The Italian Disaster (jdargis)
In Germany, Gerhard Schröder’s government guaranteed a billion-euro loan to Gazprom for the building of a Baltic pipeline within a few weeks of his stepping down as chancellor and arriving on the Gazprom payroll at a salary larger than he received for governing the country. Since his departure, Angela Merkel has seen two presidents of the Republic in succession forced to resign under a cloud: Horst Köhler, a former chief of the IMF, for explaining that the Bundeswehr contingent in Afghanistan was protecting German commercial interests; and Christian Wulff, the former Christian Democrat chief in Lower Saxony, over a questionable loan for his house from a friendly businessman.
They Don’t Need Us… We Need Them! (Thomas C.)
So why would Saudi Arabia want to begin talks with their arch enemy? Simple, because mommy and daddy told them to. China and Russia have aligned and obviously taken Iran along under their wing. If Saudi Arabia wants to be in this family… then they must “make nice” or they are on their own. People, please put this, and all of the timing together. Russia has announced this “triad” of “de dollarators” for a lack of a better term. China and Russia have the highest level talks scheduled for May 20th and we know what is being discussed and most probably announced. We also know that Saudi Arabia has been none too pleased with the U.S. for quite some time and now plan to have talks with Iran. I see this as Saudi Arabia choosing sides. “Choosing sides” as in abandoning the losing side!
I had assigned this somewhat unilateral devaluation of the Dollar to Gold outcome a low probability, thinking that the US and its allies, Britain, Japan, and parts of the EU, would continue supporting each other’s currencies and policies of foreign exchange valuations through non-transparent swaps and buying, in a managed devaluation amongst themselves of course. But I thought they would at least open the door to allowing the SDR to be reconstituted with a broader basket of currencies and metals not under NATO control.
We have detected three different trends by analyzing the events and announcements in the last couple of months. Do not confuse ongoing with imminent. These trends are so fundamental in nature that it takes a long time till they have run their course; so don’t expect an immediate fall of the dollar (although we should never exclude anything).
Television footage showed people cheering and applauding as some trapped workers emerged out of the mine, helped by rescuers, their faces and hard-hats covered in soot. One wiped away tears on his jacket, another smiled, waved and flashed a “thumbs up” sign at onlookers.
Dozens of ambulances ferried back and forth bodies and the injured extracted from the mine and rescue workers were massed at the entrance of the mine on a hill side. Family members at the scene pleaded for news of their loved ones.
Roubini: “And it’s my opinion that economies are served by falling prices, by increased production, increased efficiencies, that lower consumer prices, that that’s what makes people better off. And I think the idea that central banks need to deliberately create inflation because it’s somehow a necessary ingredient to economic growth is wrong. Inflation is actually worsening the problems in the economy.”
OPEC Secretary-General Abdalla el-Badri said oil supplies from North America “will play an important role in the coming few years,” but he cast doubt on their sustainability over the long term. Speaking May 15 in Moscow, el-Badri acknowledged that oil supply from producers outside of OPEC are expected to increase by more than 4 million barrels per day (bpd) between 2013 and 2018, with much of that coming from North America. But he cautioned that the addition of non-OPEC oil supplies to the global market “should be viewed as a periodic shift.”
“Please evacuate,” Gore urged residents at an afternoon press conference. “There will be no vandalism. We want you to return safely and not get hurt in these fires.”
On Wednesday, intense heat and dry winds whipped the various fires and scorched more than 9,000 acres across 14 square miles. About 21,000 homes were evacuated.
Gold & Silver
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