Community Views : What’s on the boards today….6th Dec 2010

6th December 2010

The Daily Telegraph

"The International Monetary Fund has called on the EU authorities to boost their rescue fund and step up bond purchases to insure against a fresh financial crisis in the eurozone periphery."

hospitaller comments: "This gets sillier with each passing day. The IMF was set up with funds from developed countries to stabilise the economies of developing countries, but now vast resources are proposed to stabilise the economies of the countries that fund the IMF in the first place! This is like a man trying to lift himself up by pulling on his own ears. Its just bloody stupid. I have no faith at all in these idiots, it is only a matter of time before the circus tent collapses on the clowns sawing away at the tent poles."

The Daily Telegraph

"Bondholders in Allied Irish Bank are preparing to sue the Irish state over losses they expect to be forced to take, in a move that may imperil attempts by the government to raise fresh funds next year."

jimfish thinks: "i sound like a broken record but ireland really should have defaulted when they had the chance. they will now suffer all the ramifications of a default anyway but with the added loss of political sovereignty. ireland…who does the IMF represent? how are they appointed? who are they accountable to? who's interests are their primary concern?"

The Daily Telegraph

"The Royal Bank of Scotland has advised clients to take out protection against the risk of a sovereign default by China as one of its top trade trades for 2011. This is a new twist."

graeme_b comments: "At some point the China miracle will come crashing down. Probably there will be a panic relatively soon, and it could be very bad, but I reckon there'll be a last spurt of growth after this (before demographics drag the middle kingdom down). China still has the potential to do more hi-tech and become a larger consumer – that's what I'll be betting on if a buying opportunity presents itself in the near future."

The Guardian

"Gordon Brown has warned the next decade could be remembered as the "decline of the west" if it fails to grapple with the challenge of the rising Asian powers"

Viljax says: "Broadly speaking, Brown is right. We can't make things cheaper than the Chinese, we can't do service industries cheaper than the Indians, and the trades within the EU will always be done cheaper by those who learnt the trades in the east. We need a dynamic, educated workforce. The coalition's education policy will certainly not provide one. By the time the Tories work this out, China will be dominant."

The Motley Fool

The Motley Fool community are discussing the implications of QE in the UK

The Big Picture

"The Economy Fed Chairman Bernanke On The Economy. Fed Chairman Ben Bernanke discusses pressing economic issues, including unemployment, the deficit and the Fed's controversial $600 billion U.S. Treasury Bill purchase"

bear_in_mind says: "If that interview was meant to build confidence, in my estimation he failed miserably. While I found his rhetoric predictably stale, his overt nervousness and stammering were quite striking. Given the frequency he's in front of the media, such as testifying in front of Congress, it's hard not deduce a whiff of panic in his delivery."

While the Daily Telegraph are concentrating on Bernanke admitting the possibility of QE3 in the US:  

mark fowler comments: "Vast money creation reduces the value of savings and incomes etc leading to a reduction of economic activity. Much of this cash is used to buy up commodities before they even exist, even if it does not end up in general circulation it leads to the inflation of necessities."

The Wall Street Journal emphasise Bernanke's confidence that inflation can be prevented.

"Federal Reserve Chairman Ben Bernanke took his message into American homes Sunday evening, defending the central bank's bond-buying program and pledging his "100%" confidence he could prevent runaway inflation."

Peter Marlow writes:"Bernanke 'is "100%" confident he can prevent runaway inflation.' Hahahaha! THIS from the man who 100% missed the greatest global financial crisis in 80 years!? Tomorrow, I will RUN, not walk, to my closest silver dealer and buy as many silver coins as possible. BEWARE America. Ben Bernanke is on a warpath to debase the US dollar; to enrich his bankster masters; and to destroy the nation's middle class. PROTECT yourselves. Convert as many of your Federal Reserve Notes as possible into physical silver and gold. Ben Bernanke–thank God–cannot print silver and gold."

Seeking Alpha

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