Who Goes Next: Portugal Or Slovenia - The Forensic Take -

Who Goes Next: Portugal Or Slovenia - The Forensic Take - 


The troubles in Cyprus have set off a new examination of the health of the eurozone, with a particular focus on which country might be next in line for a bailout and the extent to which shareholders and depositors will take losses when banks fail (bail-ins). As UK think-tank, OpenEurope notes, much of the attention has settled on two countries. Portugal, which has been propelled back into the headlines, with the country’s constitutional court recently ruling against some of the government’s EU-mandated budget cuts. Secondly, Slovenia, which is facing a massive banking crisis, in turn providing another potential testing ground for the eurozone’s vaguely defined ‘bail-in’ plans. OpenEurope provides a quick run-down of the key points to watch in each country.



Portugal




Domestic demand, government spending and investment are contracting sharply, leaving the country heavily reliant on uncertain export growth to drive the economy.
By cutting wages and costs at home (internal devaluation), Portugal has in recent years improved its level of competitiveness in the eurozone relative to Germany. However, this trend actually started to reverse sharply in 2012, meaning that the divergence between countries such as Portugal and Germany has begun growing again – exactly the sort of imbalance the eurozone is seeking to close.
In its austerity efforts, Portugal is now coming up against serious political and constitutional limits. For the second time, the country’s constitutional court has ruled against public sector wage cuts – a key plank in the country’s EU-mandated austerity plan – while the previous political consensus in the parliament for austerity has evaporated.
In combination, it will be increasingly difficult for Portugal to sell austerity at home and consequently to negotiate its bailout terms with creditor countries abroad.
Portugal may well need some further financial assistance before long. It is unlikely to take the form of a full second bailout, but could involve use of the ECB’s OMT, assuming Portugal can return to the markets fully beforehand (even briefly).


Slovenia


Slovenia is not Cyprus – in fact it is much more like Spain. Its banks are significantly undercapitalised with toxic loans now standing at 18% of GDP. Banks only have provisions to cover less than half the potential losses resulting from these loans.
At the same time, a heavily indebted private sector is now desperately trying to get debt off its books, which alongside continued austerity and lack of investment, have caused growth to plummet.
Though a full bailout is unlikely, the country could soon need an EU rescue package worth between €1 billion and €4 billion (between 3% and 11% of GDP) to help restructure the country’s bust and mismanaged banks.
Such a plan is likely to include losses for shareholder (bail-ins) but, unlike in Cyprus, it may not hit large (uninsured) depositors and there will be no attempt whatsoever at taxing smaller (insured) depositors.

Read more - 

http://www.zerohedge.com/news/2013-04-11/who-goes-next-portugal-or-slovenia-forensic-take

Bras Make Breasts "Saggier", 15-year French Study Reveals -

Bras Make Breasts "Saggier", 15-year French Study Reveals - 


Women have long been told that a good bra can help support the chest, relieve back pain and prevent sagging.  However, a new 15-year French study reveals the opposite: bras do little to reduce back pain and, over time, they can actually make breasts sag even more.
Researcher Prof. Jean-Denis Rouillon, a sports science expert from the University of Besançon in eastern France claims that "bras are a false necessity," according to The Local.

"Medically, physiologically, anatomically - breasts gain no benefit from being denied gravity," said Rouillon. "On the contrary, they get saggier with a bra."
Rouillon and his team spent years measuring the changes in the breasts of 330 women using a simple slide rule and caliper at the Centre Hospitalier Universitaire (University Hospital) in Besançon, where he carried out his research.
He found that no evidence that bras helped ease back pain. Instead, he found that the chest supports could even add to the problem.
According to The Connexion, the findings suggest that breasts would gain more tone and support themselves if no bra was used.  Researchers explain that bras limit the growth of supporting breast tissues, leaving the breast to wither and degrade more quickly.
The study found that women who took off their bras for good experienced a 7mm lift in their nipples each year they didn't wear a bra.  Researchers also found that bra-less women developed firmer breasts and saw their stretch marks fade.
Some of the women who took part in Rouillon's study told France Info that not wearing a bra helped ease their back pains.
Capucine, a 28-year-old participant in Rouillon's study, swears by the results and hasn't worn a bra for two years.
"There are multiple benefits: I breathe more easily, I carry myself better, and I have less back pain," Capucine said, according to France Info.
However, Rouillon says the findings do not mean all women should throw away their bras.
"It would be dangerous to advise all women to stop wearing their soutien-gorge as the women involved were not a representative sample of the population," Rouillon said, according to The Connexion.
While his initial results "validated the hypothesis that the bra is a false 'need'," he says that women who have been wearing bras for a long time would not gain any benefit from stopping now.

Read more -

http://www.counselheal.com/articles/4852/20130411/bras-make-breasts-saggier-15-year-french-study-reveals.htm

Barbie Chihuahua: New Mexican Barbie Carries Passport, Sparks Outrage -

Barbie Chihuahua: New Mexican Barbie Carries Passport, Sparks Outrage - 


A new Mexican Barbie in Mattel’s “Dolls of the World” series has sparked outrage for what opponents argue is an offensive depiction of Mexican culture.

According to Fox News Latino, the new line of Barbie dolls was launched to appeal to a more “diverse generation” of customers and boasts a number of dolls from Latin America. But the Mexican Barbie, its newest addition, sparked a particular backlash when journalist Laura Martinez mocked it on her blog, writing, “The folks over at Mattel are so smart, that not only they have come up with a Mexican Barbie, but they have given her all the possible tools to go around the U.S. the world undisturbed [sic].”

By “tools,” Martinez was referring not to the Barbie’s fiesta dress and pet Chihuahua, but more specifically, to the passport and sticker sheet she came with. “It is not for me to inform you about the ‘play value’ that a passport provides, so go ahead! Play with your Barbie Mexicana and don’t even think of calling her indocumentada,” Martinez wrote.

Read more -

http://www.ibtimes.com/barbie-chihuahua-new-mexican-dolls-world-barbie-carries-passport-sparks-outrage-1186077

Why Are The Banksters Telling Us To Sell Our Gold When They Are Hoarding Gold Like Crazy? -

Why Are The Banksters Telling Us To Sell Our Gold When They Are Hoarding Gold Like Crazy? - 


The big banks are breathlessly proclaiming that now is the time to sell your gold.  They are warning that we have now entered a “bear market” for gold and that the price of gold will continue to decline for the rest of the year.  So should we believe them?  Well, their warnings might be more credible if the central banks of the world were not hoarding gold like crazy.  During 2012, central bank gold buying was at the highest level that we have seen in almost 50 years.  Meanwhile, insider buying of gold stocks has now reached multi-year highs and the U.S. Mint cannot even keep up with the insatiable demand for silver eagle coins.  So what in the world is actually going on here?  Right now, the central banks of the world are indulging in a money printing binge that reminds many of what happened during the early days of the Weimar Republic.  When you flood the financial system with paper money, that is eventually going to cause the prices for hard assets to go up dramatically.  Could it be possible that the banksters are trying to drive down the price of both gold and silver so that they can gobble it up cheaply?  Do they want to be the ones sitting on all of the “real money” once the paper money bubble that we are living in finally bursts?

Over the past few weeks, nearly every major newspaper in the world has run at least one story telling people that it is time to sell their gold.  For example, the following is from a recent Wall Street Journal article entitled “Goldman Sachs Turns Bearish on Gold“…

Another longtime gold bull is turning tail.

Investment bank Goldman Sachs Group Inc. said Wednesday that gold’s prospects for the year have eroded, recommending investors close out long positions and initiate bearish bets, or shorts. The shift in outlook was the latest among banks and investors who have soured on gold as its dozen-year runup has been followed by a 12% decline in the last six months.

Goldman began the year predicting gold would decline in the second half of 2013, but said Wednesday the drop began earlier than expected and doesn’t appear likely to reverse. Like others, the firm said the usual catalysts that have been bullish for gold during its run are no longer working.

Major banks over in Europe are issuing similar warnings about the price of gold.  The following is from a Marketwatch article entitled “Sell gold, buy oil, Societe Generale analysts say“…

Analysts at Societe Generale predict in a note Thursday that gold prices will fall below $1,400 by the year’s end and continue heading south next year.

They cite two main reasons:

1.  Inflation has so far stayed low and now investors are beginning to see economic conditions that would justify an end to the Fed’s quantitative easing program.
2.  The dollar has started trending higher, which should make gold prices move lower as the physical gold market is extremely oversupplied without continued large-scale investor buying.

And even Asian banks are telling people to sell their gold at this point.  According to CNBC, Japanese banking giant Nomura is another major international bank that has turned “bearish” on gold…

Nomura forecast gold prices will fall in 2013, on Thursday, becoming the latest bank to turn bearish on the precious metal which has been a favorite hedge for investors who fear aggressive monetary stimulus will lead to rising inflation.

“For the first time since 2008, in our view, the investment environment for gold is deteriorating as economic recovery, rising interest rates and still benign Western inflation (for now) will likely leave some investors rethinking their cumulative $240 billion investment in gold over the past four years,” wrote Nomura analysts in a sector note on Thursday.

A lot of financial analysts are urging people to dump gold and to jump into stocks where they “can get a much better return”.  They make it sound like it is only going to be downhill for gold from here.  The following is from a recent CNBC article entitled “Gold’s ‘Death Cross’ Isn’t All Investors Are Worried About“…

Gold is flashing the “death cross” but the bearish chart pattern is not the only thing scaring investors.

The magnetic appeal of a rising stock market has pulled some investment funds away from the yellow metal. Since the beginning of the year, stocks are up nearly 7 percent and gold is down nearly 6 percent.

But if gold is such a bad investment, then why are the central banks of the world hoarding gold like crazy?

According to the World Gold Council, gold buying by global central banks in 2012 was at the highest level that we have seen since 1964…

Worldwide gold demand in 2012 was another record high of $236.4 billion in the World Gold Council’s latest report. This was up 6% in value terms in the fourth quarter to $66.2 billion, the highest fourth quarter on record. Global gold demand in the fourth quarter of 2012 was up 4% to 1,195.9 tonnes.

Central bank buying for 2012 rose by 17% over 2011 to some 534.6 tonnes. As far as central bank gold buying, this was the highest level since 1964. Central bank purchases stood at 145 tonnes in the fourth quarter. That is up 9% from the fourth quarter of 2011, and the eighth consecutive quarter in which central banks were net purchasers of gold.

This all comes on the heels of decades when global central banks were net sellers of gold.  Marcus Grubb, a Managing Director at the World Gold Council, says that we are witnessing a fundamental change in behavior by global central banks…

Central banks’ move from net sellers of gold, to net buyers that we have seen in recent years, has continued apace.  The official sector purchases across the world are now at their highest level for almost half a century.

Meanwhile, insiders seem to think that gold stocks are actually quite undervalued right now.  In fact, insider buying of gold stocks is now at a level that we have not seen in quite some time.  The following is an excerpt from a recent Globe and Mail article entitled “Insider buying of gold stocks surges to multi-year highs“…

The TSX global gold index has lost about a third of its value over the past two years. The S&P/TSX Venture Exchange, stock full of gold mining juniors, hit a multi-year low this month.

Yet, executives and officers who work within those businesses are showing remarkable confidence that the sector is poised for better times.

In addition, the demand for physical silver in the United States seems to be greater than ever before.  According to the U.S. Mint, demand for physical silver coins hit a new all-time record highduring the month of February.

And demand for silver coins has not abated since then.  Just check out what has been happening in April so far…

The US Mint has updated April sales statistics for the first time since last week, and to no surprise, the Mint again reported more massive sales, with another 833,000 silver eagles reported sold Monday!   The April total through 6 business days is now 1.645 million ounces, bringing the 2013 total to a massive 15.868 million ounces.  In response to the continued massive demand for silver eagles, the mint also has begun rationing sales of silver eagles to primary dealers resulting in supply delays!  Just as was seen in January, tight physical supplies have seen premiums on ASE’s skyrocketing over the weekend and throughout the day, as ASE’s are rapidly becoming as scarce as 90%!

Something does not appear to add up here.

I also found it very interesting that according to Reuters, Cyprus is being forced to sell most of their gold reserves in order to help fund the bailout of their banking system…

Cyprus has agreed to sell excess gold reserves to raise around 400 million euros (341 million pounds) and help finance its part of its bailout, an assessment of Cypriot financing needs prepared by the European Commission showed.

So exactly who will they be selling that gold to?

And I also found it very interesting to learn that Comex gold inventories have been falling dramatically over the last few months.  The following is from a recent article by Tekoa Da Silva…

A stunning piece of information was brought to my attention yesterday. Amid all the mainstream talk of the end of the gold bull market (and the end of the gold mining industry), something has been discretely happening behind the scenes.

Over the last 90 days without any announcement,stocks of gold held at Comex warehousesplunged by the largest figure ever on record during a single quarter since eligible record keeping began in 2001 (roughly the beginning of the bull market).

In particular, something very unusual appears to be happening with JP Morgan Chase’s gold…

JP Morgan Chase’s reported gold stockpile dropped by over 1.2 million oz.’s, or rather, a staggering $1.8 billion dollars worth of physical gold was removed from it’s vaultsduring the last 120 days.

So what does all of this mean?

I don’t know.  But I would like to find out.  Someone is definitely up to something.

Meanwhile, the central banks of the globe seem determined to put their reckless money printing into overdrive.

For example, the Bank of Japan actually plans to double the monetary base of that country by the end of 2014 as a recentTime Magazine article described…

On Thursday, the new governor of the Bank of Japan (BOJ), Haruhiko Kuroda, announced that the central bank would double the monetary base of the country — adding an additional $1.4 trillion — by the end of 2014 in an attempt to end the deflation plaguing the economy. To achieve that, Kuroda will buy government bonds and other assets to inject cash into the economy — what has now become familiar as quantitative easing, or QE — to bump inflation up to a targeted 2%. The plan is part of a greater strategy ushered in by new Japanese Prime Minister Shinzo Abe to restart the economy through massive fiscal and monetary stimulus. It also expands on the efforts by theFederal Reserve, Bank of England and European Central Bank to stimulate growth and smooth over financial turmoil by infusing huge sums of new money into the global economy.

Many in the western world have been extremely critical of this move, but the truth is that we actually started this “currency war”.  The Federal Reserve has been recklessly printing money for years, and even though we are now supposedly in the midst of an “economic recovery”, the Fed is actually doing more quantitative easing than ever.

Anyone that thinks that gold and silver are bad investments for the long-term when the central banks of the world are being so reckless should have their heads examined.

However, I do believe that gold and silver will experience wild fluctuations in price over the next several years.  When the next stock market crash happens, gold and silver will go down.  It happened back in 2008 and it will happen again.

But in response to the next major financial crisis, I believe that the central banks of the globe will become more reckless than anyone ever dreamed possible.  At that point I believe that we will see gold and silver soar to unprecedented heights.

Yes, there will be huge ups and downs for gold and silver.  But in the long-term, both gold and silver are going to go far, far higher than they are today.

So what do you think will happen to gold and silver in the years ahead?  Please feel free to post a comment with your thoughts below…

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http://theeconomiccollapseblog.com/archives/why-are-the-banksters-telling-us-to-sell-our-gold-when-they-are-hoarding-gold-like-crazy