Italy

Germany’s Role in Europe and the European Debt Crisis

January 31, 2012 (Vietnamica) — The German government proposed last week that a European commissioner be appointed to supplant the Greek government. While phrasing the German proposal this way might seem extreme, it is not unreasonable. Under the German proposal, this commissioner would hold power over the Greek national budget and taxation. Since the European Central Bank already controls the Greek currency, the euro, this would effectively transfer control of the Greek government to the European Union, since whoever controls a country’s government expenditures, tax rates and monetary policy effectively controls that country. The German proposal therefore would suspend...

CFR: World Bank Lowers Global Growth Forecast

January 18, 2012 (Vietnamica) — In its biannual report, the World Bank cut its global growth forecast for 2012 to 2.5 percent from 3.6 percent, while warning that a likely recession in the eurozone (Bloomberg) could accelerate a slowdown in developing countries. The report, which comes days after rating agency Standard and Poor’s downgraded nine eurozone countries, cites market fears over European sovereign debt contagion (WSJ) as undermining global economic growth.

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New Greek Crisis “Biggest Risk for Gold”, Bank of England “Has Left Door Open” for More QE, Goldman Sachs says “Long Gold Position Recommended”

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Italy

Germany’s Role in Europe and the European Debt Crisis

CFR: World Bank Lowers Global Growth Forecast

Markets “Comfortable Again with Gold”, Euro Falls After “Soft” Italian Debt Auction

Gold’s Appeal “Undiminished” as China Blocks High-Yield Savings, Euro-Debt Auction Succeeds “Thanks Only” to ECB Money

Euro-Gold Makes “Impulsive Move Higher”, Silver Breaks $30/Oz, as “Growth Replaces Inflation” as #1 China Worry

Gold “Could Be Weak but Volatile” to End of Year, “Large Scale Liquidity” Required to Restore Confidence to Markets