Gold Silver Mashup

Tuesday, January 3, 2012

Spain Releases Another Stunner: Deficit Could Be Greater Than 8% Of GDP

One of the biggest headlines that floated under the radar late last week was the announcement by Spain that its budget deficit would soar well higher than the expected 6% of economic output and instead be at 8% of GDP, which while ignored by the broader media was certainly noted by the EURUSD which tumbled on the news. Probably the most humorous response came from the neo-feudal viceroy of the PIIGS Olli Rehn who was displeased. From Reuters: "The European Commission regretted missed

European Economy Contracts For Fifth Month In A Row, More Pain Ahead

Following today's release of European manufacturing PMI data we are sadly no closer to getting any resolution on which way the great US-European divergence will compress. Because all we learned is that, very much as expected, Europe managed to contract for a fifth month in a row, with the average PMI in Q4 2011 the weakest since Q2 2009, essentially guaranteeing a sharp recession once the manufacturing slow down spills over to GDP. The only silver lining was that the contraction

Iran Test Fires Second Missile In 24 Hours As Posturing Escalates

As expected yesterday, when the US went out full bore with a Japan approach of McCollum-like strategy of leaving Iran no option but to keep escalating until finally the US has enough public support grounds for a response, in under 24 hours Iran has launched a second missile, this time not a medium-range SAM to a long-range shore-to-sea missile. Needless to say, the US 5th Navy is watching these quite welcome developments with great interest. From Reuters: "Iran said on Monday it had

Follow the money No. 99 | In pursuit of the elusive soft-landing

Latest from Uncle Sol. A version of this column is scheduled to be published Monday, Jan. 2, 2012, in The Washington Times -- Chris
By Sol Sanders
Follow the money No. 99 | In pursuit of the elusive soft-landing
The new year’s worldwide economic downturn has an interlocking effect: every national economy is searching to accommodate itself politically as well as economically to what looks to be an extended period of low growth. After longer or shorter periods of historically unrivaled

30 Statistics That Show That The Middle Class Is Dying Right In Front Of Our Eyes As We Enter 2012

30 Statistics That Show That The Middle Class Is Dying Right In Front Of Our Eyes As We Enter 2012
Courtesy of Michael Snyder of Economic Collapse
Once upon a time, the United States had the largest and most vibrant middle class that the world has ever seen. Unfortunately, that is rapidly changing. The statistics that you are about to read prove beyond a doubt that the U.S. middle class is dying right in front of our eyes as we enter 2012.
The decline of the middle class is not

There Is No Joy In Muddlethroughville: World's Biggest Hedge Fund Is Bearish For 2012 Through 2028, And Is Long Gold

That Ray Dalio, famed head of the world's largest (and not one hit wonder unlike certain others) hedge fund has long been quite bearishly inclined has been no secret. For anyone who missed Dalio's must see interview (and transcript) with Charlie Rose we urge you to read this: "Dalio: "There Are No More Tools In The Tool Kit." For everyone who is too lazy to watch the whole thing, or read the transcript, the WSJ reminds us once again that going into 2012 Dalio's Bridgewater, which

Monday, January 2, 2012

Iceland: Success through failure

on Iceland, Ireland, and Latvia
via TVR:
Iceland fared better by letting banks fail
by Thomas Molloy of Irish Independent:
Iceland pursued better policies than Ireland or Latvia when the three countries’ economies collapsed in 2007 because the Reykjavik government allowed banks to fail, according to a new report by the influential Bruegel think tank.
The report by economist Zsolt Darvas looked at the response of the three small and open economies. The three countries all initially