive, it is against all asset classes and it is spreading.
Will this reverse before our markets open in the morning, or are we going to see something really ugly??
Originally posted by ::.mika.::
the problem there, to my understanding is that swiss franc is the last currency backed by gold, so these two evolving in such a different way seems really "unatural" to me
Under pressure from the US in it's war against Gold, the Swiss voted to surrender the Franc' statutory link to Gold back in 1999. Once considered a financial safe haven with the most secure banking system in the world...look at Switzerland today. In just 10yrs time, global confidence shattered - potential bankruptcy - sovereign credit rating in jeopardy - currency in trouble.