Why stay at the Greece euro room

Greeks now creditors 430 million euro payments made, remains bearish market sentiment. Euro / dollar, flight safety “, close to weekly lows and dollar index, followed the trade multi-year highs near the trading currency. Are potential Greece exit from euro area and issues associated with this article money morning.

Dan Paul Denning-article written by money morning 5/17/2012

I’m going to afford to stay in euro in Greece sometime the next few weeks to find. We also Spain and Italy is going to find room to euro. Access to the credit market is an important issue. The capital market of the country locked default stigma. If you don’t have a plan to exchange your currency and to underestimate it, you are doomed.

First off, it cannot be far away didn’t become the night Greece crisis is. Rival parties has been to form a Government. New elections June is scheduled for the second week. Financial, political and definitely is. People who run the world still built on money and patience power grounds retarded.

In other words, to manage the Greeks hold out 430 million euro pay all creditors last night. Country debt restructuring to 97% of the creditors of the Greece approximately March, agreed. Off more than € wipe out debts of ¥ 100 Greece, loss of 70% accepted the agreement, some bondholders of the test results. All of them did.

Yesterday, who has got the paid completely bondholders didn’t agree to the contract. Yet approximately € is the debt owed to creditors rejected 600 million who participate. Payment of around imagine offend agreed in the contract are creditors, determination of the Greece language. They are now like schmucks should look like. Schmucks.

But the current scheme is € 430 million is chump change. Greeks real problem, whether the default € 150 yen worth government debt will be. These bonds foreign creditors-if you own becomes Greece, crisis of Europe, those other European banks – let’s call. Touch a bit the “Suppression” problem.

Aspects of the most amazing what is happening for the Greece people in their life savings is a serious risk of involuntary overnight a massive devaluation. Other what one of the things often turning magic words: come, Alchemy, transmutation, and all minds. But to the Greeks it is like highway robbery to look at would be is.

1 Go to built your life savings to euro in bed. Will wake in the Drachma denominated them next day. Euro savings will automatically convert Drachma currency exchange rates to help you choose. For example, your… or is 10000 Drachma 1000 Euro 100 drachma. Is not a nominal capacity problem. What matters, the devaluation of 70% or 80% of the buying power of the Strip is.

If they have most people will avoid the destruction of such values. Maybe why 700 describes according report said Wall Street Journal by Greece President Karolos Papoulias, on Monday from the banks of the Greece million euro was withdrawn. Journal is € 2 to € $ 3 deposit, each month over the past two years been cancelled from the banking system in the Greece report. January high and € 5 yen.

The other name of Bank, to become desperate and run. In desperation now wouldn’t it?

The debt owed to creditors foreign, devaluation of the Drachma, leaving the euro is Greece most long-term economic survival strategy. Destroy the savings aside, people in the period of the inevitable effect of Usher and lower living standards.

Not to win more votes. It can cause a revolution.

By the Spain and Italy people from imitation precedent of Greece, so that is a way to? Frankly, I don’t think we think many problems right now is. Can not afford to stay at Greece euros. Spain and Italy who leave it to afford it.

Italy and Spain of the economy and the financial system is essential in Europe. If they leave the euro no euros. You can use the how to leave the Greeks, devalued by default, back to the weak currency economy competitiveness nails. Spain and Italy people to leave, if they lose access to private capital, they lose access to ECB, take down the European banking system. They cannot leave. More importantly, they can’t leave.

This is easier than the European Central Bank (ECB) for the task. To guarantee the Greece simply all non-Greece to creditors to pay debt. Or you can simply buy the debt. It resolves the problem of non-Greece take on debt Greece losses.

When it comes in big state with the large financial and economic power, so look what is corporatism. Cannot tolerate the loss. Loss results would have sales of low-capital, finance company assets. And who also owns works of other people, so everyone has duties lost anywhere at any one place a major loss.

Of course move irrational a it towards ‘extreme socialism’ of this kind in Europe. And is not responsible responsible for most crisis people are the people who keep getting punished. And the elite are enriched and who is the slave.

This financial crisis is the reason soon becomes a political and social crisis. When the only way and those who don’t, and get from the Court of Justice and the police, to get the system ago their illegal acts and think upon borrowed the political and financial order. Are the clock ticking.

Dan Paul Denning
Editor at the daily reckoning Australia

Why stay at the Greece euro room

Related articles:

Higher gold prices, euro area stocks again/17 deadline display the slump may 2012 Oil bull market in GreeceGold death over Greece face – gold futures bear anxiety – June.

View the original article here

Oil And The Death Of Greece

AppId is over the quota
AppId is over the quota

Further talks are due in Greece as Athens scrambles to secure a workable government after the inconclusive recent elections.  This article gives an opinion and looks at the potential affect the Greek political instability is having on Oil as political turmoil shakes global markets.

Article from MONEYMORNING on 15th MAY 2012
As the Eurozone continues to show weakness, events in Greece may accelerate the situation. The downward movement in oil prices in both London and on the NYMEX testifies to the rising concern.
The aftermath of the Greek elections propelled the new radical left party SYRIZA into the limelight as the second strongest party in the country. Given the adamant refusal by SYRIZA leadership to accept bailout reforms, the party’s new brokering position means the crisis will continue.

Bitter austerity measures await the formation of a coalition government, since no party received a majority of the seats in parliament from the vote. The coalition is supported by both the New Democracy and socialist PASOK parties, which have taken turns ruling Greece for nearly four decades.

But the surprise showing of SYRIZA has thrown the possibility of an accord into disarray.

At best, this means a further delay and likely a new election.

On the other hand, Greece has little time left. Any further delay in forming a government, with not guarantee that a very angry population will vote differently the next time around, puts the next tranche of the European Union bailout package in jeopardy.

It is now more likely that Greece will leave (or be pushed out of) the Eurozone, casting a greater uncertainty on both the currency and the southern tier of countries still in the zone.

…What Then?

Spain is the current focus of concern, but Italy is also exhibiting renewed weakness.

Unlike Greece, Spain and Italy have debt problems that dwarf the ability of any Brussels-led support package. These economies are simply too large to be “rescued” from the outside.

The concerns over contagion, therefore, may actually expedite a Greek departure earlier than most thought possible.

…Including me.

It is true that any members leaving the Eurozone will have a negative effect upon currency strength and economic prospects. It is also unclear how the Greek departure will aid in shoring up either Spain or Italy. The problems in each of these economies are endemic; they are not primarily a result of “spillovers” from the situation in Greece.

All of which means, to borrow a phrase from former U.S. Secretary of Defense Donald Rumsfeld, there are a series of “known unknowns” now facing the E.U. The credit and banking problems are essentially the “known” part of this equation. The extent of the fallout on the euro as a whole is the massive “unknown” flowing through the calculations.

This is accentuated by recent developments in the two major economies using the euro -Germany and France. No rescue package for any E.U. member is possible without the leadership of these two dominant European economies. To date, Paris has emphasized protecting its suspect banking sector, while Berlin has a strong political undercurrent demanding additional protection of German production and trade.

However, the recent French elections, in which a socialist has been elected president, and indications surfacing that the German economy may be facing a slowdown, will put continued support of a “bailout for austerity” approach to Greece in question.

Thus far, both major nations have led the E.U.-Greek approach, strongly arguing that the preservation of the euro demands it. The dramatic political events unfolding in Athens are rapidly undermining that support.

And this has impacted on the price of oil.

The Oil Market: Like 2008?

The only way oil prices are coming down is by the advance of pressures outside (exogenous to, as the analysts say) the oil market itself.

This is what happened in 2008. The rise in crude and the corresponding spike in the cost of oil products like gasoline, diesel, and heating oil retreated only when the full weight of the subprime mortgage-induced credit freeze hit.

Overall demand dried up as the ensuing recession hit.

We are seeing a similar short-term pullback in prices as concerns over falling demand levels parallel the European confusion.

Yet this time there are three important differences.

First, the American economy is largely insulating itself from what happens on the continent (assuming the JP Morgans of the world can oversee their traders).

Second, oil demand continues in those parts of the world that actually determine the pricing level. As I have said a number of times before, these are not North America, Western Europe or the developed (OECD) countries. This is based on developing and accelerating new economies elsewhere.

There is also a third factor of some importance.

The 2008 collapse and resulting worldwide recession centred on dollar-denominated assets, the assets basic to the global network of trade, cross-border capital flows, and wealth.

Not so this time around.

The current situation tends to benefit the value of the dollar against the euro. With virtually all international oil trades in dollars, that does mean prices may stabilize for a time. But it also means the concentrated asset wealth in those oil transactions will increase.

And despite the events in Europe, the ultimate value of oil contracts will increase as well – especially in a market where the essential rise in demand is occurring in those regions of the world not directly impacted by the euro zone problems.

So, farewell Greece, good luck, Spain.

Once the dust settles, oil holdings will continue to exhibit significant value gains moving forward.

Dr. Kent Moors
Contributing Editor, Money Morning

Oil and the Death of Greece

Related posts:

Why Greece Can’t Afford to Stay in the EuroNext Target For Gold – Asian Demand for Physical Gold BullionGold Bull Market Not Over – Gold Futures Show “Disconcerting” Bearishness – Greece Faces June Deadline

View the original article here

Gold Bull Market Not Over – Gold Futures Show "Disconcerting" Bearishness – Greece Faces June Deadline

AppId is over the quota
AppId is over the quota

BULLION and Gold Futures prices dropped further again Monday morning, losing 1.3% to hit $1560 per ounce in London trade as commodities, world stock markets and the Euro currency all sank once more amid a failure in Athens to negotiate a coalition government.

The Greek state may be unable to pay salaries and pensions “from the beginning of June” according to stand-in prime minister Lukas Papadimos – warning party leaders in a letter leaked to the press today – because May’s tranche of the international bail-out was cut and tax revenues are falling.

Spanish police this morning evicted the last 200 “indignant” demonstrators from Madrid’s Puerta del Sol after another weekend of protests.

The price of Spanish government debt fell further on Monday, pushing 10-year yields above 6.2% ahead of an auction of new bonds later today.

Silver Bullion also fell hard, touching $28.44 per ounce and losing 8.9% from the start of this month.

Gold has so far dropped 6.5%.

“Gold has moved lower and is trading at levels not seen since December 2011, but we do not think the gold bull market is over,” says a note from Morgan Stanley analysts.

Looking at the charts, “Technical damage has certainly been done [but] we do not think it is irreversible,” they add, pointing to a sharp rise in speculative “short selling” by Gold Futures traders now expecting prices to fall further.

“The last time positioning was at these levels, prices embarked on a move higher, rallying to near $1,800 per ounce. We are buyers of gold here.”

Latest data from US regulators show large speculative players in Gold Futures and options cutting the number of bullish contracts they hold and raising their bearish bets sharply in the week ending last Tuesday.

That led to a drop of one-fifth in their “net long” position, down to the equivalent of 376 tonnes – the lowest level since Dec. 2008, and down by almost 60% from last August’s all-time record.

“Net speculative length [in Gold Futures ] appears decidedly weak compared to historical norms,” says Marc Ground at Standard Bank, “signalling a continued lack of confidence.”

Ground calls the rise in speculative traders betting on lower Gold Futures prices “disconcerting”, because “while investors have over the past few weeks appeared cautious of running too short on gold, this fear seems to have evaporated.”

Over in the currency markets – where the Euro fell to new 4-month lows vs. the Dollar at $1.2860 – “We continue to target $1.20 for Euro/Dollar,” says Ground’s colleague, currency strategist Steve Barrow.

“Whether this takes time, or comes in an instant, could depend on the outcome of Greece’s political impasse.”

Energy, metal and food prices all sank once more Monday morning as European stock markets lost more than 2% of their value, with Madrid losing 3% and Athens dropping 5.3%.

At the weekend Swedish central banker Per Jansson said that “of course the question [of a Greek exit] is discussed.” Irish central bank chief, and fellow European Central Bank policymaker Patrick Honohan told journalists that “technically, it can be managed.”

“We wish it to be possible for Greece to remain in the euro but Greece must live up to its commitments,” a spokeswoman for the European Commission said Monday morning.

If Greece breaches the agreed terms of its bail-out deal then staying in the Euro would be “an impossible equation and I think in that sense it is an irresponsible statement,” said Finland’s Europe minister Alexander Stubb today about the ongoing calls for an end to cuts in Athens.

German chancellor Angela Merkel meantime suffered a drubbing in a state election on Sunday, with her Christian Democratic Union drawing only 26% of the vote in North Rhine-Westphalia, giving the coalition of Social Democrats and Greens a winning majority of 50%.

Price inflation in Germany’s wholesale markets rose sharply in April, new data showed today, while industrial production across the 17-nation Eurozone fell much harder than forecast, down 2.2% year on year.

On the FX market, the Euro today hit fresh 42-month lows vs. the British Pound, but fell less quickly than Gold Futures or bullion, with the gold price for Eurozone buyers slipping beneath €39,100 per kilo for the first time this year.

For Indian buyers, “The weakness of the Rupee is countering the fall in the Dollar Gold Price,” says Jeffrey Rhodes, global head of precious metals at INTL Commodities DMCC in Dubai, speaking to the Wall Street Journal.

“That’s likely to act as a drag on demand in the world’s biggest market.”

“There is hardly any work these days,” complains a Jaipur goldsmith to The Times of India. “First the 21-day long jewelers’ strike and now the increasing Gold Prices have rendered us jobless.

“It is getting tough for us to survive.”

India’s imports of Gold Bullion fell by two-thirds last month compared with April 2011.

“We will be happy if [the total] crosses 800 tonnes this year” – a fall of nearly 20% from 2011 – says Dubai broker Richcomm Global Services.

Get the safest gold at the lowest prices – paying just $4 per month for secure, proven storage of your physical property in Zurich, Switzerland – using BullionVault today…

BullionVault, 14 May ’12
The London Gold Market Report is the daily market review from BullionVault, the world’s largest physical gold and silver market for private investors. A full member of professional trade body the London Bullion Market Association, BullionVault publishes the LGMR every day that the market is open, bringing you insider comment and analysis from the very center of the world’s $240 billion-a-day physical gold trade, and putting the latest gold price action into its wider financial and economic context
Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it

Related posts:

Why Greece Can’t Afford to Stay in the EuroGold Price Higher, Eurozone Stocks Slump Again – 17th May 2012Next Target For Gold – Asian Demand for Physical Gold BullionOil And The Death Of Greece

View the original article here

Gold bull market not over-Gold Gift Show "embarrassed" at the end of June to face Greece Bearishness-

Add the price of gold bullion and sunk again Monday morning, commodities futures fell, world stock markets and the euro currency and $ 1,560 per ounce in London trade to hit 1.3% had to lose one more time coalition Government amid negotiations failed in Athens.

Greece country “of June”, you may be able to pay salaries and pensions to stand in a letter warning the Prime Lucas Papadimos-party leader, according to the leaked to the press today-the international bail-out to cut tax revenues of the tranche of may because it is falling.

Spain police this morning after another weekend of protest in Madrid’s Puerta del Sol, the last 200 “indignant” and remove the protesters.

Spain government debt fell more on Monday, the price of the new bond auctions later today, more than 10-year yield of 6.2% ahead.

Silver bullion also fell hard, starting this month, $ 28.44 per ounce and 8.9% loss.

Gold fell 6.5% so far.

“A low not seen since December 2011 gold and silver has moved from the level I don’t think trading but we ended the Gold bull market,” Morgan Stanley analyst says the memo.

The more they expect the price of gold futures traders now is speculation by the sharp increase of “short selling” additional “technical points to [but] surely the damage done when we think it’s reversible,” looking at the chart.

“The last time I was here was to embark on such a move higher, prices are near 1800 dollars per ounce, Kyu. We are buyers of gold here. “

The latest data from United States regulators at futures and options they are able to take off last Tuesday optimize your agreement ends week sharply bearish bets and raises a large speculative players.

That’s up to 1-5 in the tone-388, their “net long” drop the lowest level since December 2008, and led to an unprecedented record in August, almost 60% down by.

Standard Bank, “trust signals” a lack of continuous ground says “net speculative length, mark [gold futures] appears clearly weaker compared to historical norms,”

“Investors appeared over the last couple of weeks, too cautious in the short run to gold, while it seems that this fear evaporated.” because it’s “embarrassing” lower gold futures increased in price are betting on the ground are called speculative trading

Later, in the currency markets, where the euro vs. dollar $ 1.2860–a new four-month low fell “we keep the target for $ 1.20 euro/dollar,” said Steve BARROW, a currency strategist with fellow land.

“It takes time for this, or come to depend on the number of seconds, Greece’s political impasse.”

Energy, metals, food prices in the European stock markets falling 5.3%, 3% of their value, along with Madrid, Athens, losing more than 2 percent Monday morning, the loss of one more all sank.

Weekend in Sweden, as well as the “per Jansson said the Central Bank [Greek outlet] are described in the question of the” Central Bank of Ireland, and the European Central Bank policymaker’s senior fellow Patrick Honohan told reporters “you can manage technically.”

“We will be on the euro in Greece but Greece is its promise of hope should live,” a European Commission spokesman said Monday morning.

Agree with the terms and conditions violates the bail-out of Greece deal if you are staying in the euro will be “an impossible expression and irresponsible statement, I think that in that sense,” said Finland’s Europe Minister Alexander Stubb today in Athens in progress calls to end to the cut.

Germany Chancellor Angela Merkel’s Christian Democratic Union, which in the meantime Sunday, her Social Democrats and Greens defeated the Allied forces of the North, giving the majority 50% of the vote in the primary election in a drawing only 26% of Mont pain.

Germany’s wholesale market in April, new data show inflation greatly today, 17-country eurozone fell 2.2% year over year, industrial production was much harder than expected, while the down.

FX market in the euro today was the slowest month for United Kingdom pound gold gift or fresh chunks of 42, but, for the first time this year in the eurozone, slipping below per kilo € 39100 buyers for gold prices fell less quickly.

India buyers for “Lupe’s weakness against the dollar, the price in gold,” Wall Street Journal, said Jeffrey Rose, precious metals, commodities DMCC-Dubai International’s global head says.

“He is one of the world’s largest market is likely to act as a drag on demand.”

“These days, almost all of the action is” time India Jaipur Goldsmith complaints. “The first 21-day long strike and now increasing gold prices rendering our jewelers are unemployed.

“It’s hard for us to survive.”

India imported gold has fallen by two thirds in the last month compared with April of 2011.

“We [all] will be happy to cross 800 tonnes this year” — about 20% of that from 2011-Dubai says global service broker Richcomm.

Lowest price-Zürich, Switzerland from your physical wealth is a safe, proven and pay just $ 4 per month for storage-get a secure gold by using BullionVault today

BullionVault, 14 may ‘ 12
London gold market report is a daily market review at BullionVault, the world’s largest physical gold and silver market private investor specializing in the trade body for the London bullion market Association: Member, published by BullionVault, LGMR market is open every day in the world of insider notes, and when bringing a $ 240 billion per day wide physical gold trading and the latest financial and economic context at the very center of putting the price action analysis
Note: all articles published here are your thoughts, it may not lead. You can decide the best place for your money, and what decisions will put your money at risk. Information or data that they contain, you must verify and overtake the event-there are others-decided to act on it.

Related posts:

Oil and GreeceGold news and analysis-the worst crisis the death of demand-price SteadiesDerivative manipulation required to buy gold and crude oil hits MarketGold analysis-bearish gold opens up to $ 1522-market speculation infection

View the original article here