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

January 13, 2012 (Vietnamica) — Spot market dollar gold prices dipped to $1637 an ounce Friday morning London time – a 1.4% fall from Thursday’s high – as the Euro fell against the Dollar following a successful-yet-disappointing Italian bond auction.

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Stratfor’s Annual Forecast 2012

January 12, 2012 (Vietnamica) –There are periods when the international system undergoes radical shifts in a short time. The last such period was 1989-1991. During that time, the Soviet empire collapsed. The Japanese economic miracle ended. The Maastricht Treaty creating contemporary Europe was signed. Tiananmen Square defined China as a market economy dominated by an unchallenged Communist Party, and so on. Fundamental components of the international system shifted radically, changing the rules for the next 20 years.

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Rhetoric versus Reality at the ECB

Rhetoric versus Reality at the ECB

December 22, 2011 (Vietnamica) — Throughout this crisis, the European Central Bank has stuck to the mantra that its job is to ensure price stability above all else. It has, for example, objected to suggestions that it might fund the European Financial Stability Facility, the Eurozone’s ‘temporary’ bailout mechanism that now looks like it may hang around a bit longer than first anticipated (whether it will have much money to lend to troubled Eurozone governments is another matter).

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

December 20, 2011 (Vietnamica) — Spot market gold prices climbed to $1608 an ounce Tuesday lunchtime in London – a 2.8% gain from last week’s low – while stocks and commodities traded higher, with the exception of the FTSE in London which fell lower.

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Majority of EU Member States to Establish Landmark “Fiscal Compact”

December 11, 2011 (Vietnamica) — European leaders agreed to establish a new “fiscal compact” by means of an intergovernmental agreement late Dec 8 after 10 hours of talks. The United Kingdom will remain outside the agreement, which will seek to improve fiscal stability and economic co-ordination between its signatories.

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