• Steve H. Hanke
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    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

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

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Mon, 05/10/2010 - 06:41 | 340793 doublethink
doublethink's picture


"Vive Le Franc!"


Mon, 05/10/2010 - 12:37 | 341447 BlackBeard
BlackBeard's picture

Nous sommes enculees!!!

Seriously, they should really consider inserting a picture of a bank exec into their coat of arms.

Mon, 05/10/2010 - 06:44 | 340800 Mercury
Mercury's picture

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

Mon, 05/10/2010 - 06:51 | 340809 AUD
AUD's picture

The impending depreciation of bank assets?

Mon, 05/10/2010 - 06:55 | 340813 Ned Zeppelin
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.

Mon, 05/10/2010 - 07:09 | 340830 rsi1
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.

Mon, 05/10/2010 - 07:24 | 340850 AnAnonymous
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.


Mon, 05/10/2010 - 08:36 | 340943 Cursive
Cursive's picture


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.

Mon, 05/10/2010 - 11:14 | 341267 Tethys
Tethys's picture

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


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


so who am I to complain?


Mon, 05/10/2010 - 07:14 | 340835 primefool
primefool's picture

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

Mon, 05/10/2010 - 07:41 | 340873 Herr Morgenholz
Herr Morgenholz's picture

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

Mon, 05/10/2010 - 07:18 | 340842 ratava
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

Mon, 05/10/2010 - 07:29 | 340857 AnAnonymous
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...

Mon, 05/10/2010 - 07:48 | 340883 Alexandra Hamilton
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.


Mon, 05/10/2010 - 08:52 | 340963 Cursive
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.

Mon, 05/10/2010 - 07:35 | 340861 Renfield
Renfield's picture


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'.

Mon, 05/10/2010 - 07:48 | 340884 Manipulism
Manipulism's picture

As a german I can say: Ich stimme zu!

Mon, 05/10/2010 - 07:55 | 340891 lizzy36
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. 

Mon, 05/10/2010 - 08:24 | 340921 Handle with care
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

Mon, 05/10/2010 - 09:20 | 341018 mikla
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.


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.

Mon, 05/10/2010 - 08:43 | 340954 Canucklehead
Canucklehead's picture

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


Mon, 05/10/2010 - 09:01 | 340983 Canucklehead
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.



Mon, 05/10/2010 - 09:14 | 341005 godfader
godfader's picture

The EUR is now officially toilet paper. Short away.

Mon, 05/10/2010 - 11:34 | 341299 desgust
desgust's picture

We are all fascists now! Heil!

Mon, 05/10/2010 - 11:42 | 341322 youngandhealthy
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.

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