Baltic Dry Index. 1856 -10
LIR Gold Target by 2019: $30,000. Revised due to QE programs.
Christmas is coming and the geese are getting fat,
Please put a trillion in the banksters’ hat.
If you haven’t got a trillion a billion will do,
If you haven’t got a billion, God damn you!
Ebenezer Squid.
Stay long physical precious metals. The MF Global
scandal is just the tip of the iceberg. For the full story scroll down to
Crooks and Scoundrels Corner, but simply put, the great vampire squids routinely re-hypothecate customer assets
multiple times via their London based subsidiaries. The daisy chain of all
daisy chains has broken. When the euro fails, as it almost certainly will next
year, re-hypothecation goes into reverse, except the money isn’t there in the
shadow banking system. Up to $15 trillion is missing. The system if effectively
a bankrupt Ponzi Scheme. A giant Madoff exposed on the third anniversary of the
Madoff implosion. Whatever gets
discussed over dinner tonight in Brussels, and dictated all day tomorrow by
Germany to the vassal states and the non Eurozone outer barbarians is largely
meaningless. At this point Europe’s ditherers and bunglers are largely
irrelevant. There’s a black hole in London that’s unfixable.
MF Global is just the tip of the iceberg. As
recession hits in Europe, Europe’s and specifically London’s lax hypothecation regulation
crashes the system. The same customer assets have been pledged against loans
over and over again. As this becomes more widely realised, clients will try to
pull their money out of the Wall Street Squids, re-hypothecation goes into
reverse. Tonight and tomorrows meetings
are merely about rearranging the deck chairs on the Titanic. After hitting an
iceberg with Lehman, a tsunami of cash withdrawal is coming next year. As with
Madoff, there isn’t much cash left its all smoke and mirrors. We have reached
the end of the road.
"Liquidation
sometimes is orderly, but more frequently degenerates into panic as the
realization spreads that there is only so much money, not enough to enable everyone
to sell out at the top”.
Charles
P. Kindleberger. Manias, panics and
crashes.
DECEMBER 8, 2011
Banks Prep for Life After
Euro
Countries Study Printing Their Own Notes in Case Monetary Union Unravels
Some
central banks in Europe have started weighing contingency plans to prepare for
the possibility that countries leave the euro zone or the currency union breaks
apart entirely, according to people familiar with the matter.
The first
signs are surfacing that central banks are thinking about how to resuscitate
currencies based on bank notes that haven't been printed since the first euros
went into circulation in January 2002.
At least
one—the Central Bank of Ireland—is evaluating whether it needs to secure
additional access to printing presses in case it has to churn out new bank
notes to support a reborn national currency, according to people familiar with
the matter.
Outside
the 17-country euro zone, numerous European central banks are eyeing defensive
measures to protect against the possible fallout if the euro zone were to
unravel, other people said. Several, including Switzerland, are considering
possible replacements for the euro as the external reference point, or peg,
they use to try to keep their currencies' values stable.
The
central banks' planning is preliminary, according to the people familiar with
the matter. It doesn't represent an expectation that the euro zone is headed
for dissolution.
But the
fact central bankers are even studying the possibility, which until this fall
was considered unthinkable, underscores how swiftly conditions have
deteriorated. Policy makers, central bankers and investors around the world
have pinned their hopes on this week's Brussels summit to forge a long-awaited
solution to the Continent's two-year financial crisis, which was ignited by
doubts over countries' abilities to pay their debts.
More
“When people look back on this period in five or ten years from
now, they'll say that this was something approaching a turning point for the
American economy."
Robert
A. Rubin, Chairman National Economic Council, 1994.
