Peter Schiff: “I am a 100% convinced that anybody who has their wealth in US Dollars will be just as broke as the people who had their money with Madoff.”
(All 6 parts are a must-see.)
Part 1 of 6
(All 6 parts are a must-see.)
Part 1 of 6
Dec. 31 (Bloomberg) — The dollar fell, heading for its worst annual decline against the yen in more than two decades, on speculation a U.S. report this week will show manufacturing shrank at the fastest pace since 1980.
The currency was also poised for a third annual loss versus the Swiss franc on bets the Federal Reserve’s zero target lending rate will weigh on demand for the greenback. The euro was set for the largest annual gain against the British pound since its 1999 debut on speculation the Bank of England will keep its main lending rate lower than the European Central Bank’s rate.
A pound is now worth €1.1391. Photograph: Toby Melville/PA
The pound has hit a new all-time low against the euro following further warnings that the UK economy is in worse shape than expected.
Sterling fell to €1.1391 this morning and also hit a record low against a basket of other currencies.
The pound’s latest weakness came as economists warned Britain’s economy was deteriorating faster than expected and could suffer badly in 2009.
The National Institute of Economic and Social Research warned today that the UK’s gross domestic product shrank by 1% in the three months to November, more than the official estimates.
Howard Archer, the chief European and UK economist at IHS Global Insight, said he expected to see a further “substantial contraction” in the first half of 2009 and that there was unlikely to be any growth until 2010. He is predicting a 2% drop in GDP next year.
Some British politicians considering signing up to single currency in bid to beat effects of global economic crisis, according to José Manuel Barroso
The UK is “closer” to joining the euro than ever before, according to the president of the European commission.
José Manuel Barroso said some British politicians were considering signing up to the single currency in a bid to beat the effects of the global economic crisis.
He told French radio station RTL: “We are now closer than ever before.
“I’m not going to break the confidentiality of certain conversations, but some British politicians have already told me, ‘If we had the euro, we would have been better off.'”
The crisis in Hungary recalls the heady days of the UK’s expulsion from the ERM.
The financial crisis spreading like wildfire across the former Soviet bloc threatens to set off a second and more dangerous banking crisis in Western Europe, tipping the whole Continent into a fully-fledged economic slump.
Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992.
“This is the biggest currency crisis the world has ever seen,” said Neil Mellor, a strategist at Bank of New York Mellon.
Experts fear the mayhem may soon trigger a chain reaction within the eurozone itself. The risk is a surge in capital flight from Austria – the country, as it happens, that set off the global banking collapse of May 1931 when Credit-Anstalt went down – and from a string of Club Med countries that rely on foreign funding to cover huge current account deficits.
The latest data from the Bank for International Settlements shows that Western European banks hold almost all the exposure to the emerging market bubble, now busting with spectacular effect.
They account for three-quarters of the total $4.7 trillion £2.96 trillion) in cross-border bank loans to Eastern Europe, Latin America and emerging Asia extended during the global credit boom – a sum that vastly exceeds the scale of both the US sub-prime and Alt-A debacles.
Sept. 2 (Bloomberg) — The best already may be over for the U.S. stock market this year.
The Standard & Poor’s 500 Index, which had the worst first half since 2002, added 0.2 percent this quarter, the only gain among the world’s 10 biggest markets in dollar terms. Shares in the benchmark index for American equity climbed to an average 25.8 times reported profits, the highest valuation in five years. The last time that happened, the S&P 500 fell 38 percent.