Showing posts with label antena3.ro. Show all posts
Showing posts with label antena3.ro. Show all posts

Saturday, April 18, 2015

More about BIS from "The Tower of Basel" an excellent book..

"The BIS is a unique institution: an international organization, an extremely profitable bank and a research institute founded, and protected, by international treaties. The BIS is accountable to its customers and shareholders—the central banks—but also guides their operations. The main tasks of a central bank, the BIS argues, are to control the flow of credit and the volume of currency in circulation, which will ensure a stable business climate, and to keep exchange rates within manageable bands to ensure the value of a currency and so smooth international trade and capital movements. This is crucial, especially in a globalized economy, where markets react in microseconds and perceptions of economic stability and value are almost as important as reality itself.The BIS also helps to supervise commercial banks, although it has no legal powers over them. The Basel Committee on Banking Supervision, based at the BIS, regulates commercial banks’ capital and liquidity requirements. It requires banks to have a minimum capital of eight percent of risk-weighted assets when lending, meaning that if a bank has risk-weighted assets of $100 million it must maintain at least $8 million capital. The committee has no powers of enforcement, but it does have enormous moral authority. “This regulation is so powerful that the eight percent principle has been set into national laws,” said Peter Akos Bod. “It’s like voltage. Voltage has been set at 220. You may decide on ninety-five volts, but it would not work.” In theory, sensible housekeeping and mutual cooperation, overseen by the BIS, will keep the global financial system functioning smoothly. In theory....The BIS is now the world’s thirtieth-largest holder of gold reserves, with 119 metric tons—more than Qatar, Brazil, or Canada. Membership of the BIS remains a privilege rather than a right. The board of directors is responsible for admitting central banks judged to “make a substantial contribution to international monetary cooperation and to the Bank’s activities.” China, India, Russia, and Saudi Arabia joined only in 1996. The bank has opened offices in Mexico City and Hong Kong but remains very Eurocentric. Estonia, Latvia, Lithuania, Macedonia, Slovenia, and Slovakia (total population 16.2 million) have been admitted, while Pakistan (population 169 million) has not. Nor has Kazakhstan, which is a powerhouse of Central Asia. In Africa only Algeria and South Africa are members—Nigeria, which has the continent’s second-largest economy, has not been admitted. (The BIS’s defenders say that it demands high governance standards from new members and when the national banks of countries such as Nigeria and Pakistan reach those standards, they will be considered for membership.)"

Wednesday, December 11, 2013

Agreement among the WTO’s 159 member economies

Ministers meeting in Bali sealed agreement among the WTO’s 159 member economies for the pact, which eases barriers to trade by simplifying customs procedures, limiting agricultural subsidies, and promoting trade with least-developed nations. 
The deal could boost global trade by $1 trillion and create 20 million new jobs, keeps alive the WTO’s broader 12-year marathon Doha Round of trade negotiations designed to reduce international tariff barriers, well ...I've just found out that governments from the United States to Australia and from Canada to the EU are secretly negotiating trade deals that will give global corporations the right to sue our governments and overturn our laws.
Details have leaked out on what is called the Trans Pacific Partnership (TPP) and the Transatlantic Trade & Investment Partnership (TTIP) that will massively expand the power of corporations to sue our governments.
Thousands of corporate lobbyists are helping to write these secret pacts -- but we're not allowed to see them. Governments know that we won't like these corporate power grabs, so they're hoping to keep them under the radar until it's too late to stop them. But if we can raise our voices now, we can expose these corporate charters and kill the deals forever.
Two secret new global pacts- the TTIP and TPP -could massively increase the power of corporations to sue our governments when they pass laws to protect our environment or our health. Unsurprised, its just four companies talking to each other - 8 largest U.S. financial companies (JP Morgan, Wells Fargo, Bank of America, Citigroup, Goldman Sachs, U.S. Bancorp, Bank of New York Mellon and Morgan Stanley) are 100% controlled by 10 shareholders and we have 4 companies always present i...n all decisions: BlackRock, State Street, Vanguard and Fidelity - who control the Federal Reserve. The same “big four” control the vast majority of European companies counted on the stock exchange. These same people run the IMF, the European Central Bank & the World Bank. The 10 largest US financial institutions hold 54% of US total financial assets. 90% of US media is owned by 6 corporations. We will tell you what the news is - the news is what we say it is - it turns out it is not illegal to falsify the news. 37 banks have merged to become just four since 1990. We are speaking of 6, 8 or maybe 12 families who truly dominate the world (perhaps Goldman Sachs, Rockefellers, Loebs Kuh and Lehmans in New York, the Rothschilds of Paris and London, the Warburgs of Hamburg, Paris and Lazards Israel Moses Seifs Rome). With Google accounting for over 65% of all web searches in the US and over 70% market share in most other countries, the top 10 owners of Google’s stock are Fidelity, BlackRock, State Street, Vanguard Group, Capital Research, T. Rowe Price, Capital World, Alliancebernstein, Marsico Capital. This is the world we live in.

Monday, October 21, 2013

WSJ - Ireland's economy slid into crisis in 2008 when the bursting of its property bubble wrecked the country's banks and brought the euro-zone member close to bankruptcy. In late 2010, the government secured €67.5 billion ($91.54 billion) in loans from the EU and IMF, the last of which will be disbursed over the next two months. From next year, the government will have to finance itself exclusively through the bond markets. Finance Minister Michael Noonan told lawmakers that the budget will introduce up to €2.5 billion in new tax increases and spending cuts, saying that Ireland will better the deficit target for 2014 that was set under its bailout agreement. The proposed cuts are the smallest since 2008. Under the budget, the deficit is planned to fall to 4.8% of gross domestic product in 2014 from 7.3% this year. The government is committed to reducing its deficit to below 3% of GDP in 2015. Required to keep cutting its deficit over the next two years, Ireland's government will then be obliged to endure a tight regime of fiscal oversight for many more years to cut its towering national debt.  Despite those constraints, Mr. Noonan told lawmakers that in ending its dependence on EU and IMF loans, the nation would regain control over its own destiny.
"We have a fair wind at our backs to achieve our objectives and to restore our sovereignty," he said.
After the long years of sacrifice, the government is seeking to shore up faltering public support for austerity, describing its 2014 budget as one of the last of the big painful efforts to move the country out of crisis and into recovery. The leaders of the two parties in the coalition government have said there is now clear evidence that the country is emerging from its "national emergency."
There is much at stake for the euro zone, which has also provided bailouts to Greece, Portugal, Cyprus and Spain. A successful return to the bond markets for Ireland would offer euro-zone policy makers a rare opportunity to claim a success for their much-criticized strategy for confronting the currency area's fiscal and banking crisis, one that has relied heavily on austerity.
Mr. Noonan said that for the first time since the onset of the financial crisis, the government will post a primary budget surplus next year. That would mean that excluding interest payments, its tax revenues would exceed its spending, helping to cap its huge debts.
Tuesday's budget means that since 2008, Ireland has detailed cuts to its budget totaling a cumulative €30 billion, representing about 18.5% of the country's annual economic output and making it one of the largest austerity programs undertaken anywhere in the aftermath of the financial crisis.
The EU and IMF and other institutions, such as the Irish Fiscal Advisory Council and the Irish central bank, had urged the government to go further and meet in full a proposed €3.1 billion in deficit cuts, to safeguard its finances. But the coalition projects that it will still meet its bailout budget targets in 2014 and 2015, and help promote jobs.

Tuesday, July 2, 2013

Experts "travaille" sur les "eurobonds" à Strasbourg - we are screwed !

Les "eurobonds" reviennent. La Commission européenne a annoncé mardi 2 juillet à Strasbourg la formation d'un groupe d'experts pour évaluer les avantages et les risques d'une mutualisation partielle de la dette au sein de la zone euro, vue comme une première étape vers la mise en place d'obligations communes (euro-obligations).
La Commission avait décidé de mettre en place ce groupe d'experts en contrepartie d'un renforcement de la discipline budgétaire décidée au printemps, et sous la pression du Parlement européen. Onze experts font partie de ce groupe, dont l'économiste française Agnès Benassy. Ce groupe devait initialement présenter ses conclusions d'ici mars 2014, mais aucune indication calendaire n'a été fournie mardi.
Le rôle de ce groupe est d'analyser les avantages et obstacles à la mise en place d'un fonds d'amortissement, qui permettrait de mutualiser une partie de la dette de la zone euro, ou la mise en place d'"eurobills", des titres de dette communs à court terme.
PRESSION DE BERLIN - Le sujet est particulièrement délicat car l'Allemagne, qui emprunte à très bas coût sur le marché de la dette, refuse toute forme de mutualisation de la celle-ci au sein de la zone euro. Le sujet a été maintes fois évoqué, et toujours repoussé à plus tard, sous la pression de Berlin.
Pendant la partie la plus aiguë de la crise, de nombreux responsables politiques et économistes plaidaient pour la mise en place d'euro-obligations, afin de faire baisser la pression sur les pays les plus fragiles de la zone euro, dont les taux d'emprunt atteignaient des niveaux insupportables.
"Les membres de ce groupe d'experts, dirigé par Mme Gertrude Tumpel-Gugerell, ancienne membre du directoire de la Banque centrale européenne, possèdent une expertise impressionnante et ont des parcours variés. Je leur fais confiance pour donner des conseils précieux sur ces questions très complexes d'un point de vue politique, économique et juridique", a affirmé le président de la Commission, José Manuel Barroso, qui s'exprimait devant le Parlement européen.

Friday, May 31, 2013

European leaders yesterday warned that youth unemployment – which stands at up to 59% in some countries – could lead to a continent-wide "catastrophe" and widespread social unrest aimed at member state governments.
The French, German and Italian governments yesterday joined together to launch initiatives to "rescue an entire generation" who fear they will never find jobs.
More than 7.5m young Europeans aged between 15-24 are not employed or in education or training, according to European Union data. The rate of youth unemployment is more than double that of adults, and more than half of young people in Greece (59%) and Spain (55%) are unemployed.  François Hollande, the French president, dubbed them the "post-crisis generation", who will "for ever after, be holding today's governments responsible for their plight".
"Remember the postwar generation, my generation. Europe showed us and gave us the support we needed, the hope we cherished. The hopes that we could get a job after finishing school, and succeed in life," he said at conference in Paris. "Can we be responsible for depriving today's young generation of this kind of hope?
"Imagine all of the hatred, the anger. We're talking about a complete breakdown of identifying with Europe.
"What's really at stake here is, not just 'Let's punish those in power'. No. Citizens are turning their backs on Europe and the construction of the European project.  Germany's finance minister Wolfgang Schäeuble warned that unless Europe tackles youth employment, which stands at 23.5% across all European Union countries, the continent "will lose the battle for Europe's unity".  Italy's labour minister Enrico Giovanni said European leaders needed to work together to "rescue an entire generation of people who are scared [they will never find work].  "We have the best ever educated generation in this continent, and we are putting them on hold," he said.  The UK department for work and pensions and the Treasury were unable to say why Britain, which has a 20.7% rate of youth unemployment, was not represented at the conference in Paris on Tuesday.  Stephen Timms, shadow employment minister, attacked the coalition for remaining "utterly silent on youth unemployment".
"This government has totally failed to tackle Britain's youth jobs crisis. This government must stop sitting on the sidelines and take the urgent action we need to get young people back to work."
Hollande outlined a series of measures to tackle the problem, including a "youth guarantee" to promise everyone under 25 a job or further education or training.
The plan, which has already been discussed by the European Commission, will be supported by €6bn of EU cash over the next five years. Another €16bn in European structural funds is also being made available for youth employment projects.
Herman Van Rompuy, European Council president, pledged to put the "fight against unemployment high on our agenda" at the next EU summit in June. "We must rise to the expectations of the millions of young people who expect political action," he said.
The commission estimates youth joblessness costs the EU €153bn in unemployment benefit, lost productivity and lost tax revenue.
"In addition, for young people themselves, being unemployed at a young age can have a long-lasting negative 'scarring effect'," the commission said. "These young people face not only higher risks of future unemployment, but also higher risks of exclusion, of poverty and of health problems."  The European ministers, who will meet with German chancellor Angela Merkel to discuss the youth unemployment crisis in July, said small and medium-sized businesses (SMEs) will form a central plank of the plans.  SMEs traditionally employ the vast majority of young people, but have complained they haven't been able to borrow enough money to grow since the financial crisis struck in 2008.  Ursula von der Leyen, Germany's labour minister, said: "Many SMEs, which are the backbone of our economies, are ready to produce but need capital, or they have to pay exorbitant borrowing rates."  The minsters are working on establishing a special credit line for small and medium-sized businesses from the European Investment Bank (EIB), which will have a €70bn lending capacity this year.  However, Werner Hoyer, head of the EIB, warned minister not have "expectations completely over the horizon".
"Let's be honest, there is no quick fix, there is no grand plan," he admitted.  Schäeuble warned that European welfare standards should not be jeopardised in order to cut the youth unemployment figures. "We would have revolution, not tomorrow, but on the very same day," he warned. Germany and Austria have the lowest rate of youth unemployment, with just 8% not in work, education or training.

Tuesday, April 9, 2013

Hmmm...I wonder what would the master EU idiot - Ollie R. say about this ...

Telling people that they can lose their deposits, even possibly below guaranteed amount (100,000 euros), which later was retracted, had not been a mistake. Firstly people realized and got used to the idea that such thing was no longer unthinkable. Secondly, by hitting deposits above 100,000 euros with up to 40% (or even maybe up to 60%) tax, it was made clear that such hit can be very hard indeed. Not some 6.75% or 9.9% as originally mooted: so now it is matter for the 'financial markets' to extend their target, below 100,000 euros. It is indeed a very primitive piece of social engineering and coaching people for the forthcoming loss. It is preparing psychologically all countries in Europe for the next step of the largest heist in history: direct and hard targeting of people's deposits. There is also a rather ironic twist in the events in Cyprus. It has been widely reported that many billions of euros held in banks in Cyprus came from all sorts of dodgy businesses (Russia?). There is even a whispering subliminal propaganda designed to make it easier to accept this new phase of the largest heist in history. The message is that there is nothing wrong in stealing money from the thieves.
Technically what happened there was that the billions of euros in cash deposited in Cyprus was used to redeem for a lot of toxic waste of the financial institutions (it is called 'making investments' in a financial language, with depositors cash). So, as expected, those who had cash ended up with nothing and those who held (and are still generating) zillions of toxic waste, got another tranche of their heist. The largest heist in history continues. Now...if it is true, as it is widely rumored, that many billions of euros of mafia money have been kept in Cyprus and now something like 40% or even 60% are going to be lost, one could wonder whether European politicians, central bankers, who drive this process, e.g. finance ministers, or some other decision makers, even lower down the chain, are going to sleep comfortably. Or are they going to think more about their own and their families safety? Is mafia going to accept such multibillion euros loss? Or would they plan to teach a lesson in order to get their money back, to get a compensation for the current 'inconvenience' and mess and to make sure such a thing is unthinkable in the future. Mafia starts wars when there is big money at stake. And in Cyprus some powerful groups lost billions of euros. Therefore we can also look forward to listen to some interesting news. Don't be surprised.

Sunday, December 30, 2012

Herman Van Rompuy is obviously scared of a referendum in Britain as this is what Cameron will do.  EU is well known for repeating a referendum until they get the answer they want which will not happen here.  Rompuy is actually saying : Britain's moves could make EU fall apart.  To which I will say about time as they are again stocking up future problems as the democratic legitimacy of the various parliaments in budget plans. But it's not just David Cameron, is it? During the recent by elections Ed Milliband spent a considerable ammount of time trying to steal UKIP's clothes and even went as far as "joining in the debate on immigration". I think you'll find that both Cameron and Milliband will find a narrative on Europe that will be popular with the electorate and only the Lib Dems will have a pro European message; alas nobody give's a toss about what they have to say these days. The truth is much harsher than any politician will tell you..... whether we stay or leave we're in a serious long term decline and there's very little we can do about it. Traditionally in times such as these it's the extreme political parties that come to power.... I just hope that history won't repeat itself this time, but............. in some parts of the EU it already is.  Agreed that we need a proper debate about Europe to help us make a decision based on facts, not on xenophobic tabloid articles and stereotypes, or on the other hand, fear of upsetting other member countries. I am more pro-EU than I am anti-EU, but I certainly don't appreciate being lectured and threatened by people like Mr Van Rompuy, a man with no democratic mandate who is part of a project to force a USE on the people of Europe. If he and others like him were actually accountable to the people they purport to represent, they would have had to spend their time trying to accommodate the different levels of enthusiasm for ever greater integration, and explain the benefits of integration to the people of Europe instead of simply grabbing their sovereignty through hidden treaty signings and farcical multiple referendums.
Instead we have a situation where a majority of UK voters strongly resent the EU without knowing very much about it at all. ,,,
It's rather silly to say that if we left the EU we couldn't trade with them, or couldn't do so on good terms.
 Mexico is not part of the EU, does not contribute to it, does not have to apply and enforce EU law, and yet has a bilateral free trade agreement with the EU (and is at the same time part of NAFTA, the North American Free Trade Agreement). China does not apply EU law and is actiely hostile to some of it (airline emissions, for example) yet has no difficulty trading with the EU. Not being a member doesn't mean you have to apply the rules but have no say - as an independent state, you can choose to apply or not apply whatever rules you see fit. Given the the UK is more important in trade terms to the EU than the EU is to the UK, it is unlikely that Brussels would have much clout in this respect were Britain to leave. In fact, it is being in the EU that restricts our trading ability. Britain, under EU law, is like any other member state forbidden from entering into trade agreements with anyone on its own - it can only do so through the EU. Leave the EU, and we can make as many agreements as we want with anyone who wants to sign up.
That said, the usual spineless collection of people afraid of being "out of step" that comprise our political class will doubtless find a way of ensuring Britain gets the worst of all worlds.

Monday, November 12, 2012

The German (Fourth Reich's ) Governor of Greece - Horst Reichenbach made no comments !!!!!

No final decision on next tranche of Greek bailout expected today, despite "broadly positive" Troika report ( Governor's Horst Reichenbach report in fact).
The German finance ministry has declared that there is no chance of a deal today on Greece's bailout programme, despite Athens approving its 2013 budget last night.
Ministry spokeswoman Marianne Kothe told reporters in Berlin that it wasn't realistic to expect a decision at tonight's Eurogroup meeting (of euro finance ministers), particularly as German MPs must have their say first.
Kothe said: Everyone is working under a lot of pressure to resolve questions which are still open...I think it's rather unrealistic to expect a final decision today as in Germany the Bundestag has to agree to it in advance.
There are also reports this morning that Jean-Claude Juncker, chair of the eurogroup, has also ruled out a decision this evening.
The precise whereabouts of the Troika report on Greece is another issue ... Germany's Kothe said today that she didn't think the final version was complete yet...in fact The German (Fourth Reich's ) Governor of Greece - Horst Reichenbach made no comments !!!!!

Monday, September 10, 2012

German MP makes new bid to stop eurozone rescue fund

Last night one of Angela Merkel's MPs launched another legal challenge to Europe's new bailout fund (the ESM), on the back of the European Central bank's bond-buying plan announced last week.
Peter Gauweiler, a CDU backbencher, argues that the Outright Monetary Transactions programme (in which the ECB would buy up government debt under certain conditions) violates German law.
He has asked Germany's constitutional court to consider this issue alongside the existing challenge to the ESM.
Gauweiler's office argued that the unlimited bond-buying programme announced by Mario Draghi last Thursday had "created a completely new situation"r regarding the ESM, making the impact on Germany's taxpayers "completely incalculable".
In a statement, Gauweiler said:
The ESM -- insofar as it is constitutionally viable at all -- should only come into force when the ECB has taken back its self-awarded power as a hyper rescue-shield.
It's not immediately clear if the Constitutional Court has accepted Gauweiler's complaint, or if it will affect the decision due on Wednesday.
German vice-chancellor Philipp Rösler urged calm last night, saying he couldn't see that the two issues were particularly linked.

Sunday, September 2, 2012

The Chineese?..Just wait till they ask for their money back...

This is what happens when there is structural imbalance for far too many economies. Unfortunately there are no good economists and consequently nobody knows how to get the world's economies back into equilibrium. One thing is for sure though, those with more than their fair share of manufacturing production and employment, like Germany and China, will need to come to terms with supporting the other economies. Only then will a softer landing be able to be negotiated for everyone.... "Unfortunately there are no good economists and consequently nobody knows how to get the world's economies back into equilibrium" But the West has gobbled all the Nobel Prizes in Economic year after year. They can land a hand, can't they? Btw, Paul Klugman is giving advice free on New York Times daily. Me as an 'economist' without proper training suggest to the westerners, to start, spending less and save more. The equilibrium will come, someday and somehow....Well...It would be interesting to see what the USA would do if the Chinese decided to buy massive amounts of Gold on comex options and decide they want physical delivery at the end of the contract period rather than the profit/loss in yet more dollars. The Fed would not be happy at all that the physical gold gets shipped off to China....They have in the past made it illegal to own physical gold. I say :...Well...China's growth bubble is slowing down very quickly.  They naturally want to protect their own industries and investments and are wary of risk now. They have bought over 2 trillion of European and US debt to prop up those economies and to encourage world trade supporting Chinese exports worldwide for years. Now the party may be over....or is it ???..Just wait till they ask for their money back...

Saturday, September 1, 2012

'If Germany goes under then the Titanic really hits the iceberg'

The Chinese are worried that Europe is going to collapse. The Europeans are worried that China is going to Collapse. Actually both are headed for Collapse. European demand comes from the north europeans lending to south europeans to consume in the hope that because they are in Eurozone, they will get repaid. Not going to happen, all that is lent will be written off one way or another.
Chinese demand is based on construction of empty cities, empty skyscrapers, trains on which nobody rides, highways and bridges to nowhere, municipal offices that look like palaces and factories to produce this malinvestment.
There is a saying in Chinese, A day comes when the yellow river clears. Well, the Chinese have run out of money, construction has halted across china, steel is piling up, iron ore is piling up. Dealers are choking on unsold cars. Nobody is taking delivery of ships the shipbuilders are building. Don't expect the chinese to keep buying German cars, French wine , Italian leather or Swiss watches. The south europeans have run out of money, don't expect them to buy chinese toys or electronics....Money supply numbers may be just based on channel stuffing. Don't expect it to put food on your table. Inventory liquidation will start soon, then we will find out who has been swimming without clothes
Isay : Merkel desperately sucking up to the Chinese, hoping that they can take up the slack for the increasing effect of falling demand in the Eurozone, to paraphrase a pundit on RT today, 'If Germany goes under then the Titanic really hits the iceberg'

Thursday, August 23, 2012

AFP - A Greek exit from the eurozone would be "manageable" even if it would be expensive and result in higher unemployment, a top member of the European Central Bank was quoted as saying on Monday. In an interview with the Frankfurter Rundschau, Joerg Asmussen, a German member of the ECB's Executive Board, was asked about the possibility of debt-wracked Greece being forced out of the eurozone. "First: My preference is clear. Greece should stay in the eurozone. Second: It is in Greece's hands to achieve that. Third: A Greek exit would be manageable. Fourth: An exit would not be as orderly as some imagine," he said. Such an exit would spark a slump in growth, job losses and would be "very expensive. In Greece, in Europe and in Germany," said Asmussen. Asmussen's comments came at the start of a crucial week for Greece as it bids to persuade its European partners to release a further slice of aid to keep its economy on life support and enable it to stay in the 17-nation bloc. Prime Minister Antonis Samaras holds talks with German Chancellor Angela Merkel in Berlin on Friday and with French President Francois Hollande the day after. Greek Foreign Minister Dimitris Avramopoulos was in Berlin Monday for a meeting with his German counterpart Guido Westerwelle to prepare the talks. All eyes are on a key report from Greece's international creditors, known as the Troika, expected in September. The report will assess Greece's reform progress demanded to unlock some 31.5 billion euros ($38.9 billion) desperately needed to keep the country afloat. On his foreign tour, Samaras is expected to discuss the possibility of having two more years to achieve the required cuts. Berlin has until now insisted that Athens must stick to the timeline and reforms agreed in return for its aid package. But mass circulation Bild reported on Monday that some concessions could be made to Greece within the agreed timeframe. Steffen Kampeter, a top finance official, told German radio the decision would be based not on requests from Athens but on the report of the troika, which comprises the European Commission, the ECB and the International Monetary Fund. "There will not be any bilateral decisions on Friday," he said, referring to the meeting between Merkel and Samaras, "but decisions taken in an ordered, fair and transparent manner at the European level." In other comments, Asmussen reiterated the ECB's position that it might buy the bonds of countries with soaring borrowing costs if they first apply for aid from the EU bailout fund and submit to tough conditions. He said such a strategy would be "better conceived" than an earlier, disputed, program known as the Securities Markets Program (SMP), during which the ECB bought 211.5 billion euros of bonds, a move that held down borrowing costs. The introduction of the program sparked the resignation of two German members of the ECB, Juergen Stark and Axel Weber, in protest at what they saw as an overstepping of the bank's mandate to keep a lid on inflation.

Wednesday, July 25, 2012

The proposed creation of a single euro-zone bank supervisor is shaping up to be a test of the willingness of countries to give up national powers for the sake of the euro. Though still in its infancy, the effort—which envisions a key role for the European Central Bank in supervising the bloc's largest and most internationally active banks—faces hurdles as officials try to streamline a patchwork of regulators and supervisors numbering in the dozens. German central bank officials are reluctant to add another responsibility to the ECB that might weaken its anti-inflation vigilance. French bank executives worry that a Europe-wide supervisor wouldn't take into account the unique ownership structure of some banks. Behind a painted fence, the new European Central Bank building rises in Frankfurt. A banking supervision plan sees a key role for the ECB. "It will be a test case, so they'd better pass the test, otherwise it would put euro area in danger," says Daniel Gros, head of the Center for European Policy Studies, a think tank in Brussels. German Chancellor Angela Merkel has made the creation of a new euro-zone banking supervisor under the aegis of the ECB a precondition for agreeing to let Europe's bailout fund re capitalize banks directly, rather than indirectly via loans to national governments. Such a European financial backstop for banks would alleviate pressure on countries with banking crises, such as Spain and Ireland, and would correct one of the omissions in the design of the euro that economists say has made the currency union unstable. Creating a single supervisor would require countries to give up some of their sovereignty over how their banks are regulated.

Monday, July 16, 2012

Spanish debt is in the £trillions - Italy's debt is in the £trillions

A former head of the IMF ran a Spanish bank and is being hauled in to a Spanish court because he is accused of fiddling the figures to claim his Bankia bank made a 309 million euro profit - when in fact, after the government siezed the bank two months ago it was found the bank made a 3 billion euro LOSS
And what is the result - the bank is begging for £19billion (why it only made a £3billion loss)....Who has to borrow the money ?: - The Spanish People. What guarantee have they got on the Loan - none - Merkel and co have voted to take away taxpayer protection on the funds. They have created a great money laundering scam where they pretend the government is not borrowing money at all and that magically the ESM gives the money without any protection -- But the reality is - taxpayers are still borrowing the money and liable for the repayment of the loans - the governments borrow - they give it to the ESM and the ESM gives it to the banks instead --- But - here's the killer - Merkel agreed there is no protection for the funds - so currently if things go wrong (and the bankers diddle the books again) - taxpayers lose the lot - but still have to repay the banking debt....The emperors new clothes - look at the banks - they will be fine - the ESM gives money (let's pretend its not taxpayers )....And the moral of the story - if you were a head of the IMF or a banker - you can fiddle the books as much as you want and taxpayers will borrow money and bail you out. If a bank in Spain is fiddling the books 4 years in to this Euro crisis - what is the real state of the banks. Exactly how many £trillions of banking debt is being transferred to taxpayers- well it is a great big black hole - with absolutely no end in site
Spanish debt is in the £trillions - Italy's debt is in the £trillions
So let's set up the ESM and pretend taxpayers are not borrowing the money - well we are.....Time to stop borrowing....Let the banks and the bankers face austerity - Iceland let their banks collapse - time for Europe to do the same....We pay tax for services - not to service banking debt.....These people are transferring so much debt from banks to taxpayers it will take 100 years to clear it off - so your great great great great grandchildren will be paying tax - not for services - but to pay for the sins of bankers and politicians now. Since when did taxpayers become liable for private investor debt - they never shared the profits so let them share the losses. --- NO MORE BORROWING TO GIVE MONEY TO CORRUPT BANKERS

Thursday, July 5, 2012

Romania's president faces impeachment

Romania's president faces impeachment after the governing coalition called for him to be suspended.
Centre-right (wrong - he's a former securitate officer an still active in the that community, therefore he's NOT center-right) President Traian Basescu has been at loggerheads with Prime Minister Victor Ponta, who heads the opposing Social Liberal Union (USL), which has a majority in parliament.
If parliament votes for Mr Basecu's suspension, a national poll on his impeachment can follow.  Mr Ponta himself is under pressure to resign over allegations of plagiarism. The USL party has asked parliament to hold an extraordinary meeting to suspend Mr Basescu, a party member told a Romanian news agency.  Mr Ponta's USL party passed a law to simplify the process of having the president impeached. That law still needs to be considered by the Constitutional Court. The Constitutional Court itself has accused Mr Ponta of trying to dismantle it, and on Tuesday complained to the European Commission that he was threatening the court's independence. The USL, in power since May, says that the court is heavily influenced by Mr Basescu, whose popularity has dropped since he imposed austerity measures agreed with the EU and IMF in 2010.  The political conflict between the president and prime minister has stalled decision-making processes in Romania at a time when it is finalising agreements on an IMF-backed aid package for its economy. Mr Basescu has accused Mr Ponta of trying to interfere with Romania's legal and state institutions in order to secure his indictment. On Tuesday the US ambassador to Romania, Mark Gitenstein, expressed deep concerns about any attempts to affect state institutions.

Monday, June 25, 2012

...fulcrum of Merkels German Dream - to rule Europe without a shot being fired

The reason that the Euro will NOT be put to the sword is that it is the (well they can't can they because they are not allowed guns anymore). Merkel is a typical Prussian - NEVER WRONG - and that will soon lead to the impoverishment of most of the less powerful in Europe, which in turn will lead to massive civil unrest. And who will "take charge", or "come to the rescue"?...Why the very person who caused it - Angela Merkel.

Ring any bells Greek people?".... Meanwhile, The Greek coalition seeks two extra years to NOT meet bailout deficit targets!"
"The general target is for there to be no further reductions in wages or pensions and no more taxes"  A good target for a country with budget in red for years and still in red and it seems has no intention getting out of red and asking basically EU taxpayers to cover its unbalanced budget for next two years or more probably forever . "They ask extra two years' grace to meet the tough deficit targets laid down in the bailout deal, and was hoping to reverse cuts in the minimum wage and cancel planned civil service layoffs."....So,minimum wages upwards, regardless of the fact that even now with all the "cuts" their minimum wage is higher than in Spain. Promised excess state administration lay-offs to be cancelled,actually they have not even started with the cuts, and is still only a promise to IMF, EU of 150,000 out of 1 milion public sector workers. ... And, aaa, taxes, not to be forgotten, Please, no more taxes!!!....Is it only me, or it just doesnt really makes sense? I mean how do they plan to run their country like this? Who do they think should foot the difference between their overspending and taxes they (dont) collect??? To whom they think they can go and make this "case" with straight face??? To EU taxpayers??? I somehow dont think their "argument" will work.

Sunday, April 29, 2012

Merkel faced trouble at home as opposition politicians joined Mr Hollande in his bid to make the austerity pact more flexible. They complain that the "one-size-fits-all" rules do not suit Germany's individual states and municipalities. The question of how to address the eurozone's debt burden is toppling governments across Europe. The three-month-old Romanian government fell on Friday as it lost a no-confidence vote over state asset sales. Against a backdrop of rising concerns, the pound hit a two-and-half-year high against a basket of currencies tracked by the Bank of England. Italy, the eurozone's third largest economy, paid more to get auctions of its government debt away on Friday morning. It paid yields, or implied interest rates, of 5.84pc on its 10-year bonds, up from 5.24pc last month. Separately, Ireland slashed its growth forecast for this year from 1.3pc to 0.7pc.

MADRID - Spanish officials moved to shore up confidence in the ailing local economy after new data showed unemployment at an 18-year high, after credit-ratings firm Standard & Poor's slapped Spanish government debt with a two-notch downgrade. Spain's statistics bureau Friday said the country's jobless rate rose to 24.4% in the first quarter, from 22.9% in the fourth quarter of last year, inching toward its highest level on record. More than half of workers under 25 years old were without jobs. In the first quarter of 1994, Spanish unemployment reached 24.6%. Spain's government said its program of economic reform will benefit the country after it was hit by a credit rating downgrade by Standard & Poor's and figures showed unemployment had hit an 18-year high. "The figures are terrible for everyone and terrible for the government," Foreign Minister José Manuel Garcia-Margallo said in a radio interview. "Spain has been, and is, in a crisis of huge proportions." Spain's labor market has been hard hit by the collapse of a decadelong housing boom and by budget cuts that are removing tens of billions of euros from the economy. In addition, rigid labor laws make it easier to dismiss workers than to adjust their wages or change their duties. Spain's unemployment rate is more than double the 10.7% euro-zone average, and now totals about 5.6 million people.

Saturday, January 14, 2012

Europe has been plunged into a fresh crisis after France admitted it had been stripped of its coveted AAA rating in a mass downgrade of at least half a dozen eurozone countries by the credit ratings agency S&P. Share prices plunged, the euro dropped to a 16-month low against the dollar and the European Central Bank was forced to step in to buy Italian bonds after European sources admitted action by the credit ratings agencies was imminent. Bringing an abrupt end to the uneasy calm that has existed in the eurozone since the turn of the year, the heavily-trailed S&P move rekindled financial market anxiety about a Greek default and possible break-up of the single currency. Nicolas Sarkozy was due to go on national TV to explain the humiliating loss of France's top-rated status, leaving Germany as the only other major economy inside the eurozone with a AAA rating. French finance minister François Baroin downplayed the move, saying it was "not a catastrophe". Germany and the Netherlands were quick to make it clear they were not on the list of targeted countries circulated by S&P to European capitals ahead of an announcement that was expected to be made after the close of business on Wall Street. Investors piled into safe haven assets such as the dollar, while the UK was rewarded with even lower borrowing costs as 10-year bonds slipped below 2%. Britain is not at imminent risk of a downgrade. Mr Baroin was talking on France 2 television. More on what he said: I confirm that France has received, like most eurozone countries, a notification of a change of its rating [...] It's a downgrade, a one-notch change, it's the same agency that downgraded the United States [...] It means we must follow and amplify reforms. We must be bold. We must preserve employment. Mr Baroin says most eurozone countries have been notified of an S&P downgrade.

Any downgrades would also tarnish the credibility of the European Financial Stability Facility (EFSF), the eurozone's €440bn bail-out fund that Angela Merkel and Nicolas Sarkozy fought so hard to secure (and the one that was nearly brought down by Slovakia). If France loses its AAA rating, then Germany would be the only top-rated main backer left. The EFSF is also currently on downgrade review. In December, S&P said: Our 'AAA' long- and 'A-1+' short-term ratings on EFSF are based on (i) the unconditional, irrevocable, and timely guarantees from EFSF members (guarantor members) rated 'AAA' by Standard & Poor's that support EFSF's obligations (bonds, notes, commercial paper, debt securities, or other financing arrangements) and, (ii) the 'AAA' rated securities that constitute EFSF's liquidity reserves. Standard & Poor's has placed the 'AAA' long-term issue ratings on EFSF's guarantor members Austria, Finland, France, Germany, Luxembourg, and The Netherlands on CreditWatch negative (see "Standard & Poor's Puts Ratings On Eurozone Sovereigns On CreditWatch With Negative Implications," published on Dec. 5, 2011), indicating our view of their increased credit risks. In other words, the EFSF is only as good as its backers.

Thursday, January 5, 2012

UniCredit shares fell nearly 15% today on the size of the larger-than-expected discount, which is designed to help the bank meet a new minimum core capital requirement imposed by the European Banking Authority. UniCredit shares tumbled 14.5pc to €5.42 as investors digested the surprise 43pc discount at which the new shares are being offered as part of a capital-raising programme. However, analysts said that the perceived weakness of eurozone banks could prove a major hindrance on any plans to raise more money from shareholders. Analysts at UBS warned that shareholders were "fundamentally unsure of their position", saying that increased dependence of many Continental European banks on taxpayer funding had "historically proven disastrous for equity investors". "Banks may be allowed to trade through the (extended) period without diluting equity holders, but the logic of the situation leaves taxpayers shouldering the costs," said UBS.

Thursday, December 29, 2011

....The entire problem is laid bare for all to see.

"Angela Merkel will have to relent and agree to the European Central Bank being unleashed. She will be forced to allow quantitative easing and for the ECB to be the lender of last resort. She will be forced out of office as Germany’s cherished inflation rises. "... She'll have to find some way to get the Bundestag and Constitutional Court to look the other way while she does it. Wait, I've got it, she could send them on vacation to Greece. It is little known, but Western finance is actually a CIA funded black ops. (undercover) unit. Traditionally, it has been used to deal with emerging economies that may pose a threat to Western dominance. Once the emerging economy is spotted, the CIA sends in their Western finance black ops team. Initially, they lend money at low interest rates to invest and “help” the emerging economy, once confidence is gained they lend more and more. At the critical point, they suddenly jack up interest rates as the loans roll over and leave the economy in chaos, with a financial crisis that will set them back decades. The Western finance black ops. unit have already been used on:
Latin America – financial crisis, early 1980s
Asia – financial crisis 1997
Russia financial crisis 1998
I can only assume the US became concerned with the emerging Euro-zone threatening the US position. The CIA then sent in their Western finance black ops. team to create chaos. As usual with the CIA, their operations are frequently hampered by unforeseen consequences (blowback). The CIA forgot about the inter-connected nature of the Western banking system and these days a collapsing bank in the Euro-zone can cause a cascade effect that will bring down banks in the US. The FED have had to step in and help bailout the Euro-zone because of this. Needless to say the FED aren’t very happy with the CIA. This is the only explanation I have been able to come up with to explain the totally destructive nature of Western finance. IN CONCLUZION : Given the ever declining share of world GDP generated in Europe, it will increasingly become irrelevant. Crisis, or no crisis, it will become a footnote in economic history, governed by a bureaucracy with delusions of grandeur.