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Euro Drops Following Juncker Statement IMF May Not Release Next Greek Tranche

Tyler Durden's picture




 

And some more headlines:

  • EU's Juncker says IMF may not release tranche for Greece next month
  • EU's Juncker says IMF needs 12-month Greek refinancing guarantee
  • EU's Juncker says governments unable to make up IMF portion

Full report from Reuters:

International Monetary Fund, IMF, may not be pay their share of aid to Greece next month.

It said the Eurogroup Chairman Jean-Claude Juncker on Thursday, according to Bloomberg News.

"There are specific IMF rules of these rules says that the IMF can only be take action when refinancing guarantees over twelve months, "he said.

"I do not think that the troika (EU / ECB / IMF) will conclude that this is given, "he continued

Elsewhere, Greece is already planning its upcoming series of 24 hour strikes which will make sure that Greek budget deficits continue to demonstrate that only the US is worse than the Mediterranean country when it comes to balancing its books.

That said, the EUR is very unhappy with the news...

But nowhere near as unhappy as Swiss exporters. The EURCHF just hit a new all time low as the scramble to frontrun the increasingly inevitable (Deutsche Bank earlier said it had already written off most of its Greek debt) approaches the final lap.

 

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Thu, 05/26/2011 - 10:10 | 1312939 LawsofPhysics
LawsofPhysics's picture

... and China is the only country that can blow bubbles without consequence.  All is well (giggling).  Sorry Tyler, just happy about the price of soybeans, cotton, and quite surprisingly sorghum.  Seriously considering a move towards manufacturing the gluten-free beer made from the latter.  I have the resources, but need to do some more market research.  Any help on the latter would be greatly appreciated.  How many people are gluten-sensitive these days?

Thu, 05/26/2011 - 10:17 | 1312974 tmosley
tmosley's picture

You brew?

If so, mad props.  

Thu, 05/26/2011 - 10:28 | 1313020 LawsofPhysics
LawsofPhysics's picture

We engineer micro-organisms to produce a number of "biologics" via fermentation.  Brewing would be a logical extension of the business.  My meager stash of physical silver and gold is nothing compared to my investment in physical stainless steel.  But yes, I have been a home brewer for 20+ years.

Thu, 05/26/2011 - 10:34 | 1313050 hedgeless_horseman
hedgeless_horseman's picture

How many people are gluten-sensitive these days?

Not nearly as many as believe that they are.  Just ask Lara Merriken how profitable an unfounded health fear can be.

Thu, 05/26/2011 - 10:39 | 1313071 tmosley
tmosley's picture

I make mead myself, though I haven't done anything in more than two years now.  I have a couple of batches that have been fermenting that long.  I need to get off my ass and bottle them.  I sampled some, and I can say that leaving them for that long was definitely the right choice.

Thu, 05/26/2011 - 10:42 | 1313094 topcallingtroll
topcallingtroll's picture

I make better wines than any winery in arkansas and hope to open one someday with organic inputs and cement tanks with a little barrel aging for blending.

Nice to see other brewers.

I dont suppose anybody would admit to growing.

Thu, 05/26/2011 - 10:57 | 1313138 LawsofPhysics
LawsofPhysics's picture

Growing?  No.  Investing, yes;

http://data.cnbc.com/quotes/CANA

Thu, 05/26/2011 - 11:41 | 1313318 JW n FL
JW n FL's picture

I need an esquire to File Suit in Federal Court Against the U.S. Government.. more over the President of the United States of America. Pro Bono in the name of Fight Club!

 

The Law Suit is for breach of the Constitution for bringing home the U.S. Army and now Training the U.S. Army to operate Against "We the People".

 

Who wants to get some T.V. face time for themselves and for Tyler here.. we want warm bodies to educate we have to up our visible profile.

 

I am looking for feedback and ideas to make as big a splash as possible! so if you have something that will help, speak up! even if you think its small! speak up! every little thing matters and helps! SO PLEASE!!! Speak Up!

 

Thu, 05/26/2011 - 11:39 | 1313287 The Hawk
The Hawk's picture

I put a 100 vines in at our lake house... Next year I'll hopefully be making 300+ bottles and increase to 500 the next few years after...

Thu, 05/26/2011 - 22:51 | 1315380 StychoKiller
StychoKiller's picture

Waiting until the end of July to bottle 6Gallons of mead...

Thu, 05/26/2011 - 10:37 | 1313063 john39
john39's picture

i was drinking a few of these for awhile due to gluten issues.  Red Hook I think from AB.  was not great.  I understand that sorghum beers fairly common in Africa, perhaps you can find a better formula there.  as for the gluten intolerance issue, hugely missed issue.  food intolerances largely undiagnosed, people popping pills for any number of syptoms not knowing that food intolerances are at play.   and don't hold your breath waiting for mainstream medicine to point that out.  no drug for it, no money in it... much more money treating symptoms rather than telling people to stop eating foods that make them ill.   of course, look a little deeper at the foods and you see the genetic modification, metal and pesticide contamination, etc...  but, that would all sound too much like conspiracy stuff.

Thu, 05/26/2011 - 12:07 | 1313423 lubyanka
lubyanka's picture

Amen. Try New Grist

Thu, 05/26/2011 - 10:07 | 1312942 Bay of Pigs
Bay of Pigs's picture

More cowbell Greece. Or Molotov cocktails.

Whichever works better.

Thu, 05/26/2011 - 10:11 | 1312946 Quintus
Quintus's picture

This grandstanding and brinksmanship in Europe is a good warmup act for the US Debt Ceiling show.

Thu, 05/26/2011 - 10:44 | 1313092 Mountainview
Mountainview's picture

In the meantime Greek citizen go to their banks, withdrawing the last cent of their savings.. Cash in Banknotes, but not those with a Y before the serial number...those are issued by the Greek National Bank !!!

Thu, 05/26/2011 - 10:11 | 1312950 alien-IQ
alien-IQ's picture

/ES banging on the 100 day MA again. A break could be fun.

Thu, 05/26/2011 - 10:11 | 1312951 NidStyles
NidStyles's picture

Let me guess it's all headed into the USD, typical....

Thu, 05/26/2011 - 10:34 | 1313047 6 String
6 String's picture

Yeah, it's amazing. The 10y Treasury is back down to about a 3% yield...while the small caps float miracously up at the same time?

I'm gonna have to call bullshit (or is it that the 133 Eccles building just can't have stocks fall apart too far in advance of QE2 ending because it would further diminish any value QE2 has achieved--which is of course none to the plebs, so it must be levitated as long as possible until QE2 ends.

This whole thing is going to end disastrous.  

Thu, 05/26/2011 - 10:41 | 1313077 topcallingtroll
topcallingtroll's picture

Small caps are highly dependent on overall market liquidity and easy money so this is expected.

Long term small cap and value tend to be inefficiently priced and are overweighted in my non speculative investments.

Thu, 05/26/2011 - 10:12 | 1312954 Dolemite
Thu, 05/26/2011 - 10:15 | 1312965 Dismal Scientist
Dismal Scientist's picture

The Germans 'need' the peripherals to keep competitive. The issue is always execution, and whether the peripherals play ball. ECB has no barganing power now. They have lent their money by buying up Greek debt and are 'begging' for austerity measures, else Greece just defaults. They can't afford the default yet (not until after 2013) due to lack of equity, and the knock on effects to other countries. It would be like credit crunch II on steroids. The game plan was to deliver more control over the peripherals, but increasingly looks like the peripherals have them by the balls...

Thu, 05/26/2011 - 12:35 | 1313528 Rainman
Rainman's picture

Former ECB chief economist Issing joined the " Greece is insolvent " parade today. And good old Krugman wants to lay odds .

http://www.bloomberg.com/news/2011-05-26/greece-insolvent-former-ecb-economist-issing-says-correct-.html

Thu, 05/26/2011 - 10:17 | 1312977 lizzy36
lizzy36's picture

What do the Swiss export besides chocolate?

Thu, 05/26/2011 - 10:23 | 1312999 Trillax
Trillax's picture

I knew it was rhetorical, however...

"The largest exported goods are chemicals (34% of exported goods), machines/electronics (20.9%), and precision instruments/watches (16.9%)."[81]

http://en.wikipedia.org/wiki/Switzerland#Economy

Thu, 05/26/2011 - 10:25 | 1313006 HamyWanger
HamyWanger's picture

You forgot armaments and precision weapons, which make up far more than what is publicly stated. 

Thu, 05/26/2011 - 10:26 | 1313012 Quintus
Quintus's picture

Primarily machinery, chemicals, metals, watches and agricultural products. Total exports in 2010 were $232 Billion.  Not an insignificant sum for a small country.

Thu, 05/26/2011 - 11:05 | 1313141 Dapper Dan
Dapper Dan's picture

Soon to be exported from Geneva... Quarks and anti-quarks.

Seriously, they invested over 6 billion $ in the CERN LHC,  plus untold millions in operating expense for what?  You don't invest that kind of money with out some  sort of "earth shattering"  return.  Think Manhattan project.

http://ngm.nationalgeographic.com/2008/03/god-particle/achenbach-text

Check out the photos at above link, look at the size and complexity of the machinery. 

Thu, 05/26/2011 - 11:09 | 1313180 Quintus
Quintus's picture

It's a large investment, true, but the LHC is just the latest in a long line of multi-billion dollar particle accelerators and as far as I know none of the previous ones have yielded anything more than interesting scientific data.  I don't think there's anything subversive or underhand going on, it's just that particle physics is a very expensive hobby.

Thu, 05/26/2011 - 11:04 | 1313163 Ahmeexnal
Ahmeexnal's picture

Don't forget big pharma and the huge processed food giant Nestle.

Thu, 05/26/2011 - 10:20 | 1312982 Atlantis Consigliore
Atlantis Consigliore's picture

"Duetschemark, Uber Alles"  bring back those strong D-marks as currency peg, medium of exchange, store of value with the swiss fr:Lets get back the hard currency cross systemthat worked, dm/swiss,  cross,  and a strong Bubba,  as the leader of a strong, export driven sane central bank, anti inflation, anti money supply shennigans like Berflunky and Too Big to Flail Banks, let the pigs collapse devalue, default derail, and money/capital will flow where it will.

Dmark/Yuan cross anyone?  Dmark/C$ ?

Saw "Too Boring to Snore":  I liked when P-p-p-p Paulson got on his knee and grovelled to Palosi;  and bashed the Brits...Lol,

Berflunky?  Let them eat mush...lol 

 

 

Thu, 05/26/2011 - 10:30 | 1313026 InconvenientCou...
InconvenientCounterParty's picture

The notion of a "merit" based fiat as a store of value? Good one.

 

Thu, 05/26/2011 - 10:37 | 1313065 topcallingtroll
topcallingtroll's picture

Killing the euro maintains dollar hegemony and helps the usa vis a vis german mercantilists.

I dont mind since many of us benefit from being a virtual monopoly producer of world trade fiat.

Thu, 05/26/2011 - 11:08 | 1313168 Alienated Serf
Alienated Serf's picture

ding ding ding!!  we have a winner!

and i thought i was the only person who thought that the Fed would be happy to see the euro die.  very surprised that it does not come up here with my fellow tin foilers...

reserve fiat monopoly  = lower interest on national debt service.

all the fed has to do is not extend dollar swaps to ECB/Euro centrals when shtf over there. 

strong dollar policy for real.  this country would MUCH rather get more purchasing power for imports then an export advantage.

 

Thu, 05/26/2011 - 10:17 | 1312987 InconvenientCou...
InconvenientCounterParty's picture

count down to my big fat Greek vaccation with big fat stack of Dracmas.... 3...2...1

Thu, 05/26/2011 - 10:20 | 1312988 knukles
knukles's picture

Junker:  You will come to toe, do as we say or no more money.
Greece:  Yeah, OK
Junker: Glad that's settled.
Greece:  What's settled
Junker:  You'll do as we say
Greece:  eah right.  Go fuck yourself
Junker:  What do you go fuck myself?  Without the money, you'll go belly up.  
Greece:  So the fuck what?  Not my problem, we're already insolvent, bankrupt, done, fin asshole.
Junker:  Well, you won't be able to pay your debt.
Greece:  So the fuck what, like that's news?
Junker:  You have to pay your fucking debt, assholes
Greece:  Go fuck yourself.
Junker:  If you don't pay, the banks will all go belly and the EU itself will dissolve!
Greece:  So?
Junker: You poeple are irresponsible!
Greece:  (LOL) So?  Shouldn't have lent me the money, douchebag.  Ever heard of character loans?
Junker:  What will you do if we don't give you the money?
Greece:  Not pay off and all your banks, the ECB, your pension funds and governments will go shitzola, baby.
Junker:  OK Where do I send the money.  Oh, and can I book a room for the high season now?

Thu, 05/26/2011 - 10:23 | 1313016 Dismal Scientist
Dismal Scientist's picture

That is pretty much the truth of it. The Greeks have the upper hand. Its somehow the opposite of a symbiotic relationship, ie: the peripheral parasite is in danger of eating the core host...

Thu, 05/26/2011 - 10:24 | 1313005 virgilcaine
virgilcaine's picture

Who would have thought a tiny Eu Island nation would bring down the AOM civilization? Sort of fitting it ends where it began.  Socrates to now. 

Thu, 05/26/2011 - 10:25 | 1313007 Paralympic Equity
Paralympic Equity's picture

Which language is this in the reuters report? Klingon?

German bund 10Y yield went under 3%.

Equity still pricing it the best it can.

Thu, 05/26/2011 - 10:27 | 1313017 writingsonthewall
writingsonthewall's picture

"Elsewhere, Greece is already planning its upcoming series of 24 hour strikes which will make sure that Greek budget deficits continue to demonstrate that only the US is worse than the Mediterranean country when it comes to balancing its books."

 

Tyler - this is known as the final standoff - you force austerity on us - then we shall stop working. Lets see how the profits of banks manage without a workforce from which to extract surplus value from.

If banks truly are 'wealth generators' - then now is the time for them to demonstrate it. However we all know this is a lie - and the parasites will die as the host goes into a coma / hibernation.

Thu, 05/26/2011 - 10:31 | 1313045 topcallingtroll
topcallingtroll's picture

Negotiations have broken down to the point that it has to be done thru public channels with ultimatums.

I am sure they will work this round out. Not so sure how long they will keep greece afloat, but it is always longer than expected.

Thu, 05/26/2011 - 10:34 | 1313062 slaughterer
slaughterer's picture

Unclear in this type of situation who is the parasite and who is the host.   One can easily argue opposite scenarios.

Banks = parasites, Greece = hosts  (ok)

Banks = hosts, Greece = parasites (ok)

Thu, 05/26/2011 - 10:46 | 1313107 LawsofPhysics
LawsofPhysics's picture

Either way, the parties involved will be forced to deal with one another.  The financial sector has been extracting real wealth (without adding real value) from those that actually create things of real value.  Likewise, the general population has gotten too used to entitlements.  Either way, when you crash the fucking system, compensation will return to those that are actually worth a shit.   Good for the greeks, the bums at the top and bottom will finally get theirs.  Fuck the banks and the "government save me population", in general they both have been a fucking cancer that the productive few can no longer support.

Thu, 05/26/2011 - 10:40 | 1313074 Jack Burton
Jack Burton's picture

Indeed! Forced austerity = no work. Want a tried and true example? The Union of Soviet Socialist Republics: that didn't work out too well. Austerity and hard work from the underclasses is rarely a compatiable model.

Thu, 05/26/2011 - 10:42 | 1313080 Bubbles the cat (not verified)
Thu, 05/26/2011 - 11:12 | 1313179 Ahmeexnal
Ahmeexnal's picture

Forget about 24hr strikes.

Time for 12 year Galt strikes!

Oh, wait...those actually started about 10-11 years ago, which means....

Thu, 05/26/2011 - 10:27 | 1313027 AldoHux_IV
AldoHux_IV's picture

Unless the euro region can sweep the protestors into some kind of camp or a bunch of camps-- where they can eliminate these protestors from speaking their mind about the austerity/bailout measures then politically impossible will some how have to reverse itself.

Didn't someone try this before in order to impose their will... I forget his name now that are so many villains today to look at.

Thu, 05/26/2011 - 10:30 | 1313044 Cdad
Cdad's picture

That story about China bailing out Portugal causing the Euro ramp was absurd on its face.  And by the reversal in the USD/Euro cross, it would seems it is confession time.

The level of desperation and absurd price action is indicative of a market in the last gasp phase...until such time as Ben Bernanke comes out with it, that the US economy requires perpetual money printing in order to support the wise caretakers of the American economy.

On the retail stocks, today's manipulation of the XRT [which I remind you has more shares sold short against it than actually exist] is breathtaking.  The arbitrage trade on, of course, lifting the XRT and dumping the underlying into its stupid gaping maw.

As a side note, the BlowHorn [CNBC] is choosing today to suggest that folk should sell their farmland.  It is the theatre of the absurd, and the criminal syndicate Wall Street script writing staff in the penthouse of BlowHorn headquarters is the both producer and director.

Thank you criminal syndicate Wall Street bankers for this wasteland.  Thank you for destroying any last drop of market credibility that might have survived all of this.  And thank you for the coming collapse.  

Good grief [and by that I mean bring on the flesh eating zombies already...because anyone who really believes anything that the BlowHorn says anymore deserves to be eaten]

Thu, 05/26/2011 - 11:05 | 1313155 Bay of Pigs
Bay of Pigs's picture

+1

The CNBC Love Fest exhibited yesterday (because of Haines death) was something to behold.

I thought most posters here were way beyond this financial propaganda? 

Liesman, Kudlow, Cramer, Pisani, etc....? Bankster and corporate shills one and all. Give me a break.

Thu, 05/26/2011 - 10:35 | 1313049 baby_BLYTHE
baby_BLYTHE's picture

Once Germany goes back to the Deutsche Mark I will be backing up the truck

Thu, 05/26/2011 - 10:37 | 1313076 slaughterer
slaughterer's picture

DM 2 will not be as strong as DM 1.  Germany has pimped itself off to the globalization game with all the risks inherent. Quickly becoming post-industrial with no service culture to take up the slack.

Thu, 05/26/2011 - 10:51 | 1313113 LawsofPhysics
LawsofPhysics's picture

Sweet, time for a "maid in Berlin" movie?  Hhmm, I seem to remember some country having a huge surplus of "service" workers.

Thu, 05/26/2011 - 10:48 | 1313115 baby_BLYTHE
baby_BLYTHE's picture

they are still the world's second largest exporter and have a highly educated population with strong work ethics.

I studied aboard there last spring. Great place. The backbone of Europe.

http://www.youtube.com/watch?v=ynfPpBKwAmk

Thu, 05/26/2011 - 11:19 | 1313195 Ahmeexnal
Ahmeexnal's picture

Yes, the Turkish immigrants have strong work ethics and high moral standards.

But why should they bear the weight of carrying the lazy 'aryans' on their backs?

When the Turks stand up and say "BASTA, NO MAS!", the backbone will snap like a twig.

Thu, 05/26/2011 - 10:32 | 1313054 Smartie37
Smartie37's picture

and Greece thus becomes the new birthplace of:

a) freedom from banks or

b) martial law

???

Thu, 05/26/2011 - 11:10 | 1313184 zuuuueri
zuuuueri's picture

Neither of these in its honest form is going to happen any time soon. 

However it falls apart, there is a lot riding on appearances. Martial law isn't going to happen in greece, but if they try to use force to bleed the last few drops from the populace, we might see a few 'made for tv' examples. Meanwhile, even as real martial law in its formally declared, explicit state will not happen, sooner or later as greece devolves into a tangled mess of local bigshots with overlapping domains, the recent fashion in greece of 'important' people to have entourages of goons will morph into the usual third-world de facto rule of force by whoever's thugs happen to be on the block at the moment. 

not true martial law, but force will play a bigger role than it does now, though without the name.

Likewise, freedom from banks won't be openly declared ever- they will probably try to keep all kinds of fantasies on the books and keep pretenses of debt repayment long after they have actually defaulted and the economy turns its backs on banks altogether. 

 

(indeed, until the outright banning of cash transactions over 1500eur with businesses, aside from the class of pathetic consumers and their maxed out credit cards, everything in greece was cash, cash, cash.)

 

Greece has a few things going for it. The system can't really crack down or tighten much more-  this much and it's breaking in 50 places. But a lot of the people (aside from the 20% of the workforce who sits on their asses in government jobs) work hard and never got a chance to rely on the handouts. More greeks still own their homes outright than do people in any other EU country (afaik), something which much be sorely pissing off the bankers. Greeks who aren't riding the gravy train generally don't get jack or shit from the government and there is no moral sense of obligation to pay for something you never receive; conversely, there is an amazing degree of self-organization in greece- even as you marvel at how could anything at all function there,  if you have money, suddenly order emerges from chaos and things get done (so long as you pay). the whole culture simply understands that if you want something to get done, all you need to do is pay, they know there isn't a free lunch (the parasites in the public sector are whining because their free ride is coming to an end).

Letting this system burn itself out will be the best thing for greece- in a chaotic actually free market is where the greek kind of economy really thrives. that kind of free market scares the shit out of politicians and bankers, on top of pissing them off because they can't profit from it. 

so, no, no martial law. future governments in greece will devolve into a zillion petty fiefdoms, over a brief frenzy of grabbing the juiciest pieces, which fiefdoms eventually will have to actually be individually responsible for their actions, and in the end of the day as obnoxious as they might be, they will be less absolutely so than the current situation. 

 

 

 

Thu, 05/26/2011 - 10:40 | 1313072 TruthInSunshine
TruthInSunshine's picture

Here we go again.

I'm in a really uncomfortable position saying anything that could remotely be justified as a defense of U.S. bookeeping, but does anyone here believe that more than a handful of Eurozone members aren't as precariously positioned as the U.S. in terms of budget woes and inaccurately reporting the health of their financial situation?

I think it's at least important to consider one thing when considering the larger picture of budgets, deficits and debts: In any welfare society, which the U.S. and all nations that are members of the Eurozone are, a good chunk of debt calculations is comprised of future 'pledges' or 'guarantees' (implicit or express) to make payments on social safety net entitlement programs.

In the U.S., 80% of our budget is blown on 3 core areas: Social Security, Medicare & Defense Spending.

Our outlay for defense spending, alone, is greater than the next 18 largest military budgets in the world, together.

Certainly, that is an area that could be slashed significantly, unless one assumes that the military-industrial complex literally is more powerful than the aggregrate strength of voters, including senior citizens (who do vote, and who may come to the conclusing that there is a game that is being played that could pit their Social Security & Medicare up against military/defense expenditures).

Also, while the national debt of the U.S. is undoubtedly far higher than the 15 trillion officially reported, both David M. Walker's estimate of 56 trillion and Laurence Kotlikoff's estimate of 202 trillion take future entitlement spending into their tallies, and they both expressly throw out the caveat that things are that bad unless the meaty center of the U.S. budget, which is entitlement spending, is dealt with.

Whether we see the U.S. deal with entitlement spending in any meaningful way is to be seen, and opinions range from "it will never happen" to "it has to happen." I am making no predictions on this particular point other than a vague but honest anything is possible when those feeding at the trough are literally thrown into competition with each other in order to make the case to save their own, respective slices of the pie.

I don't know if the U.S. will ever see a balanced budget again, let alone pay down its debt in any meaninful way. I lean against the latter possibility pretty heavily, while ackowledging that there is enough entitlement spending now (let alone adjusted upwards in the future), waste and inefficiencies in the system, coupled with an astronomical military budget, that make it possible.

Thu, 05/26/2011 - 10:41 | 1313088 Trillax
Trillax's picture

While I agree totally Truth, I really don't see the military industrial complex going along with slashing levels at any angle without huge black eyes on both sides.  Just won't happen.  Too much vested intrest in the likes of the Honeywells, Ratheons, GEs and the like -- not to mention too much lobbing power.

Gotta 'keep up with the Joneses' so the newest commies, terrorists, rebels, whatever don't 'surprise' us.  Not to mention, I think we like flying those drones way too much ;)

Thu, 05/26/2011 - 10:47 | 1313103 Jack Burton
Jack Burton's picture

Like Rome in the imperial period, our military is now a driver of the political engine not a passanger.

Thu, 05/26/2011 - 10:47 | 1313108 Trillax
Trillax's picture

Indeed.. just like ceasar crossing the Rubicon.  I think Dr. Paul speaks about this in his latest book, I could be wrong however; I've read quite a bit in the last few weeks.

Thu, 05/26/2011 - 10:43 | 1313097 Jack Burton
Jack Burton's picture

 I would leave Social Security out of the three big ones. This is funded by a special tax that is paid up to a certain limit. The entire amount paid in, if it still existed, would cover SS for a very long time span. But politicians stole that money. I know SS is now part of the budget, though it should not be. Had the money not been stolen by congress, old folks could get all their pension obligations paid out no problem. We need to hang a few congressmembers whole stole that huge surplus to make their deficit spending look smaller going back to Lyndon Johnson and his Vietnam war.

Thu, 05/26/2011 - 11:07 | 1313160 DUNTHAT
DUNTHAT's picture

The healthcare system in the U.S. is comprised of 3000 little monopolies, called hospitals.  The Republicans insist on applying market solutions to , what are essentially, utilities.  It all results in a cost plus driven industry.  All costs can and are passed on. No repercussions. Can only happen in a monopoly.  That's why the Republicans solutions--well meaning I think -- always fail.  The Physicians are on to this a just keep crankying their fees up, and refuse to embrace added supply(med schools purposefully constrain), and work/organization practices--insisting to remain independent companies.

That's why our healthcare costs are 17% o GDP, 50% higher than Europe but with the same outcomes.

Throw in the Military-Industrial Complex gone wild, and you have a mess.  In 2011 dollars, the budget for Defense in the year 2001 was 300 Billion.  Today, 700 Billion.

I agree with you, there is more than enough excess and waste to balance the budget.  Just lacks political will.

Thu, 05/26/2011 - 10:40 | 1313084 Atlantis Consigliore
Atlantis Consigliore's picture

Oh Baby, you got that right.

Can you think it?

Dm/ Swiss Cross  with swiss backed by Gold/Bullion.

it would cause Dollar to heel or collapse/

perhaps even end the FED,  the

 

Bubba would be the enforcer anti inflation

policeman, and force the dollar to heel, or

China, would dump treasuries and mbs....

 

 

 

Thu, 05/26/2011 - 10:50 | 1313111 Fantasy Planet
Fantasy Planet's picture

Socrates is probably rolling in his grave - and reaching out to grope the guy in the next in his crypt. 

Thu, 05/26/2011 - 10:51 | 1313130 Nine Pies
Nine Pies's picture

IMF, may not be pay their share of aid to Greece next month.

It said the Eurogroup Chairman Jean-Claude Juncker on Thursday, according to Bloomberg News.

"There are specific IMF rules of these rules says that the IMF can only be take action when refinancing guarantees over twelve months, "he said.

 

Is this really Reuters?  Or just some non-English-literate muckraker?  May not be pay... It said the Chairman... specific rules of these rules.

 

Anyway, I'm short the Euro right now and glad to hear any news that makes it go down.

Thu, 05/26/2011 - 16:15 | 1314202 Hephasteus
Hephasteus's picture

The IMF don't have rules they have specific strategies to debt trap a nation based on what it can or can't do to get out of the trap.

Thu, 05/26/2011 - 10:53 | 1313133 Cdad
Cdad's picture

All corelation is now gone.  Dollar moving higher and Euro lower [the presumed catalyst for the higher open], and the long end of the treasury curve is about to break out to the upside [in price]...while the kid in the center of the room wearing a helmet and clapping for himself [S&P] moves higher.

Indicative of last minute mark ups and the setting of short positions.

Brilliant!  After looting America, sell it right before you toss the match on it all.

Thu, 05/26/2011 - 11:40 | 1313310 Dick Darlington
Dick Darlington's picture

while the kid in the center of the room wearing a helmet and clapping for himself [S&P] moves higher

Hahahaa +1000

Thu, 05/26/2011 - 11:01 | 1313143 alien-IQ
alien-IQ's picture

it would come as no surprise if the E/U and /ES go parabolic as soon as London trading closes. In fact...I'd be surprised if they didn't.

Thu, 05/26/2011 - 11:03 | 1313158 Cdad
Cdad's picture

Except for the fact that the euro went parabolic last night...as in already done that.

Now, the Euro is right back where it started because, of course, the entire notion that China, maybe, possibly might buy some Portugal bonds in June, perhaps, if they feel like it...and these things being suggested by the bailout king of Euroland...all of that causing a rally in S&Ps was absurd to begin with.

But...you know...do what you gotta do.

 

Thu, 05/26/2011 - 12:31 | 1313509 alien-IQ
alien-IQ's picture

worked like a charm.

Thu, 05/26/2011 - 11:04 | 1313161 Trillax
Trillax's picture

WSJ/Marketwatch @10:59a Half of Americans expect U.S will go broke before budget's balanced

Wow.  Half is more than I thought would have voiced that opinion.  I would have rough-guessed a quarter to less.

Thu, 05/26/2011 - 11:05 | 1313164 Atomizer
Atomizer's picture

Bait and switch. At the 11 hour, Greece will cave in.

Thu, 05/26/2011 - 11:12 | 1313181 john39
john39's picture

the politicians? sure...  what about the riots that follow?

Thu, 05/26/2011 - 11:09 | 1313178 slewie the pi-rat
slewie the pi-rat's picture

after last night's china-portugal ramp up for the EUR/USD, we get this fukhead, today:  ramp down.

d'ya ever get the feeling the central banksters are in a playful mood?

Thu, 05/26/2011 - 11:58 | 1313367 Simple Simon
Simple Simon's picture

JUnker is a classic - recall 2-3 weeks ago where with 30 mins he said there was an emergency meeting in Lux on Greece - than it was off etc etc - it was a Friday and EUR and CL got trucked on it. Smells a little different here the rhetoric is getting a little more pointed to Greece to actually comply.

Thu, 05/26/2011 - 12:55 | 1313581 1911A1
1911A1's picture

How to Keep Feces Out of Your Bloodstream: http://tinyurl.com/2aw2pmy

(Hint: don't eat gluten containing grains.)

Wheat/gluten is known contributor to autoimmune problems.

Hmm... This didn't end up in the right location.

Thu, 05/26/2011 - 13:08 | 1313621 lizzy36
lizzy36's picture

Fight amonst the EU and ECB getting amusing.....

(Dow Jones) David Gilmore at FX Analytics calls Eurogroup president Jean-Claude Juncker a "financial terrirost" for his remarks about the possibility the IMF won't release a portion of its June bailout tranche. Given that the ECB and Germany have gone out of their way to assuage concerns about Greece, Gilmore says Juncker "has gone from the Minister of Pork Pies (lies) to the Minister of Truth, regularly rolling out financial IEDs [improvised explosive devices] and blowing up asset prices and the euro."

Thu, 05/26/2011 - 13:55 | 1313793 M.B. Drapier
M.B. Drapier's picture

I think this may have relevance:

The bailout represents almost as much of a scandal for the IMF as it does for Ireland. The IMF found itself outmanoeuvred by ECB negotiators, their low opinion of whom they are not at pains to conceal. More importantly, the IMF was forced by the obduracy of Geithner and the spinelessness, or worse, of the Irish to lend their imprimatur, and €30 billion of their capital, to a deal that its negotiators privately admit will end in Irish bankruptcy. Lending to an insolvent state, which has no hope of reducing its debt enough to borrow in markets again, breaches the most fundamental rule of the IMF, and a heated debate continues there over the legality of the Irish deal.

I'd also guess that the new hard line may have something to do with the fact that the gnomes are in charge of the toy factory for the moment.

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