Dear CIGAs,
The US dollar represents a common economic union of states as much as the euro does.
40 US states are on the very edge of bankruptcy.
Be serious and think about it. Don’t fluff it off because you prefer flag waving and pleasing your readers.
The difference is the euro would be stronger without Greece, Spain and Ireland. Also, don’t forget Turkey.
Gold will trade through $1224 to $1278 and then onward to $1650. After $1650 has been achieved, we will move on to Alf and Martin’s numbers.
China is trying to operate the gold market because they want the rest of the IMF’s gold.
Unemployment funds going ‘absolutely broke’
40 state programs to be emptied by the jobless tsunami within two years
By Peter Whoriskey
updated 2:08 a.m. ET, Tues., Dec . 22, 2009
The recession’s jobless toll is draining unemployment-compensation funds so fast that according to federal projections, 40 state programs will go broke within two years and need $90 billion in loans to keep issuing the benefit checks.
The shortfalls are putting pressure on governments to either raise taxes or shrink the aid payments.
Debates over the state benefit programs have erupted in South Carolina, Nevada, Kansas, Vermont and Indiana. And the budget gaps are expected to spread and become more acute in the coming year, compelling legislators in many states to reconsider their operations.
Jim Sinclair’s Commentary
Come on, let’s be serious.
Look through the MOPE. Recognize that you would need 4 Greeces to equal 1 California in terms of GDP contribution to the whole.
This dollar rally is built on MOPE, hot air and the "let’s kill the carry trade," which you cannot do unless shorts rates such as Libor rise.
Have you seen Libor lately?
Moody’s downgrades Greek government bonds
ATHENS — Moody’s Investors Service on Tuesday became the third major ratings agency to downgrade Greece’s credit rating this month but said it saw limited risks in the country’s short-term prospects.
Moody’s, whose action follows sharper downgrades by Fitch and Standard & Poor’s, said the eurozone country’s problems lay in the long-term as Athens seeks to reduce a big public deficit that has dented its international credibility.
"Moody’s Investors Service has today downgraded Greece’s government bond ratings to A2 from A1," it said in a statement, adding that the outlook for the eurozone country was "negative."
The agency also cut the ratings of three Greek banks, including the country’s largest, National Bank of Greece (BNG).
BNG’s rating was downgraded to Aa3 from A1, while the notations for EFG Eurobank Ergasias and Emporiki were lowered to A2 from A1.
