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Sunday, 7 August 2011

G7 Preparing Statement To Support Dollar, EU, In Fact Everything That Would Otherwise Collapse Tomorrow, Before Asia Open -

G7 Preparing Statement To Support Dollar, EU, In Fact Everything That Would Otherwise Collapse Tomorrow, Before Asia Open - 
G7 finance ministers (L to R) Canadian Finance Minister Jim Flaherty, French Finance Minister Christine Lagarde, German Finance Minister Peer Steinbrueck, Japanese Finance Minister Fukushiro Nukaga, Italian Economy and Finance Minister Tommaso Padoa-Schioppa, British Chancellor of the Exchequer Alistair Darling, U.S. Treasury Secretary Henry Paulson and Luxembourg Prime Minister and chairman of the Eurogroup Jean-Claude Juncker pose for a group picture during the Group of Seven Finance Ministers' and Central Bank Governors' Meeting at Mita Kaigisho on February 9, 2008 in Tokyo, Japan. The major topic of the meeting is to discuss measures against the slowdown of global economic crisis, IMF reform and global warming prior to G8 Summit in July this year.
Just out from Bloomberg: Finance ministers and central bankers are preparing a statement to release before the open of Asian markets, the Nikkei newspaper reported, without citing anyone. Japan may intervene in currency market if dollar falls. G-7 finance ministers, central bankers expected to express confidence in dollar, pledge liquidity. U.S. to explain fiscal rebuilding efforts." [so no more sniping at S&P and actually doing its job eh?] "Japan to express intention to maintain Treasury holdings. G-7 expected to show support for EU fiscal efforts." And while the G7 is about to realize that when faced with a $100 trillion (equities plus debt) market onslaught its printing powers are next to laughable, Dow Jones reports that the "ECB is weighing Italian, Spanish bond buying on a massive scale." Two take homes: i) the Fed has just lost its competitive advantage of doing idiotic things on a massive scale as the world wake up to tits trickery (unless of course the Fed resumes said thing on a massiver scale, which it will), and ii) tomorrow is the day when the infinite force of central planning meets the immovable object of capital markets. We will find out who blinks first in a few hours.


Read more -
http://www.zerohedge.com/news/g7-preparing-statement-support-dollar-eu-fact-everything-would-otherwise-collapse-tomorrow-asia

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