Protectionism’s quiet return: The GTA’s pre-G8 summit report

"Commentators increasingly talk about the steady rise of protectionism. This column presents evidence from the newest Global Trade Alert report to suggest that they’re right: the past twelve months have seen a quiet, artful, wide-ranging assault on free trade. Little of this has showed up in traditional monitoring. Protectionism in Q4 2012 and Q1 2013 far exceeds anything seen since the onset of the global financial crisis..."

at http://www.voxeu.org/article/protectionism-s-quiet-return-gta-s-pre-g8-summit-report

Euromoney Jumps On The BoomBustBandwagon: French banks most systemically risky in Europe

"Yesterday I opined extensively on transparency (actually, the lack thereof) in the European banking system - Transparency In The European Banking? Madness, I say! Sheet, Utter Madness!!! I tore into the Irish banks as well as reminding all of the 2011 research that found the French banks to be the weakest link in pan-European banking contagion. Of course, you'd never here that from the sell side. Well, as luck would have it, look what I found on Euromoney.com today (Hat tip @StaceyHerbert)...

French banks most systemically risky in Europe – HEC Lausanne study:

According to systemic risk measures for European financial institutions, developed by the Centre for Risk Management at Lausanne (CRML), French regulators would need to provide €300 billion, as of mid-May, to fulfil regulatory requirements in the event of a global financial crisis, defined as a 40% semi-annualized fall in global stock markets.
Using methodology developed in collaboration with the well-known and influential New York University Stern’s Volatility Institute, run by NYU professor Leonard Stern and Nobel laureate Robert Engle, the index gauges large European banks’ systemic risk by measuring size, leverage and exposure to global equity market shocks. The dynamic index, updated on a monthly basis, reveals that, as of mid-May, Crédit Agricole has the greatest risk exposure of any bank in Europe, followed by Deutsche Bank and BNP Paribas.

Hmmm... Now, where have we heard this before?

French Banks Can Set Off Contagion That Will Make Central Bankers Long For The Good 'Ole Lehman Collapse Days!

image001

at http://www.zerohedge.com/contributed/2013-06-13/euromoney-jumps-boombustbandwagon-french-banks-most-systemically-risky-europe

Marc Faber : The danger is that the whole financial system could blow up due to the huge amount of derivatives still outstanding

"Marc Faber : The danger is that the whole financial system could blow up due to the huge amount of derivatives still outstanding. Once again, excessive speculation is being fueled by artificially low interest rates, and asset bubbles exist everywhere.- in Goldseek"

at http://marcfaberchannel.blogspot.com/2013/06/marc-faber-danger-is-that-whole_13.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29

The Number That Matters

"Friday was one of those days when so many markets move so dramatically that it’s hard to know what to focus on. But in this case the headline numbers – US stocks way up, gold way down, foreign markets all over the place — matter less than the interest rate on 10-year Treasuries, which spiked:

The reason this number matters is that a return to “normal” times of high employment and fast growth also means a return to normal interest rates, which would be about twice current levels. This creates one or two little problems for a society with trillions of dollars of debt to roll over each year. Already, with the 10-year moving just from 1.7% to 2.2%, the junk bond market is suffering:

The Day The Big Fat Junk-Bond Bubble Blew Up
My friends in the corporate restructuring industry aren’t breaking out the bubbly just yet. But with one eye, they’re gazing wistfully into the distant horizon where they’re seeing the first signs of a glimmer of hope. And with the other eye, they’re gazing at the screens of their smartphones and computers where they’re seeing brutal junk bond rout..."

at  http://dollarcollapse.com/interest-rates-2/the-number-that-matters/

Jim Rogers : We Are In A Global Bond Bubble

"Jim Rogers : "Mr. Bernanke believes you can expand the central bank balance sheet infinitely, and suffer no ill effects. Anything you do to diminish demand for the thing will cause the price to drop. Same thing here. Bond prices will drop, which causes interest rates to rise. We are in a global bond bubble. When it pops is anyone’s guess. I have tried to short bonds a few times. The French tried money printing in the 50’s, the Italians in the ‘60s. At some point, the market won’t take it, and bond prices will go down and rates will rise. We have more money than Bernanke and the central banks do. So at some point this will happen." - in Fusion Marketsite"

at http://jimrogers1.blogspot.com/2013/06/jim-rogers-we-are-in-global-bond-bubble.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FWOHK+%28Jim+Rogers+Blog%29

Turk - A Massive Black Swan Is Going To Rock World Markets

"With Japan’s Nikkei plunging a massive 5.5%, today James Turk warned King World News that markets may be very close to witnessing another “black swan” that would create chaos once again in the global financial system.  Turk also spoke about the recent action in gold and silver and what investors should expect to see going forward.

 

Eric King:  “James, as you know a lot of times something will come and blind-side markets that nobody really has their eye on.  Do you have anything that might be a ‘black swan’ that nobody is focused on?”

 

Turk:  “We don’t hear too much about derivatives anymore.  That’s always a potential black swan hanging over the markets.  There is always the potential for geopolitical unrest, and we are seeing a lot of that again in the Middle-East, in various countries there.

 

I suppose the biggest ‘black swan,’ Eric, has to come from the banking system because that is the biggest threat to sound economic activity...."

 

at  http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/13_Turk_-_A_Massive_Black_Swan_Is_Going_To_Rock_World_Markets.html

 

ALBERT EDWARDS: 'One Of The Biggest Economic Bubbles Is About To Go Into The Minsky Masher'

"Australia's GDP growth expanded merely 0.6% in the first quarter. This was after a 0.6% rise in Q4 2012. Meanwhile, there are a lot of people shorting the Australian dollar.

Minus export growth however, Societe Generale's Albert Edwards writes that gross national expenditure (GNE) has fallen for two straight quarters.
"One of the biggest economic bubbles in history is now about to go into the Minsky masher," writes Edwards. This refers to periods of speculation that lead to crisis, and was named after economist Hyman Minsky who wrote about the inherent instability of bull markets..."

at  http://www.businessinsider.com/edwards-australias-minsky-masher-2013-6#ixzz2W1kJ5800

The Ultra-Easy Money Experiment

"The world’s central banks are engaged in one of the great policy experiments in modern history: ultra-easy money. And, as the experiment has continued, the risk of failure – and thus of the wrenching corrections and deep economic dislocations that would follow – has grown..."
at http://www.project-syndicate.org/commentary/from-easy-money-to-hard-times-by-william-white#9of0xck3Iql228l0.99

Roubini On the proposed BRICS bank

"Nouriel Roubini : Well, BRICS sort of agreed to create the bank that could provide funding for productive investment to BRICS and other emerging markets. The details of that bank are still very fuzzy: Where will it be located? Who will provide most of the capital? Talks of the BRICS bank are a signal that emerging markets are somehow tired about global and financial institutions such as International Monetary Fund and World Bank where the executive boards are still controlled by advanced economies. They want to create a financial institution on which they have greater control. That in some sense is a negative signal because until now approach to financial stability has been driving global institutions, rather than the regional ones..."

at http://nourielroubini.blogspot.com/2013/06/roubini-on-proposed-brics-bank.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29

Richard Russell - Gold, Stocks, Rigged Markets & The Wealthy

"Richard Russell:  “What to do?  I've never had such an overwhelming feeling that the cards are stacked against us, the retail or ‘non-professional’ investors.  The bond market is held up by the Fed.  The stock market is levitated by the Fed's QE.  The gold market is rigged by big banks and an assortment of manipulators.  The art and jewelry markets are owned by the world's billionaires.  Farm land is owned by the wealthy.  So again, what do we do?  Or what should we do?

One thing we can do is side with the Federal Reserve and get in the stock market with a position in the Diamonds (DIAs).  Or we can buy and hold physical gold, and hide it in a very secret place.  We can stay away from bonds and anything else that is extremely sensitive to interest rates.  Or last and surely the easiest on our nerves, we can sit on the sidelines with Federal Reserve notes (dollars) and some gold and await developments.  Incidentally, I understand that you can buy some heavy gold chains (you can call it jewelry), and this is one interesting and safe way of owning gold.

Lately, I have heard of several advisors who have given up and quit the business because they no longer trust the manipulated financial and market data.  Not surprisingly, stock market studies they have depended on for years no longer work in these manipulated markets..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/11_Richard_Russell_-_Gold,_Stocks,_Rigged_Markets_%26_The_Wealthy.html

Marc Faber: Gold’s plunge is an Excellent Buying opportunity

"“I love the markets. I love the fact that gold is finally breaking down. That will offer an excellent buying opportunity”, said Faber in an interview with US financial news channel Bloomberg. “At the moment, a lot of people are knocking gold down. But the S&P is not even up 1% from the [pre-financial crash] peak in October 2007 [and] up 2% from March 2000 high.” - in moneyweek "

at http://marcfaberchannel.blogspot.com/2013/06/marc-faber-golds-plunge-is-excellent.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29

In America The Debt is going through the roof

"FM: In your book you call the US “The largest debtor in the history of the world”.

Jim Rogers : That’s not an indictment, that’s a fact. If you consider it a negative fact, it’s an indictment. It happens to be a fact that it is the largest debtor nation in the history of the world. The debt is going through the roof, you know with all the shady rates. I do criticize it. I don’t like it. I’m an American citizen. I’m an American taxpayer, so I hate what’s happening with the debt situation in America. No nation in history has gotten itself into this situation and got out without a crisis. So I guess it is an indictment. - in Goldmoney"

at http://jimrogers1.blogspot.com/2013/06/in-america-debt-is-going-through-roof.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FWOHK+%28Jim+Rogers+Blog%29

The Ongoing War In Gold & A Coming Currency Collapse

"Today one of the savviest and well connected hedge fund managers in the world spoke with King World News about the ongoing war in the gold market and what to expect going forward.  Outspoken Hong Kong hedge fund manager William Kaye also warned there would be a currency collapse and discussed the bigger picture of what is actually taking place in the West and the East.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in this tremendous interview.

 

Kaye:  “The selling action on Friday was pretty well-foreshadowed.  Virtually every Non-Farm Payroll report, irrespective of the number, we’ve seen the same type of downside action.  The number, which is made up anyway, is always gamed.

There is clearly no evidence of a recovery, but as I said they gamed it anyway.  Once the physical market in London had been settled, the COMEX market was jammed lower and it has continued to be leaned on.  One thing that needs to be understood is that right now in Asia time we are dealing with something that is a little bit unusual...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/10_The_Ongoing_War_In_Gold_%26_A_Coming_Currency_Collapse.html

 

Stunning Gold & Silver Charts Reveal Shocking Global Demand

"June 11 (King World News) - Gold & Silver Charts Of The Day

Physical demand for gold & silver coins remains strong.  For the 3 months thru June, gold coin sales are 120k oz’s (46%) higher than for the 3 months leading up to the $1900 gold peak in 2011 (note: June sales are estimated).  Just looking at January-March data, gold coin sales are about 65k oz’s (23%) higher than the 3 months leading to 2011 peak.

Dollar amount of gold coin sales (3 month sum), is $100 million higher than the 2011 gold peak and, looking back, is at the highest level since June 2010.  If just looking at January-March data, sales are $80 million higher than the 3 months leading to the 2011 peak.

April data for China retail buying of gold, silver & jewelry show record sales.  Even if jewelry accounts for 40% of sales, that leaves $3 billion of gold & silver sales for the month...which is more than US Mint gold & silver coin sales for the past 12 months...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/11_Stunning_Gold_%26_Silver_Charts_Reveal_Shocking_Global_Demand.html

Here Comes The Next Major Leg Of Gold Demand In China

"With continued volatility in key global markets, today acclaimed money manager Stephen Leeb spoke with King World News about important developments in the gold and silver markets.  Leeb also said the Chinese are setting up for the next major leg of gold demand in their country.  Below is what Leeb had to say in his interview.

 

Leeb:  “I think the biggest news longer-term for gold and silver investors is China’s recent approval of two ETF products.  This is yet another sign that China is very intent on accumulating as much gold as they possibly can.

 

You have to view this in conjunction with the fact that gold is down, but you also have to understand that when the market turns, the turn will be dramatic.  At the same time, I don’t think there is any downside in gold.  But what is very interesting to me, and typical of the Chinese, is that they waited until they knew there was very little downside in gold and silver to start their two ETF’s....

“Once they have satisfied their demand for gold the Chinese will come out and say, ‘We have a currency that is backed by gold.’  But the whole world is going to become more dependent on gold as a currency.  That’s the way it’s going to be.  This is the way things are unfolding right now.

After all of this money printing in the West, we are not getting any traction in the economy.  The Chinese are watching us and thinking, ‘The West needs a sensible policy.’  One of the sensible policies we will have to do with energy..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/11_Here_Comes_The_Next_Major_Leg_Of_Gold_Demand_In_China.html

 

John Mauldin: Japan Fired First Shots in Currency War [VIDEO]

"Japan has fired the first shots in a currency war that will have ramifications for economies across the globe, strategist and author John Mauldin said this morning on the MoneyBeat show..."

at http://www.valuewalk.com/2013/06/john-mauldin-japan-fired-first-shots-in-currency-war-video/?utm_source=rss&utm_medium=rss&utm_campaign=john-mauldin-japan-fired-first-shots-in-currency-war-video

Fund Managers Are Now Buying Gold With Their Own Money

"With the dollar moving solidly lower and gold and silver rebounding, today acclaimed money manager Stephen Leeb told King World News that more and more fund managers are telling him they are buying physical gold with their own money, not GLD, and they are storing it themselves or in a vault outside of the banking system.  Below is what Leeb had to say in this powerful interview..."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/6_Fund_Managers_Are_Now_Buying_Gold_With_Their_Own_Money.html

Does China Plan To Back The Yuan With Gold And Make It The Primary Global Reserve Currency?

"What in the world is China up to?  Why are the Chinese hoarding so much gold?  Does China plan to back the yuan with gold and turn it into a global reserve currency?  Could it be possible that China actually intends for the yuan to eventually replace the U.S. dollar as the primary reserve currency of the planet?  Most people in the western world assume that China just wants a "seat at the table" and is content to let the United States run the show.  But that isn't the case at all.  The truth is that China doesn't just want to compete with the United States.  Rather, China actually plans to replace the United States as the dominant economic power on the planet.  In fact, China already accounts for more global trade than the United States does.  So what would happen one day if China announced that it was backing the yuan with gold and that it would no longer be using the U.S. dollar in international trade?  It would cause a financial shift so cataclysmic that it is hard to even imagine.  Most of those that write about the "death of the U.S. dollar" usually fail to point out that China is holding a lot of the cards as far as the fate of the dollar is concerned.  China owns about a trillion dollars of our debt, China is the second largest economy on the planet, and nobody uses the dollar in international trade more than China does except for the United States.  Up until now, China has had to use the U.S. dollar in international trade because there has not been an attractive alternative.  But a gold-backed yuan would change all of that very rapidly..."

at http://theeconomiccollapseblog.com/archives/does-china-plan-to-back-the-yuan-with-gold-and-make-it-the-primary-global-reserve-currency

Fleckenstein - Gold Will Be Damn Explosive To The Upside

"Today Bill Fleckenstein spoke with King World News about the most exciting investing opportunity that he has ever seen in his career as he gave KWN his most powerful interview ever.  Fleckenstein also spoke about the “explosive” situation in the gold market.  Below is what Fleckenstein, who is President of Fleckenstein Capital, had to say in this extraordinary and exclusive interview.

 

Fleckenstein:  “Probably anyone who listens to your wonderful interviews already understands that money printing can’t solve anything ... Most recently the housing bubble led to the collapse in 2008/2009, and now we’ve got QE of biblical proportions being foisted upon us by the Fed, BOJ (Bank of Japan), Swiss National Bank, and probably the BOE (Bank of England) soon, etc.

The irony of it all is that 5 years into zero rates, and America alone (with) $5 or $6 trillion of deficit spending, the economy is still crummy.  No one ever says, ‘Why is that?’  Well, the reason is because money printing doesn’t work.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/6_Fleckenstein_-_Gold_Will_Be_Damn_Explosive_To_The_Upside.html

Swiss Refiner Delays Hit 5 Weeks On Massive Gold Demand

"Today Egon von Greyerz told King World News that delays from Swiss gold refiners have expanded to a stunning 5 weeks.  KWN readers need to remember that the Swiss refiners refine over 75% of the world’s gold supply.  Greyerz also discussed what is happening with gold demand in other key markets.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this remarkable interview. 

 

Greyerz:  “Eric, the world has no idea what’s going to hit it.  The majority of people today in the West are living in debt and have no assets to protect, but for the people with savings and wealth and for the managers of funds, they don’t realize that they have lost 60% to 80% in real terms over the last 13 years.

Not only has cash in the bank gone down by 80% in real terms, which is against gold, but so have stocks, housing, commercial property, and many other assets.  So people live under the false illusion that paper money is a true measure of their wealth.  As we know, nothing is further from the truth...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/6_Swiss_Refiner_Delays_Hit_5_Weeks_On_Massive_Gold_Demand.html