European Bank Run: Here Comes Recession

Written by Gary North on November 23, 2011

When The New York Times has figured it out, it’s real. This story reports on what amounts to a run on the banks. Rich investors are selling PIIGS bonds, pulling out of PIIGS banks, and fleeing for safety. This forces up interest rates in PIIGS countries. This forces banks to raise rates to borrowers. This […]

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Boston FED President Says FED Can Bail Out Europe

Written by Gary North on November 23, 2011

The president of the (privately owned) Federal Reserve Bank of Boston said recently that the European Central Bank can and should inflate, so as to solve the crisis. But the Federal Reserve can and should join with other central banks to help the ECB solve the crisis. This was the first time that a senior […]

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Niall Ferguson Has Some Fun: Europe, 2021

Written by Gary North on November 22, 2011

Historian Niall Ferguson has written a playful piece for the Wall Street Journal. It is written as an observer’s reminiscences of the transition to the United States of Europe. The euro survives. The independence of Western European nations does not. England is outside the system. The voters vetoed the idea of union. Israel attacked Iran. […]

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Last Days of the Euro, Says a Major Swiss Bank, Unless….

Written by Gary North on November 22, 2011

The Wall Street Journal carried a story that Credit Suisse, the huge Swiss bank, is forecasting the last days of the euro. But it ads a proviso: unless there is integration of the separate economies. In short, it’s breakdown vs. the New World Order. This comes from a Swiss bank. The Swiss have opposed integration […]

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World’s #1 Bond Fund CEO Describes the Crisis

Written by Gary North on November 22, 2011

Mohamed El-Erian is the CEO of PIMCO, the world’s largest bond investment fund. He is widely respected around the world. In a recent article posted on an economic website that hosts some of the most famous Keynesian economists, he outlined the problems that are facing the world’s economies. He goes through these, one by one. […]

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First Successful Cyberattack on the USA

Written by Gary North on November 21, 2011

It had to come eventually, and it has. It was not a major facility. It was an attack on an Illinois water plant. The hackers burned out a water pump. Think of it as a test run. The hackers have not been identified. The Department of Homeland Security is saying nothing. The breach was a […]

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The End of the Road for Technology Sector Profits

Written by Gary North on November 21, 2011

I have read John C. Dvorak for about 28 years. He is perhaps the best-known commentator on all things PC — personal computers. He is always controversial, but he is very well-informed. In his latest essay, he warns that the era of the PC is coming to a geriatric phase. This has been predicted since […]

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European Debt Crisis Threatens the Dollar–Ron Paul

Written by Gary North on November 21, 2011

European Debt Crisis Threatens the Dollar Ron Paul writes: The global economic situation is becoming more dire every day.  Approximately half of all US banks have significant exposure to the debt crisis in Europe.  Much more dangerous for the US taxpayer is the dollar’s status as reserve currency for the world, and the US Federal […]

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Back-Door Bank Runs in Europe in 2012

Written by Gary North on November 21, 2011

The modern bank run is not where depositors line up to pull their meager funds out. It is when hedge funds and large investment funds refuse to roll over credit lines to banks. That takes place behind closed doors. In 2012, European banks must refinance $660 billion of loans. The banks are in hock to […]

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