Sunday, October 09, 2011

Sunday Night Special -
A feminine response to
Iceland's financial crash
Halla Tomasdottir managed to take her company Audur Capital through the eye of the financial storm in Iceland by applying 5 traditionally "feminine" values to financial services .. she talks about these values & the importance of balance .. 10 minutes
"All the perplexities, confusion and distress in America arise, not from defects in their Constitution, not from want of honor or virtue, so much as from the ignorance of the nature of coin, credit and circulation."
- John Adams (October 30, 1735 – July 4, 1826), 2nd President of the United States (1797–1801)
The Only Option Left 
is to Print Money
King World News interviews Hinde Capital's Ben Davies .. discusses his take on the euro debt crisis & the gold market .. foresees the death of the fractional reserve system - emphasizes 'real' assets for protection from .. "We are in the situation where even the man on the street understands that the only option left is to keep printing." .. about 15 minutes audio interview
Link here to the audio interview
Financial crisis & stimulus: 
Could this time be different?
Washington Post article considers the dilemma facing policymakers .. there were many paths that could have been taken in January 2009 for economic recovery - in particular a stimulus conducted with the Rogoff-Reinhart lessons in mind might have been broken into pieces & spread over a longer period of time .. "More accurate understanding of the recession could have led to somewhat different stimulus — perhaps a more durable political strategy."
Link here to the article
Is Suburban America 
a Ponzi Scheme?
[Revenues aren't there to cover maintenance] 
courtesy of The Business Insider
Courtesy of Clay Bennett,
click to enlarge
"The System Has Actually Collapsed"
"You had a financial crisis where the market did actually collapse, but it was kept alive by the authorities. People don’t realize ..."
The Chinese Will Control 
The Global Gold Market?
Forbes article about the new Pan Asian Gold Exchange (PAGE) in China - part of China's 5 year plan, in essence part of China's strategy for financial markets & the global economy .. the world spot market for gold could be moving away from London's Metal Exchange & the Comex in New York to China .. ".. eyes will be on the influence of the gold trade in China rather than New York, London, Switzerland or South Africa .. Another bullish force behind powering gold prices higher. No wonder George Soros has bought back some or all of the gold position he sold around $1600 an ounce."
Link here to the article
European Debt Crisis 
High Risk to Escalate & Broaden
Financial Post article highlights recent events in the euro debt crisis .. a meeting this weekend between German Chancellor Angela Merkel & French President Nicolas Sarkozy indicates European banks may need more than originally estimated .. German Finance Minister Wolfgang Schaeuble: "There is a high risk that this crisis escalates and broadens."
Link here to the article
Hopes Rest on Germany
Kyle Bass (MAA) is featured in the new Michael Lewis (MAA) book, "Boomerang." .. Lewis explains what markets want from Germany in its handling of the European debt crisis .. Kyle Bass quote in the video: "In the end, it is most likely that after Greece and the next peripheral country begin to default, Germany will exit .. & recapitalize their own banks." .. 10 minutes
Courtesy of Clay Bennett,
click to enlarge
Who’s the Sucker at the 
Global Poker Table?
Jim Rickards (MAA) draws the analogy that China was the sucker at the poker table .. the old saying "if you are in on a poker game and you don't know who the sucker is, you're the sucker"- Rickards says China was the sucker, with $3 Trillion of paper & nowhere to go, vulnerable to the U.S. .. "That’s beginning to occur to them and maybe their behavior will change going forward. But the Arabs understand this, they went through this in the ‘70s. They had recourse, they said, ‘Nixon, you want to cut the value of the dollar by 20%? Fine, we’ll quadruple oil prices, your move.‘ .. In other words they were able and continue to be able to protect themselves from dollar devaluation simply by increasing the price of oil. Then they get the paper money and they buy gold. So they are in on the joke .. They don’t have any more confidence in paper money than I do, but they continue to participate in it because they benefit from it because they are natural resource players." [Cliff Note: Don't doubt that China figured this out & has been quietly moving paper into things]
Link here to the interview notes
"Europe is going to print the euro and we are going to print the dollar."
- John Hathaway, Tocqueville Fund Manager
Thinking outside the 1930s box
BBC essay looks at how the global economy may be repeating the 1930s very eerily ..  emphasizes this time it could be worse than the 1930s .. recounts the events from the 1930s: from 1929 to 1932 America operated a policy of deflation: that is, making the downturn worse in the belief that it would 'cleanse the system' .. this caused a debt-deflation spiral in America that infected the rest of the world .. social unrest & disintegration into fascism resulted & ultimately war .. "In the absence of decisive policy action, you get a sequence that goes: crash (2008); stimulus (2009); failure of stimulus (2011); second crash (2011/12); deflation; involuntary collapse of globalization. In that situation, which I profoundly hope does not happen, every government becomes like the Brüning administration in Germany after 1931, still trying to make the old policy work in the new world, increasingly resorting to decree." .. is there any answer? - essay suggests Europe, through emergency, ad-hoc fiscal union, effectively removes its sovereign debt from the influence of market forces, banks become nationalized & lending is state-directed .. will this work? NNOO
Link here to the essay
Is the U.S. a third-world nation?
Michael Lewis (MAA- in his case, Most Admired Author) insists that the U.S. economic situation will get much worse before it gets better .. the U.S. & some European countries are suffering 3rd-world problems like not being able to repay their debt, radical cuts in & inadequate levels of public services .. 11 minutes
Dutch Answers To Questions 
About Their People's Gold
(the Dutch Ditched, Ducked & Dodged Disclosure) 
Examples: Did the Dutch Central Bank (DNB) loan part of their gold? If yes, how much and to whom? No. DNB have stopped loaning out gold as of 2008. Can you give an overview of the yields of the gold loans during the past years? No gold has been loaned out over the past years. What was the most important reason for DNB to sell gold in the past? By selling gold in the past, DNB has tried to align its gold holdings with other gold holding countries. (?)
Link here to the article [Warning: The Answers Raise More Questions Than Provide Answers.]