EurAnalysis

With a forecast like this, I don't know why you even bother to show up... Wish it was like that here

http://www.theweathernetwork.com/weather/mtxx0005

http://www.zerohedge.com/news/spain-...ops+to+zero%29

Snippet:



Not much to add to Reuters summary of the overnight Spanish bill auction. The good news: the country that is not Uganda sold €3.08 billion compared to a range sought of €2-3 billion. The bad news: the price paid to sell this debt more than makes up for any optics that this was a good deal. "Spain's short-term borrowing costs nearly tripled at auction on Tuesday, underlining the country's precarious finances as it struggles against recession and juggles with a debt crisis among its newly downgraded banks. The yield paid on a 3-month bill was 2.362 percent, up from just 0.846 percent a month ago. For six-month paper, it leapt to 3.237 percent from 1.737 percent in May... Spain sold 3.08 billion euros of its short-term debt on Tuesday, slightly above its target amount, even as the Treasury paid the highest rates to sell the paper since November and met with falling demand from the country's struggling banks. The Treasury sold 1.6 billion euros of a 3-month bill, and 1.48 billion euros of a 6 month bill, which together was just above the 2-3 billion euro target set. The Treasury has overshot its sales target in recent auctions, showing it still is capable of selling its debt even if has to rely on domestic banks to do so as international investors avoid Spanish debt." Here's a hint to whoever is pretending to be in charge of Spanish finances: selling more debt than the "max" just to show you still have bond market access (i.e., debt bought by just downgraded Spanish banks) while paying ridiculous interest on this "optical success" is about the dumbest thing a broke country can do. But who are we to judge. We will leave that to the bond market. Below we show the yield on the Spanish 10 Year, which in two days has retraced the entire move tighter in the past week.
http://www.zerohedge.com/sites/defau...r%206.26_0.jpg
Elsewhere in Italy we get more good news:

1. ITALY APRIL SALES DECLINE 6.8% YOY, BIGGEST DROP SINCE AT LEAST JAN. 2001
2. ITALY SAID TO REVIEW DECREE TO ALLOW BANKS TO SELL BONDS TO GOV

That, and of course this:

Italy paid 4.712 percent to sell two-year paper on Tuesday, a new high since December, as investor doubts have grown about whether a European summit later this week will deliver a decisive answer to the bloc's debt crisis.

Pressured by rising interest payments on its 1.95 trillion euro debt and a deepening economic recession, speculation has grown that Italy is at risk for being forced to seek external assistance to continue finance its debt.

It sold a total of 3.9 billion euros in zero-coupon and inflation-linked bonds - near the top of its planned range - ahead of a six-month bill sale on Wednesday and a more challenging offer of five- and 10-year debt for up to 5.5 billion euros on Thursday.

The yield on zero-coupon bonds due in May 2014 rose sharply from the 4.04 percent level Rome paid only a month ago on the same paper. The sale was covered 1.65 times, roughly in line with May's slightly bigger auction.

Which brings us to another diagonal bond yield chart over the past three days: that of Italian bonds.

Brace For Turmoil In Global Markets As Spanish Domino Falls





On the heels of Moody’s downgrading 28 Spanish banks, today 40 year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News. Fitzwilson is founder of The Portola Group, one of the premier boutique firms in the United States. Here are Fitzwilson’s observations of the current crisis we face: “The monetary system is trapped. Despite various forms of quantitative easing and the forcible reduction of interest rates, the level of economic activity has begun to reverse course. The recent releases of economic indicators, in most areas of the world, have been revealing a global economy that is beginning to tank. It is clear that the levers exercised by the central banks since late-2008 are not as effective as they once were.”








Robert Fitzwilson continues:



“The extended Zero Interest Rate Policy (ZIRP) is wreaking havoc with retirees, savers, retirement funds, and the net interest margin of the banking institutions. Large corporations have a tremendous amount of cash, but small businesses struggle to find working capital and bank loans. Small businesses and entrepreneurs are the job creators.



Another problem is that volatility is high for risk assets. The velocity of money stagnates. The system is imploding and unless something is done soon, and on global scale, we will lapse into a downward economic spiral....



Continue reading the Robert Fitzwilson piece below...



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“We believe in sound money. However, there is no easy path to a return to sound money. For now we have to keep the economies and the economic infrastructure in place.



However, with ZIRP, there is no incentive to save. While Chairman Bernanke would like capital to flow into the equity markets, the increased volatility caused by ZIRP scares the average investor away. The incentive is to convert assets from cash and fixed income into real assets, but not the real estate that is also on the wish list of our Chairman and other central banks around the world.



I would also note that pension plans have been targeting 8-10% returns, in order to meet the actuarial needs for funding the obligations to the retirees. They cannot meet those goals with a ZIRP policy. They are left with the equity markets and alternative assets such as hedge funds and private equity.



The traditional equity markets are not generating the necessary returns, despite the Federal Reserve providing a tailwind. The alternative assets have been struggling in recent years, and they are certainly not the “sure bets” that plan sponsors have assumed.



Insurance companies face similar problems, particularly for life insurance. These companies have obligations on the books that were underwritten when interest rates, real estate capitalization rates and equity returns were much higher. As these obligations reach maturity, the potential exists for severe financial difficulties for the companies and the holders of these policies.



This is an enormous and global problem. Retirement funds, in the aggregate, are depleting their resources, not building them for the retirees. For public sector plans, increased taxes, particularly property taxes, are in the offing. Raising property taxes can only continue to harm real estate prices and drive higher-income citizens to other states or countries that do not choose to raise taxes.



The bottom line here is the Federal Reserve and other central banks, in developed nations, in their attempts to keep the system afloat, are destroying the very financial system they are attempting to save. The negative and unintended consequences of what the central planners are doing is leaving a trail of destruction that grows worse with each passing day.



If the Fed and other central banks continue with these artificially low interest rate policies, investors should brace themselves for unimaginable turmoil both in the markets, and in the financial system itself. In the meantime, investors need to protect themselves by owning a basket of hard assets and key sectors. For what it is worth, this is wildly bullish for gold and silver.”



2012 by King World News. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.



The interview with Ben Davies and Nigel Farage are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include James Turk, John Mauldin, Egon von Greyerz, Gerald Celente and John Embry by CLICKING HERE.



Eric King

KingWorldNews.com

To return to BLOG click here.


This is Mama Mia !!!
CurrencyMan




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http://www.zerohedge.com/news/turkey...ops+to+zero%29

Snippet:

From GoldCore
Turkey, Russia, Ukraine and Kazakhstan Further Diversify Into Gold
Today's AM fix was USD 1,583.25, EUR 1,267.41, and GBP 1,013.73 per ounce.

Yesterday’s AM fix was USD 1,569.00, EUR 1,256.41, and GBP 1,009.00 per ounce.

Silver is trading at $27.47/oz, €22.08/oz and £17.64/oz. Platinum is trading at $1,445.25/oz, palladium at $601.40/oz and rhodium at $1,190/oz.

Gold’s safe haven credentials were burnished again yesterday when despite falls in stock indices globally, gold rose $15.10 or 0.99% and closed at $1,586.30/oz. Gold traded sideways in Asia and continues in a narrow range in European trading holding above $1,580/oz.

http://dzswc0o8s13dx.cloudfront.net/...1_26-06-12.png
Gold is hovering above $1,580/oz and consolidating on yesterday’s gains on the realisation that the EU summit this week will not solve the area’s intractable debt crisis.

Incredibly, this will be the 20th time EU leaders have met. While gold has not surged in value as many expected, gold has performed well during the period having again preserved wealth.

July options expiry later this afternoon could lead to volatile trading and there has been a pattern in recent years of price rises soon after option expiration.

Nomura Securities cut its gold price target this year to $1,754/oz from $1,791/oz, but lifted its targets for 2014 & 2015. Nomura said that central-bank buying, continuing strong Chinese demand, persistently negative real interest rates, and a growing bunker mentality for those investors who see dark scenarios on the horizon, were all positive for gold.

“The further deterioration of the economic recovery, enhanced potential for quantitative easing and continued structural problems in the euro zone lead us to believe that gold prices will stay stronger into 2014 and 2015,”Nomura analysts said in a research brief Monday.

The physical market noted bargain hunting from consumers. Premiums for gold bars were little changed at between 50 and 80 cents to the spot London prices in Singapore.

Turkey raised its reported gold holdings by another 2% in the month of May. Turkey’s gold holding rose by 5.7 tonnes in May to total 245 tonnes, International Monetary Fund data showed, making it the latest in a string of countries to increase gold bullion reserves this year.

Russia expanded its gold reserves by 15.5 metric tons in May as Ukraine and Kazakhstan increased their holdings of the metal, International Monetary Fund data shows according to Bloomberg.

Russia’s bullion reserves climbed to 911.3 tons last month when gold averaged $1,587.68 an ounce, data on the IMF’s website showed. Ukraine’s climbed 2.1 tons to 32.7 tons and Kazakhstan boosted reserves by 1.8 tons to 100 tons, the data show.

Central banks are expanding reserves due to the Eurozone debt crisis and concerns about fiat currency debasement.

Central banks are on course to buy more bullion this year than the purchases of about 456 tons in 2011 as countries diversify their reserves.

Morning,

+ You have more time to bug people aroung. Btw, I am waiting for 1,285 - 1,3 Zone for reload so I may be bugging for quite some time.

T

Where the pre-summit hopium at? I don't want to sell the lows

Surely the script hasn't changed and US will pop north.

Is Soros telling the truth that this weekend is make or break or is he just pushing his agenda?

CMan, you are very kind to send me all this info, but I already have overflow from yesterday. I need to sort it all out. From things I have been asking for (commodities and treasuries), I have decided to start with impact of oil on inflation and world GDP and with treasuries. Gold has been sidelined for a while since I simply cant absorb such an amount of informations.

Thx for your posts, I will come back to them once I sort it out.

T

More to Malta than just weather

I know, missed my entry by 5.5 pips last night and don't really want to sell here either.

I'm short @ 1.25009. 1st target 1.2440.

I've booked marked the video. I'll watch later, it's 22 minutes long!

Thanks!

Orderboard .. (updated)

Written by Pete Jackson
June 26, 2012 at 11:19 GMT

EUR/USD: Offers 1.2540/50, buy stops through 1.2555 ahead of further offers 1.2580/90, Bids (ACB’s/real money) 1.2470/80, sell stops through 1.2470 and more stops through 1.2440

GBP/USD: Bids 1.5540/50, sell stops through 1.5535, offers 1.5640/50

EUR/GBP: Tech support 0.7970/75, and 0.7950/55. Res 0.8020/25 and 0.8035/40

USD/JPY: Offers from 79.80 through to 80.10, more 80.30/50 (100 day MA 80.51), buy stops through 80.65 ahead of more offers 80.75/85. Bids from 79.30 layered down to 79.00 (rumoured semi-official), sell stops through 79.00 ahead of tech support 78.83 (200 day MA)

AUD/JPY: Bids 79.50/60, offers 80.30/50

EUR/JPY: Offers 99.90/100.10, Bids 98.90/00

EUR/CHF: Bids 1.2000/10(SNB), Offers 1.2025/50 buy stops through 1.2055

USD/CHF: Offers 0.9620/30, bids 0.9560/70, 0.9540/50

AUD/USD: Bids 0.9970/80, likely sell stops below, tech res 1.0065/70 (55 day MA @ 1.0069), buy stops above 1.0080

EUR/AUD: Bids 1.2400/10, suggested sell stops below, Offers 1.2480/90 and 1.2510/20

NZD/USD: Bids 0.7880/90, 0.7845/55, sell stops through tech supp 0.7800/05, offers 0.7925/30

I posted the wrong video. This is the one I meant to post

That one is even longer than the first! Booked marked.

the chart on the screen is that of euro why the line is not flat yet lol

Market talk of real money selling Euro long positions across the board.

The trade I really missed today was to short G/U at 1.5635 Everything I was looking at was screaming overbought! It has dropped 60 points since.

Same with E/U, a nice retrace to 1.2515 from the initial drop (61.8% retracement) and I thought, well maybe it will hit my entry at 1.2535 but it didn't. As it started to move down I thought, hmmm... Maybe I should grab some here.

Two missed trades so far. Maybe my mind is telling me something for today ... "DON'T TRADE! YOU DIDN'T SLEEP WELL AND IF YOU DO, I'LL MAKE SURE YOU LOSE ON YOUR TRADES"

Maybe I'll start to watch PT's movies ...

Don't beat yourself up bud. If you weren't comfortable entering the trade, best that you didn't. There will be other opportunities.

Siamese Twins

http://hosting.fyleio.com/17735/publ...ese_twins6.jpg



“The Eurocollapse is coming, the Eurocollapse is coming!” US markets finished lower Monday pricing in the expectation that the upcoming EU Summit will be an exercise in futility and may as well be run by rabble rousing soccer hoodlums.

George Soros may not have a solution, but he can certainly diagnosis the problem. Speaking to Bloomberg about the financial debacle that is Europe, the billionaire investor said,

“Basically there is an interrelated problem of the banking system and the excessive risk premium on sovereign debt - they are Siamese twins, tied together and you have to tackle both. It's recognized that you have to do that and there is no widespread agreement on what to do on the banking side. It's the beginning of a banking union and there is a disagreement on the fiscal side and unless that is resolved in the next 3 days then I am afraid that the summit could turn out to be a fiasco, and that could be fatal, because you are facing the possibility of Greece leaving the euro and perhaps the European Union and you need to strengthen the remaining euro structure to withstand that shock.”

Of course the “Siamese twins” phenomenon isn’t just a European problem. Here in the US, we have our own conjoined siblings – the banksters and the Fed – crippling the free market system through a no-fail guarantee.





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