Daily Digest

Daily Digest 6/2 - U.S. Steps Up Pressure To Resolve Euro Crisis, Syrian Civil War Possible, More On Egypt's Elections

Saturday, June 2, 2012, 10:45 AM
  • Surging Spain Borrowing Costs Hit Asian Shares and Euro
  • U.S. Steps Up Pressure on Europe to Resolve Euro Crisis
  • China Lets Currency Weaken, Risking New Trade Tensions
  • Clinton Says Russian Inaction May Lead to Syrian Civil War
  • Egypt's revolution won't end with the presidential election

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

Surging Spain Borrowing Costs Hit Asian Shares and Euro (jdargis)

The cost of insuring against a Spanish default scaled a record high near 600 basis points while Italy, which is also struggling with huge public debt, saw its 10-year yields top 6 percent for the first time since January.

U.S. Steps Up Pressure on Europe to Resolve Euro Crisis (jdargis)

In Ireland, voters were going to the polls Thursday for a referendum on the European Union fiscal treaty for fostering budgetary discipline and growth. While polls have shown a small majority favoring the treaty, the Irish are already resentful of painful austerity measures, and success is not certain. A failure to back the agreement could mean that Ireland was unable to draw on European Union financing after 2013 if it needs another bailout and could further encourage anti-euro sentiment in Europe.

China Lets Currency Weaken, Risking New Trade Tensions (jdargis)

The Chinese central bank pushed the renminbi up slightly on Monday, the first trading day after the Treasury report, but has let it slide further each of the last three trading days. The Treasury declined on Thursday to comment on the renminbi’s depreciation while the Chinese central bank, the People’s Bank of China, has stayed silent this spring on currency policy.

Clinton Says Russian Inaction May Lead to Syrian Civil War (jdargis)

Mrs. Clinton said that she had held “numerous conversations” focused on Russia’s role in Syria in recent days, but that the Russians had shown little willingness to abandon Mr. Assad even in an orderly, negotiated settlement. Instead, she said, they cite the violent history of civil war in neighboring Lebanon.

Egypt's revolution won't end with the presidential election (jdargis)

This month my buildings' latest revolutionary iteration was unveiled – two giant billboards sporting beaming mugshots of Ahmed Shafiq: former Mubarak-era prime minister, current presidential candidate and feloul ("regime remnant") figurehead par excellence. The elections campaign's last batch of polls suggests Shafiq could emerge triumphant, sounding what many in the media would describe as the final death knell to the "liberal revolutionaries" of Tahrir who have been steadily battered – by guns at the hands of the state security forces, and by public delegitimisation at the hands of the state media – since those heady images of collective protest conquered global TV screens 18 months ago.

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10 Comments

jumblies's picture
jumblies
Status: Silver Member (Offline)
Joined: Jun 13 2010
Posts: 244
WSJ: How Much Gold Do Investors Need? Zero Should Suffice

http://online.wsj.com/article/SB10001424052702304821304577438633632102346.html?KEYWORDS=Upside

After sliding 6% in May, the price of gold jumped 3.7% on Friday. Skeptics say it is a temporary rise in a longer downturn. Fans of the metal say it is the start of another glorious run.

Picking a side is pointless. Gold defies efforts to calculate its worth—or even to describe how it behaves as an investment. That means there isn't a clear reason to invest in it.

If you must own some gold to sleep better, stick with a multivitamin approach: A little bit won't hurt. A lot can prove toxic.

Gold is prone to long booms and busts. Before its latest dip, it multiplied five times in value over a decade, mocking stocks and other investments. Before that, it lost money for 20 years.

If gold is such a poor investment/hedge then why are so many central banks filling their boots?

 

SeniorD's picture
SeniorD
Status: Bronze Member (Offline)
Joined: May 29 2012
Posts: 33
Many NEW small positions will make Gold (and Silver) go up...

 Despite WSJ's article, I believe that as many folks add even small amount of Gold (and Silver) to their holdings, those positions will make the price of Gold (and Silver) go up!  As more and more investors consider the reality in todays market; I think they will "start" to add some "just in case."  This is especially true for those that tend to keep much of their money liquid and or are shy of the stock market.  Once they start to purchase some they will probably keep it "forever" and each person that buys some will tend to spread that information to their circle of friends, which in turn will do the same thing.

To me, as a Non-Professional investor, this is the beginning of a new trend which will lead to ever more folks adding Gold (and Silver) to their "portfolio"... 

I think the WSJ is remiss, because if investors follow the WSJ advice and the US$ takes a plunge, then all those that heeded their advice will REMEMBER... 

 

SeniorD's picture
SeniorD
Status: Bronze Member (Offline)
Joined: May 29 2012
Posts: 33
I think 10% might be a great starting place and here is why!

Most people do not actually tap into all of their account's money, so why not put a portion of your accounts total amount into Gold, Silver or both?  Having some coinage in your portfolio is yet another thing to talk about with other investors because should the US$ go SOUTH, this new "investment" will prove to be both a BIG DEAL and a very wise investment.

If the US$ does drop in value, in the above example, your 10% investment might very well become your portfolio's shining star as the increase of your coinage would (Hopefully) more than make up for the drop of the US$; unless of course the US$ really takes a DIVE in which case your coinage investment might very well become your great asset, at least in the short term!

If the US$ goes up some then your coinage will still be there for that "rainy day" and don't forget that coins make very special gifts for special occasions, should you feel generious!

SeniorD's picture
SeniorD
Status: Bronze Member (Offline)
Joined: May 29 2012
Posts: 33
Central Banks are taking their time Buying so as not to scare US

 I think the central Banks are taking their time so as not to scare all those that hold their paper..

BTW: If someone has access to a chart that shows the amount of Gold and or Silver that Gov't. are holding (over time)  I bet that chart is looking very nice right now...

h2oBoy's picture
h2oBoy
Status: Bronze Member (Offline)
Joined: Jun 18 2009
Posts: 52
Emergency Fed Meeting & Gold Backed Bonds

 King World News Don Coxe Interview today, listen to it Sunday

 

Coxe shocked KWN by saying that Europe is actively working to introduce gold backed bonds.  He said, “They would have the security of gold.” Coxe stated we could see this take place “within the next three months ... because this crisis is developing so fast.” Coxe also discussed the possibility of an emergency Fed meeting, but first, here is what Coxe had to say about the spectacular gold rally which took place on Friday:  “First of all, a rally like this, you know a huge amount of it is short covering.  The short positions had been building up on this.  We were having one of the highest short positions on the gold futures that we’ve seen in a long time.”

 

“The payroll number, what this did was remind people that the figure who said the US isn’t doing very well at all was Ben Bernanke.  The market quite correctly assumes that this is going to mean that he’s going to be forced into QE3.  He won’t be fighting it. 

 

…In other words, the case for gold is starting to get quite wondrous.”

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Der Fuehrer

What distresses me is that my friends think that this is all a conspiracy.

This amounts to thinking someone is in charge of events. A good, bad or indifferent Fuehrer. And that  is a symptom of infantilism. Tame mammals are ones that are permently infantile. Ditto humans.

It is my belief that my dear people the Germans are overly tame. They looked to the Father to show them how to behave.

I just want to slap my friends and say "Wake up Muggins. You are on your own."

Either that or we are going to get another Fuehrer. And more scapegoats. The finger of suspicion points at me. Time to move. Again.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
How to Lose.

Nicholle Foss is my intellectual superior.

I recommend  40 Ways to Lose your Future.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
With fossil fuels you an do anything

Wonder what the men that first worked on the railroad, would think.  Fascinating!

http://tinyurl.com/32jkfec

Mr. Fri's picture
Mr. Fri
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 220
Railroad Video

Wow, very cool machines.  I guess with older tracks all over the US that need repair, it makes sense to create these huge machines.  I've always wondered how they were going to replace ties & track that took (essentially) slave labor to create.

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