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Jun 2, 2009

Gata Dispatches: "German Chancellor Attacks Central Banks "

Submitted by cpowell on 01:25PM ET Tuesday, June 2, 2009. Section: Daily Dispatches By Bertrand Benoit and Ralph AtkinsFinancial Times, LondonTuesday, June 2, 2009http://www.ft.com/cms/s/0/846fd756-4f90-11de-a692-00144feabdc0.html?ncli...Angela Merkel, the German chancellor, criticised the world's main central banks in surprisingly strong terms on Tuesday, suggesting that their unconventional monetary policies could fuel rather than defuse the economic crisis.The attack on the US Federal Reserve, the Bank of England, and the European Central Bank is remarkable coming from a leader who had so far scrupulously adhered to her country's tradition on never commenting on monetary policy."What other central banks have been doing must stop now. I am very sceptical about the extent of the Fed's actions and the way the Bank of England has carved its own little line in Europe," she told a conference in Berlin."Even the European Central Bank has somewhat bowed to international pressure with its purchase of covered bonds," she said. "We must return to independent and sensible monetary policies. Otherwise we will be back to where we are now in 10 years' time."Ms Merkel's decision to ignore one of the cardinal rules of German politics -- an unwritten ban on commenting monetary policy out of respect from central bank independence -- suggests Berlin is far more concerned about the route taken by the ECB than had hitherto transpired.Berlin is concerned that the central banks will struggle to re-absorb the vast amount of liquidity they are pouring into the markets and about the long-term inflationary potential of hyper-lose monetary policies.The ECB's efforts have been focused on pumping unlimited liquidity into the eurozone banking system for increasingly long periods. But in May it followed the US Federal Reserve and Bank of England in announcing an asset purchase programme to help a return to more normal market conditions.The ECB announced it had agreed in principle to buy E60 billion in "covered bonds," which are issued by banks and backed by public-sector loans or mortgages.The covered bond purchases, however, were only agreed after extensive discussions within the 22-strong ECB governing council. According to one version of May's meeting, the council had discussed a E125 billion asset purchase programme that would also have included other private-sector assets, but only the purchase of covered bonds was agreed.Axel Weber, ECB council member and president of Germany's Bundesbank, has been among those who expressed scepticism about direct intervention in financial markets. In a Financial Times interview in April he expressed "a clear preference for continuing to focus our attention on the bank financing channel."Mr Weber has also been among the most proactive council members in warning that the monetary stimulus injected into the economy will have to be reduced or even reverse quickly once the economic situation improves.Details of the covered bond purchase scheme will be unveiled by the ECB after its meeting on Thursday. One likely solution is that the package will be split according to eurozone countries' capital shares in the ECB, which would result in Germany accounting for about 25 per cent of the €60bn programme. Meanwhile, the ECB is widely expected to leave its main interest rate unchanged at 1 per cent, its lowest ever.
* * *Join GATA here: Vancouver Resource Investment ConferenceSunday-Monday, June 7-8, 2009New Vancouver Convention Centre1055 Canada Place, Vancouver, British Columbiahttp://www.cambridgeconferences.com/ch_june2009.html
* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code.
Its e-mail dispatches are free, and you can subscribe at:http://www.gata.org
To contribute to GATA, please visit:
http://www.gata.org/node/16
Contact GATAinfo@gata.orgGold Anti-Trust Action Committee
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Connecticut 06043-7541 USA
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How Far Can the Dollar Fall?

I just recieved this video from Adam Hewison, I will not induce you with any opinion .Take your own conclusions. But do not miss this tecnical analysis. Transcription of his note below:



Comments as always are wellcome!!!



I was quite amazed when I looked back to see how long it’s been since I’ve put together a Dollar Index (NYBOT_DX) video. I had to look back to September of 2008 to find the last series of videos I had done specifically for the Dollar Index, and it proved to be successful.
In today’s video we will look at the Dollar Index and the impact it is having on crude oil (NYMEX_CL) and other major markets. I’ll also make a rather surprising prediction as to the most likely trend the dollar is going to take in the next 12 months.
This is a video you will not want to miss as the ramifications of inflation and the dollar are rather shocking.
I will show you how MarketClub has used the same approach in the same market using our “Trade Triangle” technology to trade this index and just how successfully this approach has been.:


http://www.ino.com/info/196/CD3233/club.ino.com%252Ftrading%252F2009%252F4%252Fsee-how-we-did-trading-corn-wheat-soybeans-crude-oil-gold-and-the-dollar-index-for-q1-of-this-year%252F



I strongly recommend that you watch my earlier Dollar Index video and then watch the new one. This will give you more confidence in using our “Trade Triangle” approach.:

http://www.ino.com/info/370/CD3233/&dp=0&l=0&campaignid=3

All the best,
Adam Hewison


President, INO.com

Co-creator, MarketClub

Gata dispatches:" Raise caution flags for gold and silver "

Submitted by cpowell on 06:34PM ET Monday, June 1, 2009. Section: Daily Dispatches 9:30p ET Monday, June 1, 2009Dear Friend of GATA and Gold (and Silver):Gene Arensberg's "Got Gold Report" has been posted at Stockhouse in a form abbreviated from its publication in Brien Lundin's Gold Newsletter (http://www.goldnewsletter.com/), and it warns that the large commercial short position in gold has exceeded the point at which gold usually gets clobbered. But Arensberg acknowledges that this is also what commercial signal failures look like and indeed what one looked like in gold in October 2005. So Arensberg's commentary is headlined "Raise the Caution Flags for Gold, Silver." Along the way it mentions GATA's work. You can find it at Stockhouse here:http://www.stockhouse.com/Columnists/2009/June/1/Raise-the-caution-flags...CHRIS POWELL, Secretary/TreasurerGold Anti-Trust Action Committee Inc.
* * *Join GATA here: Vancouver Resource Investment ConferenceSunday-Monday, June 7-8, 2009New Vancouver Convention Centre1055 Canada Place, Vancouver, British Columbiahttp://www.cambridgeconferences.com/ch_june2009.html


* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.org/


To contribute to GATA, please visit:
http://www.gata.org/node/16


Contact GATAinfo@gata.orgGold Anti-Trust Action Committee


7 Villa Louisa RoadManchester, Connecticut06043-7541 USA
http://www.gata.org/