As we draw closer to deadline for the Greek bond swap, it appears as though Greece will end up attracting enough investors to swap their current Greek bonds for new bonds. This news is positive for the euro (EUR), and we all know that what’s good for the goose is good for the gander, and all we have to do is switch goose for euro, and gander for currencies and metals. For instance, the Australian dollar (AUD) is back above $1.06, and gold is back to $1,700 this morning.
[Read more...]What the Greek Rescue is Really About
March 5, 2012 By Leave a Comment
In today’s Daily Reckoning, we’ll do something we can barely stand to do: we’re going to write one more time about Greece. If you can stand to read it, you may come to the same conclusion we reached.
That conclusion is simple: what’s going on Europe has nothing to do with solving a debt crisis and everything to do with preserving a corrupt system based on limitless debt and growing government power. The sooner you understand that fact, the sooner you’ll be able to prepare for what happens next. There are two options for what happens next, and we’ll get to those shortly.
[Read more...]China Lowers GDP Target
March 5, 2012 By Leave a Comment
Late last week, traders, investors, hedge jockeys and the rest all switched horses in the middle of the stream — by bailing out of the risk assets of currencies and metals that they had bought — and pushed the prices higher earlier in the week. Gold got slammed big-time, so I guess there’s no reason to fear the uncertainty in the world today. Israel and Iran are saber rattling, countries all over the world are shifting out of their long-standing agreements to price oil trade in dollars, China continues to take baby steps toward removing the dollar as the reserve currency in the world and the beat goes on. So I guess there’s nothing to fear about the uncertainty in the world today. Alfred E. Neuman, where are you?
[Read more...]ECB Turns Into the Fed
February 29, 2012 By Leave a Comment
The big news this morning is all about the European Central Bank (ECB) and their LTRO (long-term refinancing operation). I told you the skinny on what was going on yesterday, so I’ll give you the results today. Yesterday, I told you that if the eurozone banks requested around 400 billion euros (EUR) of loans, that would be bullish for the euro. And if they asked for more than 500 billion euros, it would be bearish. Well, they allocated 6.5 billion for three-month loans and 529.5 billion for three-year loans.
[Read more...]Euphoria Over Greek Debt Deal Fades
February 27, 2012 By Leave a Comment
Friday’s price action was interesting in that the euro (EUR) held onto the 1.34 handle, but gold was down $7. Hmmm… One anti-dollar doing well, while the other one weakens… The other anti-dollar, so proclaimed by me last week, oil, saw continued interest in pushing the price higher. And with that higher price in oil, the emerging countries, and the Asian countries with their nascent recoveries, are all feeling squeamish about their growth prospect, given that elevated price in oil…
[Read more...]Greece Gets Next Round of Bailouts
February 21, 2012 By Leave a Comment
The euro (EUR) was removed from the boiling water this weekend, as the next phase of the bailout for Greece was approved… The reaction of the euro has been somewhat muted though, as most of the markets, being Pfennig readers, already saw the baby steps of stabilization going on, and priced in an approval… The euro has moved higher than 1.32 this morning, but, like I said, the move has been somewhat muted…
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Greeks Get 83% Participation in Bond Swap
Well, it’s a Jobs Jamboree Friday today, and I’m wondering just what kind of shenanigans the Bureau of Labor Statistics (BLS) will put out of a hat to paint a pretty picture for the government. But before we see the color of the labor report here in the U.S. for February, we have other things to talk about, so let’s not dawdle around!
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