"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.
8 comments:
So this crisis will run and run until SOMETHING is done to change the system.
The idea that deregulated banking,that has brought the worst recession, really a long running Depression, to the world economy since the 1930s, can be fixed by "more of the same" is utterly ridiculous.
But then we get into "Why do governments not act to re-regulate?" and the sad truth is that neo-Con politicians around the world are being paid by the bankers - the Tories get 50% of their party funds from the City - to keep things as they are.
This whole bank liquidity issue is just a game played by the bankers, as they bribe the neo-Con politicians to keep their £m bonuses and salaries flowing - it is entirely impossible not to see it in this way.
What happened to Ms. Chan?
This is the auction that will show whether she was right to exude such confidence over the sale of 6 month bonds yesterday.
If the 10 year bonds yield less than 6.5%, I'm Cheetah the 80 year old chimp!
Italy have to pay back 180 bn Euros during the next 4 months.
WHERE is that money going to come from? Selling bonds?
Monti just has austerity as his weapon.
There is no sign of growth, especially in Italy.
Blog home Eurozone crisis live: Italy tests market confidence with €8.5bn debt auction• Sale of long-term Italian debt this morning will show whether banks are prepared to buy eurozone sovereign bonds. Italy's auction of €8.5bn of long-term debt will show whether prime minister Mario Monti's austerity plans are reassuring the markets. Photograph: Tony Gentile/Reuters
9.28am: A slump in orders has sent morale among Italian businesses sliding to its lowest level in two years.
Italy's monthly business moral index dropped to 92.5 this month (where any number below 100 means a majority of firms are pessimistic about the future). Analysts had expected a higher figure (93.6 was the consensus).
With Italy's economy sliding towards recession (it shrank 0.2% in the last quarter), this data shows how the country's firms are struggling badly. The number of orders hit its lowest level since June 2010, and many firms reported higher inventories (a sign the new goods are "sitting on the shelf" rather than being sold).
Seperately, the M3 measure of money supply in the eurozone dropped sharply last month (according to European Central Bank data). That, according to Howard Archer of IHS Global insight, will:
reinforces belief that underlying Eurozone inflationary pressures are easing and that the ECB has ample scope to cut interest rates again in the early months of 2012.
9.19am: One of Angela Merkel's economic advisers has warned that a break-up of the eurozone next year cannot be ruled out.
Beatrice Weder di Mauro, a member of the German government's council of economic advisers, told the Bild newspaper that a euro break-up would be:
...bad for everyone involved - but not completely excluded. For almost two years, the policy has been to try and contain the crisis and to draw firewalls. However, these walls are not rich yet.
Weder di Mauro added that political leaders hace failed to address the scale of the crisis:
Politicans initially underestimated the crisis and did too little. Now they sometimes cannot act as fast as they want. This is a problem, because the markets are nervous and impatient.
Weder di Mauro also warned that a disorderly collapse of the eurozone would be bad news for Germans. As things stand, the German economy is expected to expand by 0.4% this year -- but it could shrink by 0.5%, she said, if the financial crisis deepens and there is no growth in world trade.
9:28am: A slump in orders has sent morale among Italian businesses sliding to its lowest level in two years.
Italy's monthly business moral index dropped to 92.5 this month (where any number below 100 means a majority of firms are pessimistic about the future). Analysts had expected a higher figure (93.6 was the consensus).
With Italy's economy sliding towards recession (it shrank 0.2% in the last quarter), this data shows how the country's firms are struggling badly. The number of orders hit its lowest level since June 2010, and many firms reported higher inventories (a sign the new goods are "sitting on the shelf" rather than being sold).
Seperately, the M3 measure of money supply in the eurozone dropped sharply last month (according to European Central Bank data).
Some breaking news from the foreign exchange markets -- the euro has just hit a 10-year low against the yen.
The word in the City is that Japanese retail investors and exporters have been selling the euro this morning, fearing that the European single currency will suffer in 2012. There's also a realisation that the crisis remains as unsolved as ever.
As Rob Ryan of BNP Paribas in Singapore put it:
Nobody sees anything on the horizon that could be mildly positive for the euro
The euro dropped 0.3pc to ¥100.51, having touched ¥100.36, the lowest since June 2001. Against the dollar, the euro traded at $1.2932, after falling as low as $1.2888, the weakest since January.
Traders said there were no new fundamental factors driving the euro lower, but the impact of sell orders was being magnified due to thin year-end flows in Asian markets.
After yesterday afternoon's sell-off, Europe's stock markets edged slightly higher on Thursday. The FTSE 100 in London opened up 0.22pc at 5,519.27. Barclays edged up 0.8pc to 173.6p, while Lloyds Banking Group ticked up 0.75pc to 25.2p.
Elsewhere in Europe, the CAC 40 in Paris edged up 0.63pc to 3,090.33, while Frankfurt's DAX 30 rose 0.6pc to 5,804.78.
End-of-year jitters also saw most Asian markets edge down. The benchmark Nikkei 225 index in Japan fell 0.3pc to 8398.89, with exporters including Honda, Sharp and Suzuki all falling on the back of the strengthening yen.
The euro dropped 0.3pc to ¥100.51, having touched ¥100.36, the lowest since June 2001. Against the dollar, the euro traded at $1.2932, after falling as low as $1.2888, the weakest since January.
Traders said there were no new fundamental factors driving the euro lower, but the impact of sell orders was being magnified due to thin year-end flows in Asian markets.
After yesterday afternoon's sell-off, Europe's stock markets edged slightly higher on Thursday. The FTSE 100 in London opened up 0.22pc at 5,519.27. Barclays edged up 0.8pc to 173.6p, while Lloyds Banking Group ticked up 0.75pc to 25.2p.
Elsewhere in Europe, the CAC 40 in Paris edged up 0.63pc to 3,090.33, while Frankfurt's DAX 30 rose 0.6pc to 5,804.78.
End-of-year jitters also saw most Asian markets edge down. The benchmark Nikkei 225 index in Japan fell 0.3pc to 8398.89, with exporters including Honda, Sharp and Suzuki all falling on the back of the strengthening yen.
David Schnautz of Commerzbank said that the sale showed that Italy remains under "tremendous" pressure. He was also concerned that the sale didn't get closer to the €8.5bn maximum target, saying this was "not a good sign".
Alessandro Mercuri of Lloyds Bank said the auction was somewhat disappointing compared to yesterday's sale of shorter-term debt.
Alessandro Giansanti of ING was encouraged, though, that Italy managed to sell nearly €7.1 of debt on December 29, when many traders are still on holiday.
10.18am: The Italian bond auction results are in. And it's a mixed picture, with borrowing costs down - but less debt sold then hoped.
Italy sold €2.5bn of 10-year bonds (maturing in March 2022) at an average yield of 6.979%. So, very close to the 7% mark where borrowing costs are seen as unsustainable.
This part of the auction was slightly oversubscribed -- with a bid-to-cover ratio of 1.357% (so Italy could theoretically have sold almost €3.4 of debt).
Italy also sold €1.17bn of nine-year bonds (maturing in September 2021), at a yield of 6.7%
....and also found buyers for €2.5bn of three-year bonds, at an average yield of 5.62%. Smaller amounts of other bonds were also sold.
At first glance, the results are slightly better than feared (the yields on the three and 10-year bonds are lower than the record highs recorded last month).
But, Italy only sold a total of €7.017bn of debt, out of a maximum target of €8.5bn. That's worrying, when the country needs to auction around €440bn of debt in 2012.
And a yield of almost 7% is still unsustainable over a long period.
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