After a long debate in the EU, the ESM may now help ailing banks directly. The euro bailout fund could jump in but only viable large institutions if all other auxiliary facilities are maxed at national or European level.

QUESTION: Martin, While I clearly understand your reasoning for deflation in the US allied to a very strong dollar; does the opposite apply to those countries, like the UK and European economies where their currencies are likely going into freefall? Keep up the brilliant work. Is the movie coming to the UK? AB ANSWER: Yes. […]

While the world has been watching Draghi and are surprised at the dissent, at the same time the street tends to try to create hard fast rules to follow the Fed rather than the markets and economy. The thinking process seems to try to fashion fixed rules to approach the Taylor Rule. This is kind-of […]

  Why are central banks buying equities outright and trading futures? Very simple – EURO CRISIS! I have reported that central banks have been buying equities because there is a real crisis underway in central bank reserves. Behind the curtain, they need diversity because the Euro Crisis has creates a Reserve Crisis. There is no […]

QUESTION: Your reference (not for the first time) to new USD highs may be the most striking — and consequential — of all the insightful and startlingly original  remarks you have made in recent years.At the very least it must rank high and cause not a few of us to stroke our chins and ponder. It seems churlish even […]

  Friday came in with the Panic Cycle on target. The polls in Switzerland were showing little support for the Save Our Gold issue. Nevertheless, as we approach year-end the major trading range will be 1310 to 1042.50. These are the outer end range boundaries and closing between these two numbers will leave gold in […]

  On page 13 of the IMF Working Paper entitled Sovereign Debt Restructurings 1950–2010: Literature Survey, Data, and Stylized Facts, you will find this timeline on how to deal with the coming Sovereign Debt Default. Behind the Curtain, they know what is coming. They appear to be even using our timing. Numerous emails have come in asking […]

Today will be the Swiss vote on the issue of holding and buying gold. The Swiss National Bank opposes the Yes Gold Vote but there is also an immigration referendum. The Swiss are being asked to vote on a proposal to make the central bank hold a fifth of its reserves in gold within five years. […]

The Swiss referendum will be the this weekend to prevent the central bank from selling its gold. While Swiss sources say this is really about a protest against the central bank policy since they pegged the Franc to the Euro incurring tremendous losses, the Swiss are now watching their currency decline with the Euro. There […]

In an important demonstration against the euro and the ECB’s policy that took place on Saturday in Frankfurt serious riots have erupted showing the civil unrest is spreading right on target now in Germany. Protesters had overcome the fences for the new ECB headquarters, but were pushed back by the police. The new building will cost taxpayers […]