Here we go again. Stock markets were down Friday in Europe and the Americas. The culprit was renewed anxiety that Europe cannot get its house in order…
May 17th, 2010 | Dan Denning | 3 comments | ContinuedAll Posts Tagged With: "Euro"
When the Euro Disintegrates
Last week’s right hook to markets with the Rudd Resource Rent Tax (RRRT) was followed up yesterday with a stiff left lawsuit jab to the jaw of Australian banks. “Shares in major banks including Commonwealth Bank and ANZ fell by about 1 per cent after BusinessDay reported they faced one of Australia’s biggest class actions…
May 13th, 2010 | Dan Denning | 9 comments | Continued
Merger and Acquisition Activity in Coal, Iron Ore and Gold
That brings us to the merger and acquisition activity in Australia. You may have seen that gold producer Lihir received a $9.2 billion takeover offer from Newcrest over night. Lihir says the offer undervalues the company’s assets. But whether it does or doesn’t, does the bid remind you at all of the BHP and Rio Tinto shenanigans a few years ago?
April 1st, 2010 | Dan Denning | 2 comments | Continued
Even Central Banks Buy Gold
Central banks around the world added 425.4 metric tons of gold to their reserves last year, the biggest increase since 1964, according to the World Gold Council.
March 30th, 2010 | Bill Bonner | 0 comments | Continued
European Monetary Union Members Cannot Print Money to Inflate Way Out of Crisis
Europe’s monetary failure is bringing about a fiscal crisis, and probably a social crisis too. The Euro not only made 10-month lows against the dollar. But the viability of the common currency (one interest rate, many fiscal policies) is now being openly questioned.
March 25th, 2010 | Dan Denning | 38 comments | Continued
Is Your Money What You Think It Is?
The paper we use today is a medium of exchange – it got that way because governments made it illegal not to accept it – but it’s not a good store of value.
March 19th, 2010 | Doug Casey | 2 comments | Continued
How Does an Economy Expand When the Banks are Lending Less Money?
We believe the “expansion” reported in the GDP figures is mostly counterfeit. It’s government spending and hot money filtering into the economy.
March 4th, 2010 | Bill Bonner | 0 comments | Continued
Capital Flight Out of Greece
An article in the UK Telegraph stated that Greece’s Deputy PM had lashed out at Germany over war-time atrocities and accused Italy of cooking its books. This seems like a fairly dumb thing to do when you are hoping that Germany might hand over some cash to help you out of the hole you’ve dug yourself.
February 26th, 2010 | Murray Dawes | 2 comments | Continued
The Euro is a Symptom of Centralisation
But whether he’s right about Greece or not remains to be seen. Stock markets are meandering through February as if no clear signal about the pending sovereign debt crisis has been issued. Everyone seems to believe – assuming they are thinking at all – that Europe will get its fiscal house in order…
February 23rd, 2010 | Dan Denning | 1 comment | Continued
Hike in Fed Funds Rate Would Cause Damage to Collateral on Books of America’s Banks
It’s not the big money-centre banks in Wall Street you have to worry about. It’s the smaller regional and community banks. The Federal Deposit Insurance Corporation shut four more of them over the weekend. That’s 20 for this year, which is a lot less than the 140 last year. But if you wanted to see a spike in U.S. bank failures, you’d definitely raise interest rates.
February 22nd, 2010 | Dan Denning | 41 comments | Continued
The U.S. Dollar is Not the Euro
As the main rival (amongst paper currencies) to the dollar as a global reserve currency, the euro’s coming collapse has to, almost by definition, equal dollar strength. There just aren’t that many more liquid alternatives for large institutions and central banks.
February 19th, 2010 | Dan Denning | 4 comments | Continued
China Using Holdings of U.S. Treasury Bonds as Cudgel to Bludgeon United States
Figures in the People’s Liberation Army want the financiers to sell U.S. bonds as a way of punishing Washington for selling arms to Taiwan. Mind you this might not seem like such a good idea if the bond selling triggers a run on the dollar and swift devaluation in China’s forex reserves. But maybe China’s arsenal of U.S. bonds is a like a pile of bullets – they’re no good unless you fire them.
February 11th, 2010 | Dan Denning | 26 comments | Continued
Thomas Friedman Offering Investment Advice
Friedman is, as we all know, full of advice on just about everything. He advises finance ministers on how to soup-up their economies.
January 20th, 2010 | Bill Bonner | 3 comments | Continued
A Sovereign Debt Crisis Bullish for U.S. Dollar and Bearish for Gold
In fact you don’t have to imagine it all. Or be insane. Bloomberg reports that, “Dollar Rises as Stocks, Commodities Fall in Flight From Risk.”
February gold futures fell below $1,100, down 2.5%. The Dow Jones Industrials fell 1.27%. The S&P 500 shed just over 1%. And the U.S. dollar rallied against all 16 currencies in the dollar index. What gives?
December 18th, 2009 | Dan Denning | 0 comments | Continued
