Baltic Dry Index. 938 +14
LIR Gold Target by 2019: $30,000. Revised due to QE programs.
"Catastrophe
is avoided for now, but we suggest caution," said Société Générale
E-F & G all voted but nothing much was
accomplished, much less anything good. 55% of Greek voters voted against
austerity, yet another weak austerity government is what Greece will get.
Greece’s exit from the euro is delayed but not for long. Greece is now split
generationally as well with the young largely voting for the opposition. Egypt
voted but so did the generals, who voted to turn back the clock to hidden
military rule. I suspect that a greatly destabilised Egypt will be the result.
A further destabilised middle east region too, with another Egyptian revolution
likely ahead. In France it was a big win
for the promoters of “sack the rich” wealth envy. Old socialism is about to try to turn back
the French clock to the late 1970s and 1980s. A new war with Germany looms to,
though the French president would do well to remember another June 18th
date in French history. Napoleon met his Waterloo at the hands of the British
and Prussians. For now capital flight from Paris to Berlin, Geneva, London and
New York is the likely immediate result. Stay long physical precious metals.
The old regime everywhere is passing, but nothing good
yet seems to be emerging to replace it. Stay long physical precious metals, it
is time to protect the family wealth.
Why did I take up stealing? To live better, to own things I couldn't afford, to acquire this good taste that you now enjoy and which I should be very reluctant to give up.
Greece, with apologies to Cary Grant. To Catch A Thief.
June 18, 2012, 4:15 p.m. ET
Greek Clash With Germany on Bailout Looms
Greece appears headed for a new clash with Germany over its
rigid bailout program as the winners of Sunday's Greek election prepare to ask Europe
for more time to cut public spending.Greece's conservative New Democracy party
and its likely Socialist coalition partner, known as Pasok, are working on a
proposal to ask other euro-zone countries for an extra two years to meet
Greece's fiscal targets, officials involved in the preparations said. The
request would mean that on top of the €173 billion ($218.7 billion) bailout
plan agreed early this year, Greece would need an additional €16 billion in
financing from Europe, these officials said.
The plan would present Northern Europe's creditor nations,
led by Germany, with a dilemma. Europe is eager to help a new Greek government
to strengthen popular support for the country's tough bailout program and to
combat Greece's deepening recession. But German Chancellor Angela Merkel is
also loath to increase the size of the Greek bailout, something that could
split her fractious governing coalition in Berlin.
Ms.
Merkel told a news conferences during the summit of the Group of 20 leading
industrial and developing economies in Los Cabos, Mexico, that Greece's leaders
"must fulfill their commitments quickly" under the bailout deal.
"There
won't be any changes to the memorandum of understanding" setting out the
fiscal and other overhauls that Athens must make in return for aid, she said.
More
Greek agony drags on as Asphyxiation Bloc wins
Economics Last updated: June 18th, 2012
Europe’s
establishment is delighted by the victory of New Democracy and pro-asphyxiation
bloc. This relief is unlikely to last much beyond today, if that.
Greece’s
new leaders have a mandate from Hell. Almost 52pc of the popular vote went to
parties that opposed the bail-out Memorandum in one way or another. There is no
national acceptance of the Troika’s austerity policies whatsoever.
The
hard-Left Syriza party of Alexis Tsipras is arguably more dangerous in
opposition, now fortified with big bloc of seats in Parliament. He can lacerate
the government without responsibility as the state sheds 150,000 public sector
workers, a fifth of the total.
It was
for this outcome that the Greece’s elected government was toppled last year in
an EU Putsch. We now learn from ex-premier George Papandreou that this was
"all Sarkozy’s fault".
France’s
leader refused to let Papandreou call a referendum on the bail-out terms (which
would almost certainly have passed), and Chancellor Angela Merkel went along
with this shoddy act of EU colonialism. The EU threatened, in effect, to cut
off Troika payments. The PASOK government was replaced by an EU-appointed
technocrat.
A
frightening precedent was set, and for no purpose. All the EU has achieved is to
replace a truculent Greek parliament with one that is completely unworkable.
As for
New Democracy, it cannot meet the terms of each quarterly Troika payment in the
future even if it secures the support of PASOK socialists because the terms are
– politically – impossible to meet.
Year
after year of "internal devaluation" will drive unemployment to
catastrophic levels before it breaks the back of the labour movement
sufficiently to clear the way for drastic pay cuts. It is basically a Fascist
policy. Mussolini pulled it of in 1928 under the Lira Forte policy, but he had
coercive advantages.
More
June 18, 2012, 10:01 a.m. ET
Spanish Yields Surge; Greek Relief Wanes
Spain's 10-year government bond yield soared above 7% and
equities lost early gains as investors struggled to find much to cheer about in
the slim victory for the New-Democracy party in the Greek election.
---- "Greek election results are unlikely to resolve
euro-zone uncertainty," said Barclays. "Instead, the focus should
shift to the June 28-29 EC summit, the likely renegotiation of the Greek
austerity package, and to Spanish yields."
Spain's
10-year yield was recently 0.28 percentage point higher at 7.14%, while the
corresponding Italian yield was up 0.14 percentage point at 6.07%, according to
Tradeweb. Greece, Portugal and Ireland succumbed to bailouts when their
government bond yields hit the 7% level. The September German bund contract was
up 0.46 at 142.75.
Spanish
banks were under pressure Monday as the focus shifted away from Greece—at least
for now—and to other financially stressed nations, such as Spain and Italy
---- "Questions over the Spanish
banking-sector bailout will persist, with clarification this week on how much
will be requested—likely an amount somewhat larger than the €40 billion
recommended by the International Monetary Fund, but below the €100 billion on
offer from the euro area," said Standard Chartered. "In Italy,
growing political strains and the risk of an early election are likely to
underpin borrowing costs, while Cyprus may yet need a bailout as it faces an
end-June deadline for bank recapitalization."
More
Elsewhere, G-20 leaders slumming it in Los Cabos Mexico
while toiling away at solving the world’s problems are proposing to give the
Greeks some more rope. Cash and some way of stimulating the dying Greek economy
might be more useful, than more rope tied to debt. But first this. Much to the amusement of China and Russia, ex-communist,
EC President Barroso opened up the European contribution to the latest G-20
junket, with a blast at American banksters and Great Vampire Squids. Stay long
precious metals, the euro is now on borrowed time. So Mr. Barroso, which US
banksters put a gun to Europe’s politicians heads, forcing them to create and then
join the fatally flawed Bilderberger Euro project? Why should Vampire Squids not make money out
of Euroland’s failings, when they routinely bet against their Muppets, when not
actually setting out to steal from them?
Old Ebenezer Squid had one-way
pockets. He would walk ten miles in the snow to chisel a European politician
out of tuppence.
With
apologies to P.G. Wodehouse and orphans and the Duke of Dunstable
G20 summit: Barroso blames eurozone crisis on US banks
EC president says
European leaders have not come to Mexico to receive lessons on how to handle
the economy
Tuesday 19 June 2012
The opening day of the G20 summit was threatening to deteriorate into a
fractious row between eurozone countries and other non-European members of the
G20, notably the US, as EU commission president José Manuel Barroso insisted
the origins of the eurozone crisis lay in the unorthodox policies of American
capitalism.As Europe's leaders came under intense pressure to act decisively to cure the euro's ills, and a campaign gathered pace to relax some of the austerity programmes laying waste to countries with unsustainable debt levels, Barroso said Europe had not come to the G20 summit in Mexico to receive lessons on how to handle the economy. Asked by a Canadian journalist: "Why should North Americans risk their assets to help Europe?" he replied: "Frankly, we are not here to receive lessons in terms of democracy or in terms of how to handle the economy.
"This crisis was not originated in Europe … seeing as you mention North America, this crisis originated in North America and much of our financial sector was contaminated by, how can I put it, unorthodox practices, from some sectors of the financial market."
More
June 18, 2012, 9:54 a.m. ET
G-20 Plans Push for Growth, Again
Leaders to Urge Euro Zone to Turn Focus Away From Austerity in Order to Stem Turmoil's Impact on Global Economy
LOS CABOS, Mexico—Leaders of the world's largest advanced
and emerging economies gathering Monday will find themselves largely where they
left off last November in France, facing risks from Europe that threaten to
cripple the global economy.
The stakes are higher this time for the Group of 20
nations, as both rich and developing economies are slowing in unison.
The
leaders, however, don't expect to settle the latest crisis at this forum, just
a day after elections in Greece and France, and with just a handful of the euro
zone's 17 economies represented. Rather, they hope the discussions will
continue into key gatherings of European leaders in the next two weeks.
The G-20
member nations, which account for two-thirds of the world's population and
about 85% of global economic output, are expected to press for swifter and
stronger action by European leaders to contain the financial turmoil and
prevent the breakup of the currency union. Several nations also are pushing to
steer the international focus away from budget austerity and toward other steps
for spurring stronger growth.
----
If supporters of the international bailout manage to form a coalition
government in Athens, the G-20 is likely to press euro-zone officials to adjust
the rescue package to provide Greece with substantial breathing room—by
extending the deadlines for hitting certain budget targets, for instance.
Because the G-20 membership includes the leading members of the International
Monetary Fund, which is participating in the Greek bailout, they could use the
forum to set a course for giving Greece more rope.
More
Banks are an almost irresistible attraction for that element of our society which seeks unearned money.
J Edgar Hoover.
At the Comex silver depositories Monday final figures were: Registered 35.86 Moz,
Eligible 108.92 Moz, Total 144.78 Moz.
Crooks and
Scoundrels Corner.
The bent,
the seriously bent, and the totally doubled over.
Below,
Europe hits the jackpot with another almost half a trillion US dollars to
waste, propping up the one size fits all Bilderberger euro. But the rescue
funds come with a price tag. No more French perverts running the IMF fiefdom.
In fact no more failed European politicians at all, unless they happen to be
Russian.
IMF wins pledges of $456bn for crisis fund
The International Monetary Fund has expanded its crisis-fighting fund to $456bn after 12 more countries, including powerful emerging market countries, pledged funding.
5:59AM BST 19 Jun 2012
In April, the IMF targeted $430bn to deal with the effects of the eurozone
crisis on the global economy, with the UK promising $15bn, but only gathered
firm commitments of around $360bn when the BRICS countries - Brazil, Russia,
India, China and South Africa - held back. At the G20 summit in Mexico, BRICS leaders said they had "agreed to enhance their own contributions to the IMF" by $95.5bn.
The money came with a warning that things had to change at the Fund, long dominated by the now troubled economic powers of Europe and the United States, which is not contributing despite its huge voting power on the IMF board.
While Washington has insisted Europe has enough resources to resolve its problems itself, it is also clear that the deeply divided Congress is in no mood, given the US economic problems, to contribute rescue funds for others.
The IMF chief said in a statement on Tuesday: "Countries large and small have rallied to our call for action, and more may join. I salute them and their commitment to multilateralism. As a result, total pledges have risen to $456bn, almost doubling our lending capacity.
"With
today's announcements by an additional 12 countries, a total of 37 IMF member
countries... have joined this collective effort, demonstrating the broad
commitment of the membership to ensure the IMF has access to adequate resources
to carry out its mandate in the interests of global financial stability."
The
$456bn is still below the $500bn the fund's own economists had said would be an
adequate expansion of its crisis intervention funding, given the potential of
more contagion in the troubled eurozone.
More
"The great merit of gold is precisely that it is scarce; that its quantity is limited by nature; that it is costly to discover, to mine, and to process; and that it cannot be created by political fiat or caprice."
Henry Hazlitt
The monthly
Coppock Indicators finished May:
DJIA: +71 Down. NASDAQ: +79 Down. SP500: +46 Down. All
three indicators remain down but downward momentum is accelerating again after
stalling earlier in the year.
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