Jim Sinclair’s Commentary
Here comes the "Everybody for Themselves" syndrome while China tells Washington to stuff it. Absolutely nothing is coming out of the New Bretton Woods farce but a spin statement while all the boys duke it out.
Europe and U.S. Clash on Financial Reform
When world leaders come together in Washington this weekend to discuss reforming the global financial system, there may be little consensus
The faucets dripped, the windows couldn’t be opened and rain and snow came in through the roof and dripped down the walls. The Mount Washington Hotel in the small New Hampshire town of Bretton Woods was not in great shape when it served as the site of a conference on a new world economic order for 700 international financial experts shortly before the end of World War II. The 1944 meeting went on for three weeks in what one guest dubbed the "madhouse." Still, despite the sub-optimal conditions, by the time it had ended, the conference had agreed on the rules and institutions that would shape the international financial system for decades to come.
Now, more than six decades later, another world financial summit is set to take place this weekend. The world’s 20 most important government leaders will meet on Friday in Washington D.C. to discuss a new fundamental reform of the financial system. In the wake of the crash in the credit markets, the billions in bailout packages put in place around the world and last week’s warnings of a global recession, many governments have high hopes for sharper regulations in the global financial markets.
German Chancellor Angela Merkel called for "more transparency" and a "better set of rules." French President Nicolas Sarkozy proposed a significantly stronger role for the International Monetary Fund (IMF), currently headed by French politician Dominique Strauss-Kahn. A "new Bretton Woods," the French president said, must "lead to a new founding of capitalism."
Jim Sinclair’s Commentary
This is effectively a downgrade of the US dollar. You think that is bullish for the dollar? Hell NO.
Financial Big Shots Now Speaking Of U.S. Government Bankruptcy
The United States may be on course to lose its ‘AAA’ credit rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.
"The U.S. might really have to look at a default on the bankruptcy reorganization of the present financial system" and the bankruptcy of the government is not out of the realm of possibility, Hennecke said.
"In the United States there is already a funding crisis, and they will have to sell a lot more bonds next year to fund the bailout packages that have already been signed off," Hennecke told CNBC.
