Baltic Dry Index. 1442 +18
LIR Gold Target by 2019: $30,000. Revised due to QE programs.
Last Thursday, Moody’s Investors Service placed the long-term debt and deposit ratings of 16 Italian banks and the long-term issuer ratings of two Italian government-related financial institutions on review for possible downgrade. That followed its June 17 move to place Italy’s Aa2 sovereign bond rating on review for possible downgrade.
Marketwatch.
While Greece begins another 48 hour general strike, (except for the Athens metro, the unions want the public to travel to the parliament building to put pressure on the MPs ahead of the latest austerity vote. Not to worry, as we learnt yesterday in Crooks and Scoundrels corner, no one actually pays to ride on the Athens metro,) the market is moving on from Greece, moving on as well from little Portugal and giant Spain, the market is now starting to focus on to big too save, Italy. Italy faces many of the same problems as Greece compounded by giant cross investment with Gaddafi’s Libya.
But first this from America, America’s economy has taken a giant wobble again. Everything now seems to rest on a continued decline in gasoline prices reviving US consumers other consumption. Alarmingly we now have wobbles in America and China, and a full blown crisis in the near to failing European Monetary Union. Bunker time if not panic time. Stay long physical precious metals.
"You can observe a lot by just watching."
Yogi Berra.
US consumer spending weakest for a year
US consumer spending has slumped to its weakest in almost a year, underscoring the slowdown the economy has endured in 2011.
By Richard Blackden, US Business Editor 6:32PM BST 27 Jun 2011
Spending was flat in May, the Commerce Department said on Monday, and, once adjusted for inflation, showed a decline of 1pc.
Hopes that 2011 would see the US recovery strengthen have so far been dashed as higher gasoline and food prices erode the spending power of millions of Americans.
The Commerce Department also said that average incomes climbed 0.3pc in May, which, alongside the recent decline in gasoline prices, provides some optimism for the second half of the year.
Average prices have dropped just over 10pc since reaching a three-year high of $3.99 at the start of May.
"Consumer spending and confidence has soured," said Chris Christopher, an analyst at IHS Global Insight. "The one piece of good news is that gasoline prices have started to fall offering some relief to a very fatigued consumer."
More
http://www.telegraph.co.uk/finance/economics/8601503/US-consumer-spending-weakest-for-a-year.html
Now back to Berlusconi and Gaddafi’s Italy. Does any part of Club Med actually work?
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