The tragedy in Cyprus continues. Reuters reports today that the island is in an impasse as the initial proposal of past weekend was killed by the Parliament with 100% of the votes. Several alternative plans are being discussed behind the scenes. One of the potential scenario’s is the Russians buying up one of the ailing Cypriot banks. Meantime it appears “EU officials voiced frustration but... read more
The mooted savings levy in Cyprus is a form of wealth confiscation on behalf of the EU which is making depositors throughout the Union nervous. There has been no dramatic increase in the demand for gold in recent days. However, this could be a ‘tipping point’ moment when savers realise that they are unsecured creditors of banks and their savings are not sacrosanct.
Dr. Ron Paul was inter... read more
A rightwing group has submitted more than 106,000 signatures to the federal authorities, seeking a vote on stopping the sale of gold reserves held by the Swiss National Bank (SNB). It also wants gold bars stored in the US to be returned.
The markets are staging a bounce today based on:
The ECB surfacing to say it will provide liquidity to help with the Cyprus situation.
Bernanke’s speech today and the Fed’s FOMC (stocks tend to rally going into FOMC meetings).
This is once again the markets praying and hoping for divine guidance from the Central Bankers. However, the fact remains that every sensible investor in the... read more
According to reports, Cyprus will try again tomorrow to cobble together some kind of bank bailout bill that can pass parliament.
Cyprus needs to raise another 5.8 billion euros, which it could do from some combination of deposit taxes, Russian money, and pension nationalization.
None of the options are good, but until it's done, banks will likely have to remain closed, a situation that ca... read more
When the average person hears talk about the potential for hyperinflation and how it would affect our world, it often sounds like a tale from Charles Dickens or something that could only happen in countries very far away from the United States.
Of course that is not the case. Over the past century, 56 countries have suffered the devastating consequences of hyperinflations as a r... read more
"Those who think there is little risk of a levy being imposed on other periphery members are missing the point. The seeds of doubt have been planted. As a saver facing zero yields on deposits and a potential haircut, why keep your savings in a bank? Sure it is convenient for electronic transactions, but individuals can adapt easily. As one of my more amusing colleagues put it, 'matt... read more
Despite an increase in risk appetite in recent months, systemic risk remains. As Reuters' Pedro da Costa noted the "global impact of events in Cyprus casts doubt on the notion that the financial system has gotten a lot stronger since the crisis." The Cypriot deposit levy is creating jitters among some investors who are increasing their gold positions.
Argentines are buying more gold than eve... read more
Robert Cohen, lead portfolio manager with Dynamic Funds, has been kicking up dust at conferences and in board rooms with his "revolutionary and simple" idea that gold mining companies should hold gold on their balance sheets and use gold-based loans. But the idea is gaining traction and he suggests in this Gold Report interview... read more
