Greece remaining in the eurozone monetary system and keeping the euro as its currency appears less likely at the end of every marathon meeting of eurozone prime ministers and Greek representatives. Many analysts are of the opinion that dumping the euro and going back to the drachma would alleviate some of Greece’s pain. Of course,
Reaching an agreement on Greece’s bailout is beyond the 11th hour. It’s striking midnight. Monday all eurozone presidents and prime ministers have been summoned to meet in Brussels in a final attempt to resolve Greece’s bailout stand-off. This confab is necessary because the finance ministers of the currency union failed to reach an agreement earlier
China has come a long way since the days of Richard Nixon’s and Henry Kissinger’s “Ping Pong Diplomacy.” Its economy has grown to be the world’s second largest economy, and its manufacturing base is home to consumer products used around the globe. Now, China has broken into a nearly century-old financial club, the London Bullion
Belatedly, Zimbabwe recently declared its currency, the Zimbabwe dollar, worthless. The marketplace recognized the worthlessness of the Z$ in 2009, when the Zimbabwe government adopted the US dollar as its main currency. Account holders with Z$ balances of zero to Z$175 quadrillion will be paid a flat US$5. A “quadrillion” has fifteen zeros.
In The stock market is managing the Fed, I said that the Fed will put off raising interest rate until after September because of stock market action. Now, the IMF is using the same reasoning in arguing that the Fed should wait until 2016 before raising interest rates.
Louise Yamada, who CNBC calls a “legend,” also sees Dow Theory sending ominous signals regarding stock market action. She says the Dow is a “brick wall waiting to collapse.”
On March 25, I presented evidence that perhaps stocks were topping and that it would be prudent to move from overvalued stocks to undervalued gold and silver. Now, Matthew Kerkhoff, a regular contributor to Richard Russell’s’ Dow Theory Letters, suggests the same.
In a statement that could not have been more blunt, last week the IMF told Japan that it needs to print more money to ensure that its economy will not slip into recession. Specifically, the IMF wants the Bank of Japan to push inflation to 2 percent. Japan’s inflation rate is near zero.
One of the reasons gold and silver prices are stuck in a narrow trade range is that stocks are stuck in a narrow trading range. Still, widely-followed indexes recently made new highs, specifically the S&P 500, the NASDAQ and the Dow Industrials. However, the much ignored (except by professionals) Dow Transportation index is some 850
Five megabanks–Barclays, JPMorgan Chase, Citigroup, the Royal Bank of Scotland and UBS–are expected to plead guilty to rigging currencies markets; collectively, they will pay fines in the billions of dollars. And, we’re supposed to continue believing that the bullion banks never manipulated the gold and silver markets.