Australian dollar dumped on EU worries
From: AAP
November 10, 20117:14AM
THE Australian dollar has fallen more than US 2 cents on the leadership crisis in Greece, and record highs for Italian bonds.
Talks to form a unity government in Greece faltered overnight, with the major parties unable to agree on who should lead the country.
Talks to secure a new leadership and agree on a debt bailout have been ongoing for three days, after Prime Minister George Papandreou stood down on Monday.
Talks have now been put on hold until tonight.
Meanwhile, Italian 10-year bonds reached yields of 7.4 per cent, a record high, despite Prime Minister Silvio Berlusconi's agreement to resign yesterday.
Fears Italy may be coming closer to insolvency were reflected in European markets, which continued to drop after the announcement.
US stocks have also responded, with the Dow Jones Industrial Average recently down more than 400 points.
At 06:30 AEDT this morning, the Australian dollar was trading at $US1.016, down from $US1.0362 yesterday.
Interesting how a week ago Berlusconi was arrogantly clinging to power, personal wealth and Hookers !
This mess is far from over. Greece's debt is half of what Italy's is, and only half of Greece's actual debt default has been propped up. This is just the fuse that has been lit. Italy owes around 2.5 trillion and then of course you have Uncle Sam at a debt of close to 15 trilion. Why do you think Silvio has done the bolt from politics? He is probably down at his bank trying to draw out whatever he can before the doors are closed permanently.
People just don't get it, this is not a world financial crisis unfolding that has origins commencing this year, 2008 or 1980. We are talking decades of borrowing, poor monetary management and controls, succesive governments putting their heads in the sand and clicking their heels saying 'it will be ok, I know it will be ok'!
Some things
cannot be saved or repaired, the current crisis reflects that. Research Germany 1920 - 1923, superb example. Also research the Nixon era. When Nixon became President in 1969 he and others had no idea that on the surface the US economy looked sound, lower interest rates and lots of jobs, but the Nam war was raging, masking the underlying perilous state of the USA economy.
Anyway, enough said, plenty of great data out there worth studying. But Obama is the new puppet in this. He had no true inkling of what actually lurked beneath Wall Street and the Fed when he took power. Obama received a political death sentence the day he was elected and did not even know it.
Remember - Finance, economies and money are cyclic, just like weather patterns. And they cycle approximately every 36 years, we are now at around 40 years since the last major economic malfunction which melted down around 1971 -73, remember a little thing called 'seperating the gold standard from the dollar value'? That was one contributing factor.
Top it off and you have that nupty Gillard offering to assist Greece with a few billion of our own dollars (somebody fire up the printing press, we need more money to send to Greece because we certainly don't have that sitting in the bank, hang on, let's borrow it from China, everybody else does!), which is ludicrous, the party is over folks, Greece
will still default, and when it does what will the Carbon Queen do then - find money to send to Italy, then America?? Swanny is obsessed with a budget surplus, fool. All that is is a smoke and mirrors pony show, surplus is a terminology to pyschologicaly fool the Australian public into thinking we are debt free, we aren't. We are racking up debt at a rate of $100 million per day, fact. Having a surplus does not mean we don't have massive debt squirrelled away in another corner of the room.
Finally, remember the USA pulling it's troops out of Nam starting around 1973? Why? America was broke. Sound familiar, Obama started pulling troops out of the middle east around 12 months ago with the program escalating recently? Why? America is broke. It is all cyclic my friends. Problem is that this time the problem is on a scale never before seen in history. The deck of cards is falling, brace for impact.