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  • “Nobody understands debt (but me)”

    Alexander Gloy

    Luckily they are easy to spot: the demagogues, the manipulators and the hired claqueurs. Unfortunately, there is no lack of media willing to provide a platform to perform their insidious game. Take Nobel-prize wielding economist Paul Krugman. In an article for the New York Times (“Nobody understands debt”) from January 1, 2012, he writes: “Through…

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  • Inside Job at the SNB?

    Alexander Gloy

    The official version: “Enormously dedicated” SNB chairman Philipp Hildebrand purchases 500,000 USD days before he devalues the Swiss Franc by 10%. This plain-vanilla spot currency transaction becomes “water cooler” story at Bank Sarasin (which wouldn’t even open accounts below 1 million minimum deposit). An IT employee takes pictures of incriminating documents, briefly weighs the consequences…

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  • Sales of gold and silver coins soaring at the US Mint?

    Alexander Gloy

    An article by Bloomberg “Gold Traders Most Bullish After Bear Market Averted” grabbed my attention; not because of the headline, but what was buried in the text: “The US Mint sold 45,500 ounces of American Eagle gold coins this month, compared with 65,500 ounces in the whole of December and 41,000 in November, its website showed.”…

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  • The 2-product, 2-customer wonder called Australia

    Alexander Gloy

    Australia is the sixth-largest country (2.9m square miles) on earth, just a tad smaller than the contiguous United States (3.1m). They are a little short on people (22.8m), which comes handy, since they dig up their entire country and sell the dirt to China. Australia has a remarkably low government debt-to-GDP ratio (29% ), low unemployment…

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  • The ghost of the Bundesbank haunting the halls of Brussels

    Alexander Gloy

    In his book “More money than God”, Sebastian Mallaby describes how George Soros received a signal from Helmut Schlesinger (president of Bundesbank at that time), to go ahead and speculate on a devaluation of the Italian Lira and the British Pound. Germany had enjoyed a boost from the integration of Eastern Germany, which, partially due…

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  • The (Euro) answer, my friend, is showing in the bond market

    Alexander Gloy

    Politicians and non-elected maquinistas are still trying to figure out how to make the still-borne EFSF (European Financial Stability Facility) walk, or better, fly. A month after the “miracle of Cannes”, the trumpets of victory over the debt crisis have fallen silent. Instead, the first EFSF bond issue after the G20 summit ended up in…

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  • The Euro Fiasco Suicide Formula (EFSF)

    Alexander Gloy

    There is one simple rule for investors: avoid all things beginning with “Euro-“. Eurotunnel ended in bankruptcy. Eurodisney was a disaster for public shareholders. And so the Euro itself is following the same path. “Euro” birds European politicians are faced with one problem: none of their plans to end Europe’s debt crisis has worked. Absolutely…

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  • Mystery solved: ECB can’t afford the Greek barber shop

    Alexander Gloy

    Whenever you come across a mystery in finance there always is an explanation. Like the question why the ECB would so ferociously resist any “haircuts” on Greek debt. Despite all the evidence that current debt, now expected to peak at levels exceeding most calculators’ capacity, is unsustainable. Why would the ECB, the largest single holder…

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