By John Galt June 19, 2011 Game over for now. From the Bloomberg flash: Ministers Fail to Agree on Greek Aid: Reynders By Jonathan Stearns – Jun 19, 2011 7:54 PM ET Belgian Finance Minister Didier Reynders said euro-area finance ministers reached no agreement on a scheduled aid payment to Greece. He spoke to reporters in Luxembourg after talks today. As a result the Euro has started it’s scheduled slow descent into the side of the mountain: (chart from INO.com) UPDATED STORY AT 2028…
By John Galt June 19, 2011 Thankfully our “ally” the Russians and their central bank are only making the nails for the dollar coffin, we have Congress and the Federal Reserve driving them into the wood and building the damn thing. As foreign bankers have been secretly diversifying their holdings to avoid a crash in the U.S. Dollar, the Russians have been openly mocking our central bank with public pronouncements about actions they have taken or will be taking. Today is no different. In…
By John Galt June 19, 2011 I leave the house for a while and the world blows up. Per AFP: Germany ‘dismisses Greek debt compromise plan’ With that being established, the prime comment from the article drives the point home as to the severity of this crisis now: Der Spiegel had reported ahead of its Monday issue that the German finance ministry called for a beefed-up version of Europe’s temporary bailout mechanism lending to Greek banks to insure they have adequate collateral with the…
By John Galt June 19, 2011 No sooner did I finish posting more information about the crisis in the Eurozone, the Spanish citizenry are in the streets marching and protesting the excessively high unemployment and austerity measures they are enduring. The report from Ireland’s Journal.ie said that the government hoped the protests would be peaceful after the violence experienced in Barcelona earlier this week. As the government fails to address the larger issues, the issue of solvency, this crisis will continue unabated. The chart…
By John Galt June 19, 2011 I first wish to thank my readers for their patience as the website has undergone several transitions over the past few weeks along with my personal schedule which has kept me somewhat silent with regards to posts on economic data and working away from my readers who I missed dearly. With that behind me, let’s look forward by reviewing the monthly data dump from the Census Bureau. I. Housing Starts Finally, again, we can blame the weather. Shockingly…
By John Galt June 19, 2011 The crisis of the drought causing massive problems within Chinese agriculture in the central and northwestern portions of the country are now being complicated further by floods in the Southern part of the nation. Meanwhile, as outlined in a story from Xinhau this morning, Heavy Downpours damage farmland, inflates food prices in Eastern China, a substantial portion of production has already been impacted with little relief in sight. From the story: “This is the biggest flood I’ve ever…
By John Galt June 19, 2011 Believe it or not, this is not another story about the insipid and stupid “green” movement which is closely intertwined within the Spanish Socialist political elites. The Spanish auto industry is still in a somewhat prolonged slump as sales in May declined 23.3% from depressed 2010 levels (Source: Reuters-EU Auto Sales rose 7.1% in May-ACEA) and the government is still clueless as to how to resolve the perpetually high unemployment levels, the housing disaster, and the overhang of…
By John Galt June 19, 2011 While America slumbers, the deterioration of the political condition of many of its key allies in the MENA region continues to accelerate. King Mohammed VI (also known as M6 in the country) proposed a series of reforms over the past week but kept key powers such as retention of the commander in chief role over the military and other political moves which despite an increase in civilian power, ultimately leaves the King as the supreme power in the…
By John Galt June 19, 2011 Greece expected to default even after a second IMF/EU bailout That is the headline from the Sunday June 19, 2011 U.K. Independent’s financial news section and despite the slight improvement in the Greek CDS based on Merkel’s announcement last Friday, the reality is that if replacing a cabinet and demanding a national political leader resign would make a nation solvent, the United States public would have demanded Obama resign six months ago. Many European economists recognize the fallacy…
By John Galt June 19, 2011 The foreclosure crisis is officially at half time, sitting in the locker room, and waiting on the coach to come out with a second half strategy. The media, especially some members of the analyst and financial bubblevision press on television, have been desperately attempting to paint a picture of an improving economy resulting in fewer foreclosures and the hope of mortgage modifications helping to stem the tsunami. The statistics are further from the truth than ever. First and…
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