by John Galt July 12, 2012 19:55 ET Gee, what a busy news night already. And now Moody’s decides to proclaim the obvious by calling a steaming pile, a well, steaming pile. Italy’s credit rating was just zinged again, and the full release is at the title if one clicks on the link. Woswer. This will be good for the ECB which bought all those 1 year notes this morning…. Moody’s downgrades Italy’s government bond rating to Baa2 from A3, maintains negative outlook…
by John Galt July 8, 2012 20:15 ET And my readers thought I was still uptight after my vacation? HA! Read this from the U.K. Telegraph via Ambrose Evan-Pritchard return: German president Joachim Gauck has ordered Chancellor Angela Merkel to clarify exactly what she agreed behind closed doors at the EU crisis summit ten days ago, lending a powerful voice to critics dismayed by the surging costs of euro bail-outs. “She has a duty to explain in great detail what it…
by John Galt July 8, 2012 16:00 ET There is this myth that by funneling new debt into Greece, or any of the other PIIGS nations for that matter, will be a practical tool for these indebted nations to create leverage despite economic contraction to pay old debt back. Theoretically it sounds nice and placates the professors and politicians to a point where they can publicly proclaim success, even if in reality those in the know understand that a total collapse and default…
by John Galt July 6, 2012 07:45 ET Think Europe is fixed? I’ll let these three charts from Bloomberg explain how this disaster is just now getting started. And it is about to get a whole lot worse. Can you say PAIN boys and girls? The 1 Year yield has bounced off its lows below the 0.00% mark and is now barely in positive yield territory: Meanwhile in the rain in Spain, there is a lot of 10…
by John Galt July 5, 2012 08:00 ET The first half of 2012 has become a comic book story, not based on the superheroes of Marvel or DC, but akin to Alfred E. Neuman acting as villain, superhero, and lucky loser. Since January of this year the market has rallied not on economic growth, not on world geopolitical stability, not on stock market technicals or fundamentals, but on rumors. Rumors of Fed rate cuts, BoE rate cuts, rumors of peace agreements in strife…
by John Galt June 25, 2012 11:59 ET All one needs to know about today’s disaster markets in one Tweet: I just wonder if he was short the Athens Stock Exchange or any participating financials before he announced the resignation, as the corruption there reigns supreme: (chart from Bloobmerg.com) If anyone thinks this chart is ugly, take a moment, go to Bloomberg and pull up all of today’s European and Middle East indices. It’s a bloodbath.
by John Galt June 18, 2012 13:05 ET Everyone break out your ASE 1000 party hats because any day now this sucker is going to double! Or not. The massive 3+% rally is on this five year chart, uh, er, somewhere on the chart below provided courtesy of Bloomberg.com; one might want to grab a magnifying glass to find it. To quote Jim Cramer “BUY! BUY! BUY!” Because there are still thousands of suckers dying to sell to anyone…
by John Galt June 17, 2012 15:15 ET And in his usual direct, factual, and intellectual manner, Ambrose Evans-Pritchard delivers a blunt bit of honesty to address the insanity which will follow in the weeks and months ahead in his column from tonight’s U.K. Telegraph: Greece will have to leave EMU whoever is elected (Click on the title above to read the article in full) The following excerpt sums up the instability the world is about to experience quite nicely:…
by John Galt June 14, 2012 22:30 ET From Bloomberg tonight: Ex-Soros Adviser Fujimaki Says Japan to Probably Default by 2017 <excerpted> Investors should buy assets in U.S. dollars and other currencies of strong developed nations because Japan may default within five years, said Takeshi Fujimaki, former adviser to billionaire investor George Soros. “Japan is likely to default before Europe does, which could be in the next five years,” the president of Fujimaki Japan, an investment advising company in Tokyo,…
by John Galt June 14, 2012 19:30 ET Tonight’s commentary and analysis by Mr. Pritchard via the U.K. Telegraph is another home run: Dutch disease The terrifying start of the article is enough to make this piece required reading because it compliments my earlier writings about Austria, Switzerland, etc. and the issues hitting those nations along with the idiocy of the EU/ECB policymakers: As if matters were not bad enough already in Euroland: Dutch retail sales collapsed by 11pc…
by John Galt June 14, 2012 12:00 ET First and foremost, this is just an advisory of what my personal plan of action will be over the next 120 hours and not a recommendation for anyone to repeat or engage in any of these actions, especially if they can not afford to do so. There is not guarantee that this is the weekend where the events in Europe and the Middle East create the ultimate storm of financial disruption which washes over the…
by John Galt June 13, 2012 11:00 ET The American media’s obsession with ignoring bad news and engaging in propaganda via the art of omission works well for the target audience which is more concerned about Lindsey Lohan or a “yes we can” chant. However when the internet news hounds (my readers) and those concerned about the future of Europe and hence, the U.S. economy start to dig into the severity of the situation in Europe new facts emerge to raise the concern…
by John Galt June 13, 2012 05:10 ET Wow. From Bloomberg TV: 1 year (364 day) Italian bond auction this morning- on May 11th auction went off with a 2.34% yield This morning with a 3.972% yield. Can you smell the pizza burning in that Italian kitchen? They may have sold all €6.5 billion put out for bid, but to have yields blow out by over 1.6% is a failure in anyone’s book because it means that increasingly, investors…
by John Galt June 12, 2012 17:50 ET The reports of capital controls being implemented should Greece leave the Eurozone have been flying throughout the internet over the last twenty-four hours, leaving many to wonder if the European Union is about to descend into the status of a large latte sipping banana republic. Switzerland’s central bank (SCB) is already rumored to have a plan in place to freeze all incoming funds at their borders and penalize anyone attempting to convert deteriorating Euros into…
by John Galt June 10, 2012 23:58 ET But, but, but, but, it’s no big deal? Right? Well per this article from the English translation of El Confidencial, yup, it could be: Bankia, €19bn may not be enough Uh, oopsies. From the article: Although it sounds incredible, the €19bn that Bankia, the troubled Spanish bank, has requested from the government to sanitize its accounts may not be enough. The Bankia tower, a skyscraper designed by the famous British…
by John Galt June 10, 2012 23:40 ET Hey, remember this guy? Who could ever forget that awesome prediction. Along with the Dow 20K guy, of course. Someday soon, with the Bernank’s help, they might be right. But for practical purposes, let’s review the upcoming Spanglish rally created by the FedECBJCBPRAYFORAMIRACLEOHGODWEAREALLGOINGTODIE bank of the world. The S&P 500 has some serious headwinds as Herr Obummer likes to call them: A break through the 1360ish area with major…
by John Galt June 10, 2012 22:20 ET Throughout my years of reporting on this economic disaster, the one compelling data point has not been housing, inflation, gold purchases by central banks, deflation, capital flight, nor unemployment. The truly telling figure has been the departure of the irreplaceable element from any economic structure, that being the loss of human capital, the one element which can save a nation or destroy it. For a historical example, simply look at the defeat of tyrannies of…
by John Galt June 10, 2012 20:55 ET Just as the Spantarp seems to has pacified the equity traders for twenty-four hours, the news heading into the Greek elections indicates further issues that the mainstream bubblemedia and the European Union wishes not to discuss. From the Greek newspaper Ekathimerini: Withdrawals up again due to uncertainty By Yiannis Papadoyiannis The political polarization and uncertainty regarding Greece’s position in the eurozone generated a fresh spike in bank withdrawals last week. In…
by John Galt June 10, 2012 19:30 ET Ambrose Evans-Pritchard figures it out once again as the pathetic announced underwhelming bailout of Spain amounts to nothing more than a march in the woods for the new financial spring time financial Wehrmacht assembled by the German led European Central Bank. The dirty dark secret the Spanish media wants to mask at the request of the current government is as simple as it was for the Greeks and Irish: “Don’t ask, don’t tell, and…
by John Galt June 9, 2012 13:18 ET Per breaking news in El Confidencial in Spain, the maximum amount that Brussels will authorize is € 100,000 million (€ 100 billion) which means that Spain will be left on their own to fund any future or additional bail outs for their banking system. From the article translated using Google Translate(original in Spanish at this link): The total amount of the ransom to Spain could amount to 100,000 million euros, according to sources at…
by John Galt June 5, 2012 19:30 ET The hits for the Eurozone keep coming but these pages have been warning you for over a year that Austria was one of the high risk European Union nations due to its exposure to the PIIGS and more so its flailing neighbor Hungary. Thanks to a persistently slowing economy in the PIIGS, Hungary, and as a result other Eastern European nations, Austria is in a particularly risky position due to the large number of home…
by John Galt June 4, 2012 17:30 ET Tonight, Ambrose Evans-Pritchard switches from the Austrian bugaboo view to the Keynesian “oh crap we are all going to die” point of view in his U.K. Telegraph column: Global slump alert as world money contracts What? I thought we were in perpetual expansion? The Bernank, Obama, the Demopublicans, Republicrats, and Eurocommies all assured us sheeple that the events of 2008 were a one off event and the probability of a repeat were as…
by John Galt June 4, 2012 05:00 ET Almost a month ago on May 6th, I warned of bad things from the financial world in this article: Gold is Sending a Dire Economic Warning Thus far that warning has been spot on but the recent action in the gold markets on Thursday and Friday of last week has suddenly given my fellow goldbugs the “hopium” that a bottom is in. I must argue to the contrary as the technicals are still horrid…
by John Galt June 3, 2012 17:10 ET Ambrose Evans-Pritchard is back with the reality check in the U.K. Telegraph that has been sorely missed by most of the mainstream Bubblemedia and especially the political elites of Europe: The week that Europe stopped pretending These key portions of this outstanding summary of the past week should terrify the sane and petrify the insanely ignorant: Joschka Fischer, Germany’s former vice-Chancellor, said EU leaders have two weeks left to save the project.…
by John Galt June 3, 2012 11:15 ET The news from Athens continues to bleak over the past few weeks. A 90 year old mother and her 60 year old son jumped to their deaths off on apartment building (See Ekarthimeini article here). A 62 year old pensioner hung himself off of a tree on the outskirts of Nikaia (See Athens News article here). Migrants are being attacked and are desperate to leave the country. Pharmacists are now refusing the government benefits card…
by John Galt June 2, 2012 14:00 ET For some reason, I don’t think the Royals wanted to follow the lead of the U.S. and its inept leadership in the financial markets like this: No, my readers are not staring at a misprint, the Saudi Arabian TASI collapsed 4.22% in its Saturday session. The implosion in U.S. equities on Friday apparently has angered the camels of the Kingdom and based on the opening 5 minutes of trading started a stampede into safety.…
by John Galt June 1, 2012 05:15 ET (All charts courtesy of Bloomberg.com) Have my readers ever wondered why the financial networks always show 1 year, 6 month, or 3 month charts of stocks, bonds, or indexes whenever possible? Perhaps these seven charts will indicate why they prefer to color the truth and hide the seriousness of the economic realities of Europe. I have posted the charts of the major stock market indexes for the PIIGS plus Cyprus and Hungary to offer…
by John Galt May 31, 2012 23:00 ET Throughout the recent five years of American economic, political, and Constitutional crises the world chugged along with winners and losers selected by fate and foolishness as the erosion of our modern civilization continued from within. This system crash at all levels, morality, financial structure, religion, politics, and the viability of the nations impacted from this disaster is going to lead to some extremely long term changes in the world, some of which will shock the…
By John Galt May 31, 2012 19:30 Tonight I cure several major issues pressing against the United States of America which indeed could trigger recession, revolution, and a police state. I shall cure these problems with my 3 point plan in the first 20 minutes of the program. Do not miss this show as after that, the real bad news shall be recited and the manufacturers of Duct Tape, Whiskey, Xanax and related drugs will start to thank me profusely. Hear…
by John Galt May 30, 2012 19:25 ET Europe’s debtors must pawn their gold for Eurobond Redemption (click on the title above to read the article in full) Ambrose Evans-Pritchard outlines a radical new plan being devised by the technocrats and banksters in Germany to seize control of the Southern European nation’s treasures, gold, and national assets. The first two sentences of the story tell the tale of deceit being concocted by the banksters of Berlin: The German scheme — known…
by John Galt May 29, 2012 07:00 ET In another sign that the nation of Greece is failing to function at every level, another story appears in the Greek newspaper Protothema which gives the average person some degree of awareness as to how severe the crisis truly is: Prisons are running out of food It’s a good thing those evil Christians that the American elite liberals despise are still alive and well in what’s left of the Hellenic Republic. This excerpt from…
by John Galt May 22, 2012 17:45 ET In a not so subtle article from the newspaper Adnkronos, the crisis in Italy is far from over and might indeed be accelerating: Businesses suffering ‘credit crunch,’ report says This excerpt from the story tells of a tale of woe growing month by month: Italian businesses are facing a credit crunch,” according to a report by the national statistics agency. Last year “modest investment activity was accompanied by a growth in the…
by John Galt May 20, 2012 23:59 ET But, butt, butt, butttttt, butttttttt, I was told on the teevee that Mr. Obama had saved the day according to the Vice-President, Mrs. Biden. Oopsies, again! Tonight’s editorial/commentary from Ambrose Evans-Pritchard sums up the ultimate definition of “critical mass” if and when the American economy collapses in this article: Again; do what? I thought Obamanomics cured cancer, AIDS, divorce, unwanted pregnancy, herpes, and common toe nail fungus. Apparently, according to the concerns…
by John Galt May 20, 2012 22:50 ET As America parties, the world burns. Unfortunately for some futures contract holders and those who think they can sell anything to the, ahem, “COMMUNIST” Chinese government, er, companies, this rude awakening has hit them in the face with a two by four: China buyers defer raw material cargos (click on the link to read the story in full- Subscription required) In this story from the UK’s Financial Times, the story by Javier Blas…
by John Galt May 20, 2012 22:00 ET No comment is necessary. This excerpt from the latest editorial from the Mogambo Guru should provide a clue for those who are ignoring reality: Of course, Ben Bernanke, chairman of the Federal Reserve, so famously said that inflation is only a problem for people who buy things or put the money under their mattress to save it instead of putting the money into investments that will, hopefully, grow as fast as inflation, to which…
by John Galt May 20, 2012 21:30 ET After months of haggling, arguing, and bullcrap (much like the Federal Reserve’s nonsense) I have abandoned efforts to make the blovel/novel, “The Day the Dollar Died” which I first published in November of 2009 an online novel for purchase. Needless to say it was a huge success years ago and my readers need a refresher as to what can and probably will happen due to bankster incompetence when all is said and done. The names…
by John Galt May 16, 2012 16:55 ET What can I say? Ambrose Evans-Pritchard is on a roll this week with his columns in the U.K. Telegraph and this one protion from today’s piece sums up the disaster we are facing quite nicely: The crisis is replicating the pattern of fixed-exchange ruptures through history. Britain was forced off the Gold Standard in 1931 after pay-cut protests in the navy triggered capital flight. Greek banks have lost 30pc of their deposits since late…
by John Galt May 15, 2012 18:45 ET Appetiser cost of Greek exit is €155bn for Germany, France: trillions for meat course My fellow internet wanderers, no, your eyes do not deceive you. The costs are almost incalculable because the world has never experienced anything like what we will witness occurring in Greece as their exit from the European Monetary Union seems almost certain now. In tonight’s article from the U.K. Telegraph, Ambrose Evans-Pritchard makes the following, terrifying statement: Needless to…
By John Galt May 15, 2012 – 17:55 ET Hide the chuldren. Hide the dogs. Hide the cats. Put the cows into the barn. And buckle up as Doomer Tuesday returns with a news vengeance tonight. Tune into DOOMER TUESDAY at 8 p.m. ET tonight to find out more… Just click on the banner below to find the various audio players to listen or to participate in the chat room with like minded Americans.
by John Galt May 15, 2012 15:55 ET The Greek crisis took another turn for the worse as the middle class began to realize that no deal would be struck to form a new government and the European Central Bank would never seriously consider any relief for the stricken nation. As the electoral politics spiraled out of control over the weekend, on Monday Greek citizens withdrew approximately $1,024,000,000 aka €800 million from the nation’s banks. This means that the middle class has finally…
Recent Comments