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Jean-Claude Juncker Says Not To Rule Out Europe Becoming A Ponzi Protectorate
One of the hottest topics over the past two weeks in Europe has been whether or not the EFSF, or the multi-billion, AAA-rated synthetic CDO that is affectionately called the "rescue fund" (and which we are confident Goldman is somehow betting against as we type), should be allowed to buy back debt of insolvent countries trading at less than par (obviously). Allowing this process to go ahead is nothing less than a wholesale ponzi pyramid, whereby everyone chips in to make everyone that little richer, while in reality the fundamental problem remains, and the only thing achieved is eliminating the need to have a market interest for any country's sovereign debt (something Portugal recently did when it placed a billion or so in debt with China), and completely eliminating market discovery. And while Germany has, as usual, been very much against this proposal, which it sees as one step short of a federal Euro debt issuance authority, it will sooner or later have to cave in to the chorus of demands by everyone who is insolvent, if it wants to keep the Euro, which it does since it is the European equivalent of the Dollar-Yuan peg, and keeps the country's export strength supremacy to the rest of the continent. To that point, earlier today, Eurogroup Chief Jean-Claude Juncker told Spiegel that European leaders should not shy
away from a proposal to buy back the bonds of troubled euro
member states but should not rely too much on rich countries.
"It would be wrong to create taboos but we cannot
overstretch the strong countries," Juncker said in an interview
with German magazine Der Spiegel seen by Reuters on Saturday
ahead of publication. We wonder who they should rely on then: why themselves of course - let everyone chip in a little so they can grab from the rescue fund with both hands, all the while pretending this is a fair and equitable treatment.
More from Reuters:
A source told Reuters on Thursday that euro zone ministers are considering whether the bloc's rescue fund could buy back bonds of debt-ridden states, a plan Portugal said it supported.
Der Spiegel magazine also reported in an unsourced reported that the idea of a buy-back, which it said was first raised by the European rescue fund's chief Klaus Regling, had been greeted with sympathy by euro zone finance ministers this week.
Without citing any sources, Der Spiegel said Regling's suggestion stood good chances of becoming reality.
"The measure has good prospects of being signed off as part of a comprehensive package to stabilise the euro zone at the European Council in March," it said in a pre-publication release.
It also cited an unnamed high-ranking German finance ministry source as saying this was a good idea, running counter to official German denials this week.
"I wouldn't know of anyone in the Finance Ministry who would have said that," a spokesman for the ministry told Reuters, declining to comment on the Der Spiegel report.
Greece and Germany have insisted Greece, the first to succumb in the currency bloc's debt crisis, needed no help with debt repayments.
A spokesman for EFSF's Regling declined comment but referred to an interview earlier this week in which he said Greece did not need a restructuring of debt , while the Greek finance ministry again denied there have been any discussions on restructuring.
Just the tip:
Greece wants to stretch out repayment of the emergency funding it is getting from the IMF and its euro zone peers but is not in talks to restructure its debt, its deputy finance minister reiterated on Friday.
Under the proposal being discussed, the EFSF would be able to conduct buy-back operations of bonds of a distressed country, which could help stabilise its debt market, Reuters sources have said.
For this to be feasible, the fund would need to be beefed up to be able to actually lend out its full headline value of 440 billion euros, a move Juncker backed in his interview with Der Spiegel.
Currently only about 225 billion euros are effectively available because of the need to secure a triple-A credit rating.
Aside from the complete and utter idiocy of a glaringly obvious ponzi scheme being supposed to fix Europe's problems, we find it deliciously ironic that somehow Wall Street has managed to convince Europe that a few years after its simian-like asset managers blew up the continent's banking system through wholesale buying of Wall Street-created CDOs, the very same CDO structure is now supposed to rescue the continent. One day very soon books will be written about the greed and stupidity of the by then non-existant block's leaders.
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***** "Allowing this process to go ahead is nothing less than a wholesale ponzi pyramid, whereby everyone chips in to make everyone that little richer" ******
Bullshit!
It is a normal market, in which buying low to sell high later... using synthetic monies, which are borrowed... which interest is owed upon...
How many way can people not see them layers? of how they are being fucked?
I am remembering why I took a brake from here now.. all this truth and not a fucking soul can understand it. And even if they do understand it, its turned into make love not war speeches.
SBNK.OB fraud story is about to break in NYTimes Sonoma affiliate.
http://www.xtranormal.com/watch/8242405/
Youtube cartoons have been erased. prepare for launch
and I might add what basket of monies.. make up this fund? with a FED window swap protection built in?
(and which we are confident Goldman is somehow betting against as we type)
Give it a week and Direxion will have a triple leveraged, inverse ETF to mirror Goldman's credit default swaps on this.
These idiot douchebags still have Cap N Trade in place.
Fuck them, I hope they die in fire.
They closed the exchange. It got hacked and credits stolen. Somebody was looking for some payback for being ripped off.
The Europeans (EU) here are talking about avoiding having "rich countries" (CHINA) buy european bonds. Well stop importing poverty into the EU with open-borders for Islamics and Africans.
Europe is importing poverty to drag Europe down further. The rioters in Tunisia said they just wanted to get to Europe as it is the land of milk and honey to them. Maybe Europe needs to get over their insane PC aka white guilt.
having cheap labor and willing workers enter your market, makes people more prosperous.
Junker. That dude's definitely been to this site.
Sorry guys, but its another highly complex and highly intelligent scheme from Hi Finance.
If you dont understand it, you are merely a human being and should leave it to the clever people at Planet Squid.
Nanu Nanu
Basically everyone wants to stretch it till war/jubliee or nature causes the great reset.
Perhaps a CME. A Coronary Massive Ejaculation.
Otherwise none of this makes sense. Greece does not need help? Portugal supports the plan? I'm sure Spain is in favour also.
The plan sounds like a Juncker to me. The tire-kick just did not feel right.
ORI
http://aadivaahan.wordpress.com/2011/01/21/accidental-lives/
From this day forward... I will not be enjoying fight club... no more bitch smacking for fun, no more bag tag..
I demand TYLER!!! you dumb it down even more... in the plainest of terms... source the dollars and the back stop of those dollars so that every idiot with a 3rd grade education can understand it (i know you already have).. do better.
sourced and sited for the idiots...
Never mind the .0000000000000000000000000000000000000000000000000000000000000000000001% will never effect anyting.
I hear ya, alot of this chit is over my head. I'm just an engineer.
But it reaks of fraud waste and abuse to me.
Yes, your math has to add up... God Bless You, I promote you to President... starting now... no longer do your draw pictures, now you keep the books... someone get this guy a Marine Guard!
Always try to get off on the right foot...
"Citing Krugman is no substitute for sound economics" - http://blogs.telegraph.co.uk/finance/jeremywarner/100009357/citing-krugman-is-no-substitute-for-sound-economics/
An old 'un, but a good 'un...
"The Pound Has Been Stolen!" (check out the 1980s terminals) - http://www.youtube.com/watch?v=32779CpfymI
It's unlikely to be a coincidence that Juncker is also the prime minister of Luxembourg, the EU's most banked-up member state. (Some might point to his IMF, World Bank, EBRD and European Investment Bank gigs too.) It seems that all the banking interests have been pushing hard for Eurobonds or something similar over the past month or so.
Welcome to the Global Circle Jerk.
A greek newspaper today said something about a "secret visit of Goldman's president"in Athens last week. Has anybody heard anything about that?
One day very soon books will be written about the greed and stupidity of the by then non-existant block's leaders.
The true stupidity is that every day the resolution of solvency is delayed the greater the ultimate loses will be. In this the stupidity of European leaders & policy makers outweighs their impulses for wealth preservation, let alone creation.
I was going to post the same quote and say how unfortunate for everyone that we've got these idiots in charge, everywhere, idiots that is. And you're right about the eventual pain being greater the longer it's put off.
once again a proposal for more debt.....to solve a problem of too much debt. Laughable ...simply laughable.
The excuse is that it's just not quite enough, we never did enough, never printed enough, issued enough....it's always the excuse.
This EFSF fund would be great for the banks! Think of all the other derivatives they could write on it. CDO, CDO squared, CDO cubeb, knockout options etc.
Ah, a Ponzi scheme, yes, but maybe a differential Ponzi scheme.
If Greek banks had to take this haircut along with everybody else
on the not insubstantial amount of sovereign debt they hold
they would be in immediate need of recap -- with money coming from
where?! So the idea must be they get to feel warm and fuzzy
holding on to the paper's face-value-at-maturity pie in the sky
while those accommodating foreigners redeem theirs (the pain... the pain).
The whole thing has a certain air of illegality about it, although
that would be the least of Greece's worries.
The tale goes on: per government pep talk, the spreads
would be low enough by year end to allow the country to emerge
bright eyed and bushy tailed into the capital markets
unassisted. BTW there is this bridge, see, between Athens
and Georgetown I would like to sell you.