Chinese Dragons, Euro Banks, Fed sponsored crackheads

Swiss intervene in the markets and the Swiss Franc loses 8% in minutes. At the same moment Gold made a quick move to the downside by $65 as well. Hope nobody was long on the Swiss Franc.
More info here: http://www.businessinsider.com/wow-swiss-national-bank-takes-intervention-to-a-new-level-franc-plunges-2011-9#ixzz1XAShSQO7
Wall St Jornal
The stupid Dragon Perth Mint story is still doing the rounds. Let me sum it up. If the Perth Mint did Copper Dragon coins they would sell out. They are beautiful coins. Chinese people like Dragons. There are a lot of Chinese people. No one told the Perth Mint that there are a lot of Chinese people who like dragons.

The Wikileaks story about the Chinese accumulating Gold still has legs in the underground media
http://www.gata.org/node/10387

Lots and lots of bad news and scary stories out of Europe can be found everywhere. Here is what is necessary to keep in mind. Europe can print as a whole via the ECB. However, they are constrained politically by the stronger countries from doing so. So the European banks go to the Fed window first as they are cheaper as well.
Individual countries can print via individual bonds.  Individual countries can print Euros only with permission of the ECB. It will be necessary for the ECB to ramp up the printing as the major banks are still insolvent as are Greece etc. It will be necessary for the Fed to print. It will be necessary for the Swiss to print.  Everybody will print. My good friend Charon the ferryman does not accept paper currency nor should you.
P.S. He has a preference for coins with Dragons on them as he thinks they are pretty.


6 comments:

Swampfox said...

Weird - you can't eat dragons you know... or can you????? Hmmmmm.... food for thought.

Brian O'Flanagan said...

interestingly, with all the manipulation in currencies, equities and bonds going on, gold and silver may actually be the LEAST manipulated assets in the world!

Louis Cypher said...

But you can eat bankers. They are a little bland so some Tobasco is needed.
FYI, JuliaChilds.com has this great little recipe for bankers heart.
"Saute the tiny little heart with some spring onions and a little Chianti to wash it down. A simple but satisfying appetizer and a delightful treat before the main course."

Louis Cypher said...

Brian,
:) Touche.

GM Jenkins said...

I wish I understood better the specific mechanisms by which all of these markets (e.g. currencies, equities and bonds) are manipulated, which they obviously are. I'd expect someone conjecturing the existence of the "plunge protection team" to be laughed at by many establishment types, but now that we know (I assume we know) such an entity is real, it becomes a question of how busy they are. But it's hard to evaluate the extent of their meddling without having a good understanding of their means of operation. Likewise with gold and silver. When Turd Ferguson says yesterday "[Gold] traded as high as $1908 a few hours ago. I would caution you against getting too excited about this. History shows that gains made while NY is closed are typically erased once the monkeys report to their desks at the end of the holiday. Today will likely be the same" ... and then this morning he can link to this weird looking chart (and he of course does this often), my question becomes, if this is indeed manipulation, is this because of obama's speech (i.e. an infrequent one-off type of thing, like before the G20 conferences, not wanting gold to be making new highs) or is this a daily thing. I of course suspect the latter, since why should the manipulators show restraint?

On that note, here (link courtesy of GATA) is a recent account of how pervasive manipulation in these markets takes place. It's a long (two part) read, and I have no idea where on the truth spectrum it lies, so it might be a waste of time. But it sounds persuasive to my untrained understanding and i'd be interested what others think.

Swampfox said...

Brian,

Scary thought.