Archive - Feb 19, 2015

Fed's Yellen (12/17): "The decline we've seen in oil prices is likely to be, on net, a positive."

Fed's Yellen (02/18): "Persistently low oil prices could dampen the overall expansion of economic activity."

And this is the woman we trust to run the world?

Very few, it seems...

While the ECB is responsible for determining the euro-zone's supply of bank notes, it doesn't actually print them; instead it outsources the work to central banks of a few euro-zone countries (one of which is Greece). As WSJ reports, the Greek central bank's bank-note printing facility is called IETA. Built in 1941, the Attica plant today is outfitted with "state-of-the-art machinery," and has been responsible for printing batches of €10 notes, according to the ECB. One wonders how tempted the Greeks will be to take matters into their own ink-stained hands, should the ECB/Germany/Eurogroup pull the plug without acquiescing to their non-ultimatum "take it or leave it" offer...

First, the US openly allows potential Jihadist elements (don't worry, the answered "moderate" on the questionnaire) to call in B-1B strikes, and now in all its Sun Tzu-esque brilliance, the Pentagon is handing out not only issuing press releases on its military invasion calendar, but its troops deployment numbers as well. According to Reuters, the United States sees an Iraqi military offensive involving 20,000-25,000 troops to retake Mosul from the Islamic State of Iraq and Syria in April-May, a U.N. military official said on Thursday.

In its role as global hall monitor, Washington appears to have jabbed its nose into the Greece-EU talks:

*LEW SPOKE WITH SAPIN, DIJSSELBLOEM, VAROUFAKIS TODAY: OFFICIAL
*U.S. URGES SIDES IN GREEK TALKS TO TONE DOWN RHETORIC: OFFICIAL

Treasury Secretary Lew "urges compromise" and explains he is in touch with Eurogroup, IMF, and Greece putting the onus back on Varoufakis' shoulders by urging them to reach a deal of face additional hardhsip.

In typical European fashion, today's Greek negotiations have ended in a Schrodingerian fashion: on one hands reports are now trickling in that the Greek Eurogroup working group has concluded their meeting after 7 hours without a result while on the other, Market News is reporting that Eurozone deputies have "drafted a statement that could well serve as a basis for a compromise between Greece and the Eurozone, to be examined by finance ministers Friday."

When you owe someone $340, it is YOUR problem.
When you owe someone $340 BILLION, it is THEIR problem.

If Greece gives in, Germany will have won, but its bully status will come to bite it in the face. European nations don’t accept bullying, and certainly not from Germany. It’ll be a Pyrrhic victory: the beginning of the end. If Greece however stands firm in its demands, it’s also curtains for the EU. If Greece leaves, it won’t leave alone. Only the third option, Germany caving to Greek demands, can save the EU. But Merkel and Schäuble have prepped their people to such an extent with the wasteful lazy Greeks narrative that they would have a hard time explaining why they want to give in. The EU may thus fall victim to its own propaganda

"Is it possible, in a global economy in which the United States' principal competitors are experiencing slow growth, disinflation or deflation, wage stagnation or slowing of wage growth, and slumping currencies relative to the US$, that the U.S. economy can be an island of relative prosperity unto itself?" (Spoiler Alert: No!)

It turns out that the next best thing to Greek contagion in this bizarro, centrally-planned world is... anti-contagion.

Here's a plan where the drachma will be more desirable than the euro after Greece defaults on anything euro denominated and backs its redeemable drachma with fractional gold. Upon default euros drop, drachma pops!

As leaked by Reuters moments ago, here is the text of a document that describes Germany's position on Greece's letter requesting an extension of its bailout facility as nothing short of a Trojan Horse.

The totalitarian arm of the ever-growing government appears to know no limit. In today's "oh no they didn't" moment, the US Government's diet panel has dictated proposed one more oppression of American's freedom to choose:

*GOV'T PANEL PROPOSES SUGARY-FOOD TAX TO FUND NUTRITION PROGRAMS, CURB OBESITY

On the bright side, the government approves of "lean meat" as compatible with healthy eating. The bill, introduced by Rep. Juan Candelaria, D-New Haven, would impose a tax of 1 cent per ounce on soft drinks - including sweetened teas, energy drinks and soda - and candies that are high in sugar and calories. So, expensive non-refined foods are good? And the poorist people - who can't afford to eat the way the government dictates - will pay all the taxes?