A "disastrous" German bond sale
Quote:(Reuters) - A "disastrous" German bond sale on Wednesday sparked fears that Europe's debt crisis was starting to threaten even Berlin, with the leaders of the euro zone's two biggest economies still at odds over a longer-term structural solution.

With contagion spreading, a majority of twenty prominent economists polled by Reuters predicted that the euro zone was unlikely to survive the crisis in its current form, with some envisaging a "core" group that would exclude Greece.

Investors were also unnerved by reports that Belgium is leaning on France to pay more into emergency support for failed lender Dexia under a 90-billion-euro ($120-billion) rescue deal that had appeared done and dusted.


Here is the next step in the fall of the Euro.
Merry Christmas . Das kind ist geboren oh halleluyah.
I think Germany, will take over the Euro, change them back to German Marks.

You won't be able to buy anything unless you have the Mark.
I saw this story earlier, I get tired of posting financial gloom and doom stuff all the time. But you're right, none of this gets any better.
(11-23-2011, 04:00 PM)PonderThis Wrote: I saw this story earlier, I get tired of posting financial gloom and doom stuff all the time. But you're right, none of this gets any better.

The problem comes from one currency, but multiple governments issuing bonds payable in that one currency.
Unlike the US, they can't issue new money to pay off the bonds. This leads to default.


Has some interesting points,
Quote:Has the Bank Run Begun in Europe

Quote:Money-market funds ,in the United States have quite dramatically slammed shut their lending windows to European banks. According to the Economist, Fitch estimates U.S. money market funds have withdrawn 42 percent of their money from European banks in general.

And for France that number is even higher — 69 percent. European money-market funds are also getting in on the act.
Yep. This is BIG!

Our world could be changing lickity split, right before our eyes. Are we privileged to have a front row seat to history?

Maybe not.

Gather the loved ones in close and watch carefully.
And dont forget to feed the cat. Genius , aim .
I'm tired. I thought it said a disatrous German Blonde sale.Embarrassed
(11-23-2011, 10:32 PM)Tiamat Wrote: I'm tired. I thought it said a disatrous German Blonde sale.Embarrassed

Sounds like a blond joke. Let me guess the punch line, "They though they were going on a boat"
Quote:Base metals tumbled for the second consecutive day on Wednesday, 23rd November amid the strong US dollar coupled with series of disappointing global economic data. Copper at LME plunged to a 4-week low by 3.06% at $7195 a metric tonne. The grim Chinese manufacturing PMI data that fell to 48.0 in November conspired with the dimmer reports on Belgian-French financial institution Dexia SA rescue deal which led the French and Belgian bond yields to rise and threatened the country's triple-A rating hammered the metals during the early session of the trade yesterday


Ever play that game with dominoes, where you set them up in a line?
I have written here extensively re Germany and China giving many links to Strafor's complex analysis. CW is right and the issue in this election isn't about rather the earth is round or gay marriage or evolution. The so called Repug debates (in reality Obama campaign ads); no one was asked about the European problem that I'm aware of...Well Greece perhaps in a talking point kind of way. The issue is Europe and I will repeat my advice, watch your 401K.
You may remember that Obama back in 2009 went to Germany trying to get them to do stimulus and he was rebuked. That was a telling point and largely ignored.
A good study is why the Euro will have a difficult time standing given the cultural dynamics of Europe. In the best of times it was under stress, much more so now.
China is in trouble too


Quote:Lang’s assessment that the regime is bankrupt was based on five conjectures.

Firstly, that the regime’s debt sits at about 36 trillion yuan (US$5.68 trillion). This calculation is arrived at by adding up Chinese local government debt (between 16 trillion and 19.5 trillion yuan, or US$2.5 trillion and US$3 trillion), and the debt owed by state-owned enterprises (another 16 trillion, he said). But with interest of two trillion per year, he thinks things will unravel quickly.

Secondly, that the regime’s officially published inflation rate of 6.2 percent is fabricated. The real inflation rate is 16 percent, according to Lang.

Thirdly, that there is serious excess capacity in the economy, and that private consumption is only 30 percent of economic activity. Lang said that beginning this July, the Purchasing Managers Index, a measure of the manufacturing industry, plunged to a new low of 50.7. This is an indication, in his view, that China’s economy is in recession.

Fourthly, that the regime’s officially published GDP of 9 percent is also fabricated. According to Lang’s data, China’s GDP has decreased 10 percent. He said that the bloated figures come from the dramatic increase in infrastructure construction, including real estate development, railways, and highways each year (accounting for up to 70 percent of GDP in 2010).

Fifthly, that taxes are too high. Last year, the taxes on Chinese businesses (including direct and indirect taxes) were at 70 percent of earnings. The individual tax rate sits at 81.6 percent, Lang said.

Once the “economic tsunami” starts, the regime will lose credibility and China will become the poorest country in the world, Lang said.

Several commentators have expressed broad agreement with Lang’s analysis.
I saw Portugal was downgraded today too. If I read correctly they're paying something like 13% interest on their latest bond sale??? It sure sounds like the Euro is going down.
Quote:Venezuela has received its first shipment of gold bars, after President Hugo Chavez ordered the repatriation of 85% of the country's bullion reserves.

Quote:Belgium's rating was cut by one notch, to AA from AA+, with S&P expressing concerns about funding and market pressures.

The move comes as the eurozone crisis threatens to keep growing, and with continued concerns over Italian debt.

Quote:Italy has been forced to pay record interest rates in a 10bn euro ($13bn; £9bn) auction of treasury bills.

The rate of interest for the new debts due to be repaid in six months was 6.504%, compared with 3.535% in the last comparable sale on 26 October.

Quote:Moody's has cut its rating of Hungarian government debt to junk status.

The ratings agency blamed Hungary's high levels of debt and weak prospects for growth, as well as uncertainty about whether the government can achieve its goals for the economy.

Too many nations are too committed to the whole European alignment. If Europe is going to have a future, it has to be aligned. There has to be a common currency in order for this to work. Breaking up the currency agreement removes that. There are similar economic pressures on the US. Look at Harrisburg, PA which has a debt almost as large as some of this European countries. The state won't allow Harrisburg to declare bankruptcy under PA law. How many other cities in the US are a heartbeat away from declaring bankruptcy? Also, what is going to happen with California?

The richest parts of Europe will come together to protect the weakest parts.
(11-26-2011, 12:17 PM)TennisMom Wrote: The richest parts of Europe will come together to protect the weakest parts.

Ya, Right Big GrinLaughingBig GrinLaughingSmiling
I agree with Chuck on this one. The countries of Europe never did particularly get along with each other anyway, and this looks to me like it's going to tear the Euro apart.
Quote:Russia Officially Adds 19.5 Tonnes of Gold Reserves in October Alone



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