Global Economy Bursting?

[Randolph Kinney]

Panic Capital Flight in Greece

http://translate.google.com/transla...othema.gr/economy/article/?aid=124771&act=url

Greece set for severe bail-out conditions

http://www.ft.com/intl/cms/s/0/eb91ba84-8a27-11e0-beff-00144feab49a.html#axzz1NmlJRS2p


An unprecedented outside intervention in the Greek economy, including international involvement in tax collection and privatisation of state assets, in exchange for new bail-out loans for Athens.

 

[Austin]

There will be a sequel to this Greece situation. It will be called "California Here We Come." Gold Rush # 2 but this time the gold seekers will be leaving the state. Opening soon in a theater near you. I can hardly wait to see the curtain rise. Unless the Land of Lincoln beats them to the punch.
The presidential election of 2012 is much to do about nothing. All this fuss about which party will conduct the funeral. The jig is up folks. It is just a matter of time before the Federal government will be a thing of the past. The strong conservative states like Texas will arise as the new centers of power.

 

[Randolph Kinney]

I read an interesting description of our debt problem:

We have not had a two-way market of supply and demand for sovereign debt. We now have what I call a "monetary roach motel," where the bonds come in and never come out. China has now got an economy that is so overheated - it means that they will be buying less dollars and far fewer bonds. Over half of the $9.5 trillion in U.S. Treasury debt is owned by central banks and has been purchased recently. I think we're at the last days of the artificial interlude and we're going to be entering the real days. The reality will be a thundering conflagration in the global bond market. There could be a rapid, severe and even violent adjustment as markets react to events.

Exciting times. California and Illinois won't matter. Keep your eye on Europe and China.

 

[Couch Potato]

The federal government may be different, but not likely a "thing of the past." You know how the government has been known to force the merger between two banks because one is ailing? Sure, a breakup of power distributed to states is possible, but I think it more likely a consolidation of power through treaties with other nations is more likely.

 

[Randolph Kinney]

The global one world solution? :new_all_coholic:

 

[Couch Potato]

Defaulting on U.S. debt even dangerous to consider.

Much is made of the August 2nd date for US default on interest payments. (I agree it is a very important date, after all it is my wedding anniversary! ) However, could the trouble begin well before the actual default? Suppose world markets just think the Congress will not be able to agree on raising the debt limit. Would that not have the same effect on world markets? Congress likes to push things to the deadline, but too much posturing on July 29th could make for a wild August 1st.

 

[Randolph Kinney]

Europe at the Abyss

http://www.realclearpolitics.com/articles/2011/05/30/europe_at_the_abyss_110025.html

 

[Randolph Kinney]

Mobius Says Fresh Financial Crisis Around Corner Amid Volatile Derivatives

http://www.bloomberg.com/news/2011-...-around-corner-amid-volatile-derivatives.html

The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10.

Does that statistic excite anyone? There is not that much money or credit to pay off a volatile global market swing that triggers gains and losses. The new meaning of too big to fail.

 

[Randolph Kinney]

Funds Revive Agriculture Bets as Drought, Floods Hurt Crops, Demand Grows

http://www.bloomberg.com/news/2011-...s-drought-floods-hurt-crops-demand-grows.html


Extreme weather threatened to limit output as global demand increases.

Place your bets, futures are driving prices.

 

[Workbox]

Mobius Says Fresh Financial Crisis Around Corner Amid Volatile Derivatives

http://www.bloomberg.com/news/2011-...-around-corner-amid-volatile-derivatives.html

The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10.

Does that statistic excite anyone? There is not that much money or credit to pay off a volatile global market swing that triggers gains and losses. The new meaning of too big to fail.

Been looking at some stocks and the SPY, and it looks like they are getting a tight squeeze going upward but within a consolidation.

They are trying to squeeze whatever is left in that lemon.