Today legendary trader and investor Jim Sinclair told King World News the “credit event” in Greece totals much more than the $3.5 billion which is being reported by the mainstream media. Sinclair also said if the CDS’s are in fact made to pay, this could require the rescuing of eight international banks, through Fed swaps that could total in the trillions of dollars. Here is what Sinclair had to say about what is happening : “The release made by the International Swaps & Derivatives Association (ISDA), for the average Mensa member or genius, is totally incomprehensible. The press is using the word default, but the ISDA is using the word ‘auction.’ Clearly, the amount of CDS’s outstanding is infinitely more than the $3.5 billion that is being quoted.”
Jim Sinclair continues:
“The BIS confirms, in the area of CDS’s the total outstanding is approximately $37 trillion. So I believe the reports being given about this just being a small and modest market event is false. As a market observer and having more than 50 years in the business, the real number is at least 50% or more of the existing $37 trillion that is related to Greece.
MORE
10 March 2012
Eveillard - All Hell May Break Loose & Gold is Way Undervalued
Today legendary value investor, Jean-Marie Eveillard told King World News all hell could break loose and gold is nowhere near fair value. Eveillard, who oversees $50 billion at First Eagle Funds, had this to say about the situation, “I think they bought some time, not so much because of what happened with the Greek bonds but because the head of the ECB decided to lend the commercial banks whatever they needed. This happened in December and again in February and it totaled over one trillion euros.”
Jean Marie Eveillard continues:
“As I said, this has bought the Europeans some time, maybe a few months. The Greek situation is really beyond repair, but everyone is afraid of contagion so they just keep kicking the can down the road.
MORE
Jean Marie Eveillard continues:
“As I said, this has bought the Europeans some time, maybe a few months. The Greek situation is really beyond repair, but everyone is afraid of contagion so they just keep kicking the can down the road.
MORE
Caesar Bryan - Physical Buying in London Reverses Gold Market
Today 25 year veteran Gabelli Gold Fund manager, Caesar Bryan, told King World News the Southern periphery countries of Europe will experience a turbulent period that will be worse than the Great Depression. Gabelli & Company has over $31 billion under management and Caesar Bryan has managed the gold fund since its inception in 1994. Caesar also said physical buying in London helped turn the gold market around. Here is what Bryan had to say about the situation: “Well, I think the gold market was looking fine from yesterday. Then we had reasonable payroll numbers here in the US and that took the gold price down. But then we had a sudden reversal which is quite interesting. My understanding is the PM fix in London saw some physical buying and was fixed a few dollars higher than gold was trading on a spot basis.”
Caesar Bryan continues:
“Then there was some good follow through (to the upside). On a longer-run basis, we are sitting on the moving averages and gold is fine. We are in a bull market. We’ve suffered a number of nasty corrections since 2001. I believe we have had about seven corrections of over 20%. One of 30%, at the time of the Lehman crisis.
MORE
Caesar Bryan continues:
“Then there was some good follow through (to the upside). On a longer-run basis, we are sitting on the moving averages and gold is fine. We are in a bull market. We’ve suffered a number of nasty corrections since 2001. I believe we have had about seven corrections of over 20%. One of 30%, at the time of the Lehman crisis.
MORE
You Can’t Beat Silver as an Investment
Friday, 09 March 2012 00:00
Silver Antibacterial Bandages
Silver has germicidal effects that kill many lower organisms. The colloidal or ionic silver is a silver solution that is an antibacterial product now sold on special band aids. For years, burn wards have soaked bandages in low concentrations of silver solution in order to prevent infection. Silver has been used to preserve and help save the skin of burn victims. Silver also promotes the production of cells, helping to heal wounds faster.
Washing Machines
Not what you are thinking, so please don’t start taking apart your old washing machine looking for silver. The silver we are talking about is in the new Samsung washing machines that inject silver ions into the rinse cycle in order to kill 99.9% of bacteria that causes odors. By using about 1 ounce of silver, these Samsung washing machines can sanitize over 3,000 loads, this means no hot water or bleach necessary, just a dash of silver.
Food Processing
Silver based food packaging liners that preserve food quality made by Agion. Using an active ingredient of silver zeolite, which is a delivery system that dispenses silver metal ions in a controlled release over time, the silver is able to disrupt microbe growth by interrupting ribonucleic acid that is needed for an organism to reproduce.
Water Storage
According to David Eaton, secretary of The Institute of Water Ionization Technologies in the UK, silver based water purification systems offer the most reliable and cost effective alternative to chlorine. In fact, both Russian scientists and NASA concluded that the best method for long term water purification was using silver as the purifying agent. Silver kills bacteria in the water and is able to help maintain the purity over a long period of time.
Have you ever wanted to store water? Put a few drips of colloidal silver and kill over 650 known bacteria that can grow in your stored water. On cruise ships and airplanes, they often make sure there is some silver in their water tanks for this very reason.
Silver was even used in the 1980’s in the United Kingdom to help stop the spread of Legionnaire’s disease, a disease named after Legionella pneumophilia, an aquatic organism.
Oxygen Machines
Since silver will not ignite, if you want to avoid a spark turning into an explosion, then you need to use silver. When it comes to hospitals handling pure oxygen at high pressure in liquid form, in order to avoid it becoming dangerous, the equipment used to transport the oxygen is made at least in part with silver.
MORE
We can make a great argument that platinum is a great investment with soaring industrial demand. We can argue that gold is a great investment with soaring monetary demand. However, silver is the only metal in the world where both arguments can be made, silver is an industrial metal, jewelery, and a monetary safe haven just like gold.
What most people don’t know is that right now there is less above ground available silver than there is gold, that’s right, there is less silver than gold. This trend of consuming silver and saving in gold isn’t going to stop, the above ground supply for gold will continue to grow, while the above ground supply for silver will continue to move us towards a physical silver shortage.
Silver is without at doubt the most important metal in the world, yet most people when they think about the uses for silver, think of jewelry, silverware, and photography. However, this barely scratches the surface for the uses for silver, in fact, we could write an entire book on just the different applications silver is involved in.
Below are some of the uses for silver that will help continue to grow demand for physical silver. FutureMoneyTrends.com wants everyone to understand that silver is all around you, whether you are talking on the phone, driving in your car, or looking for something to eat in your refrigerator, silver is in more products than you can imagine.What most people don’t know is that right now there is less above ground available silver than there is gold, that’s right, there is less silver than gold. This trend of consuming silver and saving in gold isn’t going to stop, the above ground supply for gold will continue to grow, while the above ground supply for silver will continue to move us towards a physical silver shortage.
Silver is without at doubt the most important metal in the world, yet most people when they think about the uses for silver, think of jewelry, silverware, and photography. However, this barely scratches the surface for the uses for silver, in fact, we could write an entire book on just the different applications silver is involved in.
Silver Antibacterial Bandages
Silver has germicidal effects that kill many lower organisms. The colloidal or ionic silver is a silver solution that is an antibacterial product now sold on special band aids. For years, burn wards have soaked bandages in low concentrations of silver solution in order to prevent infection. Silver has been used to preserve and help save the skin of burn victims. Silver also promotes the production of cells, helping to heal wounds faster.
Washing Machines
Not what you are thinking, so please don’t start taking apart your old washing machine looking for silver. The silver we are talking about is in the new Samsung washing machines that inject silver ions into the rinse cycle in order to kill 99.9% of bacteria that causes odors. By using about 1 ounce of silver, these Samsung washing machines can sanitize over 3,000 loads, this means no hot water or bleach necessary, just a dash of silver.
Food Processing
Silver based food packaging liners that preserve food quality made by Agion. Using an active ingredient of silver zeolite, which is a delivery system that dispenses silver metal ions in a controlled release over time, the silver is able to disrupt microbe growth by interrupting ribonucleic acid that is needed for an organism to reproduce.
Water Storage
According to David Eaton, secretary of The Institute of Water Ionization Technologies in the UK, silver based water purification systems offer the most reliable and cost effective alternative to chlorine. In fact, both Russian scientists and NASA concluded that the best method for long term water purification was using silver as the purifying agent. Silver kills bacteria in the water and is able to help maintain the purity over a long period of time.
Have you ever wanted to store water? Put a few drips of colloidal silver and kill over 650 known bacteria that can grow in your stored water. On cruise ships and airplanes, they often make sure there is some silver in their water tanks for this very reason.
Silver was even used in the 1980’s in the United Kingdom to help stop the spread of Legionnaire’s disease, a disease named after Legionella pneumophilia, an aquatic organism.
Oxygen Machines
Since silver will not ignite, if you want to avoid a spark turning into an explosion, then you need to use silver. When it comes to hospitals handling pure oxygen at high pressure in liquid form, in order to avoid it becoming dangerous, the equipment used to transport the oxygen is made at least in part with silver.
MORE
Greece Has Defaulted: Here Is Where We Stand
Submitted by Tyler Durden on 03/09/2012 19:33 -0500
After reading this, everyone should have a fairly good grasp of what happened not only today, but ever since the great (and quite endless) European financial crisis took center stage, and what to look forward to next...
From Chindit13
In a nutshell---okay, a coconut shell---this seems to be where we are:
1) Greece was able to write off 100 billion euros worth of debt in exchange for a 130 billion rescue package of new debt, of which Greece itself will receive 19%, or about 25 billion, so that it can continue to operate as an ongoing concern. Somehow Greece is in a better position than before, with more debt and less sovereignty and still---by virtue of sharing a common currency---trying to compete toe-to-toe with the likes of Germany and the Netherlands, kind of like being the Yemeni National Basketball team in an Olympic bracket that includes the US, Spain and Germany. At least a "within the euro" default prevented bank runs in Portugal, Spain, Italy et al.
2) As a result of the bond haircuts, Greece has many pension plans that can no longer even pretend to be viable, at least according to the original contracted scheme, but pensionholders still working can take heart in the fact that their current wages will be cut, too.
3) CDS buyers will have to sweat bullets, jump through hoops, and be forced to endure every cliche known to man, but they might end up getting something for all their trouble, provided their counterparty is solvent and that counterparty itself is not heavily exposed to an insolvent party or a NTBTF institution, otherwise known as a Lehman Brothers. Expect the legal profession to be the prime beneficiary of this "event", as any new CDS contract will be at least a hundred pages of boilerplate longer in the future.
4) Good luck to any less than AAA rated sovereign who wants to issue debt from now on out. That contracts can now be unilaterally abrogated, as Greece' bonds were with the retro-CACs, bodes ill for attractive pricing from here on out. Peripherals in the EU will suffer most, as they face the added indignity of being subordinated to the ECB at any point the ECB chooses to exercise its divine right of seniority. The thing that used to be called the risk free rate no longer exists. Bill Sharpe take note.
MORE
After reading this, everyone should have a fairly good grasp of what happened not only today, but ever since the great (and quite endless) European financial crisis took center stage, and what to look forward to next...
From Chindit13
In a nutshell---okay, a coconut shell---this seems to be where we are:
1) Greece was able to write off 100 billion euros worth of debt in exchange for a 130 billion rescue package of new debt, of which Greece itself will receive 19%, or about 25 billion, so that it can continue to operate as an ongoing concern. Somehow Greece is in a better position than before, with more debt and less sovereignty and still---by virtue of sharing a common currency---trying to compete toe-to-toe with the likes of Germany and the Netherlands, kind of like being the Yemeni National Basketball team in an Olympic bracket that includes the US, Spain and Germany. At least a "within the euro" default prevented bank runs in Portugal, Spain, Italy et al.
2) As a result of the bond haircuts, Greece has many pension plans that can no longer even pretend to be viable, at least according to the original contracted scheme, but pensionholders still working can take heart in the fact that their current wages will be cut, too.
3) CDS buyers will have to sweat bullets, jump through hoops, and be forced to endure every cliche known to man, but they might end up getting something for all their trouble, provided their counterparty is solvent and that counterparty itself is not heavily exposed to an insolvent party or a NTBTF institution, otherwise known as a Lehman Brothers. Expect the legal profession to be the prime beneficiary of this "event", as any new CDS contract will be at least a hundred pages of boilerplate longer in the future.
4) Good luck to any less than AAA rated sovereign who wants to issue debt from now on out. That contracts can now be unilaterally abrogated, as Greece' bonds were with the retro-CACs, bodes ill for attractive pricing from here on out. Peripherals in the EU will suffer most, as they face the added indignity of being subordinated to the ECB at any point the ECB chooses to exercise its divine right of seniority. The thing that used to be called the risk free rate no longer exists. Bill Sharpe take note.
MORE
Moody's: Greece has defaulted
Published: 10 March, 2012, 03:49
Edited: 10 March, 2012, 21:00
Moody's Investors Service considers Greece to have defaulted per its default definitions. The announcement comes despite Athens reaching a deal with private creditors for a bond exchange that will shave €107 billion from its €350 billion debt.
The agency pointed out that even though 85.8 per cent of the holders of Greek-law bonds had signed to the deal, the exercise of collective action clauses that Athens is applying to its bonds will force the remaining bondholders to participate.
Eventually, the overall cost to bondholders, based on the present net value of the debt, will be at least 70 per cent of the investment, Moody's explained.
"According to Moody's definitions, this exchange represents a 'distressed exchange,' and therefore a debt default," the US rating firm said. "This is because (i) the exchange amounts to a diminished financial obligation relative to the original obligation, and (ii) the exchange has the effect of allowing Greece to avoid payment default in the future."
Ahead of the debt deal, Moody's had already slashed Greece's credit grade to its lowest level, "C," and so there was no impact on the rating.
MORE
Edited: 10 March, 2012, 21:00
Moody's Investors Service considers Greece to have defaulted per its default definitions. The announcement comes despite Athens reaching a deal with private creditors for a bond exchange that will shave €107 billion from its €350 billion debt.
The agency pointed out that even though 85.8 per cent of the holders of Greek-law bonds had signed to the deal, the exercise of collective action clauses that Athens is applying to its bonds will force the remaining bondholders to participate.
Eventually, the overall cost to bondholders, based on the present net value of the debt, will be at least 70 per cent of the investment, Moody's explained.
"According to Moody's definitions, this exchange represents a 'distressed exchange,' and therefore a debt default," the US rating firm said. "This is because (i) the exchange amounts to a diminished financial obligation relative to the original obligation, and (ii) the exchange has the effect of allowing Greece to avoid payment default in the future."
Ahead of the debt deal, Moody's had already slashed Greece's credit grade to its lowest level, "C," and so there was no impact on the rating.
MORE
Subscribe to:
Posts (Atom)