It takes readers to make a successful blog and I have been blessed to have readers who are able to add to the discourse that makes for profitable investments and trades. There is no one source for all the answers and a healthy give and take provides for better strategy. Alternative views sometimes urge caution and better trade selection then a one-sided discussion with myself. Again, my wishes to you for a Happy Thanksgiving. I am going to be on with Rick Santelli on Friday morning to discuss whatever he wishes. Hopefully, we’ll discuss SNB, Draghi and whatever else. If any readers have any burning issues, post them in the comments and hopefully they’ll get covered in a very tight time frame.
As I cautioned last week, December stands to be very volatile in the realm of global-macro. Last Friday, President Draghi tickled the markets by suggesting that the ECB is ready to embark on a genuine QE program rather than the continued jawboning that has successfully provided time for the Euro politicians to address some of the problems confronting the economies of many European nations. The EURO dropped 1.5 percent on Draghi’s comments November 21 but has spent the last three trading days clawing back most of the losses. Today, some ECB members were hinting that the QE program will begin sometime in the first quarter of 2015. Next Thursday, the ECB has its meeting. If Draghi fails to provide real numbers for a QE program the EURO could rally 2-3% because the market is very SHORT the EURO CURRENCY. It’s also December when markets are thin as portfolio managers do not wish to risk their performance.
Also, the Swiss referendum may provide impetus for volatility if the Swiss nation votes in favor of forcing the SNB to increase its gold reserves, which could call the question of the 1.20 EUR/CHF policy. Currently, the polls are predicting the referendum on GOLD will fail but I am urging caution because the SNB and Swiss business elites are on the stump urging a NO vote, which indicates nervousness by the leadership of the ruling class. If the SNB were to break the 1.20 peg it may send the EURO lower as the market anticipates the SNB selling euros or at least not purchasing any more as it diversifies its reserves. To show the potential impact I am including a chart (forwarded by JOEY G.) showing the increase of central bank balance sheets over the last decade. If the Swiss citizens are aware of this the vote will be very close. In reflecting upon this chart I have to inquire: WHO IS BUYING ALL THE SWISS FRANCS?
***A PERSONAL REQUEST. I have utilized the book, “The Rotten Heart of Europe,” as a reference source to enhance the knowledge base of this blog. Two years ago, my friend Bill Shepard and I paid to republish this great book by Bernard Connolly. (Bernard wrote a new forward in an effort to update the book and its relevance from the original publication in 1995.) As the turmoil in Europe is set to increase and the fallout from Europe becomes a greater weight on global markets, the “Rotten Heart” takes on added importance.
THUS I AM ASKING THAT BLOG READERS BUY AT LEAST 10 BOOKS TO GIVE AWAY TO FRIENDS, COLLEAGUES AND FAMILY AS A GIFT. IF YOU HAVE FINANCIAL CONFERENCES “ROTTEN HEART” WOULD MAKE A GREAT GIVE AWAY. WE ARE NOT MAKING ANY MONEY ON THIS JUST TRYING TO EDUCATE INVESTORS ABOUT THE POTENTIAL DANGERS OF THE EUROPEAN SITUATION. PRIOR TO THE REPUBLICATION, THE FEW COPIES OF THE BOOK WERE SELLING FOR SEVERAL HUNDREDS OF DOLLARS AS MANY WERE DESTROYED BY THE EUROPEAN AUTHORITIES (the original printing in 1995 was 2,000 books, of which only 200 remained until we undertook this worthwhile project).
Since January of 2013 we have sold 2,000 paperback copies so we have several thousand remaining. I would prefer to sell minimum of 10 and all orders will be received at Rottenheartofeurope@gmail.com and you will be instructed about billing. Otherwise, for lesser orders go to Amazon and search out the book and buy it from Yra Harris, but it will be a higher cost with the Amazon fees. Cost for direct purchase of at least 10 books will be $11.00 per book, including the shipping. Thank you in advance and let’s educate those you love and those you merely tolerate.
Warmest Regards, Yra