Wednesday, June 19, 2019

Tag: Euro

Euro house of cards to collapse, warns ECB prophet

The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned. "One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB's first chief economist and a towering figure in...

Euro zone monthly economic sentiment falls more than expected

Economic sentiment in the 19 countries sharing the euro fell in August to its lowest level since March, a further indication that morale is weakening after Britain voted to leave the European Union. The European Commission's euro zone Economic Sentiment Indicator (ESI) fell to 103.5 in August from 104.5 in...

What China’s SDR Bond Issue Really Means

This is the first step toward one world currency. They promised, they delivered. The World Bank will issue a $2.8 billion SDR bond, or Special Drawing Rights bond, in China in August. Separately, the China Development Bank will also issue between $300 million and $800 million of SDR notes. China, the...

The problem with Europe is the euro

In this extract from his new book, the Nobel prize-winning economist argues that if the euro is not radically rethought, Europe could be condemned to decades of broken dreams. Europe, the source of the Enlightenment, the birthplace of modern science, is in crisis. This part of the world, which hosted...

U.S. Sent Cash to Iran as Americans Were Freed

WASHINGTON—The Obama administration secretly organized an airlift of $400 million worth of cash to Iran that coincided with the January release of four Americans detained in Tehran, according to U.S. and European officials and congressional staff briefed on the operation afterward. Wooden pallets stacked with euros, Swiss francs and other...

China and Russia continues to buy into bullion

The strength of the U.S. dollar is boosting gold sales in China and Russia as the two countries bulk up their official reserves with bullion. Returns on European currencies have continued to creep lower, with the Euro causing particular concern for global investors. With weaker than expected economic data...

SDR bonds are China’s next step to take yuan global

SHANGHAI -- With the yuan set to enter the Special Drawing Rights currency basket in October, China looks to create a market for SDR-denominated bonds as a step toward internationalizing the country's currency. The government-linked China Development Bank as early as this month will issue $300 million to $800 million...

IMF admits disastrous love affair with the euro and apologises for the immolation of...

The International Monetary Fund’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleaders for the euro project, ignored warning signs of impending crisis, and collectively failed to grasp an elemental concept of currency theory. This is the lacerating verdict of the IMF's...

How China’s Currency Manipulation Enhances the Global Role of the U.S. Dollar

But it's not quite that simple. In fact, Beijing benefits from the dollar’s dominance. On April 16, Zhou Xiaochuan, the governor of China’s central bank, the People’s Bank of China, once again set off alarm bells during a speech at the International Monetary Fund (IMF). “Starting from this April,” he...

Brexit Accelerates the British Pound’s 100 Years of Debasement

In 1967, U.K. Prime Minister Harold Wilson declared devaluation wouldn’t diminish the “pound in your pocket.” Chancellor of the Exchequer Norman Lamont admitted he was heard “singing in the bath” after sterling’s link to the deutsche mark was severed in 1992, sending the currency tumbling. If history is any guide,...

Britain’s Plummeting Pound Is Bad News for America

Fallout from Britain's decision to leave the European Union continued Tuesday, with the once-powerful pound falling to its lowest levels against the U.S. dollar in three decades. This is bad news for Britons, who have seen the value of their currency drop to  $1.30 vs. the dollar — on June...

Why Gold Is Now In A New Bull Market

Investors’ interest in gold peaked in September 2011, when it was generally agreed upon that the endless rounds of quantitative easing policies by the world’s central banks will result in rising inflationary pressures, while concerns over a potential Euro Zone break-up ran rampant, as government finances in countries such...

Gold is the only option for when paper currencies die – and that could...

Recent history has been a long and volatile ride for gold investors. The recent Fed decision... The “Brexit” leave vote... Today I want to take a look at gold – and in particular...the case AGAINST the Midas metal... Starting from a low of about $250 per ounce in mid-1999, gold staged a spectacular...
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Alan Greenspan on Brexit, U.S. Economy, and Inflation

Former Federal Reserve Chairman Alan Greenspan discusses fallout the U.K.'s Brexit referendum, U.S. economic growth, wage and economic stagnation, central banks, low productivity, and his call for inflation in the U.S. economy. He speaks with Bloomberg's Michael McKee and Tom Keene on Bloomberg. U.K. policy makers miscalculated and made a...

U.S. Stocks Fall With Global Shares, Pound on Brexit; Gold Gains

The aftershocks of the U.K.’s vote to leave the European Union reverberated across financial markets after a weekend of political turmoil, with the pound extending its record selloff and European equities dropping to levels last seen in February. The S&P 500 dropped 1.8 percent to the lowest since mid-March, while...

A Stunning Email About Brexit Vote As Elites Panic And Global Collapse Edges Closer

After the stunning Brexit vote to “Leave” the EU followed by turmoil in world markets, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, warned the elites are now panicking as global collapse edges closer. But first, the powerful...

Pound plunges to 30-year low against dollar, yen surges as UK votes to Brexit

The pound plunged to a more-than-30-year low against the dollar on Friday and the safe-haven yen surged as results of the referendum on whether to stay in the European Union (EU) showed the U.K. was on course to leave. It was confirmed on Friday that Britain had voted to leave...

Alan Greenspan says British break from EU is just the tip of the iceberg

Former Fed Chairman Alan Greenspan told CNBC on Friday the U.K. vote to leave the European Union ushers in a period that's even worse than the darkest days of October 1987. Britons voted by 51.9 percent to quit the 28-country union, shocking markets that had priced in a win for...

Brexit, but Buy Gold

This Thursday — just 48 hours from now — the United Kingdom may soon make the greatest monetary blunder since 1925. That’s when Churchill returned sterling to gold at £4.25 per ounce, the pre-war price. Keynes warned Churchill a much higher price was needed to avoid deflation. Churchill ignored...

The progressive argument for leaving the EU is not being heard

Europe has been moving in a direction that right-wing Conservatives would tend to support. It is now nearly nine years since the problems of three hedge funds heralded the arrival of global financial and economic chaos. Britain’s EU referendum this week is the latest manifestation of that crisis. That is not...

Here’s why gold could jump 10% very soon

“Gold is a reliable barometer of risk, and we believe it could rally by up to 10% should the UK vote to leave the EU,” that’s according to a flash research note from HSBC's chief precious metals analyst James Steel sent to clients today. According to the report, if the...

HSBC: Gold will explode if Britain votes for a Brexit

Gold prices are likely to explode if Britons vote to leave the European Union when they go to the polls next Thursday, gaining as much as 10% in a short space of time. Gold is seen as a haven for cash. It does not pay a coupon like a bond,...

Why big investors think it’s time to hoard gold

Fear is on the rise and so is the price of gold. Gold futures for August hit a three-week high Thursday, rising to $1,272.70 per ounce, just under a key resistance level of $1,275. The yellow metal is up about 20 percent year to date, and some high-profile investors —...

China Quietly Prepares Golden Alternative to Dollar System

China, as current chair of the G-20 group of nations, called on France to organize a very special conference in Paris. The fact such a conference would even take place in an OECD country is a sign of how weakened the hegemony of the US-dominated Dollar System has become. On...

Janet Yellen’s Bluff and Mario Draghi’s Hubris

The monetary landscape of today looks pretty grim. We are in the middle of the perennial decline in the rate of interest. Central bankers are convinced they can get us all out of this mess. But can they really? Janet Yellen timidly tried to go against the decade long trend...

Russia LNG Plant Gets $12 Billion From China Amid Sanctions

Russia's Yamal LNG, the biggest project to produce liquefied natural gas in the Arctic, signed loan agreements with two Chinese banks after more than a year of discussions with its majority shareholder targeted by U.S. sanctions. The accords signed with the Export-Import Bank of China and the China Development Bank...

The Illusion of Balkan Energy Security

Since strong pressure on the Bulgarian government back in 2014 caused her to stop construction of the Russian gas pipeline, South Stream, that was to have supplied Russian gas to the Balkans and on to Austria and Italy, Brussels has argued that the stop was necessary because of “regional energy...

The Collapse of the Western Fiat Monetary System may have Begun. China, Russia and...

On 19 April 2016, China was rolling out its new gold-backed yuan. Russia’s ruble has been fully supported by gold for the last couple of years. Nobody in the western media talks about it. Why would they? – A western reader may start wondering why he is constantly stressed...

Dollar Falls to Lowest Level Since June as Housing Starts Slump

The dollar reached a 10-month low Tuesday after a government report showed new-home construction in the U.S. slipped more than projected in March, clouding Federal Reserve plans to boost interest rates. The U.S. currency weakened against most of its major peers in New York as the central bank is scrutinizing...

China’s obsession with IMF’s accounting unit and forging new global financial order reaches new...

Beijing is reviving efforts to broaden use of Special Drawing Rights to achieve longstanding strategic aim of dethroning US dollar in international monetary system. It is just one line in a foreign exchange document, but it signals a renewed seriousness. Last week, China's central bank started publishing the nation’s foreign exchange...

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