Daily Digest

Daily Digest 5/16 - Under Pressure, Money Troubles Take Toll In Greece, The Real Reason Behind Silver Price Drop

Monday, May 16, 2011, 9:44 AM
  • Stock World Weekly: Under Pressure
  • Money Troubles Take Personal Toll in Greece
  • "Act As If" - Greece vs America Edition
  • Zimbabwe Says Days Of The US Dollar Are Numbered, Pushes For Gold-Backed Local Currency
  • What Is The Real Reason Behind The Silver Price Mysterious Drop
  • America Becoming A Third World Country
  • Russia To Support Shipbuilding Industry In Far East, Develop Geothermal Energy
  • USDA Looks to Approve Monsanto's Drought-Tolerant Corn

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Economy

Stock World Weekly: Under Pressure (Ilene)

In theory, Bernanke’s signaling that the Fed will allow the second round of quantitative easing (QE2) to end in June, without disclosing plans for QE3, should counter the Dollar’s decline. Without the Fed buying Treasuries via the Primary Dealers (PDs), prices of Treasuries are likely to fall and yields are likely to rise. The Fed also released a relatively light Permanent Open Market Operations (POMO) schedule for next week. Apparently, the Fed is trying to forestall further price inflation in food and commodities, notwithstanding its ongoing denials regarding inflation.

Money Troubles Take Personal Toll in Greece (jdargis)

It has been one year since Greece avoided bankruptcy when Europe and the International Monetary Fund provided a 110 billion euro ($155 billion) bailout. While no one expected the country to reverse its sagging fortunes quickly, the despair of Greeks like Anargyros D. reflects a level of suffering deeper than anyone here had anticipated.

"Act As If" - Greece vs America Edition (pinecarr)

The irony, as William Buckler observes in his latest edition of the Privateer, is that while US debt continues to trade (if no longer be accepted) as the "Rock of Gibraltar" and Greek paper is trading with a certainty of bankruptcy, it is Greece that has taken proactive steps in taxing and spending policy, while the US has merely retrenched its profligate ways, and while much political theater takes place, nothing ever really changes.

Zimbabwe Says Days Of The US Dollar Are Numbered, Pushes For Gold-Backed Local Currency (pinecarr)

Topping off a weekend of surreal news is the announcement from the Central Bank of Zimbabwe that the country is now evaluating introducing a gold-backed Zimbabwean dollar, and, in keeping with the Salvador Dali feel to the past 48 hours, that the "days of the US dollar as the world's reserve currency are numbered."

What Is The Real Reason Behind The Silver Price Mysterious Drop (Alfredo E.)

Silver prices have fallen some 27% since the beginning of the month, and is now leading commodities to the downside. The sell-off has been dramatic, to say the least. Gold has been hit as well, but not anywhere near as badly as silver has…Word on the street is that several large hedge funds have been liquidating commodity positions across the board over the past few weeks.

America Becoming A Third World Country (pinecarr)

America isn’t recovering. America is becoming a third world country.

Energy

Russia To Support Shipbuilding Industry In Far East, Develop Geothermal Energy (pinecarr)

The law will make provisions for measures aimed at ship owner's advantages in building ships at domestic shipyards.

Meanwhile, Ivanov also said geothermal energy development is necessary for the region. According to the RIA Novosti report, the document will include a number of measures aimed at economical support of the sector, among them interest rate subsidies and other financial measures. Besides, the law will make provisions for measures aimed at ship owner's advantages in building ships at domestic shipyards. Meanwhile, Ivanov also said geothermal energy development is necessary for the region.”

Environment

USDA Looks to Approve Monsanto's Drought-Tolerant Corn (Don S.)

"The reduced yield [trait] does not exceed the natural variation observed in regionally-adapted varieties of conventional corn," the report says, adding that "Equally comparable varieties produced through conventional breeding techniques are readily available in irrigated corn production regions."

Given the slight improvements made by the corn, the agency does not project that approving the variety would cause an increase in corn cultivation. Last year, U.S. farmers planted some 86.4 million acres of corn, 86 percent of which was genetically engineered to grant resistance to insects and weedkillers.

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5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4235
SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
US debt ceiling and QE2?

So according to ZH below the US debt ceiling is reached today. So what does this mean for QE2? If the treasury cannot sell new bounds then I guess the FED can't buy them anymore?  So is QE2 on hold until the ceiling is changed?

 

http://www.zerohedge.com/article/treasury-confirms-debt-ceiling-be-breached-today-will-tap-pension-funds

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Ah Zimbabwe. Now that is personal.

Who was it who said that Evil destroys itself?

It looks as though the Economic Hitmen have had their day with my birthplace.

I might consider going home.

After the population "adjustment". Perhaps Bob Mugabe might consider contributing to the cause.

There is still the possibility that Africa could become the Superpower that it was always meant to be.

"Never fear the strong, and never despise the weak." Japanese proverb.

The ways of the Lord are indeed mysterious.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The View from the top and other lies.

For your amusement and gratification.

The global economy had continued to grow solidly in the early part of 2011, notwithstanding the effects of the Japanese earthquake. Growth in China and the rest of emerging Asia had remained strong, which was continuing to underpin high commodity prices. The rise in food and fuel prices over the past year was pushing up headline inflation rates globally, prompting a gradual tightening in monetary policy in a number of economies. The IMF was still forecasting above-trend growth for the global economy, albeit with significant differences between the rates of growth expected for the advanced and emerging economies.

http://www.rba.gov.au/monetary-policy/rba-board-minutes/2011/03052011.html

And about USA. 

The recovery was continuing in the United States, although March quarter GDP growth had been somewhat below expectations. Consumption growth had slowed a little, which was likely in part to reflect the effect of the significant increase in gasoline prices on household budgets. Consumer confidence remained low and the housing market was still very weak. In contrast, measures of business conditions were positive. Information on the labour market was mixed: while most of the recent data, including the payrolls reports, had suggested that the improvement was continuing, initial jobless claims had increased recently. Members observed that the need to put fiscal policy on a more sustainable footing continued to affect confidence in the outlook for the US economy.

And then they all went out for a nice lunch.

Germanni's picture
Germanni
Status: Member (Offline)
Joined: Mar 20 2010
Posts: 14
TEPCO admits nuclear meltdown occurred at Fukushima reactor 16 h

http://mdn.mainichi.jp/mdnnews/news/20110516p2a00m0na028000c.html

TEPCO admits nuclear meltdown occurred at Fukushima reactor 16 hours after quake

Ruthless, spineless monsters. Sad for the people living there..

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