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Europe: We’ve Passed Insane and Are Now On Our Way to Full-Scale Looney Tune-Ville
Possibly the
most insane development in a year of nothing but insane developments from a financial standpoint was the idea
that somehow the Euro was saved as a currency because the IMF leant even more money to various European countries
that were already over-indebted.
Consider
that these countries already owed too
much money… so the IMF (indirectly the US) leant them even more.
Now, this is
insane on any level. But for Europe to be doing this stuff TWO YEARS after the
US pulled the same nonsense and set itself up for an even bigger collapse is
outright looney tune crazy.
Seriously,
do European politicians not even bother to read the newspaper? A cursory review
of even the most bullishly biased mainstream financial rag shows that the only
“recovery” in the US pertains to banker bonuses.
Consider the
following:
As if that weren't clear enough consider this:
Man, the
Fed’s policies SURE fixed the US economy.
Small wonder Europe wants to implement the same policies now, two years
later. Heck, they’d be nuts not to!
In all
honesty, detailing just how insane the whole Europe situation is can actually
drive you mad. In the simplest terms, a bunch of countries lied about their
true debt situation using derivatives that were created by the banks in order
to join the European union,
Years later,
these same countries start blowing up courtesy of their debt problems. However,
rather than defaulting on their debts (which would hurt the SAME banks that
created the derivatives mess) they start trying to borrow even MORE money
(thereby going even further into debt) while cutting social spending.
So the
bankers keep their bonuses and massive salaries and the citizens get screwed so
a failed experiment (the Euro) can limp on for another six months?
And somehow
it’s a surprise that the European
citizenry is flipping out?
Let’s be
blunt here: the Euro in its current form is finished... done… canceled. Greece
got a bailout in June and ALREADY is asking for an extension on the repayment.
If that doesn’t make it clear that NONE of the bailout money is going to be
paid back, I don’t know what will.
The markets
know this, which is why the Euro chart makes it clear that it’s heading down,
down, DOWN in the coming months.
This chart
forecasts a break below 118 in the coming months. In other words, the Euro will
be going down BELOW its June Crisis levels… before the ECB started throwing
hundreds of billions of bailout money down the drain.
Like I said,
the whole bailout to was insane to begin with. And it’s only going to end in
disaster.
Good
Investing!
Graham
Summers
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Reading this slop makes me want to close my EUO position...
Pretty obvious stuff, and there are now far too many countries which have borrowed to pay interest on previous loans. Interesting times for the bond market.
Might be worth compiling a list of countries/states with imminent cashflow crises.
When you have large political organizations like the Fed, congress and the government, there is a mind-set and a set of 'best' practices that becomes utterly calcified over decades. When evidence begins to come in that the cherished theories and practices were flawed and only coincidentally appeared to work, there is no capacity to abosrb that. Specifically, acknowledging these failures means everything must change. But these organizations abhor change; they're built on constancy, and the people who inhabit them are not 'wired up' for revolution. The inevitable free-for-all power grab that implies, terrifies bureaucrats and status quo politicians.
In the name of their collective survival they conspire to pretend everything is OK, and going according to plan. This pretense is not just to the public, but to themselves: there is no room for dissent within the ranks. This beyond classic group think, and extends to total denial and delusion.
Economists have an especially attractive 'out'. They obviously know how economies work, and their actions to save the economy are certainly superlative. So if their actions are not working, they can (and do) attribute it to bad psychology: the animal spirits are not cooperating. This gives free rein to lying to the public to get them thinking and feeling right. The world must believe things are OK, even if they aren't. Lying is not just OK, it's essential to curing the economy. Get people thinking recovery and you will have a recovery.
The idea they had no idea what they were doing never even enters their minds.
Of course, all this appears to be insane form the outside. But this is what we are witnessing: the death throes of failed bureaucracies (Yes, I know, that's redundant).
+1
This is not about saving the Eurozone or any individual country. It's about saving their own asses. And from that point of view, while desperate and doomed to failure, their actions make a lot more sense. The same dynamic of course holds in the US as well. It's going to be an exciting few years. That much is sure.
"Let’s be blunt here: the Euro in its current form is finished... done… canceled"
Fuck you, Yank! Take care of your own house first before start giving your stupid advices to other countries. Stupid arrogant and ignorant clowns.
This deserves a laugh out loud! Thanks for the comedy, bloke!
Where in that article did the author proclaim that the dollar is not finished or toast? Notice the sarcasm re: the FED's policy "working"
Don't take it so fucking personally; somebody pissed in your tea and crumpets obviously
The time frames people envision for how long it takes for this or that to occur is based on more or less no data or first derivatives or second derivatives. They just have some feel and nothing else.
The parameter that will decide it is off their radar screens.
It is the duration of the top of oil's production peak and the slope angle of the right side of it. Get (proprietary) data on that and you know the nature of the world's alpha asset.
In December of 1991, twelve members of the original "European Economic Community", now called the EU (European Union) signed the "Maastricht Treaty". It spelled out the process where they would establish a full currency union, called the EMU (European Monetary Union).
Once the EMU process was signed into law, we could see that there was indeed a purpose behind the formation of the "European Economic Community" in the early 70s. Because it closely followed the 1972 "Smithsonian Agreements", signed in Washington, declaring the dollar / gold break an official act by the US. Nor was it a coincidence that the very first discussion of a Pan Euro currency block in the form of a "European Economic Unit" was first heard of in 1976. The date of the "Jamaica Accords". The EEU, a precursor to the Euro, soon became official in the early 80s.
On January 1 1999, the Euro was born. On the headlines of almost every paper, the new Euro currency immediately became the topic of speculation. How high or low would it go,,,,,,, will it last,,,,,, what good is it,,,, and on and on. Yet, completely hidden from view and outside most speculator interest, one important item was overlooked. Once this competing reserve currency was formed, the two major power blocks of the world no longer shared the purpose of maintaining a paper gold market! Established, maintained and supported for the purpose of absorbing the demand for gold, it's price damping effects were no longer needed.
What an overview:
From a Euroland viewpoint, the dollar no longer needed to be supported by a low gold price. With the Euro in place and holding a large portion of the worlds new, non currency "reserve asset" for support, they no longer had a reason to buy at $280 or sell at $480. Indeed, they told the world they were backing out of the paper gold game with the Washington Agreement. We fully expect that during the 5 year time frame of that agreement, physical gold will soar from lack of supply as they trade it outside the London dominated paper markets. We also expect a convoluted workout of the left over contract markets as they fluctuate between $0 and $infinity. Further, the greenback could now go as high or as low as world traders would like to take this now "on it's own" currency.
From an oil producer viewpoint, with the physical gold market now only a shadow of the total "paper gold market", they can now only float a few dollars in sufficient amounts back into physical gold. With half the gold market supporting players retreating into the Euro umbrella, the present market will revert to little more than a paper float. With this in mind, it should be no surprise to anyone that crude prices began rising almost immediately after the EMU. Eventually, even $30 oil will disrupt world dollar debt to a point where the dollar exchange rate collapses. Forcing a run from dollar settlement and into Euro or a Euro + gold pricing basket for crude.
Prior to this they watch the same drama today you and I see. An ongoing dollar liquidity crisis that had long ago reached the end of it's timeline. Now it grows worse, brought about by not only the loss of most of it's Euroland financing function,,, but also it's Pan European support. Truly, this crisis demand will drive the dollar ever higher. A hyperinflationary trigger, not completely unlike the one facing Japan today. Day after day one has but to watch the US Fed ever pumping reserves in a effort to reflate a world dollar tire that's full of Euro holes!
This is a great point I had not considered: that the gold bull market began when the Euro was created. And that as Europeans pulled out of the gold price suppression schemes of England and the USA, the price began its inevitable rise.
You are obviously claiming (like FOFOA) that the Europeans have ceased to engage in gold leasing and price manipulation, and therefore still have all their gold in place. In the case of the Germany that gold is in New York, or they hope it is. And what of the BIS accounts that are held in 'site' accounts rather than 'earmarked' accounts, and has probably been hypothecated. Are you saying none of that is European gold?
Despite their foresight, history will record that the brand new currency, the Euro, went from hero to zero in record time. That the European (international) bankers managed to utterly destroy the Euro in just 8 years. It doesn't appear dead today, but the obscene quantities of debt will eventually be realized as a lethal debasement. Perhaps, this was not an accident and was engineered to keep the dollar hegemony intact. Or perhaps the Eurocrats aren't quite as intelligent as you seem to think.
I remain skeptical that this currency that was intrinsically flawed at conception, is somehow brilliantly immune to gold price changes, and therefore immune to a dollar collapse.
Lent, not leant.
The world ends not with a bang, but a whimper....
More drivel.
There will be no "big bang" explosive collapse of the Euro of the Usd.
Rather, both regions will devolve to a banana-republic condition - over the course of say 50 years.
More like say 5-10 years.......
More drivel, from a fat ass.
How do you know? Are you god?
The world is doomed if you have loonies like this:
“Well, people when I say that look at me and say, ‘What are you talking about? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, I’m telling you.”
Graham Summers is a perma-bear. He's been calling for Armageddon for weeks now.
Has he been a perma-bear for weeks too?
Has he been a perma-bear for weeks too?
Insanity is always perfectly logical to the insane, is self sustaining with no outside energy sources needed and utterly impossible to refute since logical arguments against the insanity is always rejected by the insane as.....well......insane. Insanity is the perfect positive feedback loop that only ends when the insane are dead or they're overwhelmed by the sane.
Ironically once the sane take over, the very same positive feedback loop that fed the insanity now begins to lift all sane boats, quickly propelling them towards insanity. The herd always moves as one regardless of the direction and the direction the herd takes is always the correct one since the only basis for reality is determined by the herd. Insanity for the most part is always correct and quite blissful because there is no doubt that you are correct.
This is what we as a society get when we hide from ourselves and the greater truth. Since we abrogate seeking the truth within we must find a substitute, one that's readily supplied by the herd. To thy own self be true. Otherwise follow the herd and join the insanity.
Right up until the moment it isn't.. LOL
this is a great time to short the euro, english pound and australian dollar. all will be worthless toiletpaper soon.
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