Archive - Feb 11, 2015 - Story

Following earlier deal rumors citing 'unidentified sources' stating that:*GREECE AGREEMENT `IN PRINCIPLE' REACHED, GREECE WILL STAY IN EU BAILOUT PROGRAM, DETAILS OF GREECE DEAL UNCLEAR, CNBC REPORTS (after which stocks futures and EURUSD surged), the Eurogroup and Greece have completely denied any progress was made whatsoever...

GREEK GOVT OFFICIAL SAYS NO AGREEMENT IN EUROGROUP, GREECE WILL NOT ACCEPT AN EXTENSION OF CURRENT BAILOUT
DIJSSELBLOEM: NO STATEMENT POSSIBLE WITHOUT JOINT CONCLUSIONS
GREECE WOULD NEVER AGREE TO STAY IN CURRENT PROGRAM: VAROUFAKIS

"Our era is a strange one when considering how social attitudes have developed in such a contrary fashion to the rest of history. I think that our forefathers would look upon our current culture with bewilderment when confronted with the fact that our generation has all but abandoned the option of physical rebellion as a tool for social change. I believe a revolution is indeed necessary, a final revolution to remove the influence of the globalist cult once and for all — not only their puppet governments, puppet political parties and puppet despots, but the globalists themselves. Will bad men still exist in this world? Of course they will. But the kind of advanced and well-organized internationlist machine that thirves today will no longer exist. To save a patient poisoned to the extreme, the patient must be purged until his body can recover on its own. The elites are a poison that must be physically removed from the human system."

You know it's bad when... you start blaming speculators. Very reminiscent of the "it's not us, we have a solid balance sheet, it's the short selling speculators" bullshit in the days before and after the stock crashes of American Insurance Group, Bear Stearns, Lehman Brothers and Merrill Lynch; mere days after his bank's bonds crashed, the CEO of Raiffeissen Bank (Austria's 3rd largest) has stated (unequivocally) that "panic was created artificially," blaming short-sellers for his bank's demise.

The dominoes are beginning to fall. The initial spark in 2008 has triggered a series of unyielding responses by those in power, but further emergencies and unintended consequences juxtapose, connect and accelerate a chain reaction that will become uncontainable once a tipping point is reached. The fabric of society is tearing at points of extreme vulnerability, with depression, violence and war on the foreseeable horizon. Mr. President, the shadow of crisis has not passed. The looming shadow of crisis grows ever larger and darker by the day as this Crisis enters the most dangerous phase, where the existing social order will be swept away in a torrent of carnage and ferocious struggle. We are not a chosen people. We are not immune from dire outcomes.

The current US approach will lead to inevitable confrontation with Russia and China.... Beginning with the global financial crisis in 2008, the U.S. decided to recover at the expense of others, including with the help of military adventurism and the destruction of full governments, employing the theory of ‘managed chaos.'

In today's new normal, all that matters is pretense and for the most pretentious items we need to dig deep down in the Oligarch ornaments folder. The latest must-have item among those that really understand the world (and manage it) - The $3.5 million "Diamond Ecstasy" iPhone 6 from Goldgenie.

"I’m optimistic about the future of Russia. I was optimistic before this war started in Ukraine, which was instigated by the US, of course. But in any case, I bought more Russia during the Crimea incident, and I’m looking to buy still more. Unfortunately, what’s happening is certainly not good for the United States. It’s driving Russia and Asia together, which means we’re going to suffer in the long run - the US and Europe. Another of the big four Chinese banks opened a branch in Moscow recently. The Iranians are getting closer to the Russians. People are starting to reexamine the propaganda that comes out of Washington. Even the Germans are starting to reassess the situation."

We all "know" how terrible the Greek economy is... day after day we are told about it... and reminded at the same time how "everything is awesome" in America. So the following chart may come as a surprise to some... with expectations for future Greek GDP growth now above 'awesome' America's last year.

Many people ask why we can’t just cancel all debt, and start over again. To do so would probably mean canceling all bank accounts as well. Most of our current jobs would probably disappear. We would probably be without grid electricity and without oil for cars. It would be very difficult to start over from such a situation. We would truly have to start over from scratch. Those holding paper wealth can’t count on getting very much.

About that 'low-gas-price' tax cut...

With WTI back under $50 once again (the mainstream media's new Maginot Line for oil complex stability - just like $80, $70, and $60 was), it appears more investors are waking up to the reality of an over-supplied, under-demanded global energy market. The 'squeeze bounce manipulation' that we saw over the last week - very reminiscent of the bounce seen mid-collapse in 2008/9, was predicated on falling rig counts (and capex). However, Goldman pours freezing cold fracking water all over that thesis as they explain that the decline in the US rig count remains well short of the level required to achieve a sufficient slowdown in US oil production growth to balance the global market. Simply put, they conclude, lower oil prices will be required over the coming quarters to see the US production growth slowdown materialize with risk to their already low price forecast to the downside.

All you need to know about the latest melting ice-cube "business model" in just three charts.

EU President Jeroen Dijsselbloem is about to explain how there is an agreement in principle (if Greece folds, follows the program it's been given and behaves itself - which they have since confirmed they won't) and that discussions are ongoing (haven't changed on bit all day)...

First there was The BRIC nations; then South Africa was rolled in and the group became BRICS; but with news today (following yesterday's Russian invitations for Greece's new leader to meet with Vladimir Putin) that Greece's new Prime Minister Alexis Tsipras has been invited to visit Chinese Premier Li Keqiang, we wonder if the growing non-dollar partnership will be expanded to BRICSH as The Hellenic Republic prepares to walk away from its European overlords 'partners'.