Marc Faber's latest thoughts on the euro (not good), on Greece (also not too good), and gold (good to quite good). "I don't think it will work out, and I think other countries like Spain and probably Portugal (and Italy) will then also have to be bailed out eventually, and it will lead to more monetization in Europe, one of the reason the euro has been so week... The pain of the austerity will be very, very burdensome on Greece, and eventually the economy can not grow with the kind of budget they will have to enact, and under these conditions their currency is way overvalued (they are in the euro).
I wanted to share two recent, clear examples of how to project a final price target to play for from a symmetrical triangle pattern formation. First, let’s start with gold prices daily in late 2009: Here is how most chartists project price targets from triangle patterns. First , observe a symmetrical (or other type of) triangle, which is a price consolidation pattern that moves towards the apex - breakout point
An article written by University of Tennessee professor John R Garrett, " Monetary Policy and Expectations: Market-Control Techniques and the Bank of England, 1925-1931 ", which describes in exquisite detail the gold falsification measures undertaken by the Bank of England in the interwar period in order to impact interest rates in a favorable direction, performed with the full complicity of the Federal Reserve Bank of New York, may mean paranoid "gold bugs" could soon be forever absolved of their "tin hat" wearing status as outright gold, and other data, manipulation by a major central bank is now proven beyond doubt.
We are delighted that the highly sophisticated, technical and proprietary acronym you saw here first, in collaboration with Credit Trader, the STUPIDs, has now made the UBS and Art Cashin vernacular, and is set to overtake the extremely politically incorrect acronym of the PIIGS, which seems to insult Barclays, the precursors of ham, and so many more with each passing day.
The ever so handsome Tim Backshall of Credit Derivatives Research explains to all rabid anti-CDSites why CDS is the last thing one has to worry about in the spreading sovereign crisis, and why looking at 10% budget deficits (just like Lehman's $50 billion underwater balance sheet was responsible for the firm's bankruptcy, instead of unfounded speculation that naked shorting was the cause) may be the actual reason why half of Europe will soon have to be bailed out. CDS are merely instruments to express a view. And if Joe Cassano found a job somewhere where he is the party responsible for selling tens of billions in gross sovereign notional, then so be it.
Many people have expressed a concern that because gold and the dollar are closely correlated, the recent surge in the DXY will imminently cause a major crash in the price of gold, as gold is no longer seen as a risk haven to dollar devaluation. While that may ultimately be the case, a simple observation of gold and DXY price levels indicates that while the dollar has retraced losses stretching all the way back to August 2009, gold is merely at levels first seen in November (and again in December and January).
A brief look at the contentious gold/central bank history as it is about to rhyme all over again: The Federal Reserve System was created in 1913 on a promise of stabilizing the banking system. What followed instead was an unprecedented growth in fractional reserve banking, as well as the money supply, which helped fuel the roaring 20’s.
Submitted by Casey Research Dude, Is That Gold Bar for Real? By Doug Hornig, Sr
The World Gold Council has released the latest sovereign gold reserve holdings data .
Cutting straight to the chase: Our analysis of the gold market leads us to take a bearish stance with regard to the gold price in 2010. In 2009 we reasoned that the main drivers of the gold price were significantly linked to the trade weighted dollar, increased investment demand, central bank purchases and market sentiment. The increase in investment demand for gold ETFs, in our view, had an “accelerating and reinforcing effect” on market sentiment and the safe haven status of gold which resulted in upward pressure on the gold price which rose 24.6% during 2009.
Thursday, March 4, 2010
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