U.S. Treasury Secretary: Prepare for Prolonged Turmoil
September 18th, 2007Does anyone understand the French connection here?
Via: Times Online:
Investors should brace themselves for a prolonged period of market turmoil, Henry Paulson, the US Treasury Secretary, said yesterday as he held emergency meetings with the Chancellor and the French Finance Minister.
Mr Paulson flew to London to discuss the financial crisis with Alistair Darling as markets remained in the grip of anxieties over the continuing toll from the global credit squeeze.
Speaking after talks with his counterparts in France and Britain, Mr Paulson insisted that the global economy remained strong despite the seizures in interbank lending, but admitted that the American economy would take a knock from the turmoil.
After meeting Christine Lagarde, the French Finance Minister, Mr Paulson said: “It will take a while to work through the turbulence in capital markets.â€
My guess is that Lagarde, who used to be the Trade Minister, is still mondo upset with how the strengthening Euro has put the Frogs into a world of hurt (Boeing, for instance, is kicking some serious Airbus ass) while the Krauts are sitting in the catbird seat — serious trade competitiveness issues, don’tcha know. There were even rumours earlier this year of France readying stocks of franc (non-Euro) currency. Keep in mind, y’all, that the Euro is only 6 years old. Also, there’s pressure probably being put on France to accelerate its sales of gold under the Central Bank Gold Agreement that ends in Sept of 09.
But hell, we peons can only guess what our masters are up to. pookie’s just trying to get her worm farm going and is critically assessing cow pies these days.
Oh yeah, I’m waiting for the central-bank-gold-dump to hit at any moment. You can almost feel it.