"It's not just a rhetorical Russophobia, but aggressive steps that really hurt our national interests and pose a threat to our security" the Russian foreign minister said in an interview in Russia today, adding that "the Russian need to have nuclear arms for protection against US is a most negative & dangerous result of Washingtons influence on world stabilty."
With concepts like wealth effects (the illusion of being rich, when you are not) and propensity to consume, our leaders actually believe they can sustain economic prosperity without proper wealth creation. The future path is thus laid down for us and there is nothing we can do at this juncture to avoid the consequences of our past folly.
It would appear the powers-that-be have just stumbled on to the ugly fact that all the bailed-in depositor money in the world won't stop the novated, rehypothecated, collateral chain collapse contagion that Deutsche Bank's $40 trillion-plus derivatives book's damocles sword hangs over the status quo. However, being the problem-solving types, the European technocrats have a 'fair-share' solution - back a derivative clearing-house with taxpayer money to solve the new too-biggest-to-fail problem "that no one saw coming."
No US Presidential candidate since William McKinley in 1896 has received as nearly-unanimous financial backing from America’s wealthiest 0.01% as Hillary Clinton. What William Jennings Bryan was to them in 1896, is what Donald John Trump is to them 120 years later in 2016.
"Whatever happens.. every European bank is not going to vanish in a puff of green smoke. Decimation sounds horrendous, but remember it means one in ten. Europe might benefit from it. One or two banks, (actually 3 Italians and maybe a German or two), might be led to the slaughter room, but generally the rest of Europe’s banks will probably survive. Picking the bottom is the trick. It’s the big contrarian trade."
"So for what it’s worth however the ECB decides to navigate their latest challenge we are less inclined to embrace the classic financial sector meltdown led risk off trade that forces core rates significantly lower. Or at least it would need a spectacular display of policy incompetence first. (On second thoughts..?!)"
Pundits have declared a “New Cold War.” If only! The Cold War was a time when leaders focused on reducing tensions between nuclear powers. What we have today is much more dangerous: Washington’s reckless and irresponsible aggression toward the other major nuclear powers, Russia and China.