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John Kelly John Kelly
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Re: bank lending

David A,

 The current debt crisis in the UK is to my mind insurmountable, its roots go all the way back to 1909 with the introduction of a state pension which at the time must have been seen by Government as a good deal, since the average age of a man at that time was just 48 years.
Unfortunately nobody put in place a plan B to take effect if average lifespans started to increase as a proven trend and nobody envisaged that our population dynamics would change so fundamentally in so short a time frame.

Interest rates are currently at an all time low, so the Government are able to borrow money at a rate approximately 8x cheaper than the Thatcher administration, however if that interest rate were to increase by 2% or more I dread to think what measures George Osbourne would have to take to keep the country financially viable.

Basically UK PLC is skint and I would not be surprised by currency restrictions and at least 50% Government control of private pension schemes at some time in the future.
David A David A
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Re: bank lending

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John,

You have hit the nail squarely on the head - interest rates have been kept artificially low precisely because of the debt crisis in USA and Britain chiefly. It will take just one country to decide to chance going alone, and the entire edifice could end up galloping off towards huge interest rate rises - and as you say, Britain's pound will spiral because what has she? - beyond goodwill to back her up, as she appears too to be turning her back on her own Commonwealth and people and pandering to a Euro which will not only spiral - it will be annihilated... that, I'm afraid, is my sombre prediction. The truth is we are living in a world where nobody can balance the books any longer; indeed, the nervous investors have to go along with the ludicrous notion, that those with the biggest debts are the most powerful, because if they go, everyone else does too. That is why I have steadfastly maintained that the Hadrian solution, is the only one which will turn about this ludicrous notion of making bad debts even worse. The Republicans are right about one thing - we cannot continue to spend what we haven't got! What will change everything will be a crisis of confidence somewhere, and if I were a betting man, I'd say the Far East will be the spark which ignites the Hindenburg...

David A
John Kelly John Kelly
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Re: bank lending

David A,
Any advice on how to protect our capital & investments before the s*** hits the fan
Peter. C Peter. C
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David A David A
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Re: bank lending

If I were in France or Spain, I'd say put it under a mattress!

In UK, I'd be careful about investing in the bailout banks!

But spreading it about is good, provided it is carefully researched...
David A
David A David A
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Re: bank lending

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John,

Find yourself some good land preferably free from pollution and floods, and try to aim for some degree of self sufficiency - solar energy has possibilities worth investigating I would suggest. You might like to consider purchasing a boat! I did that on the Thames, at one stage - nearly bought a house boat, until I realised that this might be highly restrictive, if, as you suggest the proverbial hits the fan in London!
David A
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Re: bank lending

John,

In a nutshell, this is where we are right now - culled from Bloomberg today...

Obama Vows No Negotiations on Debt as Deficit Talks Loom
By Margaret Talev & Julianna Goldman - Jan 15, 2013 10:24 AM GMT-0330

President Barack Obama vowed he won’t negotiate over raising the government’s debt ceiling even as he offered to deal on a separate track with the deficit reduction demanded by Republicans.

Warning of economic calamity and stalled payments to Social Security recipients, military personnel and government creditors if the $16.4 trillion debt limit isn’t lifted, Obama accused Republicans of holding the nation hostage as he sought to push Congress toward action to avoid.

President Barack Obama speaks at a White House news conference about negotiations over raising the U.S. debt ceiling, deficit reduction and gun control. Obama warned Congress against using the debt ceiling as leverage in the spending debate, saying "markets could go haywire" and government payments will be held up if the limit isn’t raised. (Source: Bloomberg)

.“What I will not do is to have that negotiation with a gun at the head of the American people,” Obama said at a White House news conference yesterday, referring to the Republican linkage of increasing the debt limit with deficit reduction.

“They will not collect a ransom in exchange for not crashing the American economy,” he said.

Obama and congressional Republicans appear headed toward a confrontation over the debt limit, deficit reduction and keeping the government running that will come to a head over the next six to eight weeks.

The Treasury reached its statutory borrowing limit on Dec. 31 and is using “extraordinary” measures to pay for the government. Those measures will work only until mid-February to early March, Treasury Secretary Timothy F. Geithner said in a letter yesterday to congressional leaders.

By the end of February, lawmakers and the White House also will have to come up with a plan to avert automatic spending cuts, which both sides deferred in the year-end budget deal.

Second Deadline
Congress faces an additional deadline at the end of March to pass legislation to keep the government running at current funding levels in absence of an annual budget.

Senate Republican leader Mitch McConnell of Kentucky said the debt ceiling debate is the “perfect time” to address spending, while House Speaker John Boehner, an Ohio Republican, brushed off Obama’s insistence on keeping the two separate.

Voters “do not support raising the debt ceiling without reducing government spending at the same time,” Boehner said in a statement. He said he plans to discuss his debt-ceiling strategy with his leadership team when the House of Representatives returns to Washington this week.
 
Obama maintains that raising the debt limit to pay for expenses already authorized by Congress is non-negotiable.

The debt limit has been periodically raised since its creation in 1917, when Congress and President Woodrow Wilson approved a measure enabling the Treasury to issue long-term securities to help finance entry into World War I. Congress increased it to reflect the cost of World War II, and lowered the level after the war ended. Since 1960, Congress has raised or revised the ceiling 79 times, including 49 times under Republican presidents, according to the Treasury Department.

While Obama expressed his willingness to negotiate on deficit-reduction measures, he called threats to let the government default on bills already accrued by failing to raise the debt limit “irresponsible” and “absurd.”

“Markets could go haywire,” he said. “It would slow our growth, might tip us into a recession and, ironically, would probably increase our deficit.”

When partisan gridlock brought the government to the brink of default in August 2011, the stock market fell and Standard & Poor’s (SPY) cut the nation’s credit rating.

Still, U.S. Treasury bond investors -- who most directly bear the risk of a government default -- haven’t shown alarm over political fights that continually are resolved.



David A
John Kelly John Kelly
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Re: bank lending

Is the financial crisis a reality or an invention designed to facilitate an acceptable level of public sector cutbacks and disguised taxes?


Let’s start with a fact that should be on billboards across the land. As a proportion of GDP, Britain’s national debt has been higher than it is now for 200 of the past 250 years. Read that sentence again. Check it on any graph by any historian. Since 1750, there have only been two brief 30-year periods when our debt has been lower than it is now. So we can afford to run a deficit, If we are “bust” today, as George Osborne has claimed, then we have almost always been bust. We were bust when we pioneered the Industrial Revolution. We were bust when we ruled a quarter of the world. We were bust when we beat the Nazis. We were bust when we built the NHS. Or is it George Osborne’s economics that are bust?
Peter. C Peter. C
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David A David A
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Re: bank lending

This post was updated on .
Peter, (posted this under Bedroom Tax but here it's more appropriate)

re. Gordon Brown MP

Indirectly, yes, sadly is the answer to your question. He appears to be quite a good constituency MP, but by giving the green light to the Bank of England, selling off our gold reserves for a fraction of their real worth, and allowing Northern Rock off the hook after the collapse of Lehman Brothers (who nobody bailed out), signalled bad things to Barclays and Lloyds and encouraged everyone else to come to London and have a bean feast on Britain. It was like saying, "the feast is on us; we'll pick up the tab!" Good old British generosity, which we are continuing under this government funding Third World Debt, with corrupt-ridden agencies and with money we don't have. I'm trying to be fair, here, Peter, but I'm afraid the facts speak for themselves. Look at our time bomb now. Has it dropped under Cameron? No, it's accelerating, revising earlier forecasts of 180 billion overspend for the year upwards to something like 250 billion. Only a few weeks ago it was below 18,000 - now it's 18,535 for every living soul in Britain - that's 1181.5 billion owing, as opposed to my last post - check it out. That bomb will explode sooner rather than later, and God help Britain and the world, is all I can say... We are ruled by idiots...

Furthermore, I believe the days of the US$ as the world's reserve currency are numbered. This is because the Fed cannot go on printing money for ever without seriously undermining the US$ as the trade currency. Before Christmas I pointed out that the Fed were printing money monthly at a rate of 40 billion US. That figure is now 85 billion monthly. The IMF is now actively exploring my idea of a world currency, in preparation for a US$ default, in the meantime they are recommending a basket of currencies. China and Russia and several Arab states are now exploring ways of buying energy avoiding US$ as reserve currency. When countries like Britain and America can no longer pay the interest on their loans, their credit rating drops, and the Sovereign debt accelerates. Would that someone would listen to me. International Mercantile Exchange already uses gold as its benchmark not US$ any more. If the US$ goes, so does Sterling, it's as simple, and as horrifying as that, and commodity prices will soar. At the moment, there is a ridiculous blame game going on. America's hawks are beginning to blame China for everything, knowing full well that China has all the cards; but you can hardly blame China for wanting to avoid exposure to unsafe currencies like the Euro, Sterling and the US$. John Kelly asked me what was best to invest in right now, and I would say Silver or Gold. Granted that Gold has dipped recently, but if the US$ loses its status which to me seems inevitable, Gold will soar again, as will Silver. Silver is by far the best buy at the moment, the ratio being 50:1 against Gold (even if it means strengthening Argentina!). The traditional ratio has always been around 16:1. Gold bullion price ended at US$ 1583.30oz  up $28 on the week; Silver ended at US$ 27.33 up 44 cents on the week. Gold is moving again, as predicted with weaker US$ and stronger Sterling (thanks to renewed Euro crisis).

Truth is Britain, America and the EU are all living way beyond their means - in the US several large cities are technically bankrupt, Baltimore being the latest, and there's barely a US state that can balance its books, and the politicians will not be able to kid us for much longer. My fear is that in an effort to contain its crisis, America may choose a confrontation with China, (Cameron's recent pathetic attempt at solidarity against North Korea may be due to a telephone call between Washington and London in this respect) citing its security in Pacific Islands (Guam), Japan, and South Korea. Trouble is the embarrassing truth (not widely reported) is that China is currently trading its Renmimbi (Yuan), with South Korea's Won, overtly avoiding the US$ !!! How ironic is that!

Witness to precarious state of US$ - today it is trading 97 Yen and Sterling is exchanging at 149 Yen. This bubble may burst sooner than anyone thought possible. The balloon can take just so much hot air! Agree, John Terrington?

Today we are looking at 98 Yen for US$ and 150 Yen for Sterling - my predictions are holding - below is a consequence of our turning our back on our core Commonwealth partners. My bet Harper is doing the same for Canada. Oh, Great Britain, please wake up for all your sakes!

Business headings in today's Times

--------------------------------------------------------------------------------
China ‘will protect interests’ of foreign business
Xi Jinping, China’s president, says that attracting foreign funds and companies was vital for the country’s future economic growth

--------------------------------------------------------------------------------
China and Australia reach currency trade deal
The two countries, which generate around £85 billion a year of bilateral trade, are due to start direct trading between their currencies



 
 
David A
David A David A
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Re: bank lending

This post was updated on .
Update to earlier post - see latest from the Times today at foot...

re. Gordon Brown MP

Indirectly, yes, sadly is the answer to your question. He appears to be quite a good constituency MP, but by giving the green light to the Bank of England, selling off our gold reserves for a fraction of their real worth, and allowing Northern Rock off the hook after the collapse of Lehman Brothers (who nobody bailed out), signalled bad things to Barclays and Lloyds and encouraged everyone else to come to London and have a bean feast on Britain. It was like saying, "the feast is on us; we'll pick up the tab!" Good old British generosity, which we are continuing under this government funding Third World Debt, with corrupt-ridden agencies and with money we don't have. I'm trying to be fair, here, Peter, but I'm afraid the facts speak for themselves. Look at our time bomb now. Has it dropped under Cameron? No, it's accelerating, revising earlier forecasts of 180 billion overspend for the year upwards to something like 250 billion. Only a few weeks ago it was below 18,000 - now it's 18,549 for every living soul in Britain - that's 1182.5 billion owing (a billion more since yesterday - carry on like that and that figure extended is nearer the 350 billion mark in overspend - probably will be 400 billion!). That bomb will explode sooner rather than later, and God help Britain and the world, is all I can say... We are ruled by idiots... This is so serious now. Cameron needs to go and quickly and we need a wartime cabinet - ALL pulling together...

Furthermore, I believe the days of the US$ as the world's reserve currency are numbered. This is because the Fed cannot go on printing money for ever without seriously undermining the US$ as the trade currency. Before Christmas I pointed out that the Fed were printing money monthly at a rate of 40 billion US. That figure is now 85 billion monthly. The IMF is now actively exploring my idea of a world currency, in preparation for a US$ default, in the meantime they are recommending a basket of currencies. China and Russia and several Arab states are now exploring ways of buying energy avoiding US$ as reserve currency. When countries like Britain and America can no longer pay the interest on their loans, their credit rating drops, and the Sovereign debt accelerates. Would that someone would listen to me. International Mercantile Exchange already uses gold as its benchmark not US$ any more. If the US$ goes, so does Sterling, it's as simple, and as horrifying as that, and commodity prices will soar. At the moment, there is a ridiculous blame game going on. America's hawks are beginning to blame China for everything, knowing full well that China has all the cards; but you can hardly blame China for wanting to avoid exposure to unsafe currencies like the Euro, Sterling and the US$. John Kelly asked me what was best to invest in right now, and I would say Silver or Gold. Granted that Gold has dipped recently, but if the US$ loses its status which to me seems inevitable, Gold will soar again, as will Silver. Silver is by far the best buy at the moment, the ratio being 50:1 against Gold (even if it means strengthening Argentina!). The traditional ratio has always been around 16:1. Gold bullion price ended at US$ 1583.30oz  up $28 on the week; Silver ended at US$ 27.33 up 44 cents on the week. Gold is moving again, as predicted with weaker US$ and stronger Sterling (thanks to renewed Euro crisis).

Truth is Britain, America and the EU are all living way beyond their means - in the US several large cities are technically bankrupt, Baltimore being the latest, and there's barely a US state that can balance its books, and the politicians will not be able to kid us for much longer. My fear is that in an effort to contain its crisis, America may choose a confrontation with China, (Cameron's recent pathetic attempt at solidarity against North Korea may be due to a telephone call between Washington and London in this respect) citing its security in Pacific Islands (Guam), Japan, and South Korea. Trouble is the embarrassing truth (not widely reported) is that China is currently trading its Renmimbi (Yuan), with South Korea's Won, overtly avoiding the US$ !!! How ironic is that!

Witness to precarious state of US$ - today it is trading 97 Yen and Sterling is exchanging at 149 Yen. This bubble may burst sooner than anyone thought possible. The balloon can take just so much hot air! Agree, John Terrington?

Now as I write we are looking at 98 Yen for US$ and 150 Yen for Sterling, and now again literally minutes later 99 and 151 respectively, oh my! - my predictions are holding - below is a consequence of our turning our back on our core Commonwealth partners. My bet Harper is doing the same for Canada. Oh, Great Britain, please wake up for all your sakes! (I feel Maggie empathising wherever she is as I write, and, believe me, on that score she would act decisively, and for all our sakes, and I bet you she would have read my suggestions for resolving the world debt crisis when she was able-minded. When it came to her Country, she was that kind of lady, for all her shortcomings and I sorely miss her right now!)

Business headings in today's Times

--------------------------------------------------------------------------------
China ‘will protect interests’ of foreign business
Xi Jinping, China’s president, says that attracting foreign funds and companies was vital for the country’s future economic growth

--------------------------------------------------------------------------------
China and Australia reach currency trade deal
The two countries, which generate around £85 billion a year of bilateral trade, are due to start direct trading between their currencies.

Regarding direct trading of currencies, it is my bet too, that the US will put pressure on both Australia and Canada not to abandon US$ trades! They could do that as defence guarantor for both countries. Such a measure though would polarise the world trading community and probably result in the dreadful depression we are all struggling to avoid... We need a world leader of Thatcher's stature and with the insight to resolve this mess, but we haven't anyone but T. Blair and he's a busted flush, and now universally loathed, though I made the mistake of voting for him once!!!

The Wall Street Daily today joins me in my assertion that both he US$ and the Euro are doomed - their words, not mine!
 
David A
David A David A
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Gleaned from Bloomberg today, and very much in line with my predictions. Tighten your belts GB, it's gonna get bumpy!

"As I have written in these pages before, I expect the coming sell-off in the U.S. bond market to start slowly; nothing like what we saw when the key stock indices plummeted in 2008 and 2009. It will be slow and steady, gradually picking up speed.

Bond investors are facing two risks in the U.S. bond market: interest rate risk and credit risk.

The Federal Reserve has been keeping interest rates artificially low since the financial crisis began, while printing an unprecedented amount of new paper money in its efforts to boost economic growth. The Fed will eventually have to raise interest rates to tame inflationary pressures. When that happens, bond investors could face extensive losses. A simple rule of economics: bond prices fall when interest rates rise. The U.S. bond market will be no different.

The U.S. government is spending with two hands. It has been posting budget deficits of more than $1.0 trillion for the last four years. It won’t surprise me to see another year with a U.S. budget deficit of more than $1.0 trillion. The U.S. national debt is headed well above $17.0 trillion.

Dear reader, it is not a hidden fact anymore: the U.S. government is spending rigorously, while borrowing from the Federal Reserve to stay afloat. Unfortunately, this type of behavior can only go on for so long before our creditors—the bond investors—realize the Ponzi scheme that’s really happening.

As a result of all this, there is already softening in the U.S. bond market. For example, 30-year U.S. bond prices have been declining since November of 2012, having fallen more than 4.5%.

The glory of the U.S. bond market may just be coming to an end. A hike in interest rates is not that far off now. Gone are the days when the U.S. bond market was the place to be."

David A
Robassaurus Robassaurus
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Re: bank lending

In reply to this post by fiferalfa2
Have to agree on this one I run my own business you have no backing from the government at all the banks
cocked everything up and now us tax payers pay for it . Including suffering when it comes to trying to get a mortgage if your self employed and want to borrow money it feels like you have leprosy,yet we are the backbone of the country keeping it going rather than claiming benefits.

Rob J  
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David A
David A David A
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Article in the Times today about Switzerland putting up the shutters against the EU malaise. If they can do it, why can't we? Signs of a lot of gold exchanging hands on Wall Street yesterday, and my bet is it's Germany who is buying - in which case I reckon George Soros's prediction could well happen - Germany will leave the EU, and if that happens, we will surely follow suit - leaving the rest of them to sink in the corrupt and bankrupt mire of their own making, and Baroness Ashton can moan all she likes...

Europeans hoping to escape the economic downturn were told yesterday that the continent’s most prosperous country was pulling up the drawbridge to stop a surge of jobless migrants.

To fury in Brussels, Switzerland announced quotas for new residents that will apply to immigrants from the eight Eastern European countries that joined the European Union nine years ago. These include Poland, Hungary and the Czech Republic.

Limits are also being prepared for the 17 older EU states, including Britain, and France, where the numbers of jobless rose to a record 3.2 million to beat the previous high set in 1997, and Spain, where unemployment reached a record level yesterday of 6 million or 27.2 per cent of the workforce. In contrast, the unemployment rate in Switzerland fell in March to just 3.2 per cent, lower than anywhere in the EU, where the average rate is 10.9 per cent.

The EU accused non-member Switzerland of breaking an agreement on the free movement of people in terse comments issued by Baroness Ashton of Upholland, the British member of the European Commission in charge of foreign affairs.

But the Alpine nation stood its ground, retorting that it had already negotiated the ability to impose limits on migrants with Brussels once new arrivals reached critical levels and would not be changing plans to bring in controls from May 1.

Eurosceptic British MPs argued that Switzerland’s control over the numbers of EU workers allowed in gave their system extra legitimacy when contrasted with Britain’s obligation to accept all-comers.

“Switzerland has a greater dependence upon a skilled and dedicated foreign workforce but the key thing is they are in control of it, so that if it starts to be too much of a good thing they can put the dampeners on,” said Douglas Carswell, a Eurosceptic Conservative backbencher.

“It is a better system from the point of view of social cohesion. Being able to manage it democratically is absolutely vital. It shows that the Swiss have a far superior relationship with the EU from outside than we manage from within.”

Foreign migrants make up almost one fifth of the population in Switzerland, a country of 8 million people.

The highest numbers of foreign residents come from Italy (294,000), Germany (285,000) and Portugal (238,000), but the biggest increase in 2012 was from Hungary, with arrivals up by 23.6 per cent.

A Swiss government statement said that the number of foreigners arriving in Switzerland to work was between 60,000 and 80,000 higher each year than the number leaving.

It invoked a safeguard clause in an agreement with the EU to limit long-term residency permits to 2,180 for eastern Europeans from May 1, and 53,700 for the 17 older EU states from June 1.

Bulgaria and Romania were already covered by separate Swiss restrictions which run until 2016, while all limits within the EU will be lifted on January 1.

“The safeguard clause is one of several measures which can help to make immigration more acceptable to society and compatible with its needs,” the Government said in a statement.

The level of new arrivals is blamed for driving up house prices and fuelling support for the nationalistic Swiss People’s Party, which has managed to collect the required 100,000 signatures for a referendum to limit further the number of new residents.

An environmental group, Ecology and Population, has collected 120,000 signatures calling for a referendum to limit the growth of the population to 0.2 per cent a year. The number of EU residents rose by 4.1 per cent in 2012.

Simonetta Sommaruga, the Swiss Justice Minister from the Social Democratic Party, said: “It is a fact that there is unease among the population, and it is necessary to take this unease seriously.”

But Baroness Ashton said: “The measures adopted by the Swiss Government are contrary to the Agreement on the Free Movement of Persons ... The European Union attaches great importance to the free movement of persons in the overall context of its relations with Switzerland.

“These measures disregard the great benefits that the free movement of persons brings to the citizens of both Switzerland and the EU.”

Her officials said that they would consider what action to take although Switzerland, as a non-EU member, is not subject to the European Court of Justice on immigration matters.

Switzerland has the power to impose controls for only one more year after which the current agreements run out.
David A
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David A
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Just how long can America expect to print money at a rate of 85 billion monthly to shore up Wall Street and the World? Just how long will Germany continue to bankroll Europe? These are the two questions which the markets throughout the world are demanding answers - and there appear to be none. Expect interest rates to rise very soon, along with gamechanging decisions. The cauldron is filling to bursting point, as politicians pontificate uselessly. The precious metals market is showing ominous signs of revival (against prediction)... signalling the increased likelihood of more defaulting nations and bust banks in its wake... That's the only explanation I can offer as an ex-trader in the money markets...

This post was updated on Apr 29, 2013; 10:29am.
In reply to this post by John Kelly
John, I have been advocating such a move all along, and I know powerful industrialists are more likely to be attracted to such a coalition, and will give their backing accordingly, however, I believe this bunch of morons, as Oracle puts it, will have to kowtow to the markets, unless we magically emerge with a real visionary for a leader with clear ideas how to extricate us from the European mire, and offer something better than the ricepaper the current Disney world is offering on the other side of the pond! Obama and Merkel, are both piper and tune!

My hypothesis seems to be clearly shown in today's markets. All four precious metals, gold, silver, platinum, palladium posted healthy gains in the Far East overnight and in London today. New York opens in a few minutes, but I imagine the trend will continue. Germany's gold reserves increase by the day, (now larger than France and Italy combined), the US$ has dropped further to $1.555 against Sterling (was previously $1.49) - Euro, steady for now at 1.185 thanks to Germany and Switzerland! The silver/gold ratio today stands at an unprecedented 60.67:1 from its traditional base of 16:1 - this cannot possibly continue...

This is what one pundit is predicting today (and he is by no means alone in his thinking) - and if you go to www.kitco.com/market you can see the full article.

"The Man Who Predicted Japan’s Lost Decade… The Recession of 1990-92… The Biggest Bull Market Run in U.S. History… and Most Recently, the 2008 Credit Crisis and Stock Market Crash… Now Predicts:

"DOW 3300!"
Yes, today the Dow Jones Average may be near historic highs…
but it won’t be for long! The Dow will drop.


Dear Friend,

My name is Harry Dent. For the past 30 years, I’ve used the Science of Demographics to predict major economic and market shifts with uncanny accuracy… decades ahead of time.

Many investors are making the mistake of thinking the downturn is over, and Dow stocks will continue to roar upward.

But that’s not what my research indicates. Not even close.

I see the Dow Jones Average winding down, week after week… falling through the 12,000 mark… below 10,000, then 9,000, 8,000… to 6,440 – where it’s likely to rally briefly… before ultimately dropping as low as 3,300.

And there’s nothing you or I, or any politician or government, or any team of monetary experts can do to stop the Dow Jones Index from dropping. "
David A
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Re: bank lending

The US Federal Reserve is facing a bit of a dilemma - extend the QE for a further quarter, or watch Wall Street take a hit and interest rates rise sharply. If they can't get their house in order this time, get ready for the fireworks!
David A
Peter. C Peter. C
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It's all a bit grim, Peter.

The markets are in a quandary. You have huge nations unable to pay their debts. The interest on those debts increases them, and all America can offer is domani, scared rigid that the temporary prosperity in the markets could sharply turn, if countries start getting cold feet about certain currencies afflicted in this way - US $, Sterling and Euro being front runners. This is very evident now by the increased speculation we see on the bullion market - where people are making small fortunes, recognising this trend - prices falling on the eastern markets, and rising in New York to compensate! This is the Fed and Germany preserving the status quo, for now, but what everyone on the floor now recognises is that there will come a time when number 13 your time is up because there will be no more rope! That's when the real fireworks will begin, because no one has a clue about any solution!

I'm afraid what we have been postponing since 2008 is becoming inevitable...
David A
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