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Morning Market Roundup: German Prez Resigns, Italy Confiscates Billions in Fake U.S. Bonds

Here’s what’s important in the financial world this morning:

Germany: Germany’s president resigned on Friday amid a scandal over political favors, dealing a heavy blow to German Chancellor Angela Merkel in the midst of the debt crisis.

German President Christian Wulff, hand-picked by Merkel, gave a brief five-minute statement at the Bellevue presidential palace in which he said he had lost the trust of the German people, making it impossible for him to continue in a role that is meant to serve as a moral compass for the nation.

“For this reason, it is no longer possible for me to exercise the office of president at home and abroad as required,” Wulff said. After Wulff spoke, Merkel made a brief statement saying she regretted his departure.

Italy: Authorities in Switzerland have confiscated $6 trillion in counterfeit U.S. bonds at the request of Italian prosecutors, authorities said Friday.

In Italy, eight people were arrested across the country and placed under investigation for fraud and other crimes.

The bonds, carrying the false date of issue of 1934, had been transported in 2007 from Hong Kong to Zurich, where they were transferred to a Swiss trust, according to prosecutors in the southern Italian city of Potenza.

Authorities said that U.S. officials had confirmed the bonds were counterfeit.

Prosecutors said the fraud had not been completed, but that it appeared that the suspects intended to try to sell the fake bonds to a developing nation, directly or through an intermediary bank.

Recently, Carabinieri carrying out a routine search at a highway rest stop found a briefcase containing $20 billion in fake bonds.

U.S. Cost of Living: Consumer prices rose in January on higher costs for food, gas, rent and clothing. But economists downplayed the increase, saying “inflation will likely ease in the coming months as prices for raw materials level off.”

The consumer price index increased 0.2 percent last month, after a flat reading in December, the Labor Department said Friday.

Excluding volatile food and energy, so-called “core” prices ticked up 0.2 percent. A big reason for the increase was that clothing prices jumped 0.9 percent. Medical care, rent and tobacco prices also increased.

Car prices were unchanged, and airfares fell.

Core inflation over the past 12 months moved up to 2.3 percent – its highest point in more than three years. A steady rise in core prices could limit the Federal Reserve’s ability to take steps to boost the economy

Asia: Asian markets were higher in overnight trading with the Nikkei up 1.58 percent, Business Insider reports. Europe is higher on news that Greece may be closer to a bailout and U.S. futures are flat.

[Editor's note: portion of the above originally appeared on Wall St. Cheat Sheet. The Associated Press contributed to this report.]

Comments (22)

  • kevin
    Posted on February 17, 2012 at 2:03pm

    this is a crock of …. look at neil keenans lawsuit filed in the southern district court of n.y.these bonds were issued by the us in exchange for gold if the real truth were known everyone would go to jail icluding clinton ,bush,romney soros check the cease and desist orders that follow this lawsuit and then research the phillipines were the japs stored all the gold before ww2 the nwo is out of money the bric coalition no longer will take dolllars the suit filed 11/23 11 its mind blowing tthen read the end of finacial tyranny divinecosmos.com you want the truth? you cant handle the truth!

    Report Post »  
  • rsanchez1
    Posted on February 17, 2012 at 12:50pm

    This is completely ridiculous. How is the story on $6 TRILLION in fake bonds not making headlines all over national news? This is a scandal of epic proportions. To put it into perspective, the US National Debt is over $15 trillion. The amount of fake bonds confiscated amounts to ALMOST HALF OF THE US NATIONAL DEBT. It’s enough to pay off Medicaid, Social Security, and the wars, AND THEN SOME. How do you just happen to find $20 billion in fake bonds on a routine highway stop, those bonds coming from Hong Kong and going in to Switzerland? It would sound like the plot of a bad summer movie if it wasn’t true.

    Report Post »  
  • dnewton
    Posted on February 17, 2012 at 11:15am

    How can we or any other government have the moral authority to arrest anyone for counterfeiting ? After a while, it looks more like eliminating the competition than enforcing the law.

    Report Post »  
  • Mateytwo Barreett
    Posted on February 17, 2012 at 11:06am

    Us. authorities confirmed the bonds were fake. Bernake doin’ a little moonlighting??

    Report Post » Mateytwo Barreett  
  • KidCharlemagne
    Posted on February 17, 2012 at 10:52am

    “Authorities in Switzerland have confiscated $6 trillion in counterfeit U.S. bonds at the request of Italian prosecutors, authorities said Friday.”
    ==========================================

    What was Ben Bernanke doing in Switzerland? (LOL)

    Report Post »  
  • Ghandi was a Republican
    Posted on February 17, 2012 at 10:50am

    If only obama had an ounce of integrity…

    Report Post » Ghandi was a Republican  
  • inexiletill2012
    Posted on February 17, 2012 at 10:43am

    Today’s Stock Market Report:
    Helium was up
    Feathers were down
    Paper was stationary
    Fluorescent tubing was dimmed in light trading
    Knives were up sharply
    Cows steered into a bull market
    Pencils lost a few points
    Hiking equipment was trailing
    Elevators rose, while escalators continued their slow decline
    Weights were up in heavy trading
    Light switches were off
    Mining equipment hit rock bottom
    Diapers remain unchanged
    Shipping lines stayed at an even keel
    The market for raisins dried up
    Coca Cola fizzled
    Caterpillar stock inched up a bit
    Sun peaked at midday
    Balloon prices were inflated
    And, Scott Tissue touched a new bottom

    Report Post » inexiletill2012  
  • ChiefGeorge
    Posted on February 17, 2012 at 10:39am

    Gas at the pump yesterday in Socal where I normally go for the best deal was $4.01.

    Report Post » ChiefGeorge  
    • Baddoggy
      Posted on February 17, 2012 at 10:44am

      You will be longing for 4.00 gas very soon my friend.

      Report Post » Baddoggy  
  • cloudsofwar
    Posted on February 17, 2012 at 10:38am

    as greece go‘s so go’s the rest of europe. then the USA. everybody defaults then a new world order. thats the plan.

    Report Post »  
  • Baddoggy
    Posted on February 17, 2012 at 10:36am

    My question is to you…What are we going to do when the dollar crashes and is worthless? How do we plan on getting our troops home? Someone tell me how!! I know you think that could never happen becuse you are foolishly thinking we are still a superpower that is immune from a global collapse.

    When your Son or Daughter is trapped in a foriegn land and cannot get home because we are broke, don’t say I didnt warn you.

    Wake up Sheeple!

    Report Post » Baddoggy  
    • ChiefGeorge
      Posted on February 17, 2012 at 10:43am

      US military transports will still fly them out on strategic oil reserves if need be. Don’t forget we can refuel in mid-air as well. The fuel can be brought into the areas that need it via KC-135′s, pumped into thirsty C-5′s C-47′s, C-130′s and haul em home. Your scenario is made for TV fictional viewing. Now if the world goes nuke then its another story or if an EMP goes off over the US.

      Report Post » ChiefGeorge  
    • Baddoggy
      Posted on February 17, 2012 at 11:00am

      And you think the strategic reserves will still be available? We are talking a barter system form of world order. Our troops will be bought out by some countries with “trinkets” to stay and defend them.

      An EPM would make anyone with a gun very powerful. It would take out all of our air support and most ground support too. Confusion and viloence would rule in most countries.

      Report Post » Baddoggy  
    • hidden_lion
      Posted on February 17, 2012 at 5:48pm

      It would be smash and grab time. They would just take the supplies required, like in the ancient times.

      Report Post » hidden_lion  
  • hauschild
    Posted on February 17, 2012 at 10:28am

    One would have hoped Germans – of all people – would have learned that allowing progressives to rule a country for any length of time is a recipe for disaster; financially or genocidally.

    Report Post »  
    • cloudsofwar
      Posted on February 17, 2012 at 10:43am

      does man ever learn? soon as one progressive dies(adolf hitler) two more rise to take his place. hitler and his men learned well from our early 20th century progressives. now the progressives have taken over our government. progressives are evil and i hope we can make some changes this fall or else.

      Report Post »  
    • hauschild
      Posted on February 17, 2012 at 1:17pm

      No, some men will never learn because they refuse to understand their limitations.

      Progressives and liberals have a difficult time with logic when it comes to human nature. For some reason, they feel it shouldn’t apply to men, and when that happens, you get each ensuing generation thinking they’re “smarter” than the previous, and will be able to do things differently because of this. Even though there are scores of data that indicate people are generally getting dumber with each new generation.

      Report Post »  
  • Stoic one
    Posted on February 17, 2012 at 10:28am

    http://www.usdebtclock.org/index.html

    this also shows world debt.. this is more food for thought than day to day. what is the burden on our backs thanks to these politicians worldwide

    Report Post » Stoic one  

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