Jim Sinclair’s Commentary
QE will go to infinity, making illustration number three of the skier correct.
Denmark Announces Emergency Bank Liquidity Program
Posted: 30 Sep 2011 01:25 PM PDT
The Danmarks Nationalbank announced it will provide as much as 400 billion kroner in an emergency liquidity provision program to assist the nation’s banks. The measures include expanding the existing collateral basis, and introducing 6-month loans in addition to the existing 7-day loan facility. Danmarks Nationalbank Governor, Nils Bernstein, said: ”The expansion of credit facilities is intended to supplement the banks’ access to raise loans, thereby easing the transition to a situation without government guarantees when these guarantees expire in 2012 and 2013,”
Denmark’s central bank last raised the lending rate by 25 basis points to 1.55% in July this year, after increasing the rate by 25 basis points in April this year, mirroring the interest rate increases by the European Central Bank (ECB). The Danish Central Bank typically follows the moves of the ECB in order to keep its currency, the Krone, stable. Denmark reported an annual inflation rate of 2.6% in August and 2.9% in July, compared to 3.1% in May, and 2.9% in April this year. The Danish economy grew at a year on year rate of 2% in Q2, compared to 1.7% in Q1 2011 (2.9% in Q4 2010). The Danish krone (DKK) has strengthened about 3% against the US dollar this year, and last traded around 5.37.
Jim Sinclair’s Commentary
If you do not like how the inflation rate reads just change how you calculate it.
Eurozone inflation rate jumps to 3% in September
30 September 2011 Last updated at 07:18 ET
The eurozone inflation rate increased to 3% in September, up from 2.5% in August, according to the first estimate from the EU statistics agency.
No breakdown was given, but Eurostat said its initial forecasts were usually “reliable”.
Separate figures also released by Eurostat showed the eurozone unemployment rate unchanged at 10% in August from the previous month.
The number of people unemployed fell by 38,000 compared with July.
The unemployment rate in Spain, the highest in Europe, rose slightly to 21.2%, with youth unemployment hitting 46.2%.
However, the jobless rate for those under 25 in the eurozone as a whole fell slightly, to 20.4%.
Falling shares
Analysts, who had expected a small rise in inflation, pointed to technical changes in the way price rises are calculated as a contributory factor in the sharp increase.
“It’s not a nice number, but I wouldn’t panic that the high inflation which some have warned about for years is finally here,” said Martin Van Vliet at ING.
Jim Sinclair’s Commentary
I am sure a review of major municipalities would add greatly to this number.
Nine American Cities That Are Going Broke
24/7 Wall St. | Sep. 29, 2011, 11:36 AM
Of the 7,800 bonds in the U.S. secured by state or local governments, only 25 are currently speculative-grade, or junk-bonds, rated by Moody’s Ba1 or lower.
Only municipalities received such low ratings, and the reasons vary. Moody’s report, “A Look at Speculative-Grade Local Governments in the Wake of the Recession,” details the economic issues that have lead each into junk-bond territory.
Click here to see the cities >
24/7 Wall St. has analyzed the nine worst cities, whose credit rating is Ba2 and lower.
Each of these municipalities faces a unique situation, Moody’s explains, and the list is not indicative of a greater trend. Most municipalities, Moody’s writes in the report “face deeper and longer-standing problems than investment-grade issuers.” Analysis by 24/7 Wall St., however, reveals a number of commonalities between the lowest-rated areas.
For instance, a number of the municipalities on the list are facing shrinking tax bases possibly exacerbated by the recession and high unemployment. Some cities, such as Detroit and Pontiac, have had their economies devastated by the recession. Their populations have decreased dramatically and struggling major tax-paying corporations have contributed much.
