Posts Tagged ‘euros’

Notes From Underground: Putin Says Russian Central Bank Sells 12,000 OUNCES of Gold …

October 29, 2013

(to Pay for Escorts for U.N. Opening Party)

In response to a WSJ headline today, “Gold fades From Investment Picture,” the Russian President announced that dollars were needed in New York. The Russian Central Bank made delivery on 120 Comex contracts by moving the gold to New York and receiving funds for deposit in New York so as not to violate U.S. rules on currency amounts. The Russian delegation to the U.N. opening party needed funds for escorts and booze. Putin assured global financial markets that delivering 12,000 ounces of gold from Russian vaults was a mere dip into petty cash. Seriously, CNBC was all atwitter that central banks were initiating gold sales … all 120 COMEX CONTRACTS. Too bad that the U.N. meetings weren’t in Mumbai for the Russians could have received a $270 premium over the world market price. It’s a major non-story unless tapering is linked with the sale. Maybe Putin really has inside info on Fed intentions.

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Notes From Underground: Schaeuble Proves Why 2+2=5

July 25, 2012

In the realm of loving and promoting the irrational over the rational expectations of the MODEL BUILDERS, there is no better poster child than German Finance Minister Wolfgang Schaeuble. As I warned Mario Draghi to unpack his speedo, today BLOOMBERG NEWS ran an article, “SCHAEUBLE DECLARES MARKETS WRONG AS EUROPE COASTS INTO VACATION.”¬†This is the German finance minister who has the audacity to proclaim that the markets are wrong and head off for vacation. It seems that the German hierarchy is convinced that all is well because the BUND market is healthy. Is Schaeuble so naive as to think that strong BUNDS reflect the health of Europe? Don’t German policymakers understand that the BUNDS and SCHATZ are at absurdly low levels because many other Europeans are “packing their suitcases” with EUROS so as to transfer their wealth to the perceived safety of the German financial system and thus for its haven status? It is astounding that the EUROCRATS believe that the markets will wait for the decision makers to return before any further market action will take place.

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Notes From Underground: How Many Pinheads Can Sit Atop An Angela?

May 22, 2012

As I looked at the photos from the G-8 conference, this caption became obvious. The German Chancellor is the belle of the ball as her Germany has what the World is crying for: surplus wealth in a debt-laden world. The pressure was on Chancellor Merkel to provide enough EUROS for short-term triage on the European nations hemorrhaging wealth from the huge amount of debt owed to many global creditors. As the communique revealed, there were few concrete proposals provided by the G-8 “brain trust” except that Germany “ought” to provide the financial backstop for all of Europe and, thus, the rest of the world. President Obama is well aware that any financial collapse in Europe will weigh heavily upon his reelection potential.

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Notes From Underground: Oh bailouts, where is thy sting?

November 30, 2010

It is without doubt that the HUBRIS of George Bush’s arrogant landing of a plane on an aircraft carrier and declaring “MISSION ACCOMPLISHED” has been the operative model for the political elite of Europe. The European DEBT crisis has been in full bloom for the last year and everything the immediate elements of the crisis have been dealt, the news release basically gives a tip of the hat to MISSION ACCOMPLISHED.¬†European leaders have continued to proclaim victory over the markets only to be punished for their early exuberance. The true measure of the debt crisis is measured in BOND DIFFERENTIALS and of course the price of credit default swaps on sovereign debt. Contagion has spread to the PIIGS as speedy as most swine flu epidemics.

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