World economy talk

[uls]

check this out

amazing

coincidence or what?

here's what Dubai will be like when it implodes

[ame="http://www.youtube.com/watch?v=N9FEJkMUERw"]YouTube- Video Game Awards 2009 - Mystery World Premiere Teaser 1 | HD[/ame]

http://www.spike.com/video/vga-2009-mystery/3293856

Video game portrays post-apocalyptic Dubai
http://www.telegraph.co.uk/finance/b...tic-Dubai.html

A trailer for an upcoming game, Mystery World by the American company 2K, has been posted on the internet and shows the "shooter" character in army gear looking out over a landscape with bodies hanging from lamp-posts and dust swirling among half-empty buildings.

The scene is clearly Dubai – the backdrop contains the Burj Dubai, the world's tallest building, and the Burj al-Arab, its signature sail-shaped hotel. The images match some of the "worst-case" scenarios portrayed by foreign newspapers for Dubai's future – a portrait angrily rejected by the city itself.

[uls]

RE Black Friday shopping

US consumers still shopping less

UPDATE 4-US shoppers spent less over Black Friday weekend
http://www.reuters.com/article/COMSR...40861120091130

SAN FRANCISCO/CHICAGO, Nov 29 (Reuters) - U.S. consumers
spent significantly less per person at the start of the holiday
season this weekend, dimming hopes for a retail comeback that
would help propel the economy early in 2010.

The lackluster spending could pressure retail stocks on
Monday as some investors were looking for a stronger showing
compared with a year earlier, when consumers were being
hammered by the recession and credit crunch.

[tidus1203]

Risk appetite is back

USD weaker against all major currencies

USD/JPY 86.23

EUR/USD 1.05065

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Nakheel Seeks Sukuk Suspension Until Further Information
http://www.bloomberg.com/apps/news?p...02zYTXyA&pos=2

Typo hehehe EUR at 1.050 I will unload all my USD if such is the case!

[uls]

hehe

sorry for the typo

1.50 dapat

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from Dubai World's press release:

Dubai, 30 November 2009: Dubai World (“Dubai World”) and its subsidiaries (the “Group”) would like to update their lenders on recent developments relating to their debt obligations.

Following a detailed review of the Group’s liquidity and capital structure, Dubai World has concluded that it should immediately consider alternatives in respect of the debt obligations of certain entities within the Group.

The proposed restructuring process will only relate to Dubai World and certain of its subsidiaries including; Nakheel World and Limitless World. The process will not include Infinity World Holding, Istithmar World and Ports & Free Zone World (which includes DP World, Economic Zones World, P&O Ferries and Jebel Ali Free Zone), all of which are on a stable financial footing.

The total value of debt carried by the companies subject to the restructuring process amounts to approximately US$26 billion, of which approximately US$6 billion relates to the Nakheel sukuk.

Dubai World says it will restructure $26B of debt

so that means Dubai sovereign won't bail out Dubai World

good

[uls]

There's news the BOJ will hold a special meeting today

market is thinking intervention

JPY falls

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++++++++++++++++++++

[tidus1203]

There's news the BOJ will hold a special meeting today

market is thinking intervention

JPY falls

Good thing I already took my profits on the Yen pero even before target ko na was around 85.60 to the USD which I told myself to get out na if ever it prints that number. Even got a .25 Yen cent bonus!

[uls]

Japan QE

http://www.reuters.com/article/marke...12847320091201

TOKYO, Dec 1 (Reuters) - The Bank of Japan said it would pump more cash into the banking system after an emergency meeting that it called on Tuesday in the face of political pressure to help fight deflation and avert recession before upper house polls next year.

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gold nears $1,200



USD index

[leonleon]

gold nears $1,200

Scary, but at the same time exciting turn of events. I wonder what's in store for 2010?

[uls]

2010 will be exciting

we're gonna see some sovereign defaults

hehe

--

more on BOJ meeting

http://online.wsj.com/article/SB1000...435315170.html

At an emergency meeting Tuesday, the BOJ adopted a new lending program to provide 10 trillion yen ($115.69 billion) worth of funds for three months at a rock-bottom rate of 0.1%, taking in exchange a wide range of collateral from government bonds to deeds on loans. But the bank stopped short of lowering its key policy rates, also at a low 0.1%.

[uls]

gold passes $1,200

[tidus1203]

2010 will be exciting

we're gonna see some sovereign defaults

hehe

--

more on BOJ meeting

http://online.wsj.com/article/SB1000...435315170.html

They are going to run the printing presses. But as we know in Japan from more than a decade of deflation, running the printing presses won't help stop deflation.

[Monseratto]

Rosenberg: Gold Going to $2600 Thanks to China

Gold has finally surpassed the $1200/oz mark.

But it may be going much higher. China is going to increase its holdings signficantly, according to Breakfast With Dave, Gluskin Sheff's analyst newsletter with David Rosenberg.

So significantly, in fact, that gold could hit $2623/oz in the near future.

From Breakfast With Dave:

Gold just capped off its best month in a year — up 14% in November and 34% so far in 2009. Not even the S&P 500 can compete with that. Helping drive the latest gains was the news out of the China Gold Association that the country’s gold demand is on pace this year to exceed 450 metric tonnes, a 14% increase over the 395.6 tonnes in 2008. (In contrast to India, jewelry sales are up double-digits in China so far this year.) By way of comparison, China, which recently surpassed South Africa as the world’s largest producer, is on its way to 310 tons of newly mined output this year, or more than 30% below its level of demand.

It’s not just the middle-class in China that is starting to buy gold, but the central bank, which has very deep pockets, is going to do likewise. We just came across a Bloomberg News article quoting an official from the state-owned Assets Supervision and Administration Commission (Ji Xiaonan, the Chief) as saying “we recommend China increase its gold reserves to 6,000 metric tons within three-to-five years and possibly to 10,000 tons in eight to 10 years.” China’s reserves, after a 76% buildup since 2003, currently stand at 1,054 tons, so we are talking here about the prospect of some pretty heaving buying in coming years.

If China were to lift their gold reserves to 5,000 tonnes, which is equivalent to about two years of global production, that shift in demand would boost the gold price by $800/oz to around $2,000 ($1,978) based on our models. If China moves towards 10,000 tonnes, well, that would end up taking the gold price to $2,623/ounce if our calculations are in the ball-park.

Make no mistake, we are gold bulls...

http://finance.yahoo.com/tech-ticker...&asset=&ccode=

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gold $1,210

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North Korean govt screws its people

comes out with new banknotes

old banknotes made useless

North Korea 'in process of redenominating currency'
http://news.bbc.co.uk/2/hi/asia-pacific/8388642.stm

North Korea is believed to be in the process of redenominating its currency, the won.

Experts believe the move, which would knock two noughts off the nominal value of each banknote, is economically and politically motivated.

The information comes from North Korean traders in north-eastern China, next to the border with the Communist state.

The news, carried in a media report, has not yet been confirmed by Pyongyang - or by the South Korean government.

But if true, North Korean banknotes will lose two noughts, meaning a 1,000 won note ($7:£4.2) will now be worth just 10 won.

Reports say North Koreans reacted quickly when they heard the news - they tried to convert their local cash on the black market into Chinese yuan and US dollars.

Experts say the move is aimed at tackling inflation in the impoverished country.

But there could also be a political motive. North Koreans will have to exchange their old notes for new ones - in the process, the government will be able to find out just how much cash is around.

That information could help officials strengthen their control over ordinary people.

N. Korea's official media silent about currency reform
http://english.yonhapnews.co.kr/nort...03500315F.HTML

SEOUL, Dec. 2 (Yonhap) -- North Korea remained silent to the outside world over its reportedly drastic currency revaluation while locally implementing the reform through municipal propaganda channels, a local aid group with inside sources said Wednesday.

North Korea's official media has yet to announce the currency revaluation that reportedly took effect on Monday. In a second-hand confirmation, diplomatic missions in South Korea said their counterparts in Pyongyang received an "oral briefing" on the revaluation on Tuesday.

"North Korea is disseminating the news of its currency reform through 'Third Broadcasting' to inform the residents," Lee Seung-yong, a lead staffer with Good Friends, a Seoul-based aid group that has sources inside North Korea, said.

Third Broadcasting refers to a North Korean municipal network that disseminates internal information for residents within individual towns or counties. Residents listen to the broadcasts through speakers installed in homes, farms and public buildings, with content involving mostly lectures praising the North Korean leader Kim Jong-il, government notices and sometimes music and readings of historic novels.

"Central broadcasts are not carrying the news, but the revaluation continues being disseminated to the people," Lee said. "I don't know why they are not making an announcement to the outside world."

The media's silence was in contrast to their usual custom of making an official announcement on the day that past currency reforms took effect, with the latest case in 1992.

North Korea sharply raised the value of its currency, with a 100 to 1 exchange rate for new denominations, in an apparent bid to tackle inflation and curb free market trading, according to various sources here and in China. A kilogram of rice was set at 44 won at state-run markets in the North's 2002 economic reform, but the price has now spiked to 2,500 won in free markets, according to Good Friends.

Shops, public bathhouses and restaurants in the North were mostly closed, the aid group said, and public anger has mounted over the sudden reform that rendered old denominations into "useless paper overnight."

The aid group said the maximum amount of the new currency allowed for exchange was limited to 100,000 won per household.

North Korea revalues currency, destroying personal savings
http://www.washingtonpost.com/wp-dyn...120101841.html

TOKYO -- Chaos reportedly erupted in North Korea on Tuesday after the government of Kim Jong Il revalued the country's currency, sharply restricting the amount of old bills that could be traded for new and wiping out personal savings.

The revaluation and exchange limits triggered panic and anger, particularly among market traders with substantial hoards of old North Korean won -- much of which has apparently become worthless, according to news agency reports from South Korea and China and from groups with contacts in North Korea.

[tidus1203]

Thats the problem with paper everything is reliant on government kapag gold it will never lose its value regardless the government falls or does $**T like NoKor.

[uls]

yep

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notice today in Asia trading, gold went above $1,210 eventhough the USD didnt show dramatic weakness against other major currencies

gold is THE momentum play

oil is totally boring

[uls]

David Rosenberg on gold, foreign central bank purchases, peak gold production, global fiat currency production, the overcrowded short dollar trade, and more gold

[ame="http://www.youtube.com/watch?v=YPz-wbeEAG4"]YouTube- David Rosenberg on Gold[/ame]

[uls]

fiat currency FAIL

'Widespread Anger' as N.Korea Limits Currency Exchange
http://english.chosun.com/site/data/...120300331.html

North Koreans are allowed to exchange only between 100,000 to 150,000 won in old bills into new ones at a rate of 100:1, according to sources in the communist country. The money is being exchanged at nationwide branches of North Korea's central bank until Sunday, and the new bills are expected to begin circulating Monday.

Once the currency revaluation is completed, North Koreans who have grown wealthy through trade will only be able to retain between W100,000 and W150,000 in cash, and the rest of their savings will be confiscated.

According to the Network for North Korean Democracy and Human Rights and other organizations supporting defectors, the middle class in the North have saved up around W1 million per household, while some of the wealthy have up to tens of millions of won stashed in their closets. In North Korea, 100,000 won is enough to support a family of four for around two months. On the black market, it can be exchanged into $35 or $40. Many North Koreans sell goods in the markets in order to add to their meager salaries, which range from 4,000 to 10,000 won.

Sources in North Korea say people have been told that money above the individual exchange limit must be deposited in banks, but the state also limits individual deposits to between 300,000 to 3 million won, and people are not allowed to freely withdraw money from their accounts. This has apparently stoked tremendous anger.

During the last currency reform in 1992, authorities permitted each person to deposit up to 20,000 won in the bank, but they were later allowed to withdraw only a few thousand won. Many were unable to withdraw any money at all.

According to DailyNK, an online newspaper with informants in the North, each person is allowed to exchange up to 100,000 won into new bills, while money in excess of that limit is being exchanged at a rate of 1,000:1 or has to be deposited in bank accounts. Sources in North Korea said any large sum of money being deposited in a bank account will prompt authorities to track the source, so people are avoiding this.

It is unclear whether authorities will cut the price of goods to match the new currency or modify the exchange rate as well.

With economic uncertainty rising, prices of goods in the markets have reportedly soared between 10 to 20 times. Rice, which used to be around 2,000 won per kilogram, has soared to 40,000 won, while the cost of a block of tofu has jumped from 500 to 10,000 won.