Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Markets Feeding Off Blunders and Indecision

Stock-Markets / Stock Markets 2010 Jun 08, 2010 - 06:34 AM GMT

By: Miles_Banner

Stock-Markets

Best Financial Markets Analysis ArticleThe markets have been thrashed up and down. We’ve witnessed one of the greatest bull runs since the suckers rally in the 1930s, and whilst many are calling this a top, there are some that are calling this a market correction… albeit one that may last a few months.


In The Market Oracle Nadeem Walayat points out that the market is in a period of correction – but will continue to rise in the very long term as it has done over the past year. We value Nadeem’s opinion very highly but we can’t help but think that no one can ever really foresee what the market wants to do next.  Events over the last week highlight what we mean.

Over the course of the weekend the G20 members gathered round in plush offices, treated to expensive wine, luxurious hotel rooms, first class travel and decided they knew nothing.

The finance ministers and central bankers that make up the G20 were dumbfounded by recent events in the markets and could only reverse opinions they gave in April.

In the communiqué that follows the lavish get togethers the G20 members confirmed the whole show is pointless. In April they were singing the tunes of global visions – a global banking levy, a global stand on budget deficits and debt, a united front. Last weekend they declared – every country for itself.

The communiqué expressed the need for each country to react differently depending on their problems.

“The recent events highlight the importance of sustainable public finances and the need for our countries to put in place credible, growth-friendly measures, to deliver fiscal sustainability, differentiated for and tailored to national circumstances.”

What we really wanted to see was some clout behind the punch. For all the twaddle that comes with the formalities what do we actually get?

In a recent video which highlights the expenditure of the G20 meetings, Canadians are looking at the costs for the G8 and G20 meetings which they’re hosting later this month. The security alone is estimated to cost in the region of $933m (£607.94m). The estimated cost of ensuring all the food is safe stands at $1m!

And it’s only 3 days.

It’s such a staggering figure for which we should be entitled to see what we get for our money. What’s the end result? – The same as the beginning.

We can only look into the future as far as our nose goes… and it doesn’t smell good.

But as our leaders swap stories we’re all too familiar with – the debt problems, the deficits, exports and the like, we’re really interested in gold.

Last week gold prices rose on the back of weak US employment data, poor Chinese manufacturing figures and the huge slap in the face from Hungary declaring their economy is in some ways, similar to Greece’s.

Hungary like Greece?

In one of those moments that could have been written by Harry Enfield, a spokesman for the Hungarian Prime Minister announced on Friday that the country was facing a similar crisis as Greece and in possible danger of defaulting on their debt.

The Guardian reported:

“A spokesman for Hungarian Prime Minister Viktor Orban set off alarm bells among investors when he conceded in a television interview that the Hungarian budget was in a “much worse” state than the previous government had indicated and “skeletons were continuously falling out of the closet”.

“On Thursday, the ruling Fidesz party’s vice chairman Lajos Kosa was reported online as saying that it had found the public finances in a much worse shape than previously expected and there was only a slim chance of avoiding a Greek-style crisis.

When asked about those comments, Orban’s spokesman, Peter Szijjarto, told a news conference: “In Hungary the previous government falsified data. In Greece, they also falsified data. In Greece the moment of truth has arrived. Hungary is still before that.”

Moments later the Hungarian Finance Minister gave numerous television interviews to dispel these former statements, explaining that it was the new government’s way of frightening the Hungarian population into believing the coming tax cuts were necessary. Jolly good, frighten the people, spread the fear then backtrack quickly when it doesn’t go very well.

All of this is against the backdrop that the Hungarians are pushing for acceptance into the euro by 2014 – lets see, something similar to Greece you say, with a budget deficit likely to be way above the 3.8% agreed with the EU and IMF after they bailed them out to the tune of $28bn in 2008. It sounds an excellent candidate, I wonder if the German taxpayers think so.

On the back of the Hungarian news the euro slid to a four year low. Yesterday gold carried on breaking record highs in euros – 1,044 (per troy ounce), and falling just short of previous highs in USD. It remains a positive outlook for gold especially given the likelihood for further sovereign debt crises.  We look forward to finding out what comes next.

Digger
Gold Price Today

We leave you this week with a fascinating article forwarded to us by one of our readers, James. It’s a Bloomberg story that reveals the insatiable appetite for gold amongst central banks – Central Bank Gold Holdings Expand at Fastest Pace Since 1964

© 2010 Copyright Gold Price Today - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules