Stacy Summary: Good morning, y’all. I found a better photo (via Huffingtonpost) of the “Peoples of Europe Rise Up” banner. Two of our major themes as we laid out in our first Keiser Report of the year are in the headlines this morning – sovereign debt crises and currency volatility. There will be many more mornings like this before the year is out. Anyway, how are things where you are at?
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| From MaxKeiser.com Images |
In Paris, I see no sign of Depression or Recession with ordinary people, but huge quantities of commercial real estate are suddenly becoming vacant in the 8th and 16th near our office. Nearly every day sees another 800 or 1500 square meters open up.
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we don’t need a solid currency we’re floating on air.
The flow of money is like the brake system on a Toyota Prius
BUT if the Chinese worker and the workers in India start demand more for their toil, the emergency break might kick in
Commercial real estate is opening up in our small town too. Businesses are for sale and some real estate companies are offering 2 months of free rent just to get someone in. We are a tourist town and small businesses are pretty much the only game in town, besides the hospital and paper mill. Unemployment is at around 10% (not counting discouraged workers).
“In other words: all Wellink statements are lies intended to deceive and mislead us. Wellink is in reality a “supervisor” under the existing financial systems to protect, but precisely the opposite, a great destructor that the banking system it is trying to destroy through bailouts in order to create room for the new world order of ‘his’ TLC.(trilateral commission)”
http://www.reuters.com/article/idUSLDE64300620100504
“Nout Wellink, chairman of the Basel Committee on Banking Regulation, told the FT the proposals could cut global growth by a cumulative 0.5 to 1 percentage point over a period of several years, according to calculations by economists at the Dutch central bank.
“If that would be the price to get a really resilient banking system, that price is not too high,” Wellink told the paper.”
Nout Wellink is a bad spokesman for the people but a good spokesman for the elite:
http://translate.google.com/translate?hl=en&sl=nl&u=http://www.hetvrijevolk.com/index.php%3Fpagina%3D7153&ei=LJ_hS5SOKsL7lwe54YSoAg&sa=X&oi=translate&ct=result&resnum=2&ved=0CA4Q7gEwATgK&prev=/search%3Fq%3DNout%2BWellink%26start%3D10%26hl%3Den%26client%3Dsafari%26sa%3DN%26rls%3Den
“By putting those figures together, it implies a $900 billion reduction in GDP – the equivalent of a 6.3% drop from last year’s estimated $14.25 trillion total.”
Effects of Basel differ depending on whom you ask.
http://www.risk.net/risk-magazine/news/1604230/bankers-question-wellink-s-claim-basel-iii-economic-impact
“‘Under proposals from the Basel Committee -– which have been dubbed ‘Basel III’ –- banks will have to maintain a so-called core capital ratio of at least 6%. For many banks, capitalisation under Basel II is deemed very weak. Transition rules would give them time to fix the situation, but not a reprieve from the need to raise more equity. Overall, this could be particularly negative for the European banks. The European banking sector as a whole will have an aggregate extra funding requirement of more than one trillion euros, nearly one and a half trillion dollars, to comply with Basel III according to a number of projections from major financial institutions. The American banks’ requirements are a lot less. Under changes to the Basel capital directive designed to improve the capital strength of big banks that have collectively lost hundreds of billions in the past few years, small to medium size brokers may also have to put aside a larger proportion of their turnover as a risk-capital buffer.’”
http://www.mi2g.com/cgi/mi2g/frameset.php?pageid=http%3A//www.mi2g.com/cgi/mi2g/press/250110.php
@ Chenjeshu
I was just in Greece, and everything seemed normal their to. The Markets were busy , the cafes and resorts bustling. This is just the new normal.
People of Europe: Rise up and subsidize us. We need more money to blow up!
Hope for starving Dutch as end of war draws near
CBC radio report
April 30 1945
http://archives.cbc.ca/war_conflict/second_world_war/clips/11550/
How Canadian forces brought ‘sweetest of springs’ to Netherlands
April 1945
http://www.cbc.ca/canada/story/2010/04/30/f-netherlands-second-world-war.html#ixzz0n3IfvO5D
Listening to Mcalvany weekly commentary – its conservative christian roots gives a different perspective but it is becoming a bit drag on its analysis.
Greece
watching live video report from Athens on CBC TV.
a lot of angry young men, occasionally hurling rocks at police.
try throwing rocks at police in Montreal, and you will promptly have your head bashed in, and require a set of dentures.
I think we may be witnessing a major correction in silver – I have a felling that it is going to drop off a cliff in the next few weeks.
Everything is good to go for gold , everything !
Rich Europeans converting gov bonds into gold won’t even think of silver – at least at this stage.
Then again I want to buy at 10 euro silver.
@Bonn. did you have nightmares last night?
rising up is good. But I don’t want to rise up for the communist party.
Max and stacy…what happened with truth about markets…?
Well, I’m in Stavanger, Norway at the moment. Riding a bike everywhere and thoroughly enjoying it. Driving is near prohibitively expensive and the roads are designed to make driving a total misery anyway – 2 reasons to love Norway.
Absolutely no sign of recession here, ah there isn’t one here, of course. Everything is incredibly expensive, due to high taxation and very high wages, so following Dedo mantra of “don’t consume”, which I invented anyway, years ago. Norwegian do this too, so you’d not notice a downturn as consumerism is virtually non-existent anyway.
Apart from that, it’s cold LOL.
@Sirial, true but thats because the media is owned by the same people that created this. PCM is owned by a consortium of banks.
I find that quite a few people in Holland are convinced that the Greeks are lazy and they called it upon themselves, it is very sad that our media is unable to portray the situation correctly.
Check the euro gold…..!
Can Greece Default In 5 Years? http://w.sns.ly/4qR42
@ Stacy
Always check otter citys ;->the capital of a country will be the last to show signs of Deprression/inflation
Cause tats where all ta Crooks hang out ie Politicians
An tey ta only peeps wit ta $$$$$$$$$$$$
Hic
Today the wars are for oil, tomorrow they will be for water.
Short term Asian bonds are probably safer than longer term bonds.
This global finance crisis will probably see the death of bonds that have due dates beyond 2 years … but it will take time to weed out all the ‘long term bonds’ from the system.
No investor in their right mind would invest in a governmental bond of term greater than 7 years and corporate 3 years.
Great sign “People of Europe Rise UP”, i agree but those Greece people don’t really get it. Why choose Communism? Communism is created by the same big banks that created this depression in the first place. haha
I miss the Soviets.
Seems Wang Lin Chong changed his mind..”Aaaaargh!!, oh, Jeeeeey!!!”
Until the Euro reaches CAD or AUD parity, there is no news about it.
The Pound should be headed for the same parity levels.
It is implicitly understood that NZD parity would be the floor for the devaluation.
Nobody ever said nepotism couldn’t get you somewhere
“Indonesia’s Finance Minister Sri Mulyani Indrawati resigns after being appointed managing director of the World Bank.”
http://news.bbc.co.uk/2/hi/asia-pacific/default.stm
Many indonesians wher cannibals before the christians came..
business is level here, construction slowed, house building slowed, in the news this morning house prices down to an average £148,000 largest fall seen in Orkney Isles of 13%, they say house buying up from last year but that is not hard and I see no evidence apart from the cheaper places selling or people buying houses to rent rather than get 0.2% from a high interest account, the Polish community are still sticking around unlike last year when a lot left.
@ Mike the only worry I would have with gold is if they confiscate it again, ie if it is the only safe haven what is to stop them putting a set figure on it if there is a big bang?
@ Stacey if there is to be an answer to this perfect storm and one thing you mentioned on one of the programmes you and Max did was for debt forgiveness, how would that work out?
ie does everyones mortgage and loans and commercial loans and soverign debt get cancelled? does that mean the most indebted get the biggest break ? what about those who have no debt , do they take the view that its better than getting wiped out, even if their neighbour has just benefited from getting their £300,000 house for free the BMW in the driveway paid off and all their credit card debt from their many holidays wiped out ?
I can see the wider point of wiping debt out but would their be a last minute rush of everyone going out and buying houses and cars and racking up loads on their cards ?
I have no debt and savings earning a pittance in the bank so it make no odds to me what they do in that I would not care if people benefited out of it but there would be a lot of finger pointing from a lot of folks
pound rising? Not in the slightest its at its lowest levels ever how do they come up with pound rising news.
Here in Sheffield UK at lower level of working class there seems to be only a slight impact in this so called depression,there have been a few redundancy’s but talking to few business people they are telling me they are feeling it slightly, I think the welfare benefit system here is protecting most of those affected, so not much decention but a lot of moaning . property prices are still rising. would love some one to explane just how UK PLC its still running.im serious.
@Mike
Asians are selling of to frontrun the bond rise? Moody’s threw them a bone?
@Chenjeshu
Yes, nucelar lobby is gearing up to generate the electricity needed to run the obsolete high pressure membrane desalination plants. That is why there is no work on any solution.
@Stacy,….Surely you don’t still believe in that old cookie ! tut tut : )
Went to Las Vegas 2 weeks ago and checked out the nearby Lake Mead. The entire top third of the lake is gone, just grass now. I had no idea water issues were so dire. If you can bet against Las Vegas over the next few years, its time to bet on decline. Lake Mead provides massive amounts of water to the area, most notably Las Vegas. It also provides massive amounts of electricity to the southwest region of the USA.
Check out this water level chart I found:
http://www.arachnoid.com/NaturalResources/
Water levels are at a 45 year low.
From the local news:
http://www.8newsnow.com/Global/story.asp?S=12286324
“When we hit 1,025 (feet), we will have stopped generating electricity. When we hit 1,025, the amount of water left in Lake Mead is barely enough to meet a single year’s allocation,” said Pat Mulroy with the SNWA.
Right now, the lake level is at 1,100 feet and the water authority has managed to store, lease, or buy enough water to keep things running smoothly even if Lake Mead was to drop below 1,025 feet.
But if the lake drops below that point, there will be shortages. Right now, forecasts could have the lake below 1,025 feet in less than two years.”
Adjust your vacations accordingly. And keep in mind the following travel scam they hit me with. You book your trip and pay for it online. At the hotel, they charge you $20 or more a day on top of what you paid online as hotel fees. Water, power, newspaper, shuttle service, you name it. So now you pay twice for lodging, keep that in mind when traveling to Las Vegas.
What does the inflating dollar mean to the carry trade? Stacy mentioned in the now gone audio files some months back that the dollar might rally 20% in a day if the carry trade unwinds.
If only the moronic freakin communists would not constantly coopt any uprising as if they own the damn franchise. You can watch the rats run around the maze but they never find the exit. Everybody is under stress from bankers that deserve nothing. That results in them behaving like herded sheep. Ideologists are like creeps praying on weak woman. You only get to choose your pacifier, never are you allowed to grow up. It is a damned world.
From Irvine, CA, USA…
Malls are packed and Disneyland is full everyday. No one in the smug orange county bubble seems to be having recession issues. Real estate is on the upswing too. This little island of middle class suburbia is not feeling anything they talk about on the news.
Some buddies of mine in the software business have told me that a lot of software development is heading to China. While software, games and the internet aren’t the fabled new economy anymore, they are still huge in California and the USA. News that the momentum has picked up in off shoring these industries puts more doom on the horizon.
@Mike/Liverpool – I think you will find it is actually just walking randomly . . .
Never mind riots etc, my Bloody Gold is falling!!!
& Silver.
Mike