Arizona Threatens, Dubai World Restructures & the Aussie Freefalls

Posted on May 20, 2010 by stacyherbert| 43 Comments

Stacy Summary:   Good morning!  The US is looking a whole lot like Europe this morning.  Carry trade unwinding and debtors restructuring (as should happen with all bad but payable debts or written down for those debts that are unpayable).

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43 Responses to Arizona Threatens, Dubai World Restructures & the Aussie Freefalls

  1. Majestic | May 21, 2010 at 3:52 am |

    No-one’s probably still reading this thread, but…

    The Daily Show’s take:
    Jon Stewart: ‘Arizona Is The Meth Lab Of Democracy’ (video)
    http://www.huffingtonpost.com/2010/04/27/stewart-hammers-arizona-f_n_553157.html

  2. Meziadin | May 20, 2010 at 6:50 pm |

    George Carlin would LOVE all this. He had a great routine about “Worse!”

    http://www.youtube.com/watch?v=j3hdtKXJe8Y

  3. stacyherbert | May 20, 2010 at 5:47 pm |

    @Economics Novice – yes, it is the carry trade unwinding

  4. Economics Novice | May 20, 2010 at 5:46 pm |

    Does the de-valueing of the aussie dollar have anything to do with an unravelling carry trade ? (im a novice so i might not know anything )

  5. white hunter | May 20, 2010 at 4:40 pm |

    gold still roughly tracking the s & p 500

    this is for all of you gold bugs, esp. mike/liverpool

    http://www.youtube.com/watch?v=G67D_mu_DWM

  6. udee | May 20, 2010 at 2:24 pm |

    Time to change name of Dubai to

    Dontbuy

  7. Bill Stewart | May 20, 2010 at 1:10 pm |

    In general, the Australian dollar could do with some freefall.

    This freefall is about money and intellectual (skills) flight into Australia and away from the US.

    The US as a world power is kaput, and ultimately the money flows will fully come to terms with this — as they partly have already.

  9. frances snoot | May 20, 2010 at 12:24 pm |

    BIS: what a bank, what a bank.

    “Looted gold: this is a postwar file – compiled mainly between 1945 and
    1948 – documenting the investigation into the origin of gold received by the BIS from the Reichsbank during the war. This investigation, conducted in the name of the Tripartite Gold Commission, identified 3.7 tonnes of gold received by the BIS as forming part of the gold looted by the Germans from the Belgian and Netherlands central banks. These 3.7 tonnes were subsequently restituted in full by the BIS to the TGC under an agreement signed in Washington on 13th May 1948.”

    http://www.bis.org/publ/bisp04.pdf?noframes=1

    Luther???

  10. frances snoot | May 20, 2010 at 12:14 pm |

    Utilizing the market panic enduced by the prohibition of shorts, Merkel shows her true agenda:

    “Ms Merkel believes that the EU should have stronger powers to organise the “orderly insolvency” of countries such as Greece that set giveaway budgets with no means of paying for them. After announcing a ban on speculative share trading in Germany’s top financial institutions and the bonds of eurozone countries until next March, she warned: “This challenge is existential and we have to rise to it. The euro is in danger. If we don’t deal with this danger, then the consequences for us in Europe are incalculable . . . If the euro fails, then Europe fails.””

  12. frances snoot | May 20, 2010 at 12:03 pm |

    Angela Merkel was protecting bankers. She is not protecting life, liberty, and the pursuit of Lutheranism.

    Here’s what was said about Bernanke’s move in 2008 to stop shorts:

    http://www.reuters.com/article/idUSN1947438520080919

    http://online.wsj.com/article/SB122204250955761325.html

    The attempt to lay an altruistic bent to Merkel’s actions defies reason. Her moves are not outside the bounds of “Anglo-Saxon capitalism”: indeed, the authoritarian capitalism (Keynesian capitalism) being forwarded by Europe places control in the hands of the worst criminals.

  13. Mike/Liverpool | May 20, 2010 at 11:11 am |

    Killeed I tell you K I L L E D !!!!!!
    Why did i listen to Keiser/Schiff/Janzen ??
    I should have gone to Goldman sac with my money !!!!

    Sob Sob

  14. Dan II | May 20, 2010 at 11:09 am |

    Front Running

    Keiser Report №44: Markets! Finance! Scandal!
    http://www.youtube.com/watch?v=nMCupVRZPrA

  15. Mini US | May 20, 2010 at 11:08 am |

    These Hedge Hogs are punishing markets, countries, whoever stands in their way.

    Writing was on the wall with Paulsons gold purchase.

  16. harry_w | May 20, 2010 at 11:07 am |

    @ Stacy,

    I caught this via the links on Jesse’s blog:

    http://dharmajoint.blogspot.com/2010/05/merkel-does-mahathir-and-martin-luther.html

    WEDNESDAY, MAY 19, 2010
    Merkel Does Mahathir and Martin Luther: Tilting the Market Table

    In theory, free markets provide “just” prices or a level market table and thus allocate profits such that all market participants are willing to exchange goods freely. This is the basis of the division of labor in a free economy. In practice, speculators are finding they can tip the table as well as any government or church, thus inspiring an increasing unwillingness to play their game.

    … I’m very interested in Germany’s policy shift because it’s the first time in decades a mature industrialized nation has protested the allocation of profits decreed by financial orthodoxy. At core, German bans of “naked” (held by those who don’t own the securities) shorts, paraphrasing Ms. Merkel- perhaps unsurprisingly the daughter of a Lutheran Minister- stops people profiting from the destruction of their neighbor’s house at cost of less liquidity in the restricted markets.

    … When [markets] work well, primary producers and secondary manufacturers both find it profitable to produce, and middle men are rewarded for managing the transaction risks. However, when the table is tilted too far in any participant’s favor, the whole system, which requires willing cooperation from all for optimal results, risks deterioration.

    The above model can be used to examine any market transaction, even government debt finance. German controls, in effect, reduce the share of profits (if any) of such borrowing going to middle men. We’ll soon see if the service provided by those middle men was worth the cost.

    500 years ago, the Germans defied orthodoxy and ushered in a revolution which moved the center of Europe from South to North. They are defying orthodoxy again, and I can’t wait to see what happens next.

    Also includes a nice example of markets and speculation, for the farmer, the banker and the baker.

  17. Danny | May 20, 2010 at 11:02 am |

    The Coming Financial Tsunami Redux
    http://gordongekkosblog.blogspot.com/

  18. Mini US | May 20, 2010 at 11:01 am |

    Hedge Fund Convention in Vegas.
    Great to be there with a machine gun!

    Market de-risking itself.

    OK, its time for Wall St to focus on Asian weakness to take the heat off the USA.

    Starting with AUD, Korea, China.

    Cracks in Asian markets.

    http://www.cnbc.com/id/37234522

  19. Dedo | May 20, 2010 at 11:00 am |

    Ref: North Korean “alleged” missile attack.

    What motivated them to do it?
    Who would gain from said attack!
    What would be the repercussions (for both sides)
    By continually asking questions,..(which is the objective of any think tank),the motive and there in, the culprit always comes to bare !
    And by coincidence , “conspiracy theories are promulgated”,..quite the strategy, hmm

  22. Danny | May 20, 2010 at 10:54 am |

    oops! Sorry Youri.

  24. Youri Carma | May 20, 2010 at 10:53 am |

    @Max & Stacy

    Keiser Report №44: Markets! Finance! Scandal! is out Folks!

    Don’t want to frontrun today ….so

  25. Mini US | May 20, 2010 at 10:50 am |

    Listen to what the Hedge Fund Managers have to say.

    http://www.cnbc.com/id/37234522

  26. Danny | May 20, 2010 at 10:47 am |

    Mike Ruppert (Author and Peak Oil Activist ) gives his first lecture in 5 years in Vermount
    http://www.cctv.org/watch-tv/programs/author-and-peak-oil-activist-michael-ruppert

  27. Majestic | May 20, 2010 at 10:34 am |

    @ Dan

    I agree. And that precisely why various (government sponsored) dis-info campaigns occur. — So that we are always in doubt about what might have actually happened.

    Of course, expecting North Korea to actually fess up to such an act even if actually true, is probably also just as overly sanguine.

  28. Youri Carma | May 20, 2010 at 10:30 am |

    @Palantíri

    Yep, Max Rulz the Wavez Nowadayz – Brtitania eatz dirt.

  29. Dan II | May 20, 2010 at 10:28 am |

    “Evidence pretty well conclusively points to a torpedo-ing by North Korea”

    We still know exactly nothing. Why would anyone give credence to an official government finding in todays climate of lies and fraud? Evidence is easily manufactured or falsified. North Korea may have torpedoed that ship, but the only way we would know for sure is if they admitted it themselves.

  30. Youri Carma | May 20, 2010 at 10:28 am |

    To goog a chard to not not repeat:

    Percent Homeowners with Mortgage Negative Equity by State – Q1 2010 http://i.i.com.com/cnwk.1d/i/tim//2010/05/13/negative-equity.jpg?tag=contentMain;contentBody

  31. Palantíri | May 20, 2010 at 10:24 am |

    Pure gold offered for information on Kaupthing chairman whereabouts

    http://www.icenews.is/index.php/2010/05/20/pure-gold-offered-for-information-on-kaupthing-chairman-whereabouts/

    I guess they’ve seen the lastest Keiser Report :P

  32. Majestic | May 20, 2010 at 10:22 am |

    @ Creative Destruction

    Well he certainly popped!

    (…some would say more than once *cough*)

  33. Creative Destruction | May 20, 2010 at 10:21 am |

    Michael Jackson’s monkey was named Bubbles. Coincidence?

  34. Mongo | May 20, 2010 at 10:18 am |

    Seriously, is there ANY country where one could invest money long term… somehow?.. I mean for 10-15 yrs… that IS mission impossible. There are bubbles just about everywhere… even the monkeys in the amazon jungle seem to blow bubbles.

  35. Majestic | May 20, 2010 at 10:15 am |

    Latest on the sinking of the South Korean ship that sank inexplicably 2 months ago killing almost 50 South Korean Sailors:

    Evidence pretty well conclusively points to a torpedo-ing by North Korea
    http://www.smh.com.au/world/evidence-shows-north-korea-torpedoed-ship-20100519-vfbw.html

    North Korea warns of all-out war if South Korea attempts to retaliate:
    http://www.theage.com.au/world/torpedoed-ship-flashpoint-north-korea-warns-of-fullscale-war-20100520-vgyu.html

    Puts the South in a difficult position given the North’s purported nuclear capability.
    Can you imagine if…
    hmm, I’d prefer not to. Pass me the bucket of sand to place my head into, ta.

  37. Youri Carma | May 20, 2010 at 9:57 am |

    @Mongo

    Was thinking about that too. Or maybe even better go in between with a lap top and front run play with them, make them crazy. Steal their entire fortune that’s somtin they won’t forget.

  38. Youri Carma | May 20, 2010 at 9:51 am |

    @maxkeser

    I suggest to first test if he’s realy from Iceland and let him eat Hakarl – Poisonous Ice Shark, Ram’s Testicles, Svid – Burt sheep’s head, Seal Flippers, Raw Reindeer meat, Pickled Whale Blubber and Biximatur.

    If so cut of his head and send it in with the mail in a hat box so we can identify him.

    If positive we send you the coin.

  39. Mike/Liverpool | May 20, 2010 at 9:47 am |

    My Gold (& silver) My poor Gold
    Sob
    Mike

  40. max keiser | May 20, 2010 at 9:29 am |

    Dear Mr. Keiser,

    I have some awesome news to report. Concerning your recent RT show with Jim Rogers, Stacy Herbert had mentioned that ‘Sigurdur Einarsson’ was at large and is currently being sought by Interpol. You even offered a 1oz gold coin as a reward for information leading to his capture.

    Mission accomplished, he has been found.

    Here’s the scoop. Yesterday, I was ordering a drink at Simpson’s Tavern in Central London, and I noticed a chap sitting next to me – wearing what appeared to be a fake mustache, similar to one commonly worn by the Hell’s Angels gang members. My curiosity got the better of me and I immediately ripped off the mustache – only to discover that it was Sigurdur Einarsson!!

    Having been motivated by your reward, I then put him in a choke-hold, dragged him out of the tavern – and threw him into my rental car. A nearby constable witnessed the event, but I bribed him with a couple of crumpets to keep quiet.

    So, currently I have this bankster detained in a secret, underground location. And before I hand him over to Interpol, I am going to take a poll of the Icelandic people in order to determine if he should be executed via a live webcast – or be turned over to the authorities. If they decide the former, I will also provide them with the choices of a firing squad, guillotine, or death by hanging.

    In any event, there is no need to reward me with your gold Mr. Keiser, because I did what I knew was right. However, if you are leaning towards benevolence, please feel free to ship your gold coin to the following address:

    God bless Max, and keep up the great work!!

    ——————————-
    Jonathan H.

  41. Mongo | May 20, 2010 at 9:26 am |

    How about cutting the powersupply to the NYSE-quantservers?

  42. Creative Destruction | May 20, 2010 at 9:20 am |

    Here’s what Antal Fekete has to say about the inflation/deflation question:

    http://www.drschoon.com/articles/AEFPositionPaper1.pdf

  43. Majestic | May 20, 2010 at 9:18 am |

    whoo!