France Confirms It Is Now Openly Buying Sovereign Bonds In The Open Market

Tyler Durden's picture

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doublethink's picture

 

"Vive Le Franc!"

 

Mercury's picture

This is like the 12th form of government in France since the Revolution anyway, they're overdue for another.

AUD's picture

The impending depreciation of bank assets?

Ned Zeppelin's picture

I picture banks driving up to their local national banks/ECB branches and dumping billions worth(less) of euro-sovereign bonds (momentarily worth more as CDS rates adjust favorably) in exchange for freshly printed euros, then swapping those for USDs, and then buying US equities /risk assets and participating in the same "refill the coffers" game our banks have been playing.

I guess QE 2.0 has arrived. Ready, set, reflate.

rsi1's picture

Please stop the nonsense US bailing out europe you keep talking all the time about. The IMF is in no big measure in the EU fund, and the US is not that 40% of IMF anymore!

In any case, I do believe it would be better to have the IMF participating to add independence, but not to participate with money, only advisory.

AnAnonymous's picture

This cant be stopped. In order to keep up an audience, you have to feed the audience with what they want to read.

Another underlying issue is that IMF is selfservingly owned by the US or not.

 

Cursive's picture

@rsi1

Where did you get the 40%?  There was a post just last week that stated that the US was roughly 20% of the IMF.  Regardless, if it were 0.01%, I'd be pissed.  Same with bailout out fat cat bankers here in the US.

Tethys's picture

I know, it's so pre-2008, but $57B seems like 'big measure' to me. 

http://www.zerohedge.com/article/latest-us-taxpayer-bill-save-europe-57-...

But hey, it's not like it's our money anyway:

http://www.ustreas.gov/tic/mfh.txt

so who am I to complain?

 

primefool's picture

Why does it feel like the Europeans are like tennage boy who just discovered sex?

Herr Morgenholz's picture

And, much like teenage boys, they're sure to get it wrong the first time.

ratava's picture

i dont care much for the buying as

a) it is QE and will hurt the Euro eventually, why should Euro go up on monetization when the same almost killed the buck last year

b) it will be done by the dumbest of the dumb (but academically well off) traders at the dumbest of the dumb times and therefore leak most of the actual money somewhere else

AnAnonymous's picture

After reading the wikipedia definition of fascism (have to insist on the wikipedia aspect of things), one could wonder if France was really saved from fascism...

Alexandra Hamilton's picture

Fascism is a more modern word for it. Before the 1930, it used to be called state capitalism (http://en.wikipedia.org/wiki/State_capitalism). There were and are many state who practice some sort of state capitalism, i.e. have some industries or companies that are state owned. Some people have decried this as being socialist, when in fact socialism was never involved at all.

Fascisim has some traits that distinguish it from state capitalism, though, namely racism, social interventionism, and a few more nasty things.

The country to watch for and most at risk ofr a fascist takeover, is not in Europe but is in North America: the United States.

 

Cursive's picture

I live in a U.S. city of 44,000 people.  The city runs all of the utilities (electric, gas, water, waste water, garbage pickup).  The city provides most of our recreational opportunities (zoo, golf course, meeting halls, convention centers, and a hotel).  About the only thing the city is not running are restaurants (except for the hotel) and telephones and cell phones.  There is very little actual private enterprise in my little city tucked away in the American "free market".  Most people work the the school board, the city or one of three hospitals in the area.  Not so different from a formerly soviet republic.

Renfield's picture

Tyler

THANK YOU. Fascism is such a taboo word that some people have pretty much quit the conversation as soon as I use it.

I have been saying since 2007 that we (the 'west') are being streamed into fascism. That's all that's left after you lose your productive capacity, isn't it.

Even on this blog, people keep looking to the US for its military power. So many of us are already accustomed to the idea of looking to a military, nationalistic leadership.

The rise of the right is never as obvious as we like to assume, watching the old '40s movies. There was a historical context, and it began with poverty, hyperinflation, and despair.

I think 'New World Order' is the perfect modern, global incarnation of 'Third Reich'.

Manipulism's picture

As a german I can say: Ich stimme zu!

lizzy36's picture

every addict chases their first high. 

every bailout will be subject to the law of diminishing returns.

in the interim, fuck with abandon, snort with abandon, because the law of gravity has been temporarily abandoned. 

Handle with care's picture

All they're doing in both the US and the EU is shifting debt from those whose credit is so badly damaged they can't borrow more and onto those who still have good enough credit to be able to borrow.

But of course this shifting of the burden of the debt only serves to weaken those who take it on, not strengthen those who have the burden lightened as the lightening merely takes them back to the brink of their capacity to service debt rather than increasing their ability to service a larger debt through being more productive.

The credit burden has been shifted from banks and corporations to sovereigns.  Now we're seeing the end stage, from weak sovereigns to strong sovereigns.

There's nowhere else to go after this.  And this has fixed nothing.  None of this new debt in any way increases the capacity of the economy to service the new debt and the old debt.

In fact, the increase in overall indebtedness reduces the possibility that the economies of the world will be able to service the overall debt burden in the future.  The more they borrow, from whatever source they can find that still looks credit worthy, the greater the amount that will eventually be defaulted on.

Unless they truly are successful in convincing the people of the world that its necessary for them and their children and their grandchildren to work in indentured servitude to ensure that no bond holder ever goes unpaid

mikla's picture

All they're doing in both the US and the EU is shifting debt from those whose credit is so badly damaged they can't borrow more and onto those who still have good enough credit to be able to borrow.

+1

This is the end game -- a pissy one trillion Euros isn't enough.  And, they can't pull that again.  We are now guaranteed that no sovereigns can service their debt.

Canucklehead's picture

Oswald Mosley and the Union Movement.  1947 seems to be an important year.

http://en.wikipedia.org/wiki/Union_Movement

Canucklehead's picture

I think Riordan Roett knows the answer.  He simply needs to dust off his old memo and change dates, names and locations.

http://en.wikipedia.org/wiki/Riordan_Roett

http://www.hartford-hwp.com/archives/46/027.html

godfader's picture

The EUR is now officially toilet paper. Short away.

desgust's picture

We are all fascists now! Heil!

youngandhealthy's picture

Another out of context ZH response. Shit whats going on...? I used to think that ZH had a reasonable approach to current affairs. But this last post is just stupid.