By LANDON THOMAS Jr.
Published: January 10, 2012
LONDON — Could Greece’s next rescue payout go straight into the pockets of London hedge funds?
That, more or less, is the bet that a growing number of investors are making now as they load up on Greek government securities that mature in March. That is when Athens hopes to receive a potentially make-or-break bailout payment — a lifeline of as much as 30 billion euros ($38 billion) from the European Union and the International Monetary Fund.
11 January 2012
Economic crisis means the Mafia is now ‘Italy’s number one bank’: report
Reuters Jan 10, 2012 – 2:31 PM ET
By James Mackenzie
ROME — Organized crime has tightened its grip on the Italian economy during the economic crisis, making the Mafia the country’s biggest “bank” and squeezing the life out of thousands of small firms, according to a report on Tuesday.
Extortionate lending by criminal groups had become a “national emergency,” said the report by anti-crime group SOS Impresa.
By James Mackenzie
ROME — Organized crime has tightened its grip on the Italian economy during the economic crisis, making the Mafia the country’s biggest “bank” and squeezing the life out of thousands of small firms, according to a report on Tuesday.
Extortionate lending by criminal groups had become a “national emergency,” said the report by anti-crime group SOS Impresa.
Iran and the West Rediscover Oil as Weapon
By Alexander Jung and Bernhard Zand
Four decades after the 1973 oil shock, Iran and the West are once again embracing oil as a weapon. Tehran is threatening to block the Strait of Hormuz, while the industrialized countries are considering a boycott of Iranian oil. But both sides will suffer if such tactics are used.
Surprisingly enough, supertankers don't burn very well. Although the crude oil they transport is highly flammable, there is not enough oxygen in their tanks to create an explosive mixture.
On average, 14 of these giant tankers pass through the Strait of Hormuz, located between Iran and Oman, every day. If Iranian President Mahmoud Ahmadinejad actually ordered his forces to fire missiles at one of these tankers, quite a bit of firepower would be needed to set off a Hollywood-style inferno.
But the verbal attacks from Tehran are more than sufficient to set the global markets ablaze.
Last week, prices climbed significantly above the $100-a-barrel mark once again, despite all gloomy economic forecasts. Gasoline prices already reached an all-time high in Germany in 2011. And now the dispute over who controls the Persian Gulf, which has been triggered by Iran's nuclear policies, is a sign that further escalation is on the horizon.
Four decades after the 1973 oil shock, Iran and the West are once again embracing oil as a weapon. Tehran is threatening to block the Strait of Hormuz, while the industrialized countries are considering a boycott of Iranian oil. But both sides will suffer if such tactics are used.
Surprisingly enough, supertankers don't burn very well. Although the crude oil they transport is highly flammable, there is not enough oxygen in their tanks to create an explosive mixture.
On average, 14 of these giant tankers pass through the Strait of Hormuz, located between Iran and Oman, every day. If Iranian President Mahmoud Ahmadinejad actually ordered his forces to fire missiles at one of these tankers, quite a bit of firepower would be needed to set off a Hollywood-style inferno.
But the verbal attacks from Tehran are more than sufficient to set the global markets ablaze.
Last week, prices climbed significantly above the $100-a-barrel mark once again, despite all gloomy economic forecasts. Gasoline prices already reached an all-time high in Germany in 2011. And now the dispute over who controls the Persian Gulf, which has been triggered by Iran's nuclear policies, is a sign that further escalation is on the horizon.
The war dance is in full swing
By Victor Kotsev
If the most recent wave of escalations in the Middle East is a bluff, it is a very convincing one. Russian analysts speculate that a military intervention against either Syria or Iran (or both) could start by the end of the month; the latter is still hard to imagine, but the time frame seems to correspond to the nature of the developments and the rate at which they are being announced.
Barring a full-scale war in the Middle East in the next few weeks, we could think of what is happening on both sides as a modern version of a war dance, a dress rehearsal for a showdown and a spectacle for domestic consumption, for the enemy and for the international community alike.
If the most recent wave of escalations in the Middle East is a bluff, it is a very convincing one. Russian analysts speculate that a military intervention against either Syria or Iran (or both) could start by the end of the month; the latter is still hard to imagine, but the time frame seems to correspond to the nature of the developments and the rate at which they are being announced.
Barring a full-scale war in the Middle East in the next few weeks, we could think of what is happening on both sides as a modern version of a war dance, a dress rehearsal for a showdown and a spectacle for domestic consumption, for the enemy and for the international community alike.
10 January 2012
Iran sanctions bite
By Robert M Cutler
MONTREAL - The financial sanctions against Iran signed into law by United States President Barack Obama 10 days ago are having deeper financial effects than previous measures and highlight the regime's domestic political weakness.
Senior US officials will seek to implement the sanctions without damaging the global economy. A speculative rise in the price of oil could not only damage the tepid global economic recovery but also benefit Teheran's revenues in the short term.
The sanctions package in effect gives non-US firms the choice between doing business with the Iranian or with the American financial sector. If its provisions were to be implemented fully, any foreign financial institution (including even foreign central banks)
that transacted or facilitated purchases of Iranian oil would also be at risk of penalty.
MONTREAL - The financial sanctions against Iran signed into law by United States President Barack Obama 10 days ago are having deeper financial effects than previous measures and highlight the regime's domestic political weakness.
Senior US officials will seek to implement the sanctions without damaging the global economy. A speculative rise in the price of oil could not only damage the tepid global economic recovery but also benefit Teheran's revenues in the short term.
The sanctions package in effect gives non-US firms the choice between doing business with the Iranian or with the American financial sector. If its provisions were to be implemented fully, any foreign financial institution (including even foreign central banks)
that transacted or facilitated purchases of Iranian oil would also be at risk of penalty.
SilverDoctors: SF Fed Head Williams: Fed May Need to Buy More Bon...
SilverDoctors: SF Fed Head Williams: Fed May Need to Buy More Bon...: Because China, Japan, and Europe sure ain't buyin em! QE will continue To INFINITY....AND BEYOND!!! The Federal Reserve Bank of San Franc...
CME to raise stake in Dubai Mercantile Exchange
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Tue January 10, 2012 12:09 pm
UAE. CME Group Inc. (CME), the world’s largest futures exchange owner, is set to increase its holding in the Dubai Mercantile Exchange, according to Ahmad Sharaf, Chairman of the Dubai-based oil bourse.
The DME plans to raise money by offering more shares to existing investors this year, Sharaf said while attending a conference in Abu Dhabi today. The current roster of shareholders, which includes CME, a Dubai investment fund and the state of Oman, will remain the same, with only the size of their stakes changing, he said.
“The CME wants to expand its presence in the DME,” Sharaf said. He declined to give details on the timing or the size of the capital increase.
CME offers clearing services for trades done on the DME and supports swaps and options contracts that are based on the Dubai exchange’s main Oman oil futures contract.
Threat to Hormuz shipping seen receding
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Tue January 10, 2012 12:22 pm
INTERNATIONAL. Iran is unlikely to shut down shipping through the Strait of Hormuz in response to Western sanctions targeting its oil exports, President Barack Obama’s former adviser on Iran said.
Oil prices fell yesterday as concern eased that Iran would attempt to impede shipping through the Strait, which accounts for about a fifth of the oil traded globally. The decline occurred even as tensions increased, with Iran announcing it has taken another step in its nuclear program and that it had sentenced to death a former U.S. soldier of Iranian descent accused of spying.
“Do I really think that they’re going to go ahead and try to shut down the Straits of Hormuz?” Dennis Ross, who served two years on the National Security Council as Obama’s special assistant on Iran, said yesterday in an interview at Bloomberg’s office in Washington. “I do not. They will be the ones who suffer the most from that.”
An Iranian newspaper January 8 cited a senior commander of the Revolutionary Guard Corps, Ali Ashraf Nouri, as saying Iran’s leadership has decided to prevent shipping through the Strait if Iran’s “enemies block the export of our oil,” according to the Associated Press.
Iran plans one-kiloton underground nuclear test in 2012
DEBKAfile Special Report January 10, 2012, 11:19 AM (GMT+02:00)
According to debkafile's Iranian sources, Tehran is preparing an underground test of a one-kiloton nuclear device during 2012, much like the test carried out by North Korea in 2006. Underground facilities are under construction in great secrecy behind the noise and fury raised by the start of advanced uranium enrichment at Iran's fortified, subterranean Fordo site near Qom.
All the sanctions imposed so far for halting Iran's progress toward a nuclear weapon have had the reverse effect, stimulating rather than cooling its eagerness to acquire a bomb.
Yet, according to a scenario prepared by the Institute for National Security Studies (INSS) at Tel Aviv University for the day after an Iranian nuclear weapons test, Israel was resigned to a nuclear Iran and the US would offer Israel a defense pact while urging Israel not to retaliate.
As quoted by the London Times Monday, Jan. 1, INSS experts, headed by Gen. (ret.) Giora Eiland, a former head of Israel's National Security Council, deduced from a simulation study they staged last week that. Their conclusion is that neither the US nor Israel will use force to stop Iran's first nuclear test which they predicted would take place in January 2013.
According to debkafile's Iranian sources, Tehran is preparing an underground test of a one-kiloton nuclear device during 2012, much like the test carried out by North Korea in 2006. Underground facilities are under construction in great secrecy behind the noise and fury raised by the start of advanced uranium enrichment at Iran's fortified, subterranean Fordo site near Qom.
All the sanctions imposed so far for halting Iran's progress toward a nuclear weapon have had the reverse effect, stimulating rather than cooling its eagerness to acquire a bomb.
Yet, according to a scenario prepared by the Institute for National Security Studies (INSS) at Tel Aviv University for the day after an Iranian nuclear weapons test, Israel was resigned to a nuclear Iran and the US would offer Israel a defense pact while urging Israel not to retaliate.
As quoted by the London Times Monday, Jan. 1, INSS experts, headed by Gen. (ret.) Giora Eiland, a former head of Israel's National Security Council, deduced from a simulation study they staged last week that. Their conclusion is that neither the US nor Israel will use force to stop Iran's first nuclear test which they predicted would take place in January 2013.
Euro-Gold makes impulsive move higher, Silver breaks US$30 per ounce
Source: BullionVault.com , Author: Adrian Ash
Posted: Tue January 10, 2012 3:48 pm
INTERNATIONAL. The wholesale London spot gold price touched a 3-week high against the US Dollar in London on Tuesday morning, trading just shy of US$1,640 an ounce as world stock markets and industrial commodities also rose.
Silver bullion prices jumped above US$30 per ounce, rising more than 4.5% from last week's close, as German government Bunds eased back but other Eurozone bond prices ticked higher, edging interest rates lower.
Ahead of Thursday's meeting of the European Central Bank – widely expected to cut interest rates across the 330 million-citizen currency zone below 1.00% – the Euro currency edged up to its highest level since Friday lunchtime at US$1.28, some 1¢ above Sunday night's 16-month low vs. the Dollar.
"Precious metals are benefiting from a broad-based buying across asset classes," says Marc Ground at Standard Bank.
Gold Confiscation, a Reality? Part 2
By: Julian D. W. Phillips | Tue, Jan 10, 2012
Currency Debasement and Price Stability Risks
Despite the small moves in exchange rates between the U.S. dollar and the euro, confidence and trust has been debased. Looking forward to 2012, we see that deflation is becoming a rising danger. After the decay in 2011 that has hammered confidence in the euro, the need to issue more and more 'new' money is growing. The Eurozone is moving into recession (if it is not already in one). The Eurozone is more than likely to lose one or more of its weaker members -this will be good for the euro itself though--so liquidity shortages may force more money supply growth already exceptionally high in many countries.
Despite the 40-year long campaign to prevent gold from returning to any active role in the developed world's monetary system, gold remains the only universally-accepted currency whose supply cannot be increased by policy-makers. The equivalent of money issuance for gold is new mine production, which has been on a relatively flat trend for the past ten years.
Currency Debasement and Price Stability Risks
Despite the small moves in exchange rates between the U.S. dollar and the euro, confidence and trust has been debased. Looking forward to 2012, we see that deflation is becoming a rising danger. After the decay in 2011 that has hammered confidence in the euro, the need to issue more and more 'new' money is growing. The Eurozone is moving into recession (if it is not already in one). The Eurozone is more than likely to lose one or more of its weaker members -this will be good for the euro itself though--so liquidity shortages may force more money supply growth already exceptionally high in many countries.
Despite the 40-year long campaign to prevent gold from returning to any active role in the developed world's monetary system, gold remains the only universally-accepted currency whose supply cannot be increased by policy-makers. The equivalent of money issuance for gold is new mine production, which has been on a relatively flat trend for the past ten years.
Why Silver For A Monetary Collapse? Part 2
By: Hubert Moolman | Tue, Jan 10, 2012
In part 1, I stated:
"We are at the edge of a major economic crisis. Our monetary system is the underlying cause of this major crisis. The massive debt bubble created by our monetary system is about to burst. The demonetization of gold and silver, has over the years diverted value from these metals, to all paper assets (such as bonds) linked to the debt-based monetary system.
The process of the devaluation of gold and silver, started by the demonetization of gold and silver, is about to reverse at a greater speed than ever before. This is similar to what happened during the late 70s, when the gold and silver price increased significantly. However, what happened in the 70's was just a prelude to this coming rally. The 70's was the end of a cycle, this is likely the end of a major cycle; an end of an era of the debt-based monetary system (dishonest money)."
What this debt-based monetary system has done, is to create what I call a "mirror-effect", whereby, silver (and gold) is pushed down in value, to a similar extent as to which paper assets such as general stocks are pushed up in value. This mirror-effect clearly shows up on the long-term charts of gold, silver and the Dow.
Here (in part 2), I would like to show how this "mirror effect" of silver versus the assets linked to the debt-based monetary system (general stocks in this case), shows up on the long-term charts.
In part 1, I stated:
"We are at the edge of a major economic crisis. Our monetary system is the underlying cause of this major crisis. The massive debt bubble created by our monetary system is about to burst. The demonetization of gold and silver, has over the years diverted value from these metals, to all paper assets (such as bonds) linked to the debt-based monetary system.
The process of the devaluation of gold and silver, started by the demonetization of gold and silver, is about to reverse at a greater speed than ever before. This is similar to what happened during the late 70s, when the gold and silver price increased significantly. However, what happened in the 70's was just a prelude to this coming rally. The 70's was the end of a cycle, this is likely the end of a major cycle; an end of an era of the debt-based monetary system (dishonest money)."
What this debt-based monetary system has done, is to create what I call a "mirror-effect", whereby, silver (and gold) is pushed down in value, to a similar extent as to which paper assets such as general stocks are pushed up in value. This mirror-effect clearly shows up on the long-term charts of gold, silver and the Dow.
Here (in part 2), I would like to show how this "mirror effect" of silver versus the assets linked to the debt-based monetary system (general stocks in this case), shows up on the long-term charts.
Gold Will Continue as Most Favored Investment
By Esther Tanquintic-Misa: Subscribe to Esther's RSS feed
January 9, 2012 10:24 PM EST
Although it has yet to regain its footing since its end-quarter 2011 jaw-dropping fall, gold will continue as the world's most favored investment pick to cushion oneself against the threat of global financial meltdown.
What's more, with its lowered trading price, investment appetite and intrigue is all the more pricked, pushing investors to buy the commodity.
Greece Bank Run Shows No Sign Of Stopping: Deposit Outflows Continue In November
The year is not over yet, and already Greece's banks have lost €36.7 billion of their deposit base in 2011, and a whopping €64.6 billion since the beginning of 2010, which is down from €233 billion to €173 billion in under two years.
Hungary Folds, Ready To Change Its Laws To Get European Bailout Money
If there is any one more vivid confirmation of Mayer Rothschild words "Let me issue and control a nation's money and I care not who writes the laws" then we have yet to find it. Today Hungary, which had "valiantly" defied Europe and the IMF in ignoring pressure to make its central bank more "malleable" finally folded, following a recent explosion in its bond yields, a surge in CDS to records, and a collapse in its currency.
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