“We will confront
speculators mercilessly.
The only speculators who got “confronted” in the last few days are the
speculators who bet that this plan would work.
The White House must be livid. From reports it is clear that Obama was
involved in hatching the EU TARP. He must have pushed on Bernanke to
open the swap windows. The President told the Europeans the plan had to
have teeth. Five days later the US is getting sucked down the European
rat hole. There is no bazooka to save the Euro.
There is no chance for a soft landing of the European debt crisis until
the Euro finds a level of support. That support can be had if the
ECB/Fed were to intervene. They could hold any reasonable level of the
Euro they chose to. But only for a short period of time. They know this.
This is setting up as a Plaza Accord type event. That would imply a
10-20% one-time devaluation of the Euro.
Something like that might work. The capital outflow would stop. Europe
would get a leg up through exports as a result. China and the US would
suffer as a consequence, but that is likely to happen regardless of how
this works out.
There may not be a one-time adjustment in FX rates. This could
alternatively get dragged out in the markets over the next few months.
The end results will be the same. The US will have an overvalued
currency, its balance sheet is in many ways worse than those under
attack today. The main event of the sovereign risk story will then
begin.
I found this video of the history of the Plaza Accord. Lots of still
familiar faces; including Paul Volker, Alan Greenspan and a very young
Paul Krugman. That was 25 years ago. The shoe is on the other foot
today. But not much else has changed.
They are not holding up the Euro. They don't want to hold up the Euro.
They do want to be sure that banks will lend to each other.
I'm guessing monday will behave a little differently this time - I'm covering nothing at the close.
Same here...short the euro and short Aussie against US$...Who dares wins. Or bget squeezed...I 'll take my risks this time.
Could it just be that the ECB is planning a real intervention - not the lim wristed variety we have seen from the BOJ over the years. They dont want to spend massive amounts of ammo on a continuous basis to hold up the Euro. So - you let the soecs stretch out further and further - get them out of balance. Then - perhaps next week - BAM. That would be more effective now than it would have been a week ago you have to admit. Also a sharp move to say 1.32 would give some serious pain to the specs - without having the currency be at too elevated a level.
It's a french way.
For example:
You talk to a girl and say:
Can I give you a drink: Means: Let's Fuck
Let's talk: Means: Let's Fuck
Nice shoes you're wearing: Means: Let's Fuck
Oh you're married I see: Means: Let's Fuck
and the list keeps on going....
Whatever a Frenchman says, It means you're going to get fucked.
Wouldn't it be in the Europeans best interest to end the manipulation of gold prices by the COMEX/LBMA/BIS? FREEGOLD anyone? Wasn't the Euro conceived to survive the collapse of the US/UK fiat system?
1. Don't monetize shit.
2. Let the public know the real price of gold traded between CBs.
Your debt doesn't look as bad when your gold reserves are worht X times more. Perhaps they aren't quite ready yet.
Your debt doesn't look as bad when your gold reserves are worht X times more. Perhaps they aren't quite ready yet.
Except for the fact that CBs have "leased out" their gold to other bankers (a sort of fractional type concept on gold) and from what I understand an increase in the price of gold would trigger a clause in the lease where the lessee would be accountable for the increase/spread to the leasor bankrupting them too - hence the large short positions some banks have in PM.
I wish I could recall the website or link that outlines this in more precise detail but if you leased/borrowed gold at $900 to make other investments and the price goes up you don't benefit from the increase - you lose. So, it is a double edged sword, and an increasingly failed attempt to keep both borrowers of fiat currency (TBTF) and leasees of gold (also TBTF) solvent. In this game, everybody gets wiped out thanks to 40-1 leverage where 39 of the 40 went to entitlements and the 1 had to pay for it.
Entitlements and the FED destroyed this country and the world. Maybe, if you destroy the FED, the IRS, and all of Congress and the Senate except for Ron Paul and Peter Schiff and exhume the body of Paul Revere (dress him up as a civil war patriot and inject the spirit of L. Ron into his body just for sideshow) U.S. might have a shot at starting over.
There is nothing wrong with going broke and starting over except for the fact of being denied to go broke while being forced to go broke (the beauty is in the contradiction) by those who are already broke, refuse to go broke and foist upon you the lie that they are not in fact utterly and totally bankrupt.
The only person that will make a fortune in this mess is Michael Douglas and his entourage - the entertainment version of the fleecing.
Capitalism and the free market at its FINEST hour. Or is it?
And Health Care? My god, how much they invest to keep one alive. You can die rich (estate tax) but you cannot, at any expense, die broke...slave).
I think I was happiest when I was taking 5 classes of Yoga a week - and residing to downward dog from the back row so as to not show off the unintended blood flow to my 2nd Chakra.
Namaste = )
Don't forget the EU sold off a lot of it's gold reserves almost a year ago.
I hear you guys say that the FED doesn't have gold anymore, but so does our central bank.
My bet: they'll implode de price of gold real soon.
Except Italy. They are loaded with gold........
A sovereign debt to gold reserves chart for major countries would be interesting............
FED Euro Swap Window ='s the United States owns Europe (long).
Thank You! Germany! and now France... keep up the price pressures, it only benefits the FED!
Austerity Push ='s Trillion Dollar Bailout and the FED! OWNING! gains going forward!
"FED Euro Swap Window ='s the United States owns Europe (long)."
If a = b and
b = c, then
a = c;
China = (owns) US
US = (owns) Europe
then China owns Europe!
Who do you think Financed China?
Who do you think bought and paid for all those whore Commie bastards to turn into Capitalists?
You think China owns us? Really?
http://www.marketwatch.com/story/misconceptions-on-chinas-role-in-us-deficit-2010-03-24
Crack a beer and kick back and read a lil Joe.. enjoy... and please, dont stop with that story... dig and free your mind!