MFGlobal Update

[bduke]

James Gidden, the trustee in charge of liquidating MFG and returning
money to customer accounts has stated they may be unable to mass
transfer funds above 3.8 billion.... 72%.

Gidden also said they could face a legal battle with MFG's UK subsidiary in
London Eng where more than $700 million may be held.

I believe the UK has no limit on hypothecation leverage limits.

Here is the link to Reuter's story.

http://www.reuters.com/article/2012/01/12/us-mfglobal-customers-
idUSTRE80B1CV20120112

FYI... Bill

[parsley]

Opposition party in Hungary is loudly beating EU
secession drum on the weekend. Might be the
beginning of a trend. Pars

[bduke]

Parsley... I am not familiar with Hungary, although I have read a few headlines.

Seems to me their currency, the forint, is devaluing against the Euro...which is also
devaluing.

Their debt is downgraded to junk status... below investment grade...and,apparently,
they take out many consumer loans in Swiss francs... costing even more.

I think their government has recently changed the constitution.

Times are tough in Hungary and I don't know why leaving the EU would help them.

I would have thought a free trade zone would be beneficial to a country rebuilding
an export base.

Please educate me on the reason Hungary's opposition party is considering
exiting the EU.

Cheers... Bill

[parsley]

They basically do not consider that the Ei has
made their country better; they consider losing
their sovereignty to other nations unacceptable;
economic downturns usually result in general
citizen dissatisfaction; and lastly, the opposition
party view secession as an election issue that has
some wheels. Pars

[Kathy]

Cent Eur J Public Health. 2011 Sep;19(3):158-64.

Geographic accumulation of Creutzfeldt-Jakob disease in Slovakia--environmental metal imbalance as a possible cofactor.

Slivarichová D, Mitrová E, Ursínyová M, Uhnáková I, Koscová S, Wsólová L.
SourceDepartment of Prion Diseases, Slovak Medical University, Bratislava, Slovak Republic. dana.slivarichova@szu.sk

Abstract
Slovakia is characterised by an unusually high number of patients affected by genetic Creutzfeldt-Jakob disease (CJD) with E200K mutation at the PRNP gene. Penetrance of the mutation is incomplete (59%). Therefore, for the onset of the clinical manifestation, an influence of other endo- or exogenous factors could not be excluded. Experimental data suggest that copper and manganese levels may play an important role in the pathogenesis of prion diseases. The highest number of Slovak genetic CJD patients originates from Orava - the northern region of central Slovakia. Manganese is a dominant pollutant in Orava. The objective of this study was to clarify a possible exogenous influence of environmental Mn/Cu imbalance on the CJD clustering. Mn and Cu levels were analysed in the brain tissue of genetic CJD cases (from Orava and from control regions of Slovakia), as well as of sporadic CJD patients and controls. Analyses demonstrate i) significantly higher Mn level in focally accumulated, "clustering" genetic CJD cases in comparison to all other groups, ii) Cu status differences between compared groups were without statistical significance; decreased concentrations were found in genetic cases from extrafocal genetic CJD areas, iii) Mn/Cu ratios were increased in all CJD groups in comparison to controls. Metal ratios in clustering gCJD cases were significantly higher in comparison to sporadic cases and also to controls, but not to the extrafocal genetic CJD subgroup. These results indicate that more important than increasing Mn level in pathogenesis of CJD appears to be the role of the Mn/Cu imbalance in the CNS. The imbalance observed in the cluster of genetic CJD cases is probably a result of both: the excessive environmental Mn level and the disturbance of Mn/Cu ratios in the Orava region. Presented findings indicate an environmental Mn/Cu imbalance as a possible exogenous CJD risk co-factor which may, in coincidence with endogenous (genetic) CJD risk, contribute to the focal accumulation (cluster) of genetic CJD in Slovakia.

PMID:22026293

[bduke]

Parsley... I looked into Hungary's situation a little.

Hungary is a real mess.

Gyurcsany, the socialist leader, had lied to the public about the state of
Hungary's economics in 2006.

The tapes of his admission were leaked and played on radio stations.

The centre-right Fidez party won hugely in 2010.

The Fidez government pushed through some reforms with their two thirds
majority.

These measures became in effect Jan 02, 2012 and reshape government, the
judiciary and the media.

Critics say democracy is being killed.

The European Commission issued a final warning to the current government to
modify or face formal legal action.

The opposition socialists are hoping the Euro Commission will force an
election, and are campaigning against Hungary's EU membership.

Notice the irony!!

Remember, the goal of socialists is to gain power... not credibility.

Does the name Dalton McGuinty resonante?

Cheers... Bill

[parsley]

A view that I read twice:

http://the-diplomat.com/2012/01/14/china-get-
ready-for-turbulence/

[bduke]

Thanks Parsley.... a good read. My thoughts and opinions follow.

The writers, Dumas and Choyleva, state "the death of American economic primacy
are exaggerated, as are the expectations of future Chinese dominance".

Notice there are no time lines. I agree this is unlikely in within the next 10 years,
but doubtful thereafter.

Regarding the undervaluation of the yuan by being pegged to the $US...

I agree that QE 2 back doored China's reluctance to float its currency, this was
a side effect I have written about previously.

I also have stated that Quantitative Easing is a defensive monetary manipulation to
counter deflation, the US greatest concern.

The writers also state that China's 46% investment to GDP ratio is too high.

I believe this investment is the result of central planning, i.e. the cities that are
being built, and still idled, for the many peasants that will be relocated.

China is increasing farm sizes and productivity to alleviate its food shortage
for its growing population. A growing population with increasing incomes.

Apparently they still have many millions of people to move off of their acreages.

Building urban centres is probably also an employment program.

To summarize.... The authors believe the US will contain its indebtedness and restore
its industrial base.

This re-investment will take years and billions of $'s.. and new leadership IMHO.

The authors also expect "turbulent times" in China.... not sure whether they are
referring to economics, citizen unrest, government disharmony, or any combination.

China has implemented trading in counter party currencies, and its tolerance for
disruptions is low.

Whether China can contain inflation and continually suppress citizen upheavals will
be a challenge, as it will for many countries.

I think the key is to have a growth rate above its inflation rate, and combined
with its heavy handed authoritarian intolerance for unrest, it will progress.

I could be wrong.

Cheers... Bill

[buzz]

Is Germany the only major European economy that seems to be well run and managed?

9 countries had credit downgrades?

[bduke]

Buzz... Germany is the largest and currently a very strong economy.

Switzerland fixed its currency to reduce the demand on the Swiss franc,
indicative of a strong country and sound management.

The Scandinavian countries have fairly high tax rates, but most are between
40% and 48% debt to GDP.

Norway has net oil exports of approximately 2 million barrels per day,
and the lowest unemployment of these countries.

However, the down grades to which you refer are not insignificant.

I think France is the second largest economy of the Eurozone, and Italy is third.

IMHO the root causes of the indebtedness is cost of buying votes.

Power tends to trump responsibility, and eventually the compounding effect
of both election promises and electorate "entitlements" become unsustainable.

The effect of long term pain for short term gain.

I could be wrong..... Bill

[grassfarmer]

The Netherlands, Finland and Luxembourg all still
have AAA ratings in addition to Germany.