We have now reached the point where the euro does not have a problem – the euro is the problem. De-risking it should be a priority for European leaders, as it now poses a chronic risk to global financial stability. Either the outliers need to leave or the countries inside the eurozone needs to move down the pathway to full political, economic and monetary union.
As so often, Mr. Tsipras makes a number of fair points. However, it seems to us that everybody is skirting the main issues. Greece cannot become a “socialist Utopia”, unless its citizens are happy with being condemned to a hand-to-mouth existence for a long, long time indeed. Whether or not Greece defaults, the one thing the government will be unable to fund is the very socialism that is its basic ideology.
It’s not difficult to see that the foundation is crumbling...
We want to highlight today's absolute failure at investigative reporting, and the worst example of journalistic capture by the Federal Reserve that we have ever seen because at stake is the criminality, competence and corruption of that most important of organizations in modern society, the US Federal Reserve.
"China, the world’s largest car market by sales, has been the main engine of profitability for the likes of BMW, Daimler’s Mercedes-Benz car division and Audi in recent years, helping paper over structural weakness in Europe. But according to one Chinese dealer representative: “the cash cow is dying”.
U.S. President Barack Obama’s proposed ‘Trade’ deals are actually about whether the world is heading toward a dictatorial world government - a dictatorship by the hundred or so global super-rich who hold the controlling blocks of stock in the world’s largest international corporations - or else toward a democratic world government - which will be a global federation of free and independent states, much like the United States was at its founding, but global in extent. These are two opposite visions of world government; and Obama is clearly on the side of fascism, an international mega-corporate dictatorship... What’s at stake here is nothing less than whether the future of the United States, and perhaps even of the world, will be democracy, or else fascism.
Neither control for its own sake, nor bail-ins, are the primary drivers of going cashless. It's something more serious than power or loot.
A classic tale of buying ridiculously low and creating massive value in the process
Approximately two years ago, a commentary was published entitled “The One Bank”. The empirical foundation for the article (and the paradigm) was an extensive computer model, produced by a trio of academics at a university in Switzerland, and originally reviewed in an article from Forbes.
During the last 27 years the financial system has ballooned dramatically while the US economy has slowed to a crawl - a divergent trend that has intensified with the passage of time. While the rationale for monetary central planning is bogus, the model on which state intervention is based is even more invalid.
For a sense of what is driving sentiment this morning look no further than the Athens stock market which exploded higher yesterday on a Bloomberg story based on "two sources" that Germany was willing to compromise, only to close just as the IMF pulled a classis bad cop and announced it was halting work on Greece, and before further news from Bild that Germany was preparing for a Greek default while Europe had given Greece 24 hours to submit a final, workable proposal. As a result, it tumbled promptly at the open even as optimism persists and since the opening plunge, Greek stocks have continued to climb and are now back to yesterday's euphoric opening levels.
It seems like there's an ETF for everything nowadays. From global warming ETFs to fertilizer ETFs, Wall Street has neatly packaged nearly every type of investment to attract your cash. One thing they forgot to package was corruption. Considering how they are already overflowing in it, perhaps they just took it for granted. However, for many investors, corruption is worth taking a second look.
- Pope urges Putin to make 'sincere, great effort' for Ukraine peace (Reuters)
- Merkel Tells Tsipras It’s Time to Back Talk With Policy Action (BBG)
- 'Greek tragedy' needs happy ending now: EU's Moscovici (Reuters)
- Vulture Funds Circle Greece Targeting Europe’s Best Trading Bet (BBG)
- Germany against third aid program for Greece under any circumstances, says daily (Reuters)
- Biggest OPEC Members Pump Record Oil With Rally in Jeopardy (BBG)
- Greek ruling reversing pension cuts will cost state 1 to 1.5 bln euros (Kathimerini)
- China’s Former Security Chief Zhou Yongkang Sentenced to Life in Prison (WSJ)
- MSCI backs itself into corner on China share inclusion (Reuters)
It has been a mostly quiet overnight session with Europe solidly green on another bout of Greek hope even as Bundesbank's Weidmann warned that Greek insolvency risks are rising and Greece reporting that its unemployment rose once more from 26.1% to 26.6% in Q1, in which we got two more rate cuts by New Zealand (which sent the Kiwi crashing the most since 2011) and South Korea (the Won initially dipped only to rebound) but China stole the stage with its latest report on retail sales, industrial production, and fixed investment all of which showed a modest bounce from multi-year lows suggesting the PBOC's attempts to shock the economy into growth may be starting to work (which is bad news for the market).
The tale of two markets is a story I’ve gone over time and time again. It is a story about lies and deception, truth and honesty.