2 Fantastic Charts Show Gold May Quickly Surge $200

On the heels of continued downside pressure in the gold and silver markets, today top Citi analyst Tom Fitzpatrick spoke with King World News about what may cause a quick $200 surge higher in the price of gold. Fitzpatrick also sent King World News two fantastic charts. Below is what Fitzpatrick had to say both of his key charts.

Bad news for the US market – insiders are bailing out of its hottest stocks

There are ever more signs that the US stock market is getting frothy. So far this year, 192 companies have gone public in the US, according to the FT. Between them, they’ve raised $51.8bn – the highest level since 2000. Now, you could argue that many of these companies have better finances than those that came to market back in the days of the tech bubble. But what’s really troubling is that insiders seem very keen indeed to get out while the going’s good. We’re seeing a lot of what’s known as ‘busted lock-ins’ – and that’s not the only sign that the US is looking bubbly…

ECB's Mario Draghi denies Japanese-style deflation risk, drives euro even higher

Mario Draghi said the ECB is studying what happened in Japan at the onset of its Lost Decade in the 1990s, insisting that Europe is unlikely to go the same way

Europe repeating all the errors of Japan as deflation draws closer

The whole eurozone must have a higher inflation rate to lift the South far enough above the deflation line to gain breathing room

Eurozone M3 money plunge flashes deflation alert for 2014

Eurozone in danger of Japanese-style deflation that will cripple Club Med nations as money supply drops to record low levels

szewachnomics ajustado

szewachnomics ajustado

Brazil's real defence falters as Fed leaves emerging markets to their fate

Brazil's emergency intervention to shore up the real has already begun to unravel, prompting fears of fresh capital flight unless the government takes more radical action.

Saudis offer Russia secret oil deal if it drops Syria

Saudi Arabia has secretly offered Russia a sweeping deal to control the global oil market and safeguard Russia’s gas contracts, if the Kremlin backs away from the Assad regime in Syria.

Estonia becomes self-sufficient on shale gas boom

The Baltic tiger of Estonia is the world’s first country to meet all its power needs from shale, with enough left over for neighbours and fuel exports for the shipping industry.

Emerging market rout threatens wider global economy

The $9 trillion (£5.8 trillion) accumulation of foreign bonds by the rising powers of Asia, Latin America and the emerging world risks going into reverse as one country after another is forced to liquidate holdings to shore up its currency, threatening to inflict a credit shock on the global economy.

Poland's shale drive will transform Europe, if it does not drop the ball

The US Energy Department thinks Poland has enough shale gas to power the country for 300 years.

Greece becoming new Kosovo as youth jobless hits 65pc

Greek youth unemployment has soared to a record 64.9pc as the country’s downward spiral continues almost unchecked.

IMF crosses swords with Germany over crisis handling

The International Monetary Fund has exhorted Germany to stop dragging its feet on eurozone crisis measures, refuting claims that austerity is working and that Europe is on the road to recovery.

Investors euphoric as US margin debt reaches 'danger' levels

Fund managers are around the world are gripped by euphoria, convinced that America is in full recovery and Europe has overcome its debt crisis.

German euro founder calls for 'catastrophic' currency to be broken up

Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is "leading to disaster".

German bond yields hit record low after ECB rate cut falls short

The European Central Bank cut interest rates a quarter point to a record low of 0.5pc and threatened to punish banks for hoarding funds, but was faulted for doing too little to pull Europe out of deep recession.

Debt-crippled Holland falls victim to EMU blunders as property slump deepens

The eurozone’s slow suffocation is going Dutch. Each extra month of slump caused by Europe’s negligent authorities is pushing Holland closer to a debt-deflation trap.

Eurozone risks Japan-style trap as deflation grinds closer

The eurozone is one shock away from a Japan-style deflation crisis after a key measure of prices fell to the lowest since the launch of the single currency.

Italian showdown with Germany as Enrico Letta rejects 'death by austerity'

Italy’s new premier Enrico Letta is on a collision course with Germany after vowing to end death by austerity, and warned that Europe itself faces a “crisis of legitimacy” unless it charges course.

S&P sees deepening house slump in Spain, France and Holland

Spanish house prices are to fall a further 13pc by the end of next year as the authorities flood the market with a backlog of repossessed properties, Standard and Poor’s has warned.

Bundesbank declares 'war' on Mario Draghi bond bail-out at Germany's top court

Germany’s Bundesbank has issued a devastating attack on the bond rescue policies of the European Central Bank, rendering the eurozone’s key crisis measure almost unworkable.

Italy needs Churchillian leader to fight 'war damage' of EU austerity

Old ways die hard. Two months after Italian voters rebelled in fury against the establishment, the country’s elites have chosen yet another insider to be leader.

Cyprus bail-out vote stirs fresh jitters as slump fears grow in Europe

Cyprus has stunned EU officials by ordering a vote in its parliament on the terms of the EU-IMF Troika bailout for the country, risking a rejection by angry lawmakers and a fresh eruption of the crisis.

Francois Hollande faces austerity revolt from own ministers

French president Francois Hollande is facing an anti-austerity revolt from his own ministers as he pushes through a fresh round of tax rises and austerity to meet EU deficit targets.

Threat of 'wealth tax' on holiday homes

Britons who own homes in Spain and other troubled eurozone states could face a new "wealth tax" to help fund future bail-outs, influential German economists have suggested.

Portugal’s elder statesman calls for 'Argentine-style' default

Portugal's leading elder statesman has called on the country to copy Argentina and default on its debt to avert economic collapse, a move that would lead to near certain ejection from the euro.

Tobin Tax is madness for Europe, and economic war against Britain

France's experiment with the Tobin Tax has proved a spectacular flop. Its finance ministry admits that the scattershot levy on financial transactions has raised just a third of the money expected since August.

Vast Greek war claims against Germany explode like a 'time-bomb'

The Greek government is in disarray after the leak of an explosive report drawing up vast reparations claims against Germany, covering both the First and Second World Wars.

Portugal austerity plan frays, US loses patience with Europe

Fitch Ratings has warned that Portugal’s austerity plan risks unravelling after the country’s top court struck down wage cuts and lower pensions for state workers.

Portugal's top court has ruled out euro membership

Whether Portugal's judges realise it or not, they have just ruled that the eurozone doctrine of "internal devaluation" is unconstitutional.

Slovenia faces contagion from Cyprus as banking crisis deepens

Slovenia’s borrowing costs have rocketed over recent days as it grapples with a festering financial crisis, becoming the first victim of contagion from Cyprus.

Cyprus has finally killed myth that EMU is benign

The punishment regime imposed on Cyprus is a trick against everybody involved in this squalid saga, against the Cypriot people and the German people, against savers and creditors. All are being deceived.

Recycling, not mining, is the future for securing immediate PGM supply

Recycling, not mining, is the future for securing immediate PGM supply By JT Long The biggest new source for platinum group metals just might be what Jack Lifton calls "the rubber tire mine."

POLITICAL ECONOMY Navigating gold, silver legal tender isn’t for the faint of heart

While any state can pass a law declaring gold and silver as legal tender, no state government has yet to figure out how such a system will actually operate from day to day.

Cyprus and Money

It was a week of high-stakes drama for the euro zone. Last weekend saw Cyprus leaders and European officials agree to a “bail in” whereby bank depositors would be “taxed” to help pay for the cost of bailing out Cyprus’ troubled banking sector. Apparently, outflows from Cypriot banks had recently accelerated and the available supply of emergency ECB liquidity had about been exhausted. The EU would contribute 10bn euros to the bailout, with Cypriot depositors on the hook for 5.8bn euros. The levy (“haircuts”) on deposits below the 100,000 threshold unleashed a firestorm of condemnation heard around the globe.

Cyprus overhauls two biggest banks to stave off collapse

Cyprus will inflict losses of up to 40pc on large depositors but guarantee all deposits up to €100,000 in a plan to restructure its biggest banks and prevent the island’s economic collapse next week.

Japan breaks China's stranglehold on rare metals with sea-mud bonanza

Japanese scientists have found vast reserves of rare earth metals on the Pacific seabed that can be mined cheaply, a discovery that may break the Chinese monopoly on a crucial raw material needed in hi-tech industries and advanced weapons systems.

The dangerous drift towards world war in Asia

At ground zero in Hiroshima the inscription for victims of the world's first Atomic bomb is a pledge. We will never again repeat the evil of war.

Bank of Japan vows 'all means available' to smash deflation

The Bank of Japan's new governor Haruhiko Kuroda vowed to deploy "all means available" to end two decades of stagnation and kick-start economic revival, but insisted that there would be no attempt to steal a march on trade competitors by driving down the yen.

China's Gold Reserves: Watch What They Do, Not What They Say.

Yi Gang, Vice Governor of the People's Bank of China (PBOC), recently made the headlines with his comments on Chinese gold reserves. On Wednesday, Mr. Yi stated that China's gold reserves remain static at 1,054 tonnes, and suggested that a sizeable increase in those reserves would be unlikely in the future. "We need to take into account both the stability of the market and gold prices," Mr. Yi stated, adding that as the world's largest gold producer and importer, China produces about 400 tonnes of gold annually, and imports an additional 500 to 600 tonnes of gold every year. "Compared with China's 3.3-trillion-U.S.-dollar foreign exchange reserves, the size of the gold market is too small," Yi said, rejecting speculation that China would further diversify its foreign reserve investments into the precious metal. "If the Chinese government were to buy too much gold, gold prices would surge, a scenario that will hurt Chinese consumers ... We can only invest about 1-2 percent of the foreign exchange reserves into gold because the market is too small," Yi stated.

Is This The Email That Ended The Career Of JPM's Chief Risk Officer?

On October 2, 2012, news hit that Barry Zubrow, JPM's Chief Risk Officer from November 2007 to January 2012 (in other words, key supervisor of the risk onboarded by the CIO, aka JPM's prop trading desk, for the biggest part of its existence), and then briefly head of corporate and regulatory affairs, would retire from JPMorgan. As Bloomberg reported then, "Now is the right time in my life" to retire, Zubrow, 59, wrote to colleagues in a note today. "We have learned from the mistakes of our recent trading losses."

Five Reasons the Dow's New Highs Are "Bull-o-ney" and What to Do About It

While many investors want to celebrate the Dow hitting seven straight new all-time highs, things are not exactly as they appear. Today I want to talk about why the hoopla surrounding the Dow is misplaced and what that means for your money. Then, I want to offer a few thoughts on what's next for the markets. Let's start with the problems behind the Dow's numbers. There are a few things you should know:

Lehman clients in line to recoup £1bn

Administrators for Lehman Brothers’ estate will begin to return an estimated £1bn-plus of client funds for the first time next month, almost five years after the US investment bank collapsed.

Germany’s prudence is Europe’s poison

The spending cuts planned in Berlin by finance minister Wolfgang Schäuble to balance the budget a year early will make it impossible for others to grow

Japan cracks seabed 'ice gas' in dramatic leap for global energy

Japan has extracted natural "ice" gas from methane hydrates beneath the sea off its coasts in a technological coup, opening up a super-resource that could meet the country's gas needs for the next century and radically change the world's energy outlook.

Italy's companies face slow 'death' as credit crunch deepens

Italy's industry chiefs have warned that the country faces a "full credit emergency" as thousands of companies run out of critical funding, threatening a slide into deeper depression.

Sputtering global economy belies stockmarket boom

Asia's economic recovery is losing momentum and Europe's slump is proving deeper than expected, raising concerns that soaring stock markets globally have jumped ahead of economic reality.

Buy-Or-Sell - The Only Chart You Need

Earlier we noted the relative un-cheapness of the US equity market and its elevated expectations that seem just a little excessively hope-driven relative to any historical precedent. However, the decision still remains, do you buy moar here at the highs (as it's different this time) or cover/protect? The following chart, from Morgan Stanley, offers some insight into just how broadly 'expensive' this market is. Each time more than 45% of stocks have reached these valuation levels in the past 13 years, the market has decided enough is enough and shaken loose. But as we keep being told, it is different this time.

How Many Billions Of Drug-Laundered Money Does It Take To Shut Down A Bank?

It's an odd question, we know - especially ahead of today's Stress Tests, but given today's testimony on assessing the bank secrecy act, apparent trouble-maker Elizabeth Warren pokes and prods (correctly we would add) at the surreality that exists between the Department of Justice, The Treasury, and the financial system. David Cohen, Tom Curry, and Jerome Powell dodged bullets and blame, "does that mean essentially we have a prosecution-free zone for large banks in America?"

Congress Budget Cuts Damage U.S. Economy Without Aiding Outlook

President Barack Obama and congressional Republicans have stumbled into an approach to deficit reduction that inflicts the pain of economic austerity without the gain of addressing the long-term budget gap. Automatic spending cuts that began March 1, combined with tax increases enacted earlier this year, will depress U.S. economic growth by about half in 2013, according to government projections. At the same time, the spending cuts leave untouched the popular retirement and health benefits that both Obama and Republican leaders agree are the main drivers of the deficit.

Where will the oil price go next?

On 12 November last year, the International Energy Agency (IEA) declared that, thanks to 'fracking' - blasting dense underground rocks apart to release fossil fuels within - the US would overtake Saudi Arabia to become the world's biggest oil producer by 2017. You might have thought this would be extremely bearish for the price of light crude oil. Greater supply leads to falling prices, after all. Yet as it so often seems to, the reverse happened. Oil headed higher almost non-stop for more than two months after the announcement was made.

Is this the end of the line for gold?

As the FTSE pushes to five-year highs, gold has just had another torrid week. It is currently sitting just above $1,600, a level last seen in mid-2011 and some way off its peak. So, the key question for investors is this: is it time to declare it 'game over' and bail out of the precious metal?

The Great American Rebound Has Just Begun

The U.S. manufacturing renaissance is not just a fantasy - it is actually happening. Jobs that had been outsourced to China and elsewhere really are returning to the United States. Believe it or not, this "reshoring" already has reversed the long, steady decline of manufacturing jobs in the U.S. In fact, since 2010 America has added roughly 500,000 manufacturing jobs, an increase of 4.3%.

http://www.moneyweek.com/investments/stock-markets/emerging-markets/new-world-why-you-should-be-excited-about-mexico-62505?utm_source=newsletter&utm_medium=email&utm_campaign=Money%2BMorning

Compared to most of the developed world, post-financial crisis life has been good for those living ‘down under’ in Australia.

Why you should be excited about Mexico

Last Thursday an explosion at the headquarters of Mexico’s national oil giant ripped apart one of the country’s biggest skyscrapers and killed 36 people. It was a devastating event. And the rumour mills quickly sprung into operation. US geopolitical analysts Stratfor suggested that Mexico’s drug gangs may have played a role. And these stories were picked up by mainstream international news outlets, who began speculating who was behind the attack.

Trade protectionism looms next as central banks exhaust QE

Officials at the US Federal Reserve may be more worried than they have let on about the treacherous task of extricating America from quantitative easing. This is an unsettling twist, with global implications.

China loves the US dollar again as America roars back

China’s central bank has radically revised its view of US economic and strategic power, predicting that the dollar will remain the world’s paramount reserve currency for decades to come.

G20 currency truce shortlived as Japan mulls foreign bond buys

Japan’s premier has left the door open for outright purchases of foreign bonds to weaken the yen, a move that would risk a serious clash with the US and Europe and a fresh escalation in global currency tensions.

Germany's anti-euro party is a nasty shock for Angela Merkel

Political revolt against the euro construct has spread to Germany.

Eurozone risks Japan-style deflation trap as ECB stays tight

The European Central Bank has cut its eurozone growth forecast to minus 0.5pc this year and warned of glacially-slow recovery in 2014, but refused any fresh stimulus to mitigate the slump.

Italy’s Bersani on collision course with Germany and ECB over austerity

Italy’s Bersani on collision course with Germany and ECB over austerity

French and Italian debt chiefs warn on EU Tobin Tax

Officials in charge of managing French and Italian public debt have warned that Europe’s ‘Tobin Tax’ on financial trades risks damaging the sovereign bond market and may prove self-defeating.

Cypriot crisis deepens as 'haircut' fears drive capital flight

Capital flight from Cyprus has accelerated since eurozone politicians began threatening losses for bank depositors, and may have reached 12pc of the country's GDP over the last month.

Brave Ireland is the poster-child of EMU cruelty and folly

Ireland has done everything demanded by the EU’s creditor powers, and seemingly survived.

Anger builds in Italy as old guard plots fresh technocrat take-over

Italy’s president Giorgio Napolitano is exploring the creation of a second technocrat government to break the political log-jam and calm markets after key parties failed to reach an accord, risking a serious popular backlash.

EU 'Troika' rule in Ireland worse than British Empire

Ireland's trade union chief has accused the EU-IMF troika in charge of Irish austerity policies of tipping the economy into downward spiral and acting as an imperial oppressor.

ECB bond plan in jeopardy as Italy's voters reject conditions

Italy's electoral earthquake is “a catastrophe for the euro and the European Union”, according to Luxembourg’s foreign minister, Jean Asselborn.

Euro debt crisis looms again as Italians defy EU austerity demands

The eurozone’s debt crisis strategy was in chaos on Monday night after anti-austerity parties appeared on track to win a majority of seats in the Italian parliament, vastly complicating efforts to forge a government able to carry through EU-imposed reforms.

France freezes spending to hit EU targets as slump deepens

France is to freeze spending on defence, higher education and research in a frantic bid to meet European Union deficit targets this year, tightening fiscal policy yet further as the country slides into deep slump.

Global banks shun UK Gilts on 'stagflation' risk

A clutch of global banks and funds have warned clients to steer clear of UK Gilts, fearing that the Bank of England has opened the door to “stagflation” and risks losing credibility.

Twin crises in Italy and Spain stalk markets as political unrest prevails

http://www.telegraph.co.uk/finance/financialcrisis/9845938/Twin-crises-in-Italy-and-Spain-stalk-markets-as-political-unrest-prevails.html

Argentina Is First Nation Censured by IMF for Economic Data

Argentina became the first country to be censured by the International Monetary Fund for not providing accurate data on inflation and economic growth under a procedure that can end in expulsion.

Why There's No Real Inflation (Yet)

According to Milton Friedman, "inflation is always and everywhere a monetary phenomenon." If that is true, then you have to wonder where the heck all of the inflation is. Every central bank in the Western world is holding interest rates down, and almost all of them are printing money like it's going out of style. Five years ago, nearly every economist in the world would have told you this would cause inflation to skyrocket, and the big deficits governments were running would make matters even worse. Taken together, monetary and fiscal policies are far more extreme than they have ever been. Yet, inflation has remained rather tame at 2%. In Friedman's world that just wouldn't be possible. What does it all mean?.... It means even Nobel Prize-winning economists can get it wrong-at least in the short run. Here's why Friedman has been wrong on inflation so far. It starts with his basic theory.

Paul Krugman May Be the World's Last Flat Earth Economist

Nobel Prize-winning economist and New York Times columnist Dr. Paul Krugman is at it again. A favorite of the Keynesian crowd, he claimed earlier this week that fixing the deficit is important but added that "doing it now would be disastrous." He also observed that the 10-year U.S. debt situation isn't really all that bad. At least he's consistent. I'll give him that. For five years now Dr. Krugman has argued that increasing U.S. government spending is vital to our nation's recovery. And for five years he's been dead wrong. Since this crisis began, the United States has spent trillions...more money than any nation in history. In the process, it's gone from being the world's biggest creditor to the biggest debtor of all time. In fact, our national debt is now so high that people literally can't count the zeros. So most have thrown up their hands in exasperation and given up trying. Now, to be perfectly clear, I don't believe Dr. Krugman is stupid. Far from it - you don't win Nobel Prizes for being an idiot. However, I do believe that he's trapped in the past--an acolyte of sorts to failed economic policies and doctrine that dates to the 1930s. Some people, like University of Chicago Finance Professor John H. Cochrane, are more pointed, noting that if Krugman were a scientist, he'd be akin to a "flat-earther," an "AIDS-HIV disbeliever" or somebody who believes the continents don't actually move. This makes him very dangerous in the scheme of things because Dr. Krugman's solution is that "we" just haven't spent enough money...yet. I don't know how he can make that argument with a straight face.

IMF sees 140m jobs shortage in aging China as 'Lewis Point' hits

China’s vast reserve of cheap workers in the hinterland is vanishing at a vertiginous pace.

Twin crises in Italy and Spain stalk markets as political unrest prevails

The escalating political crises in Italy and Spain are being watched with growing concern by bond investors, fearful that both countries could slide into paralysis and lose the crucial backing of the European Central Bank.

Revolutionary Japan is suddenly the centre of world affairs

So Japan may not slide into genteel oblivion after all. To the surprise of the Japanese people, their country is smack in the middle of two riveting dramas that threaten to upturn the global strategic landscape in short order.

Italy risks political crisis as MPS bank scandal turns 'explosive'

Italian magistrates investigating losses at Banca Monte dei Paschi say the mushrooming scandal has taken a dramatic turn, with political fallout that threatens to rock the country’s elections next month and upset eurozone plans for a banking union.

Spain's crisis strategy under fire as economy buckles again

Spain’s economy has tipped into an accelerating downturn as sales data and the money supply flash serious warnings, calling into question Madrid’s high-risk strategy of refusing an EU-IMF rescue.

Mario Draghi confronts Berlin over contagion from Cyprus default

Leading European Union officials have warned Germany it would be a grave mistake to let Cyprus default or to impose losses on private creditors, fearing a repeat of errors made when Greece first flew out of control.

Russia shuns euro bonds on North-South rift, rotates into stocks

Russia has no intention of buying any more eurozone bonds and may start to run down its holdings, warning that it is far from clear whether monetary union can hold together.

David Cameron has one great ally: the people of Europe

Cherry-picking. Europe a la carte. And from Madrid, a finger-waving admonition that "David Cameron must understand he cannot pretend to renegotiate the treaties, and undo what we have done, or slow the speed of the EU cruiser."

Central bankers should be brought to heel by elected parliaments

Intellectual fashion is changing. Central bankers around the world no longer command the charisma of a high priesthood.

Britain becomes Germany's biggest trade partner as Berlin-London pact deepens

Britain has overtaken France to become Germany’s biggest global trade partner for the first time in the modern era, solidifying the emergence of a “special relationship” between Europe’s two like-minded northern powers.

What will happen to the oil price in 2013?

The US energy sector is undergoing a rapid change. It’s no exaggeration to describe it as a revolution. The nation’s ability to get at once-inaccessible shale oil and gas has sent energy production soaring. The US Energy Information Administration expects oil production to rise by 25% this year. And in less than a decade, America could overtake Saudi Arabia as the world’s top oil producer. This could have a major impact on everything from US industry to the strength of the dollar. It’s all very exciting. But it’s easy to get a little too carried away, particularly now that everyone knows about the ‘shale gas revolution’. Those expecting a future of cheap energy and collapsing oil prices are heading for a disappointment.

Every gold investor should watch these numbers like a hawk

This frustrating period of going nowhere continues for gold investors. 2013 continues in the vein of 2012. In the past week we've had a nice move from below $1,630 an ounce to $1,680. But that only leaves us flat on the year. Gold is being left behind by other markets. Can we expect more of the same for the rest of the year?

Seven Ways to Tell if Your Gold is Counterfeit

I had just finished a walking tour of the Royal Canadian Mint when I saw it. Right there, out in the open, was a 400-ounce bar of pure gold. It was chained to a display table and kept safe by an armed guard. At the time, in 2005, the bar was worth $220,000. Today, the same bar is worth $667,700. In just seven years, gold prices have jumped by 203%. But it's not the eternal fascination with gold that has boosted the price. With growing levels of worldwide uncertainties, mounting inflation risks and government distrust, people are clamoring for gold primarily as insurance. According to the World Gold Council, 2011 saw gold bars and coins reach nearly $77 billion in sales, versus 2002's $3.5 billion. And in November alone, the U.S. Mint's sales of the popular American Eagle coins jumped 131% in the wake of the election.

Why Inflation is the Economy's "Iceberg" in 2013

Even though Ben Bernanke's Fed has kept interest rates close to zero, inflation hasn't been a big problem since the 2008 financial crisis. Despite what many observers have expected inflation has remained quite tame. However in 2013, that may be about to change. One factor that might cause a surge in inflation is the fiscal cliff. That's because Bernanke is already buying $1 trillion of Treasury and housing agency bonds each year ($85 billion per month) against a budget deficit that is about the same level. That means the inflow of funds to the economy from the Fed and the outflow of money to fund the government's spending are about balanced. However, if we go over the fiscal cliff the Federal deficit immediately falls to about $300 billion per annum. At that point, Bernanke would be injecting an extra $700 billion a year into the economy - which would have a corresponding inflationary effect.

The real reason Germany wants its gold back from France

Germany wants its gold back. The German central bank, the Bundesbank, is laying out plans to bring a big chunk of the gold it has stored overseas back to Berlin. That’s a lot of gold. In absolute terms, only the US owns more gold than Germany. Why does this matter? Well, for one thing, it suggests the Bundesbank doesn’t trust other central banks to look after the country’s gold. But perhaps more importantly, it rather suggests that Germany has serious doubts about the ability of the euro to hold its value

China blazes trail for 'clean' nuclear power from thorium

The Chinese are running away with thorium energy, sharpening a global race for the prize of clean, cheap, and safe nuclear power. Good luck to them. They may do us all a favour.

Japan plans 'nationalisation' of factories to save industry

Japan's government is to take the unprecedented step of buying factories and machinery directly with taxpayer funds, the latest in a series of radical steps to lift the country out of its deep slump.

US lambasts China for breaches of trade rules

Washington has issued a blistering attack on China for persistent breaches of world trade rules and abuse of industrial secrets, accusing Beijing of failing to abide by treaty obligations.

Fitch expects 'Bond Bubble' carnage when rate cycle turns

The worldwide stampede into corporate debt over the past year has fuelled a “bond bubble” that threatens heavy losses for investors once interest rates spike up again, Fitch Ratings has warned.

World Bank fears fresh credit bubble in China on hot money flows

China and Asia’s tigers are roaring back to life and risk a fresh credit booms unless they can choke inflows of hot money, the World Bank has warned.

Asia's insatiable demand for coal plays havoc with climate goals

For greens, ecologists, and those convinced that CO2 emissions pose a grave threat to the planet, it is a nightmare coming true. The world is becoming more reliant on high-polluting coal, not less.

Japan's Shinzo Abe prepares to print money for the whole world

Japan’s incoming leader Shinzo Abe has vowed to ram through full-blown reflation policies to pull his country out of slump and drive down the yen, warning Japan's central bank not to defy the will of the people.

Could this be the trigger for a sterling crisis?

'Bubble' is one of those terms that gets bandied about rather liberally, with no one quite agreeing on what it means. Some say it's merely a rapid price rise, with a contraction to follow. Others say it's a rapid price increase, which bears no relation to underlying economic fundamentals. This creates an artificial market, meaning that rapid drops are inevitable. I like to define a bubble as “a bull market in which you don't have a position”. All three of these definitions could easily be applied to the US long bond (the 30-year Treasury) and UK gilts. So are these governments bonds in a bubble? And if so, when will it pop? And what will the consequences be?

Nine big predictions for markets in the year ahead

It’s that time of year when we look into our crystal balls, nod wisely and pronounce what will come pass. And this time next year, we offer excuses as to why it didn’t. Today, I’m going to make some specific predictions for 2013. 13 for 2013 is too many, so I am going to give you nine - nine’s my lucky number. Perhaps next year we can mark it: two points for a hit; one for a ‘nearly right’; nothing for a flunk. Most of these predictions are based around my current ‘big-picture’ theory, so I’ll start by giving you that…

2013 Eurozone Forecast: Why A Eurozone Breakup Is Now More Likely Than Ever

To the complete shock of several analysts, the Eurozone managed to make it through 2012 without breaking up. However, 2013 is another story. Now that Italy's Prime Minister Mario Monti has resigned, there's a good chance that Italy will be in the forefront of a new Eurozone crisis. That means 2013 doesn't look to be a good year for the euro, either-especially with new Italian elections likely to take place in February. Of course, the EU establishment hopes that Monti can remain in office, but with four very different candidates now jockeying for position, Italy is one of the continent's great question marks.

S&P sees deeper house price falls in eurozone as slump engulfs core

Europe’s housing slump is engulfing large parts of the eurozone core as recession deepens, with prices to keep sliding for another two years, Standard & Poor’s has warned.

Europe drawn into global currency wars as slump deepens

The world is edging closer to all out currency conflict as Europe’s politicians join a chorus of policy-makers across the globe pushing for devaluations to fight for market share.

French capital flight spikes as Hollande hits business

France suffered a surge of capital flight over the autumn as president Francois Hollande pushed through a raft of tax rises and stepped up his campaign against the rich.

Mario Draghi has saved the rich, now he must save the poor

The European Central Bank has washed its hands of any further responsibility for the 27m people across the eurozone listed as unemployed or classified as discouraged workers.

ECB rules out stimulus despite record jobless and fiscal squeeze

The European Central Bank has dashed hopes of further stimulus to pull the eurozone out of recession and fight record unemployment, deeming the economy strong enough to heal itself.

Irish house prices to fall another 20pc, warns Fitch

Irish house prices could fall a further 20pc and inflict stiff losses on holders of mortgage bonds, with a growing risk of property defaults across the eurozone periphery, according to Fitch Ratings.

Brussels fears 'poverty trap' for half of Europe as North-South gap widens

Unemployment in the eurozone jumped to a record high of 11.8pc in November as the region slid deeper into recession, with alarming rises across the Mediterranean that threaten extreme social distress.

Europe's dream of toppling dollar fades as Asian Tigers dump euro

The share of euros in the world’s rising powers’ reserve holdings has fallen to its lowest level since 2002, dashing hopes that the single currency will soon challenge the US dollar for global primacy.

Portugal warns EU-IMF troika to back off on austerity demands

Portugal's president has ordered a legal inquiry into the country’s austerity policies and threatened a showdown with creditors over the draconian terms of its EU-IMF bail-out.

Spain's house prices to fall another 30pc as glut keeps growing

Spain's property slump will deepen for much of the next decade, and tracts of buildings along the Mediterannean coast will have to be demolished, the country's top consultants have warned.

Doubts remain over Spain's austerity miracle

Spain has made dramatic strides in cutting labour costs and reviving exports since the debt crisis erupted, turning the country into the new poster-child of Europe’s austerity regime.