If you are following the tangled web details of Obamacare, there are some excellent sources of information. ProPublica, for example, is a shining light in a stormy sea of corrupt, partisan and sleazy media. The latest from ProPublica asks the obvious question: How many people are actually going to make Obamacare payments by Dec 23? The answer isn’t pretty. With two weeks to go, only about 10% of the 1.2 million “sign ups” appear to have actually paid for insurance. People can sign up in any month, but enrollment periods will create gaps in coverage.
The concept du jour driving the carry trade into every form of bubble and fictitious capital in the world is the yen carry trade. It is even more extreme in yen/euro terms. This one has been in place throughout 2013 but of late has pushed to an even more lopsided short position. Everybody wants in, and the Bank of Japan should dare to disappoint this crowd. The risk of this trade will be a giant cost of money spike and Japanese stock market and global equity collapse.
Lately we’ve been seeing some yahoo holes being reported that have been ignored by the “market.” We saw them Tuesday with Midas Gold (24.9% held by Vista), and we got them from another firm with a solid deposit under its belt: Almaden (AAU). At its 100% held Ixtaca project, the company hit 30.9m at an 8 g/t Au Eq grade two weeks ago. It then announced 101m of Au Eq at 4.2 g/t on Nov. 28. It is increasingly apparent that Almaden is picking up higher grade but shallow depth dykes in the formation.
I just cannot believe the extent to which the U.S., and even Europe to some degree, has been denutted its foreign policy in the last year or so. That’s what happens when they start handing out the “Rogue Nation” buttons. U.S. policy in Central and Southwest Asia is a disaster. Russia, India and China are running rings around the U.S. Although it isn’t going without a fight, it appears the West just lost the Ukraine economically to Russia. U.S. reactions are desperate because the Petrodollar is going down. Example: Flying a B-52 over Chinese airspace.
Vista (VGZ) owns 24.9% of Midas (MDRPF). The “market” currently values VGZ’s share of MAX at $20 million U.S. (@63 cents). Midas reported outstanding step-out drilling results Tuesday. Given the proximity to the surface, these would have to be considered yahoo holes. The “market” totally ignored this drilling report. The story on Midas — a very large Idaho deposit called Golden Meadows — can be gleaned here and the project economics are shown on the second chart.
One of the old and ongoing offside carry trades that can no longer be swept under the rug is borrowing cheap in euros, and to some degree Swiss francs, in order to effect carry trade or real estate speculation in non-euro countries in central and eastern Europe (CEE).
The following chart shows that the great majority of loans made to the non-banking sector in a half dozen of those countries were euro carry trades. This makes paying off these loans very problematic when the euro appreciates against the local currency. Yes, gente, those rotting fish loans are still around, a lot like the old HELOCs loans in the U.S. that will be reset [see “Billions of HELOCs to Reset“].