• Pivotfarm
    04/18/2014 - 12:44
    Peering in from the outside or through the looking glass at what’s going down on the other side is always a distortion of reality. We sit here in the west looking at the development, the changes and...


Tyler Durden's picture

Presenting The ECB's Own Reflections On A Member Country's "Withdrawal And Expulsion From The EU and EMU"

The trope du jour in Europe now appears to be that Greece will be temporarily expelled from the eurozone following the ECB agreement to allow Greece to default "temporarily" whatever the hell that means. Good luck pushing a freefall (not a prepack) through bankruptcy court (what bankruptcy court: Southern New York? Eastern Santorini? Upper Volta? Mars?) in the 1-2 weeks that the idiot bureaucrats think it would take. And while they can come up with whetever BS to paint the tape as idiot algos once again go berserk on positively emoting headlines at least until tomorrow when everything collapses again, and send the EUR higher, the truth is that the biggest refutation of this approach comes from none other than the ECB, which in a paper titled: "Withdrawal and Expulsion from the EU and EMU - some reflections" tells us that this is pretty much impossible. To wit: "This paper examines the issues of secession and expulsion from the European Union (EU) and Economic and Monetary Union (EMU). It concludes that negotiated withdrawal from the EU would not be legally impossible even prior to the ratification of the Lisbon Treaty, and that unilateral withdrawal would undoubtedly be legally controversial; that, while permissible, a recently enacted exit clause is, prima facie, not in harmony with the rationale of the European unification project and is otherwise problematic, mainly from a legal perspective; that a Member State’s exit from EMU, without a parallel withdrawal from the EU, would be legally inconceivable; and that, while perhaps feasible through indirect means, a Member State’s expulsion from the EU or EMU, would be legally next to impossible." The fact that the paper was written by a Greek back in 2009 is oddly ironic. That said, we assume this is merely yet another observation that will be ignored by the Statusquocrats who continue on irrelevant of facts of reality with their failed plan to preserve the EUR for a few more months no matter the taxpayer cost.


Tyler Durden's picture

Guest Post: The Essential Rules Of Liberty

For those of us who are awake, and for those who are on the verge of understanding, certain rules come into play that strengthen our stance and shield us from folly. Liberty is not a self perpetuating social condition. It requires guidelines, and effort, and sacrifice. Liberty will not survive without our willingness to maintain it. If you are not ready and willing to fight for your own independence, then you are not truly free. Let’s examine some of the inherent laws and guidelines of free will and free action that will allow us to not only win back our self determination, but to keep it for generations to come. You want liberty? This is what it takes…


George Washington's picture

Common Ground On Climate

"What may be the science story of the century is breaking this evening" ... and it provides a window of opportunity for sanity in the climate change debate ... including getting away from the next financial scam ...


Tyler Durden's picture

Guest Post: Outlaw Josey Wales - Part Four

At this point it looks bad for the working middle class and it looks
like they aren’t going to make it through the next banker made financial
crisis. The middle class just wants the chance for a new beginning.
They want jobs. They know the country has been hijacked by the banking
corporatocracy, supported by the corrupt political class in D.C. It is
time for the middle class to channel their inner Josey Wales and get
plumb mad-dog mean. It is not time to lose your head and give up. The
middle class are being pursued by Wall Street bounty hunters and
government crooks trying to finish them off. It is time to make a stand
and fight. It is essential that we know our enemies and how they
achieved their power. It all began in 1913 with the creation of the
Federal Reserve and the implementation of the personal income tax. I’ve
previously detailed how the baby boom generation contributed to our
fiscal plight in Part One – For a Few Dollars More,
how the actions of the Federal Reserve’s over the last few decades have
impoverished the middle class and placed the country at the brink of
collapse in Part Two – Fistful of Dollars and addressed the nefarious creation of a central bank in Part Three – The Good, the Bad, and the Ugly.


Tyler Durden's picture

Guest Post: "1999"

It looks like the market will never – ever – learn a lesson. When there is easy money to be had, the market loses its mind, just like the Nasdaq did in 1999 and 2000. Prince wrote the song 1999, where he says “gonna party like its 1999.” That’s exactly what’s happening today. Like the Nasdaq in 1999 & 2000, when there were plenty of warning signs about the economy and WILDLY overvalued IPOs, Fraud Street partied on as if it would never end. One lyric from the 1999 song that most in the market forgot, however, was “party over, oops, out of time.” Most of the folks who believed in the moronic valuations that Fraud Street sold them ran out of time indeed; they bought the top and lost 90% or more of their speculation, err, pardon, “investments.” But the market didn’t learn a lesson in 1999/2000 because EZ-Al Greenspan flooded the market with “liquidity” and near-zero interest rates. His reason was, and this was admitted by Al “Bubbles” Greenspan in many interviews, to INTENTIONALLY BLOW A HOUSING BUBBLE so that the bankster pickpockets wouldn’t lose money on those horrible IPO speculations, err, pardon, “investments.” When Greenspan finally started raising interest rates, it was too late. The baton was handed to Ben “Helicopter” Bernanke who was now in charge of lying to Congress, as well as you and me, about the state of the economy. He said that the rapidly escalating economic problems, especially in Greenspan’s housing bubble, were “largely contained.” He forgot to tell us that he meant on Mars.


Tyler Durden's picture

Frontrunning: May 11

  • U.S. post has $2.2 billion loss, warns of Sept insolvency (Reuters)
  • Partisan Divides Harden on Debt Accord as Options Are Rejected (Bloomberg)
  • EU Slows Drive for More Greek Aid as Merkel Seeks ‘Proven’ Steps (Bloomberg)
  • AIG sets $9 billion stock offer, half of expected (Reuters)
  • China Inflation Signals More Tightening to Come (Bloomberg)
  • Japan Aims for Tepco Compensation Scheme this Week (Reuters)
  • U.N.Chief BanCalls forCeasefire in Libya (Reuters)
  • Syria Extends Armed Push; EU Sanctions Begin (WSJ)

Tyler Durden's picture

Greece Stages Another 24 Hour Strike (Complete With Teargas) As European Officials Arrive To Enhance Austerity: Live Webcam From Constitution Square

On the one year anniversary of its first bailout, things in Europe's basket case are getting much worse once again. Even as senior EU and IMF inspectors arrived in Athens on Wednesday to press Greece to shore up its finances, workers walked off the job to protest against austerity-induced recession, culminating in a 24 hour strike which sees both airports and journalists taking a break from hard work. Oddly ironic this: the "bankers" arrive to make austerity even more aggressive (so there is more value left over to senior bondholders when the bankruptcy commences), just as the country experiences a deja vu moment of strikers on one side and teargas lobbing policemen on the other. Those who wish to follow the protests live, which so far the mainstream media has refused to show, can do so here.


Smart Money Europe's picture

Warren Buffett on Gold and some other (Silver) observations…

This guy hasn't got the slightest idea (or wants it to appear that way), and more Silver Shenanigans from Europe...


Tyler Durden's picture

Does The "Ring Of Fire" Guarantee At Least One Magnitude 8 Aftershock, And Ten Of Magnitude 7 Or Higher?

For Japan, it's nowhere near over, at least if the Pasadena Jet Propulsion Laboratory (creator of such brainiac things as the Mars rovers) is correct. While Japan has experienced numerous magnitude 5 and 6 aftershocks (405 in total to be precise), the big ones are still to come: "Japan's largest quake on record, which hurled a 7-meter (23-foot) wave
landward after one plate slid beneath another off the coast of Sendai,
had an 8.9 magnitude. The aftershocks will likely include at least one
measuring 8 and 10 of magnitude 7, JPL geophysicist Andrea Donnellan
All are many times larger than the 6.3-level New Zealand quake in
February that leveled the Christchurch business district and killed 160." Should we get more 8+ earthquakes, the likelihood of further tsunamis unfortunately jumps exponentially. And while scientists have long been expecting "the Big One" to hit Los Angeles so far without success, unfortunately carrying over that logic to Japan is more than naive.


Reggie Middleton's picture

Why Strong, Objective Financial Research Is Important To Tech Firm Execs As Well As Investors

If one would have looked at the actual numbers versus what is consistently reported in the media, one could very well have grounded oneself profitably and firmly in the fastest growing and largest mobile market in the world. Then again, if Grandma had balls, she'd be Grandpa. Wouldn't she???


Tyler Durden's picture

CME Raises Margins On Crude Oil, Heating Oil And Gasoline By More Than 10% Each

The CME Group Inc. increased margins its New York Mercantile Exchange crude oil and petroleum products futures, effective after the close of trading today. The margin for Nymex crude oil will rise to $6,750 per contract from $6,075, while heating oil margins increase to $6,413 from $5,063 and gasoline to $6,750 from $5,400, the exchange said in a notice late yesterday. The attempts to prevent an out of control melt up in the one product everyone is terrified of, crude, are back on the table. Just like last week, when the ICE started and the CME followed suit, look for today's CME action to be promptly immitated by the ICE on Brent.


Tyler Durden's picture

As WTI Stockpiles And Spreads Hit Record, ConocoPhillips Obstinately Refuses To Reverse Seaway Pipeline

Today, WTI spreads continued their blow out, making the lives of all Goldman clients who expect the spread to collapse a living hell (with ever louder rumors of pending or already transpired energy fund blow ups). The spread between April-delivery WTI futures and Brent, the basis for European and West African crudes, widened $1.63 to $15.70 a barrel at 12:16 p.m. in New York. And since in addition to Brent, there are roughly 100 other grades, here is how WTI has been trading compared to some of the more illiquid varieties: Light Louisiana Sweet premium increased 30 cents to a record $20.10 while Heavy Louisiana Sweet premium widened 30 cents to $20. Mars Blend’s premium to WTI strengthened 40 cents to $14 a barrel, while Poseidon increased 30 cents to $14.30 over the benchmark. Southern Green Canyon’s premium widened 40 cents to $13. Thunder Horse’s premium to WTI strengthened 5 cents to $19.20. West Texas Sour’s discount narrowed 35 cents to $6.40. Syncrude’s premium widened 50 cents to $8.50 a barrel. The discount for Western Canada Select widened $1.25 a barrel to $21 a barrel. Yet despite all these divergence dynamics, it is the WTI that is of critical importance due to its prevailing liquidity and utilization in the US. Luckily for Ben, the WTI glut just hit a record, allowing the Fed to continue pretending that the real price of oil is not well over $100. Per Bloomberg: "Stockpiles at Cushing, the delivery point for futures traded on the New York Mercantile Exchange, rose in the week ended Jan. 28 to 38.3 million barrels, according to the Energy Department. That was the highest level in records begun in 2004. Last week TransCanada Corp. started deliveries to the hub from its Keystone pipeline, which connects Alberta and Cushing." What is more interesting is recent speculation that ConocoPhillips may reverse its Seaway pipeline to relieve the Cushing excess. This would make economic sense for Conoco, yet for some odd reason the company refuses to proceed.


Tyler Durden's picture

Per Declassified Testimony, Bernanke Blames Blogosphere For Itemizing Disastrous Consequences Of His Actions, Says Goldman Is A Utility

Following loud complaints by Zero Hedge over the weekend about the retention of Bernanke's FCIC testimony from the public's eye, yesterday the commission caved and agreed to release Bernanke's November 17, 2009 89-page closed session confidential transcript, in which, among other things, Bernanke complains about the... blogosphere. Arguably, among the most amusing comments are the circumstances which bring Bernanke to lament the surge of alternative media. On page 68, the Chairsatan, in responding to a question of why nobody could predict the disastrous consequences of Vissarionovich Jr's actions, we see another face of Bernanke - that of the man who deflects his gross incompetence which almost destroyed civilization as we know it... to those who worry too much: "I think there were people -- there were people saying -- including people at the Fed but others as well -- saying, in the year before the crisis, that risk was being underpriced, that  spreads were very narrow, that markets seemed ebullient, that liquidity was, in some sense, excessive. There were -- you know, the way I would put it is, I think there were people -- not necessarily the same people -- identifying various parts of the problems. You know, there were people who were concerned about derivatives, there were people that were concerned about subprime mortgages, there were  people concerned about the overall credit environment, there were people who were concerned about off-balance-sheet vehicles. But I think notwithstanding the claims of one or two people out there who are now sort of living on the fact that they, quote, anticipated in the crisis, I  would still say that the interaction of these things, the “perfect storm” aspect was so complicated and large, that I was certainly not aware, for what it’s worth -- and it could be just my deficiency -- but I was not aware of anybody who had any kind of comprehensive warning. There are people identified -- and the trouble is -- and particularly in this blogosphere we live in now -- at any given moment, there are people identifying 19 different problems, crises." So there you have it: the next time the entire financial system collapses, which should be within a few years at most, and unless Mars bails the Earth out, this will be the last collapse, it will be the blogosphere's fault again, for identifying too many problems again, and for supposedly 'shouting wolf' when it has been right all along.


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