Tuesday, May 29, 2012

End Of The Road Documentary

In 2008 the world experienced one of the greatest financial turmoils in modern history. Markets around the world started crashing, stock prices plummeted, and major financial institutions, once thought to be invincible, started showing signs of collapse. Governments responded quickly, issuing massive bailouts and stimulus packages in an effort to keep the world economy afloat.

While we’re told that these drastic measures prevented a total collapse of our system, a growing sense of unease has spread throughout the population. In the world of finance, indeed in all facets of modern life, cracks have started to appear. What lies ahead as a result of these bold ‘money printing’ measures? Was the financial crisis solved, or were the problems merely ‘kicked down the road?’

The new film "End Of The Road" has just been released for public viewing, featuring Mike Maloney, Peter Schiff, Jim Rickards, Jim Puplava, James Turk, Eric Sprott and more.


Friday, May 25, 2012

Will Greece Exit the Eurozone?

Will Greece exit the Eurozone? These days the media are filled news on the possibilities and consequences of Greece exit from the Eurozone. But there is a minority who believes that Greece will not exit the Eurozone because the entire Eurozone is too big to fail. James Rickards is one of those. Primarily because the EU is a political project dominated by the Germans and not just an economical project. Here are some of his recent comments on twitter:
  • I've said all along, so one more time: #Greece not quitting, not kicked out. Euro not failing.
  • Europe evolving into export-investment power
  • Well, you just proved my point. If somthing cannot happen, it will not happen.
  • Why do people who believe that banks are too big to fail think that whole continents are not? Game is fixed, top down. Euro holds
  • Why do I say the Euro is "working as planned?" Because it's leading to integrated Europe under #German domination
Here was an interview he had with CapitalAccount.  You may jump to the 20th minute of the video where he shared his views on the Eurozone crisis.  I personally agree with his analysis on this possibility.

Thursday, May 24, 2012

Singapore Ranked Top for Searching 'Bank Run' in Google Search

According to Google Trend, Singapore ranked top among those who Google search for the phrase 'bank run'.  Is this a sign or some worries going on in the island? Perhaps there is a valid reason for Singapore banks and government to be worried.  

According to Moody's assessment in 2011, Singapore and Hong Kong will be the hardest hit countries in the event of an Europe banking crisis.  

“An escalation of the euro area crisis could quicken the retreat of European banks from the region,” said Jean-Francois Tremblay, Associate Managing Director at Moody’s Investor Service.

According to Zerohedge article (Why Stability Stalwart Singapore Should Be Seriously Scared If The Feta Is Truly Accomplished) published recently, Singapore's exposure to Euro banks' claim has reached 60% of GDP (citing BIS and BofA Merril Lynch Global Research). 

"Widespread risk aversion linked to fears of a Greek euro exit underscores the global nature of the European crisis. As we argued in the new year, the systemic threat of an untamed banking and sovereign crisis in Europe would push reluctant outsiders to preventively bolster IMF funding. This indeed materialized in March. However, both IMF and European firewalls still fall short of the amounts needed to protect Italy, Spain and the rest of the periphery. Global markets thus remain sensitive to rising probabilities of tail-risk scenarios."

With all these underlying global implications, do you think the world is going let Greece exit out of Euro?

Friday, May 18, 2012

First Japanese Pension Fund to Make Public Purchases of Gold

Okayama Metal & Machinery has become the first Japanese pension fund to make public purchases of gold, in a sign of dwindling faith in paper currencies.

Initially, the fund aims to keep about 1.5 per cent of its total assets of Y40 billion ($500 million) in bullion-backed exchange traded funds, according to chief investment officer Yoshisuke Kiguchi, who said he was diversifying into gold to “escape sovereign risk”.
With institutions warming to gold, too, demand could grow further.

“If you look at assets over the past couple of decades, equity has been a loser, while fixed income offers tiny coupons,” said Yoshio Kuno, Japan head of Newedge, the futures broker. “Gold is becoming an acceptable currency substitute.”

(Editor's comment : Sounds like investment institutions are beginning to look at gold.  I'm sure more and more will follow suit in view of the global financial instability.)

Excerpt from Original Source

Wednesday, May 16, 2012

Sudden Surge in Gold Bullion Demand in Asia

Wholesale market gold bullion prices dipped below $1550 an ounce for the first time since December on Tuesday – a fall of 7% since the start of this month – before regaining some ground by lunchtime in London.

"The bear channel support had been at $1581," say technical analysts at Scotia Mocatta, the bullion banking division of Bank of Nova Scotia.

"The next target is a full retracement to December's low of $1522 and there does not appear to be much standing in the way."

"Gold bugs [are] hiding deep in their gold caves pondering why gold isn't rallying in spite of [the] sharp spike in risk-off sentiment," said NYU professor Nouriel Roubini on Monday via the medium of Twitter.

Asian dealers however report a pickup in physical gold bullion demand.

"At the moment supply is a bit tight for immediate delivery," one Singapore dealer tells news agency Reuters.

"Refiners can't deliver immediate gold because there's a sudden surge in demand. We're seeing demand from India, Thailand and Indonesia."

Tuesday, May 15, 2012

Jim Rickards : Why Jamie Dimon Should Resign?

Jim Rickards : "...Banks are propped up by taxpayer guarantees and fatten their earnings at the expense of everyday American savers. Then they risk those earnings on bets that serve no purpose but to enrich the greedy executives who make them. When things go wrong those executives cry that markets are too complicated to manage. In fact, the bet is no more complicated than putting money on red at roulette. As a last resort, the executives hide behind the flag of free market capitalism when in fact they are the new welfare queens with government subsidies galore.

The whole thing is a disgrace. If Jamie Dimon had an ounce of decency, he would resign now. Not because his acts were criminal, but because he presides over a corrupt institution that extracts wealth from the many and directs it to the few with no value added and not even a nod in the direction of the hard-working American victims of this scam."
Excerpt from Original Source

Monday, May 14, 2012

Greece Crisis Getting Worse By The Day?

The battle between austerity and democracy continues to get worse in Greece.  Greece's exit from Eurozone is deemed 'inevitable' by analyst today.  How will this turn out socially and financially to the entire Europe and the world?  Below are the views expressed by those living in the 'eye of the storm'.

Greece on Fire

Germans dare Greeks to Kickstart Euro Exit

Sunday, May 13, 2012

Euro Money Printing will Drive Up Gold Prices

"Those investors panicking now and selling their gold and silver will feel as sick as dogs when they see   what happens next to prices. For after a bleak patch lasting at most a couple of months the eurozone authorities will start their money printing presses rolling and hey what is the one money that they can never print? ...  

Now consider what has to happen for gold and silver not to rise in price. The eurozone has to make a stand against its debts and let countries fail and whole populations fall into ruin. In the world of muddle-through committee politics that is never going to be allowed to occur, except perhaps in the special case of Greece who should never have been allowed to join the European Union let alone the eurozone..."
Excerpt from Original Source

Wednesday, May 9, 2012

Time to Jump Back into Gold

As of today, gold has been hammered down and stood at $1,592.90 an ounce.  Is this the time to jump back into gold?  UBS’ Edel Tully suggests three major factors that may call for it, namely : 
  • A weak U.S. economy
  • Uncertainty and anti-austerity in Europe
  • Indian demand for gold is coming back

Read Article - Why Gold Could Be Setting Up For A Killer Comeback

Tuesday, May 8, 2012

China Quietly Building Gold Reserves

Gold Imports From HK Soar By 587% In First Quarter.  Bloomberg reports, "Mainland China's gold imports from Hong Kong surged more than sixfold in the first quarter, to 156 metric tons, adding to signs that the country may displace India as the world's largest consumer of the precious metal on an annual basis." And the punchline: "The purchases through Hong Kong may signal that the mainland is accumulating reserves, London-based brokerage Sharps Pixley Ltd. said in February. The nation last made its reserves known more than two years ago, stating them at 1,054 tons." 

Excerpt from Original Source

The Europe Situation is Certain to Get Worse

Check out this interview with Alasdair Macleod, a weekly writer to GoldMoney.com and publisher of the FinanceAndEconomics.org as he shared his views on the European debt crisis with Chris Martenson on how the crisis originated and why the problems are not going to get better.  

In this interview, he provided also painted a picture of many well-meaning but anxious people who are trying hard to apply the wrong solutions to the incorrect diagnosis because of their Keynesian understanding of Economics.  One of which is their view of the economy using the GDP alone as a measuring indicator and Alasdair explained in simple terms why this was the wrong indicator they have been using.

Wednesday, May 2, 2012

Egan-Jones Cuts Spain's Rating From BBB- To BB+

"Monday, Spain said its economy contracted for the second-straight quarter during the first three months of the year putting it officially into recession. The country's economic weakness and high unemployment mean costs for social payments are surging, which makes its debt load even more unmanageable.
Bond investors have pushed yields on Spanish debt sharply higher because of the increasing potential risk for the country to default.
Egan-Jones estimated there is a 3% chance Spain will default on its debt in the next year. It projected Spain's rating will eventually fall to double-B.
Spanish 10-year debt yielded 5.75% Monday, according to Tradeweb. It yielded 4.63% three months ago."
Excerpt from Original Source