May 27 (Bloomberg) -- The U.S. economy will enter "hyperinflation" approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said. ... http://www.bloomberg.com/apps/news?pid=20603037&sid=avgZDYM6mTFA&refer=home
The economic crisis, he said, would be the harbinger of a period of instability and a "series of political crises". He added: "Forget the axis of evil; welcome to the axis of upheaval."
The Treasury received $81.2 billion worth of bids for the $35 billion worth of 5-year notes it offered Wednesday. That made for a bid-to-cover ratio of 2.32, which was better than last month's 5-year auction, but was weaker than Tuesday's sale of 2-year notes.
"There's a lot of paper coming to the market due to the government's needs," Cardillo said. "There is the fear that the government's spending is going to mushroom into inflation." ... http://money.cnn.com/2009/05/27/markets/markets_newyork/index.htm?postversion=2009052715
The so-called yield curve steepened to 2.75 percentage points, surpassing the previous record of 2.74 percentage points set on Aug. 13, 2003. Yields on 10-year notes have risen more than 100 basis points since Fed officials said in March they would buy up to $300 billion of U.S. debt over six months to drive consumer rates down and lift the economy from recession.
http://bloomberg.com/apps/news?pid=20601087&sid=aYHa.5_QudRo&refer=home
In addition to raising borrowing costs for the government, rising yields on Treasury debt could hamper an economic recovery since they are used as benchmarks for certain consumer loans such as home mortgages. Higher rates on those kinds of loans could prolong a recovery in the battered housing market.
http://www.google.com/hostednews/ap/article/ALeqM5jmT59dgLTTziX4p9X9MRBRpWZGdQD98EOPN81
Think of a typical image of a "survivalist" even the stereotypical view: tough, able to live off the land, resourceful and ready to deal with any disaster. Does this sound like the guy who whips out a Visa Card when the going gets tough? Would you expect to see a person working to build a homestead and a sustainable life using a credit card "just for airline miles"? Or perhaps, would you expect someone living by the mantra of adapt, improvise and overcome to finance a lifestyle with a home equity loan?
http://www.marketoracle.co.uk/Article10894.html
The Maryland state revenue office says it's "way too early" to tell how many millionaires moved out of the state when the tax rates rose. But no one disputes that some rich filers did leave. It's easier than the redistributionists think. Christopher Summers, president of the Maryland Public Policy Institute, notes: "Marylanders with high incomes typically own second homes in tax friendlier states like Florida, Delaware, South Carolina and Virginia. So it's easy for them to change their residency."... http://online.wsj.com/article/SB124329282377252471.html
The latest drama began this past Thursday …
The supply of U.S. Treasury bonds dumped on the market was so overwhelming, even the Federal Reserve, with all its massive efforts to buy up bonds, could not stop the avalanche. ... http://marketoracle.co.uk/Article10879.html
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5379285/China-warns-Federal-Reserve-over-printing-money.html Richard Fisher, president of the Dallas Federal Reserve Bank, said: "Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."
"I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States," he told the Wall Street Journal.
http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html US backing for world currency stuns markets
http://pakalert.wordpress.com/2009/05/21/uae-exit-leaves-gulf-currency-plan-on-brink-of-failure/ Gulf Currency Collapses
http://www.guardian.co.uk/business/feedarticle/8517156 Dollar still top currency in Russia reserves-cbank
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5325805/Chinas-yuan-set-to-usurp-US-dollar-as-worlds-reserve-currency.html China's yuan 'set to usurp US dollar' as world's reserve currency
May 22 (Bloomberg) -- The dollar fell to a four-month low against the euro and dropped versus the yen on speculation the U.S. government's creditworthiness is weakening, sapping demand for the greenback. ... http://bloomberg.com/apps/news?pid=20601087&sid=a7sB2fmVON5E&refer=home
Since 1978, when such ratings began, Britain has been awarded an immaculate AAA – the mark of a healthy, leading world economy. That golden run could come ...
May 21 (Bloomberg) -- The odds on the dollar, Treasury bonds and the U.S. government's AAA grade all heading for the dumpster are shortening.
While currency forecasting is a mug's game and bond yields can't quite decide whether to dive toward deflation or surge in anticipation of inflation, every time I think about that credit rating, I hear what Agent Smith in the "Matrix" movies called "the sound of inevitability."
Dear Client:
This notice is to confirm that you will be able to continue to utilize hedging as part of your trading strategy through our UK entity, FOREX.com UK Ltd, which is authorized and regulated by the Financial Services Authority (FSA).
The transfer of your account to FOREX.com UK is not mandatory. However, keep in mind that should you decide not to transfer your account, you will not be able to establish new hedged positions beginning Friday, May 15, 2009.
Over the next couple of days, you will be receiving instructions for how to transfer your account to FOREX.com UK.
The transfer of your account will be a seamless process. You will not need to close your open positions or orders and you will be able to use the same User ID and password to log onto the MetaTrader platform. Following the transfer of your account to FOREX.com UK Ltd, your funds will be held in segregated accounts as required by FSA regulation.
Should you have any questions or concerns, please feel free to contact one of our customer service representatives.
Thank you in advance for your continued business.
Sincerely,
The Team at FOREX.com
http://forexforums.dailyfx.com/nfa-no-hedging-rules-starting-may-17-2009/74526-1-faqs-nfa-rules.html
FAQs for NFA rules
Video: Trading Under the New NFA No-Hedging Rules
What the new rules mean:
Transferring to FXCM UK:
Wednesday, April 29, 2009
EES announces a solution for working during a pandemic: Remote Location Servers to run your trading strategies or your office. Order while supplies last (the infrastructure will be in short supply as many will do the same).
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http://www.networkworld.com/news/2009/042909-swine-flu-planning.html?hpg1=bn 10 tips for swine flu planning
http://www.newsnow.co.uk/h/Business+%26+Finance/Industry+Sectors/Agriculture/Bird+Flu News Now Bird Flu (currently updating swine flu)
http://traderstartpage.com/ FX Trader's Startpage with news and links
http://fluwikie.com/ A Wiki is a type of online collaboration that allows anyone (including you) to edit any page on a website. The open nature of the wiki format allows diverse, decentralized participation, and has shown itself able to develop surprisingly effective and sophisticated products, such as the Wikipedia.
http://www.flutrackers.com Forum about Swine Flu
http://blogs.wsj.com/health/ WSJ Health Blog
http://eliteforexblog.com EES Blog, where any updates and important news will be posted
http://www.cdc.gov/swineflu/ CDC Swine Flu page
The World Health Organisation is awaiting formal confirmation from US authorities the new swine flu virus has spread significantly between people, a sign that could indicate an "imminent" influenza pandemic.
Confirmation infected people in two countries are spreading the new disease to their families or contacts in a sustained way would meet the World Health Organisation's criteria for declaring a phase 5 alert on its scale of 1 to 6. http://www.irishtimes.com/newspaper/breaking/2009/0428/breaking53.htm
"We've never had a situation like this in the world. It's the first time that a swine flu has been detected in humans. ... Evidently, no one is a world expert."
But a Seattle-based risk assessment firm, Veratect, whose clients include corporations and nonprofit organizations that operate internationally as well as some foreign governments, says it noticed something was wrong in late March.
It issued a warning to its clients on April 2 of what it said could be a worrying new flu strain in southern Veracruz state.
Veratect's chief scientist, James Wilson, said in a posting on his private blog, Biosurveillance, that the company noticed something amiss on March 30, when a lawyer fell seriously ill in Ottawa after returning from Mexico.
http://www.americanchronicle.com/articles/yb/129157973
EL PASO, Texas (AP) — U.S. airports and border agents waved people through Monday with little or no additional screening for Mexico's deadly swine flu — a far more muted reaction than the extreme caution elsewhere around the world. ... http://www.google.com/hostednews/ap/article/ALeqM5gypVZz9TCTG1Lf1snAmsMMOXCEdwD97R64300
MEXICO CITY (AP) — The swine flu epidemic entered a dangerous new phase Monday as the death toll climbed in Mexico and the number of suspected cases there and in the United States nearly doubled. The World Health Organization raised its alert level but stopped short of declaring a global emergency. The United States advised Americans against most travel to Mexico and ordered stepped up border checks in neighboring states. The European Union health commissioner advised Europeans to avoid nonessential travel both to Mexico and parts of the United States. http://www.google.com/hostednews/ap/article/ALeqM5g8-DEMtAE9q4i4ySQ0eV_qZefmRQD97R61401
Stocks, Grains, Peso Drop on Swine Flu; Treasuries, Yen Gain By Daniel Hauck
April 27 (Bloomberg) -- Stocks declined around the world, while the yen, dollar and Treasuries gained as the swine flu outbreak spread. Mexico's peso fell and grain prices retreated.
The Dow Jones Stoxx 600 Index of European shares dropped 1 percent, led by airlines on concern that the disease will reduce travel. Futures on the Standard & Poor's 500 Index slipped 1.8 percent. The yen climbed more than 1 percent against the euro and the peso slid more than 3 percent against the dollar. Corn fell the most in a week on speculation the outbreak may curb demand for pork and animal-feed grains.
The spread of swine flu from Mexico to as far as New Zealand prompted concern of a pandemic, snuffing out a rebound in stocks that has pushed the MSCI World Index up 27 percent since March 9. Shares also fell and Treasuries rose after Lawrence Summers, director of the White House National Economic Council, said the U.S. economy will continue to contract "for some time to come," in an interview on "Fox News Sunday."
"As if we didn't have enough to contend with," Sydney- based Greg Gibbs and London-based Andy Chaytor, strategists at Royal Bank of Scotland Group Plc, wrote in a report today. "It's just what we need now, a flu pandemic in the midst of the biggest financial crisis since the Great Depression."
Yields on 10-year Treasury notes dropped five basis points to 2.95 percent. The yen strengthened to 126.94 per euro from 128.66 last week. The dollar advanced to $1.3151 per euro, from $1.3242.
http://www.bloomberg.com/apps/news?pid=20601087&sid=amnn0.D7GtUg&refer=home
Goolge map updates http://maps.google.com/maps/ms?ie=UTF8&hl=en&t=p&msa=0&msid=106484775090296685271.0004681a37b713f6b5950&ll=32.650649,-116.139221&spn=2.062781,3.99353&z=8
DEPARTMENT OF THE TREASURY
Departmental Offices; Debt Management Advisory Committee Meeting
Notice is hereby given, pursuant to 5 U.S.C. App. 2, Sec. 10(a)(2), that a meeting will be held at the Hay-Adams Hotel, 16th Street and Pennsylvania Avenue, NW., Washington, DC, on April 28, 2009 at 10:30 a.m. of the following debt management advisory committee: Treasury Borrowing Advisory Committee of The Securities Industry and Financial Markets Association. The agenda for the meeting provides for a charge by the Secretary of the Treasury or his designate that the Committee discuss particular issues and conduct a working session. Following the working session, the Committee will present a written report of its recommendations. The meeting will be closed to the public, pursuant to 5 U.S.C. App. 2, Sec. 10(d) and Public Law 103-202, Sec. 202(c)(1)(B) (31 U.S.C. 3121 note). This notice shall constitute my determination, pursuant to the authority placed in heads of agencies by 5 U.S.C. App. 2, Sec. 10(d) and vested in me by Treasury Department Order No. 101-05, that the meeting will consist of discussions and debates of the issues presented to the Committee by the Secretary of the Treasury and the making of recommendations of the Committee to the Secretary, pursuant to Public Law 103-202, Sec. 202(c)(1)(B). Thus, this information is exempt from disclosure under that provision and 5 U.S.C. 552b(c)(3)(B). In addition, the meeting is concerned with information that is exempt from disclosure under 5 U.S.C. 552b(c)(9)(A). The public interest requires that such meetings be closed to the public because the Treasury Department requires frank and full advice from representatives of the financial community prior to making its final decisions on major financing operations. Historically, this advice has been offered by debt management advisory committees established by the several major segments of the financial
[[Page 16259]]
community. When so utilized, such a committee is recognized to be an advisory committee under 5 U.S.C. App. 2, Sec. 3. Although the Treasury's final announcement of financing plans may not reflect the recommendations provided in reports of the Committee, premature disclosure of the Committee's deliberations and reports would be likely to lead to significant financial speculation in the securities market. Thus, this meeting falls within the exemption covered by 5 U.S.C. 552b(c)(9)(A). Treasury staff will provide a technical briefing to the press on the day before the Committee meeting, following the release of a statement of economic conditions, financing estimates and technical charts. This briefing will give the press an opportunity to ask questions about financing projections and technical charts. The day after the Committee meeting, Treasury will release the minutes of the meeting, any charts that were discussed at the meeting, and the Committee's report to the Secretary. The Office of Debt Management is responsible for maintaining records of debt management advisory committee meetings and for providing annual reports setting forth a summary of Committee activities and such other matters as may be informative to the public consistent with the policy of 5 U.S.C. 52(b). The Designated Federal Officer or other responsible agency official who may be contacted for additional information is Karthik Ramanathan, Acting Assistant Secretary for Financial Markets (202) 622-2042.
Dated: April 2, 2009. Karthik Ramanathan, Acting Assistant Secretary for Financial Markets. [FR Doc. E9-8020 Filed 4-8-09; 8:45 am]
BILLING CODE 4810-25-M |
http://www.bloomberg.com/apps/news?pid=20601087&sid=aRSJrvEz8GMA&refer=home
Deutsche Bank Trading Rebound Seen Leading Return to Profit
By Jann Bettinga
April 24 (Bloomberg) -- Deutsche Bank AG, Germany's biggest bank, may report record trading revenue at its securities division in the first quarter as credit markets stabilized.
Buying and selling bonds, currencies and commodities probably boosted trading revenue, excluding writedowns, above the 5.07 billion-euro ($6.7 billion) record in the first three months of 2007, people familiar with the matter said. The rebound will propel earnings at the Frankfurt-based bank, which posted a 4.8 billion-euro loss in the final quarter of 2008, analysts said.
Credit Suisse Group AG, Goldman Sachs Group Inc., Citigroup Inc. and JPMorgan Chase & Co. announced first-quarter results in the last two weeks that beat analysts' forecasts as trading revenue surged. Deutsche Bank may report first-quarter net income of 804 million euros, according to the median estimate of 10 analysts surveyed by Bloomberg News.
"We expect a very good result if you strip out the writedowns," said Dirk Becker, a Frankfurt-based analyst at Kepler Capital Markets who recommends buying the stock. "Trading should benefit from wider spreads, higher bond issuance volumes and market-share gains."
Deutsche Bank spokesman Michael Golden declined to comment before the release of earnings on April 28.
http://www.youtube.com/watch?v=IM-Zwqa2WyA&feature=related Gerald Celente False Flag Recovery pt ¼
CELENTE CHANNEL... http://www.youtube.com/profile_video_blog?user=GeraldCelenteChannel
One of the few upsides to this devastating downturn, as I suggested a few weeks ago, is the clarifying effect it has had on our understanding of how our economy actually works--and for whom. Each passing bailout debate seems to reveal something new about the broad fraud American capitalism has become, just how rigged our system is in favor of the favored few and just how critical (and hypocritical) Washington has been in subverting and perverting our supposedly free markets. ... http://www.forbes.com/2009/04/14/obama-defense-budget-opinions-columnists-gerstein_print.html
The theory is controversial, to say the least, and many economists give it short shrift. But to hear Mr. Gordon tell it, the Kondratieff Cycle is real, it's in its "winter" phase, and the outlook for the next several years as a grim as it gets. "We are in a 15-year deflationary depression that will be worse than 1929-32," he warned. There will be a collapse in real estate prices - as much as two-thirds in the U.S. World trade will collapse. Government revenues will dry up and they will be unable to provide needed services. Pension plans will fail. The Dow will bottom out at around 1,000. Feel depressed yet?.... http://www.rgemonitor.com/roubini-monitor/256412/degrees_of_bearishness_press_report_of_a_recent_event_with_nouriel_roubini_meredith_whitney_and_other_bearish_analysts
http://www.atimes.com/atimes/Global_Economy/KD15Dj04.html
World leaders miss the target
By Henry C K Liu
Leaders attending the Group of 20 second Summit on Financial Markets and the World Economy in London on April 2, echoing the first such gathering in Washington in November 2008, continued the tradition of superficial posturing for political theater on global television, while missing the real target - that is, the need not so much to revive dysfunctional trade that has collapsed from its own internal contradictions, but to redefine the predatory terms of international trade created by dollar hegemony.
The big question in our own mind is the depth of complicity and the motivations of the government, the media and major institutions in continuing to support this financial corruption through silence or participation.
... http://jessescrossroadscafe.blogspot.com/2009/04/crisis-of-our-democracy-corruption-in.html
Is the US Russia? The question seems provocative, if not outrageous. Yet the person asking it is Simon Johnson, former chief economist at the International Monetary Fund and a professor at the Sloan School of Management at the Massachusetts Institute of Technology. In an article in the May issue of the Atlantic Monthly, Prof Johnson compares the hold of the "financial oligarchy" over US policy with that of business elites in emerging countries. Do such comparisons make sense? The answer is Yes, but only up to a point.... http://www.ft.com/cms/s/0/09f8c996-2930-11de-bc5e-00144feabdc0.html
"To restore the wealth lost in the current financial crisis, the Treasury would have to monetize some $30 trillion of toxic assets, almost ten times what the Geithner Treasury is currently contemplating, and twice the size of current U.S. annual GDP. Add to that about $10 trillion of value lost in the collapse of commodity prices and another $10 trillion in real property values, and we have a wealth loss of $50 trillion." ~ Henry Liu, Asia Times via Mike Whitney... http://www.marketoracle.co.uk/Article10033.html