• GoldCore
    01/31/2015 - 05:00
    We are witnesses to an epic failure of planning, statecraft and social justice. Regardless of where your politics be, these elements are critical for a modern globally connected economy to function....

European Central Bank

Tyler Durden's picture

Caught On Tape: Dijsselbloem To Varoufakis: "You Just Killed The Troika"





Amid 'turmoiling' stock markets on Friday, CNBC's Simon Hobbs summed up the status quo's thinking on the new Greek leadership when he noted, somewhat angrily and shocked, "The Greeks are not even trying to reassure the markets," seeming to have entirely forgotten (and who can blame him in this new normal the world has been force-fed for 6 years) that political leaders are elected for the good of the people (by the people) not for the markets. Yesterday saw the clearest example yet of Europe's anger that the Greeks may choose their own path as opposed to following the EU's non-sovereign leadership's demands when the most uncomfortable moment ever caught on tape - the moment when Eurogroup chief Jeroen Dijsselbloem (he of the "template" foot in mouth disease) stood up at the end of the EU-Greece press conference, awkwardly shook hands with Greece's new finance minister, and whispered..."you have just killed the Troika," to which Varoufakis responded... "wow!"

 
Tyler Durden's picture

ECB Threatens Athens With Bank Funding Cutoff If No Deal In One Month: February 28 Is Now D-Day For Greece





Earlier today the ECB's Erikki Liikanen, tired of pleasantries and dealing with what to Europe is a completely incomprehensible and illogical stance, one which is essentially a massive defection by Greece in the European "prisoner's dilemma", and which while leading to a Greek financial collapse and Grexit - both prerequisites to a subsequent Greek economic recovery unburdened by the shackles of the Euro - would also unleash a European depression, came out and directly threatened Greece that it now has 1 month until the end of February to reach a deal with the Troika, or else the ECB would cut off lending to Greek banks, in the process destroying the otherwise insolvent Greek banking sector.

 
GoldCore's picture

Greeks Turn to Gold on Bank Bail-in and Drachma Risks





We are witnesses to an epic failure of planning, statecraft and social justice. Regardless of where your politics be, these elements are critical for a modern globally connected economy to function.

Sadly, the geopolitical backdrop is one of suspicion and hostility in the form of a festering proxy war between western and Russian interests in Ukraine and regional crisis and humanitarian catastrophe in the middle east as Syria and Iraq descend into stateless anarchy. These factors reduce the odds of a successful solution in Greece being found in time.

 
Tyler Durden's picture

The Fed Is Now Frontrunning Value Investors





The Fed has been supporting the market since the late 1980s. But there is an important difference between the actions of the Fed under Yellen versus Greenspan and Bernanke. In 2008, the Fed allowed Bear Stearns and Lehman Brothers to fail. Given the massive wipeout that followed, this decision is now viewed as a dangerous mistake. Having learned their lesson, the Fed is now rushing in to support the market in response to even routine 20% drops. In this way, the Fed is acting like a value investor who demands a small margin of safety before investing.... Since 2010, however, the Fed has changed tactics. The Fed is now reacting far more quickly. Small market selloffs are followed by immediate responses. By quickly riding to the rescue, the Fed is effectively front-running value investors.

 
Tyler Durden's picture

Greece Slams EU Bailout-ers: "We Don't Want The $7 Billion, We Want To Rethink The Whole Program"





UPDATE: "CONSTRUCTIVE TALKS" are over: VAROUFAKIS SAYS WILL NOT ACCEPT SELF-PERPETUATING CRISIS

As Eurogroup chief Jeroen Dijsselbloem (of "template" foot in mouth infamy) heads to Athens for talks today, Bloomberg reports the new Greek Finance Minister Yanis Varoufakis has a clear message for his European overlords of the past: “We don’t want the 7 billion euros...We want to sit down and rethink the whole program." While this exposes the nation's banking system to further runs, yesterday's revelation that Russia could step in with financing should they need it, leaves Dijsselbloem and Shulz with less and less leverage even as Spain's chief economic advisor warns, if Greece doesn't play along, "there will be problems on all fronts."

 
Tyler Durden's picture

Syriza's Original 40 Point Manifesto





The daily bulletin of Italy’s Communist Refoundation Party published today the apparently official program of the Greek coalition of the left, Syriza. Here the 40 points of the Syriza program...

 
Tyler Durden's picture

"Monetary Policy Has Lost Any Semblance Of Discipline," Stephen Roach Slams "QE Lemmings





In the QE era, monetary policy has lost any semblance of discipline and coherence. As Draghi attempts to deliver on his nearly two-and-a-half-year-old commitment, the limits of his promise – like comparable assurances by the Fed and the BOJ – could become glaringly apparent. Like lemmings at the cliff’s edge, central banks seem steeped in denial of the risks they face.

 
Tyler Durden's picture

Now We 'Know' Greek Banks Are Really In Trouble





"When it gets serious, you have to lie," were the infamous words of one J-C Juncker and today - following the 40-50% collapse in Greek Bank equity capital this week,ECB's Bank Supervision boss Nouy has come out to calm everything down:

*NOUY SAYS GREEK BANKS ARE 'PRETTY STRONG',  HAVE STRENGTHENED THEIR BALANCE SHEETS
*ECB'S NOUY SAYS GREEK BANKS WILL SURVIVE CURRENT CRISIS

Which, translated for the elites means, "sell-sell-sell." And then - just to add even more pressure, S&P puts Greece on Watch Negative.

 
Tyler Durden's picture

Greece At The Crossroads: The Oligarchs Blew It





Once one oligarchy falls, it will threaten to topple a long line of oligarch dominoes.

 
GoldCore's picture

Euro Gold Surges To EUR 1,168 As SYRIZA Threaten TROIKA





Calling all Greeks - now would be a good time to protect your self from TROIKA bail-ins and deposit confiscation. Also, protect against possible return to drachma. Greeks will soon learn value of a real safe haven 

 
Tyler Durden's picture

Ekloges 2015: Greece Votes In Historic For Europe Election





Will today be the beginning of the end of the Eurozone? The answer, as of this moment, is in the hands of some 9.8 million eligible to vote Greeks whose choice will determine the shape of the Eurozone in the coming days and months.

 
Tyler Durden's picture

Davos – The Arrogance Of Officialdom





In 55BC, Cicero stood before the Senate of Rome (warning of its looming demise), spoke of the “arrogance of officialdom” and the more one studies going ons throughout history, the clearer it becomes – the story remains the same, only the actors change - history repeats because the passions of man never change. Those who may grudgingly support the ECB stimulus in the hope that it will buy time for governments to enact structural overhauls, keep praying that politicians will push aside their own personal self-interests for once and focus of the interests of the people. Such wishful thinking is foolish since history demonstrates that only takes place when the system collapses. People who do hold to this view are also worried that looser monetary policy may work against structural measures. The European Central Bank’s stimulus diminishes any incentive for governments to reform. The policy makers and specialists at Davos were divided over the effect of even that program; but where do these people get off assuming they have the ability and right to manipulate the world?

 
GoldCore's picture

QE…D: Why Printing Money will end badly for the US





So who pays? Someone has to, you can not just create money out of thin air. The answer is “we do, you and I”, in the form of a devalued: currency, diminished savings and devaluing pensions.

You are witness to possibly the greatest economic slight of hand ever perpetuated on a people, when the long gaze of history looks at this decision, deflation fears will not be part of the final analysis, arrogance, stupidity and theft will be.

 
Tyler Durden's picture

This Is What Gold Does In A Currency Crisis, Euro Edition





Yesterday the European Central Bank acknowledged that the currency it manages is being sucked into a deflationary vortex. It responded in the usual way with, in effect, a massive devaluation. Eurozone citizens have also responded predictably, by converting their unbacked, make-believe, soon-to-be-worth-a-lot-less paper money into something tangible. They’re bidding gold up dramatically.

 
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