G20 Protests Heat Up: Video of police car fire in Toronto
Reports say black-clad demonstrators broke off from a crowd of peaceful protesters at the G20 summit in Toronto, torching a police cruiser in the financial district and smashing windows with baseball bats and hammers.
Duration : 0:1:43
Categories: debt crisis Tags: anti-G20 Toronto 2010, anti-globalist g20 protests, anti-globalist march Toronto, bailout, conspiracy, democracy, G20 police car fire, G20 protest police cruiser, G20 vandals demonstration, G8 G20 protests Canada, G8 G20 violence riots, global economy, Greek debt crisis, healthcare, police demonstrators clash, riot police brutality, rt, security, summit protests, summit world leaders G20, забор в Торонто саммит, Медведев Обама
G8 leaders pose at 2010 summit in Muskoka, Canada: raw video
G-8 leaders, including Russia President Medvedev and US President Obama, pose for the traditional group photo at their 2010 summit in Muskoka, Canada, near Toronto. Raw video
Duration : 0:3:23
Categories: financial crisis Tags: Barroso, Berlusconi, China, Crisis, financial, G-8, G8, Group, Japan, Medvedev, merkel, news, Obama, photo, Rompuy, Sarkozy, stability, Summit
Gold, Silver, Investing, Options, New Currency, Economic Collapse, inflation
Economic worries are driving the manipulated markets up, Precious metals and Stocks are all manipulated prices and need to be looked at in a broader perspective. National Emergencies, Riots, Economic Ruin, will follow a New Currency, and Monetary system Bear market Mutual Funds, and put options
Duration : 0:8:44
Categories: monetary collapse Tags: 2008, 2009, 2012, America, Antichrist, Army, arts, Bible, Biden, bush, Collapse, computer, Crash, depression, Dollar, doomsday, Economic, Economics, economy, Election, end, Engineering, Health, humanities, inflation, language, law, lcharlesss, market, martial, math, McCain, Media, medicine, Nibiru, Obama, palin, performing, physical, Prophecy, quickcapture, recession, science, social, Stock, Street, Times, US, video, Visual, Wall
Predicting the final economic collapse of the United States
In this video I discuss the predictions that people have been making as to when the economy is going collapse and when the dollar will lose its status as the main reserve currency.
Duration : 0:4:35
Categories: economic collapse Tags: collapse 2010, collapse 2011, collapse 2012, dollar collapse, economic collapse, predictions, preppers
Negative or Positive Correlations
Negative or Positive Correlations
Sunday, January 11, 2009
By dodjit
Since the first interest rate reduction in the U.S, central banks have been battling ongoing problems, trying to stay ahead, in order to prevent further economic blows. From the U.S, economic problems quickly spread throughout the globe, making investors realize that today’s relationships between global economic markets are much stronger than previously thought. Expectations of a stock market collapse in the U.S during 2007 led to a 40% drop on the U.S major indices while other major indices across the globe followed almost instantly, with the same type of price movement. On the currency market, similar price movements were also experienced as central banks simultaneously made their rates less appealing, forcing investors to seek alternative routes; ones that were yielding much higher returns. Taking a walk down history lane, one can see that correlations between various securities are a quite common, especially as officials take equal measures to try to control their economies.
Positive correlations can often be seen during stable markets as monetary tightening is used to control expanding economies (a time when securities tend to correlate and rise), while monetary easing is implemented to control a rapid contraction.
A major question that arises is what happens to those positive correlations on various securities when the markets are in turmoil and central banks are not taking equal measures. Do those securities lose their positive correlations?
Over the years, the European Central Bank and the Bank of England have stuck to a firm policy, keeping their central rates high against fellow banks. Their high yielding rates gave their currencies the upper edge against counterparts like the U.S, allowing their domestic currencies to strengthen against the U.S Dollar.
The 2008 recession sent the markets into mayhem, forcing rapid movements on the currency market. Strong currencies like the Euro and Pound dropped against their counterparts while a weak Yen surged. Taking a glance at the price chart below, one can see the positive correlation between the Euro and the Pound. Both outperformed up until the end of 2007 and both fell due to the economic situation throughout 2008.
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Could that positive correlation now be weakening due to central banks’ different stances? Have we already witnessed a similar situation in the past?
From the end of 2007 throughout the beginning of 2008, the Euro continued higher while the Pound began to drop in value (negative correlation). Euro strength was caused by the ECB’s adamant stance to maintain a high interest rate, to control ongoing inflation. On the chart below, one can see that even though the Pound managed to hold on to its strength, the Euro outperformed it, weakening the correlation between the two. Only during July 2008 did the two regain their positive correlation, dropping against the U.S Dollar.
While both economies have been dealing with contraction, deflationary pressures and high unemployment, the Bank of England has engaged in this economic battle using much more drastic measures. The ECB on the other hand, has been reluctant to follow suit, thinking twice before each rate cut. Even though the Euro-zone is in a massive slow-down, according to recent economic data, the U.S and England are still situated in more severe situation. In England, economic growth has gone down the drain, while the financial system is on the verge of a collapse. The Bank of England has engaged in massive rate cuts, recently reducing their central rate to its lowest level since the bank was founded in 1694. Low rates throughout 2008 made the Pound one of the worst performing currencies.
By taking a glance at the following chart one can see that the correlation between the two has recently weakened. The End of year rally in the Euro caused by expectations that the ECB could refrain from cutting interest rate in January, now seems to be wearing off, and will surely be tested this up coming week. Dealing with problems in numerous economies and Germany showing unemployment shy off of 9%, the ECB might have no alternative other than to change its adamant policy taking similar actions to the BOE’s. Although the markets are still facing many risks, with expectations of a global recovery throughout 2009 and the Bank of England leading the race in rate cuts, could England outperform while others try to catch up? On the currency market, will the Pound outperform the Euro this time round, due to the BOE’s pro-activity?
Technical Charts
GBP/USD- After forming a triple bottom on a daily chart, current indicators are showing divergence patterns. As this pair is still trading within a secondary bearish trend, trend lines and support & resistance should be used for confirmation of a change in direction. A break of lower trend line support, could lead the price to 2001’s lows.
EUR/USD- After presenting an end of year rally, the Euro found resistance around Fibonacci 32.8%. Taking a look at the monthly chart one can see that the price pattern has now tested a monthly trend line. This week’s rate decision will set the tone for further price movement.
*All charts are courtesy of netdania.com
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Dodjit Author
http://www.articlesbase.com/investing-articles/negative-or-positive-correlations-718704.html
Categories: monetary collapse Tags:
Contemplating the Crisis
We have a list of financial disasters – The Panic of 1893, The Banker’s Panic of 1907, The Oil Crisis of 1973 and the worst of all, and The Crash of 1929. These disasters have been learning experiences, the hard way and we had assumed that we had come a long way from then with the experiences gained and regulations to protect us from the above. In just a matter of thirty five years from the last financial disaster and seventy years from the Major Crash and Depression, we seem to spiraling downward much the same way and speed. We have faced recessions, unemployment issues fuelled by the deregulation of financial systems. So, what makes this crisis crucial to the economic analysis? We have stringent economic records and this crisis is unprecedented mainly as all forms of investment (excluding Treasury Securities) have had declines of historic proportions. Stocks, Corporate Bonds, Home Prices and Commodities are facing the major brunt of this.
Most of the financial crises have always been due to the onset of a mortgage crisis. This time around, with a severe mortgage crisis, and a strong financial crisis having a global rippling effect the cause of concern is high. To prevent a Great Depression, there is little choice other than the path tread by Roosevelt consisting of massive infrastructure projects, financial regulations and direct support to the defaulting home owners. Though, Bush has invested in a large way, the necessity is such as the inflated values since the crash of 1929 is also high. Obama, has even less choice than to follow the same.
The crisis reached its peak in September, triggered by the mortgage crisis, and becoming destructive with the crash of major financial institutions, thus increasing disharmony and distrust amongst the people of America. It went global with declines in international stock markets and decrease in the prices of commodities. There has been a massive credit crunch accelerating the catastrophe in liquidity.
The IMF has warned that there is a 25% chance of a global recession. The world’s financial firms may shoulder USD 1 trillion worth of losses from the credit crunch, Britain is particularly vulnerable and the growth rate of US for the next year may be at 0.5% to 0.6%, the house crash will get worse in US and Britain. Global financial deceleration remains a possibility.
The governments reinvesting in large amounts and the central banks have provided access to liquidity in swap lines. The IMF is lending to emerging countries that pre-qualify at little or no conditions. It also becomes vital for the government to counteract against the decline in consumption and investments. The current scenario is such that the interest rates are low, the monetary policies are limited but there is a wider space for credible fiscal expansion. The governments must inculcate a strong belief that they will implement it. This step could be a beginning to the end of the crisis.
SearchPooch.com
http://www.articlesbase.com/investing-articles/contemplating-the-crisis-722613.html
Categories: global crisis Tags:
