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A Teutonic Shift: Europe's New Safe Haven
Something rather notable appears to have changed in Europe in the last week. Since the global financial crisis exploded five years ago, each significant risk-flare has seen money flow rapidly into Swiss short-dated bonds (the so-called safe-haven trade) and has often driven these rates significantly negative. However, the current debacle is exhibiting a very different picture. Whether it is concern (as we noted here) that Switzerland will be next for a 'wealth tax' or simply a market's recognition of where the 'only' safe-haven truly exists in Europe, investors have surged into short-dated German Bunds (and not Swiss) - driving the yield on these bonds below Swiss 2Y.
Swiss 2Y Yield is -0.2bps, German 2Y Yield is -2bps!
Chart: Bloomberg
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Follow the money. Then you know who screwed you.
So now it's official, the Eurozone's new name - Germany.
Roman Empire 3.0. If you know what i mean.
And the gold flows accordingly.
Wasn't all this lawless bullshit the whole reason the mafia came into existence in Sicily/Italy?
Maybe it's time to organize...
...ALL FUCKING RATS AND SNAKES WILL FUCKING DIE.
Or perhaps
Grossdeutsches Reich v2.0
Gescheiterter (failed) Reich v4.0
If I remember my history lessons half right, it think it was: Das Heilige Römische Reich Deutscher Nationen, they did not tell us about the 3.0 version at the time, well spotted.
The 3.0 version was Drittes Reich by Adolf - hence this has to be v. 4.0
You forget about the Roman Empire founded by the Romans.
investors have surged into short-dated German Bunds (and not Swiss)
There's your sign.
Passengers may want to return to their seats..
Passengers may want to return to their seats..
No..
Passengers may want to look thru the windows and see which building the plane is aiming for.
Didn't they try this before?
I'd say they are doing a "better" job of it this time
Once they have all the money they will leave the Euro. Diabolical indeed.
Why do you think investors are piling into Bunds? Their Bund holdings will get converted to Deutsch Mark and the investment remains intact.
Euro hyperinflation leading to pan-european war resulting in total destruction will make you reconsider your definition of "intact".
"Intact" is a relative term.
When everyone else is sleeping under the bridge your one room cardboard shack with a separate 5 gal bucket outhouse is a castle fit for a king.
a shack built on German soil, with Russian cardboard and filled with Chinese trinkets
I've slept in worse conditions and come out alive.
You lucky bastards! No fancy Russian cardboard for me. I have to live in a shoe box at the bottom of a lake!
You got indoor plumbing then and plenty of freshwater? Not bad that's a bonus.
I see you have been to Mexico where a Dr. friend of mine drives an old junker for fear someone will think he has money.
what money? you mean judefetzen?
Note to self: Keep cash account at DB. Wire funds in or out as required. Order a Bittburger and enjoy the show.
Cue the music!
http://www.youtube.com/watch?v=JpaRvz2aD3U
This will be the German Anthem after they have all of Europe under their heel.
http://www.youtube.com/verify_controversy?next_url=/watch%3Fv%3DfQIIHLxJ9r4
Now that the 7-11 has converted their holdings to bit-coins, it's only a matter of time before GM does it. And you what happens after that!
Give it up, you're too stupid. Germany is OWED a cool trillion from TARGET FUCKING 2 !!!!
there used to be laws against usury in europe.
Time to bring them back and apply them against teutonic imperial kleptocrats.
You're right. Germany should fucking leave the EUR and let the rest fight it out. Too bad that Germany is OWED a trillion in goods and services. Who ever thought that trading lemons and oranges for cars and machinery was a good idea?
If you owe the bank a million, you have a problem. If you owe the bank a billion, the bank has a problem.
Germany is THE BANK and has a problem.
So we have a bank with a problem, and a partnership wit a problem, what else could go wrong here??
American lemmings could wake up and say, hey we have a problem here
Since we're all cozy with bullshit stereotypes, why don't you get off your arse and start working like the rest of us in the core instead of suckling on the Brussels teat.
See how easy that was?
Wake the fuck up and stop blaming others. If you you don't like what's happening to Greece, get on the street and throw your government out, then leave the € and the EU and we'll all be the happier. Otherwise pack your bags and come to the core. There's (still) plenty of jobs here and you're very welcome. Only prerequisite: prepared to work hard.
German Bunds safe? What?! Maybe in the short term, why beat around the push people, get in gold and silver now!
http://sprottmoneyblog.com/
Just got 200 silver Eagles delivered today...
You/d better have then assayed.
damn these ppl are stupid. Escape one place for another only to get screwed their. Reminds me of the show walking dead. Go online buy a few 100 oz gold bars and have them delivered. thats a few hundred thousand right their
With this sort of news and the ongoing crisis in Cyprus about to spread, I am curious that we have not seen discussion yet on derivatives and the threat they pose when things start to unwind. It is not clear to me how much exposure the big banks will eventually have, but my guess is that it may be significant. As with all things, time will tell.
Please, the same entities that hold those derivatives also get to decide whether or not a "credit event" has occurred. Ergo, no such events will occur. Talk about deleveraging, wait until these derivatives "evaporate" - annnnnndddd it's gone.
Indeed, if the derivatives are the WMD, then they'll induce everyone on earth to kill eachother via either conventional financial war, or financial terrorism. Nukes hurt the powerful and pleb alike. Why do you think the meme they keep pushing is "financial 9/11" rather than "financial armageddon"?
European bad soverign,bank and,corporate bonds pale in comparison to the DERRIVITIVES over there ! Look USA had thier momment to ENGORGE,why not the European ELITES ?
Mototard at Large,great point especially when ECB has collected a Pharling from proposed derrivitive tax.
Just remember, 'all is well', until it suddenly isn't and then they just steal all your money some Sunday nite.
one of your recent guest writers mentioned the Crimean War as a reference, which was interesting. Also interesting from that period is that the revolutionns of the 1850's started in Switzerland. Would be interesting to see that author work on a connection to Switzerland, the causes of teh revolutions and the subsequent turbulence of that time.
Some want to move in Euros, which they need in their home country, cuz don't have confidence they'll be able to move Swiss Francs or exchange them for Euros in home country. The Slavic states have experienced this not so long ago and may opt for German safety in Euro over Swiss. Periphery mediterraneans may do same and move as much as they can out of local bank accounts.
who is buying every dip no matter how small?
"85 billion per month, indefinitey" - Ben Bernanke
I keep feeling like this is merely an appetizer. Imagine a couple of 2% down days! We could be at $200 bln/month before we know it.
All of Ben's insider pals...
http://www.zerohedge.com/news/meet-new-head-new-york-feds-plunge-protection-team
http://www.youtube.com/watch?feature=player_embedded&v=JNDcuVMnFbc
'Benny and the jetFink's!'
Looks like they are piling into the US stocks too........as soon as they open every morning.
No joke.
Safe havens such as AMZN, LNKD, CRM ... what could go wrong?
US masters of the universe wake up every morning, see yet another crack in the edifice of modern western captilism and think, I know what I should do, buy more vapourware companies at astronomical valuations. These are sure to pay off in a crisis. Brilliant stuff.
As soon as someone actually DOES buy Bernank's pump...look the hell out the trapdoor is about to be pulled!
Now the Germans can take all that paper and buy Australian 2 year bonds @ 2.86% like they have been.
Australia 2-Year 2.860 2.920 2.951 2.830 -0.060 -2.05%Is there any place they can run to avoid the globally coordinated wealth tax?
I hear things are pretty stable in North Korea these days.
I would honestly be a bit surprised if they hit the Caymans.
Russia sourced hot-money?
With all the Fed's men and ladies chirping like the monkeys in the trees, you know King Kong is
coming to a home near you.......Anyone ever pay 1 trillion of anything back??????
We are goin' down....real soon....it reads like an EKG ! Better spread that cash around. At least you will have a "claim" to FDIC help!!!
http://www.zerohedge.com/news/2013-03-19/us-deposits-perspective-25-bill...
Can someone answer this question for me.
Why the fuck is gold/silver dicking around at this price. I get the manipulation but if this shit is so manipulated why the fuck is there supply at this price? I would think that is the god damn price was so horribly manipulated you would not be able to buy any fucking gold or silver. Instead I can buy the shit all day long at this manipulated price. What the fuck am I missing.
Fucking pissed off god damn bitcoins are soaring and I am sitting here with my dick in my fucking hand.
BitCoin is a concept designed to destract concerned citizens from eventually converting fiat into physical gold and silver assets. It is the new "rage" and the fact that it's thriving just shows that sheeple are biting. Sheeple were asking questions and feeling uncomfortable about their fiat cash holdings. The banks just gave them something new, en vogue and easy to adapt into.
Actually taking cash from accounts and buying vast amounts of physical gold or silver (and other pms) takes real effort.
Great comment walkure. BTC is not working out because .gov is going after it. I was pretty much just a bystander and now a good friend hates me. He's a digital millionaire for the moment. Dude just laid into me over last weekend and I had never even said a word. Nothing. Out of the blue.
It's probably not a good idea to alienate your friends when you are in trouble. I also told him to get out of his gold holdings in England some years back. Deaf.
Stay away from BTC. Everyone on ZH should just buy some silver dimes because we are going to need them.
If you don't hold it, you don't own it. Don't get mad at me for that fact. Keep stacking.
It has some advantages:
- You can wire BitCoins internationally
- The transaction can be anonymized
- Quick and automated transaction validation system
- No bank is involved in the transaction process
Disadvantages:
- Not broadly used / accepted
- Requires internet connectivity
- Anonymous transactions not for the average Joe (sorry, communications and system profiling are impractical to evade)
Well, IF you are a hacker/cracker, NO CAPITAL CONTROLS ON YOU! It also requires some efforts, but it's physically much less riskier than, for example, a fucking boating accident. IMHO deserves some credit.
The transaction can be anonymized.
And pigs can fly.
You are on the ball and you aren't missing anything. I just bought some physical silver an hour ago. The premiums have closed to a reasonable rate.
You didn't miss as much as you think with BTC. I HAD a friend who bought the BTC mining gear early on(15K) and now FinCEN is after him. Somehow I am blamed for this but I told him to stick with physical metals the whole time. Didn't listen to me. Whatever. Stack the metal and stick with the plan.
Just checked, the physical is just fine. An ounce is an ounce is an ounce and folks will still line of to exchange a real service or real assets in exchange. Not sure how one physically holds a bitcoin. Just remember, when fraud is the status quo, possession is the law.
I think you can actually take physical possession of BitCoins, i.e. wallet.dat in a USB key, and then even hand it over to someone else.
But I agree with you, metals have more 'massive' arguments.
I should do some tests instead of lurking about it (speaking about the BitCoins, not about physical - experiment still running: stack is still the same stack)
Thanks for the responses guys.
I sure as shit don't want any fucking Bitcoins. I just am having trouble with the logic of how the metals are just sitting here like a bunch of fucking bitches. If someone was manipulating gas for a buck a gallon I am sure as shit it would be sold out fast as fuck. I can't get my head around the fact if price is manipulated downwards below what the market is willing to pay why there is still supply. It doesn't make sense to me. I am getting a bad fucking feeling silver and gold are worth right about what the fuck they are selling for or else there would be none to buy.
If the world population is to fucking retarded to get this I am beginning to believe metals are dead. If Big Ben said hey fuckers we are going to go electronic and gave everyone a sweet ass fucking electronic card with glitter on it these god damn stupid fucks would be on it like stink on shit.
So:
Metals appear to be fucked unless the retards grow a brain. If it has not happened by now I doubt it will.
Farmland is fucked because they can tax you the fuck out of it or just drone bomb your ass. Cannot be hidden.
Cash gets inflated away. I doubt I can time the quick and temporary possible deflation with a well timed asset grab.
Bank Account. Fuck that.
Bitcoin. Fuck that.
Check fucking mate.
Edit: I just sold my Gold and Silver and bought 100k worth of Nickels. At least the fuckers will have hire a bunch of slaves to haul it all away after they drone attack me.
How about this JohnnyBlaze: What's your APPL worth today? Who cares? PM'ers are in it for the long haul and we have no intention of selling. We have children and we will pass it on. We PM'ers tend to live simple lives and do not overextend ourselves. Margin? Credit? What the fuck?
PM'ers read and read and read and study and study and study history. All of history. I can tell that you do not do your own due diligence. You are a gambler. If you can't figure out how I know that then you have some issues.
Have I ever traded fiat for PM's for fiat? YES, I need to keep an eye on the black shit that form on some coins. Bars are just trade bait on spikes. I have done well. It really doesn't even matter if silver went to $10 an ounce.(I would still be ahead) It's not going to happen.
You read the WSJ and FT and I read the KM. Don't know what KM is? Typical. Go ahead and sell. Take your profit. I am a libertarian. Do what you need to do.
Checkmate? Really? My metallurgical endeavors go to my children tax free. Your king is rather exposed.
You somehow figured out from the above post that I own APPL, that I bought APPL on margin/credit, that I do not study history, and that I read WSJ and FT.
BUT you missed the sarcasm in the post?
Can you do predictions for all of us? You are very talented.
Just to let you know I did not buy 100k in Nickels. I am sure you already knew that though.
"Why the fuck is gold/silver dicking around at this price. I get the manipulation but if this shit is so manipulated why the fuck is there supply at this price? I would think that is the god damn price was so horribly manipulated you would not be able to buy any fucking gold or silver. Instead I can buy the shit all day long at this manipulated price. What the fuck am I missing."
they are fucking selling the bars in nyfed's vault. screw manipulation, they are selling the motherfucking real solid bars that actually belong to the central banks of various countries. why do you think they can't deliver germans their gold. because they fucking sold it already. these motherfuckers would sell even their mothers in order to keep the fiat ponzi afloat. it's not their gold anyway.
"Can someone answer this question for me.
Why the fuck is gold/silver dicking around at this price."
good question, imo.
i was thinking that since gold (real) has relied on gld (paper) for price, no real price discovery has been taking place. since there is no delivery of the real required to buy gld, the price is just as imaginary.
my hunch is that the real world price of any material not required to be delivered in physical quantity when someone places an order is distorted by those who don't actually want/need the physical quantity. in fact, they are probably counting on not having to accept delivery, because it gives them an advantage over those who want/need delivery. (those use the stuff have to put up capitol and expense to handle transportation/storage/use. capital the non takers can use to gamble with on the price.
think of it as table stakes poker, where the number of chips to get into the game is the same for all, but the cost to buy those chips varies from player to player, depending on ability to take delivery of the 'pot'.
just my opinion.
Fuck Europe. That's why our ancestors left in the first place. They are going to start another war AGAIN and I am not fighting in it.
I will have a shitload of US silver dimes and I ain't the only one. Listen up you fucking banksters, there is a pile of G&A around in the US. Fuck you and your 1.6 billion rounds. You need that many chances? Did you take delivery yet? No? I thought not.
Can your dim wit, fat fuck, TSA/Homeland security troops even shoot straight? Doubt it.
You've got a shitload of dimes? These guys are interested in you. Toll Booth in Blazing Saddles - YouTube
ummm manipuflation.............discretion is the better part of valor...........................
no fear, this german will carry you in the safety of her bosom:
http://www.gannett-cdn.com/media/USATODAY/USATODAY/2013/02/24/heidi-klum...
Just another unintended consequence of the Swiss caving in to the US demands for depositor information. Now every country will ask for the same thing. If the Swiss would not have caved they would have been THE place to put every Euro over 100,000 for everyone in Europe (or the US) -- and would have been able to set their own rules because of the amount of money they would have coming in.
Washington's Cherry Blossom Festival reaches high season this week.
Oh wait, blossoms haven't arrived yet.
Thank you chemtrails.
Germany only looks good in euro clothes as it is borrowing off the account of the entire European hinterland.
Take off the clothes and it looks very middle aged.
Who is borrowing from who?
TARGET FUCKING TWO
it's gotta be either peter or paul...
Weird post bro.
Quite the opposite in fact. Get clued up on Target2 and you'll understand why the Germans are so antsy. They've become the Eurozone creditors against their will. If it weren't for all the German shit that was bought in Spain, Italy and other PIIGS on central bank credit and never paid for, the core could just pull the plug on this disaster and fuck off into the sunset. Instead they're stuck with a group that partied like its 1999 for 10 years and have now woken up with a massive hangover and blame it on others. Median household net wealth in Germany is less than a third of Spain, a third of Italy - sure its skewed towards the higher homeowner percentage in the PIIGS, but its still better paying off a mortgage than handing over rent. The typical German, Austrian, Finnish worker/low wage earner is way way poorer than his counterpart in the PIIGS. But nobody likes to hear that. Rather stick to stereotypes and blaming others.
The post war West German market state was the most heavily propagandized fiefdom in Western Europe.
The people are a product of their enviroment.
Back in 1980~ a now deceased Irishman warned us on national television that the Euro commies wanted to make Europe into one gigantic West German nightmare.
He was bloody fucking correct.
@Walkure
Follow the use of natural resourses....................
The banking system within Europe has sought to push resources upwards into Germany.
Problem is it can only make cars & shit.
More basic production in eurofuckingland is falling so that Germany can make nice toys.
If consumption / production within now former nation states is internalized Germany is fucked.
And I don't mean capital controls within a currency union.
I mean capital controls within national currencies.
Are you complaining that cars weren't build in Greece or Ireland? I don't get your point.
Manufacturing has historically always been concentrated in Central Europe. You don't just start the EZ and introduce the EUR and relocate Bayer, BASF, Linde, Thyssen Krupp, Daimler etc to the rest of Europe. Those are only the German examples. There's heavy duty industry in Holland, France, Northern Italy as well. That's the lifeblood of the European economy. Sure, we all like fresh fruits and vegetables which is why we import them from Southern Europe where the climate is better suited. We like to vacation there due to the climate as well.
Was it a good idea to finance the industrial output throughout Europe with Target 2? The damage is done and the bills will never get settled. Why is Germany supposedly the antagonist in this EZ mess? It wasn't German banks that polluted and crashed the global financial system with worthless paper and derivatives.
You're right. You relocate them to the US. EURidiots too scared of GMOs so we got BASF Plant Science, good for scientists and country as food will become even more critically important geopolitically in the years to come. When the EURidiots are starving, maybe then they will finally realize GMOs are safer than lack of food? USA 1 Europe 0
Great, you also got Bayer somewhere producing the pills and chemo cocktails to cure the rashes and cancers from the GMO food.
Enjoy your GMO corn and soy dominated diet until your health suddenly goes into the crapper for "no apparent reason".
Sure ,
There is no Germany.
There is a German jurisdiction.
The people are tools like in the rest of Europe with the possible exception of Italy which have at least a folk memory of Northern Banking republics.
But you don't get my point.......
The stuff won't move North and the stuff won't move south.
The French & Italians will drink more wine like they did before the european experiment.
Goods won't fucking move because the real externalties of such absurd trade movements cannot be sustained.
Germany can have its input heavy / labour light Lidl & Aldi stores if it really wants them but at even greater cost then now but most of us don't want their product.
Down south they can move back to their normal more sustainable practices , the north may not know what to do given its longer industrial nightmare.
http://www.youtube.com/watch?v=geIiEflWcII
We need this to finish before the elites destroy even more precious capital on building their nightmare market state.
The German teet is dry. Cyprus is the proof. Why is the teet dry? There's more to the story and Germany might bring this whole global ponzi down as soon as this year. When Germany fails, it's game over. Forget Italy or Spain. The US and King Dollar is in a fight for its existence. When Lenders start calling in their loans, the game is up. The FED loaned alot of money to the ECB and will go for the kill when the time is right.
Where do Cypriot or Irish excess claims in wealth come from ?
When we left the Sterling building in 1979 there was all of a sudden a major Soviet like push for productivity without wage rises.
The labour surplus value must go somewhere................ correct ?
You get a rise in debt or wealth claims...............credit deposits ?
Steve from Virgina is better at this but Cypriot external capital in its banks (nat gas) was burned by Germans , the wealth claims exported to Russia , Russia decided to burn those claims in Cyprus rather then the "core".
The Cypriot business model is fucked as Angie baby has said but so is Germany.
Its all part of the same circle.
Funny, traditional argument against gold is that 'it has no yield', and yet now people are queuing up to 'earn' -2%'. If only this was surprising in any way. Honestly, looking around at some of the fairly impressive technology humanity has managed to invent over the past few thousand years and then trying to reconcile that with the complete bullshit people will willingly accept as fact and 'good common sense' when it comes to money - I don't know how we ever got beyond leeches, bleedings, and witch burning.
BINGOOOOOO!
would you rather have government debt yield -2 basis points (-0.02%) and pay 15 basis points (15 bp) to a custodian to hold it...but will fluctuate in line with the value of a currency (the Euro, ugly sister number 1, compared to comparably ugly sister number 2, the US dollar or radioactively ugly sister number 3, Japan)
or
would you rather have a limited supply commodity, gold, that is valuable regardless of currency values in the "race to debase" of ivory towered, failed scientific experimenters central bankers?
i still have to see any evidence that any q/e has effected the "real" economy (manufacturing, industry and agriculture - not cutting a neighbors hair because he either flipped a burger or stacked a shelf in wally world).
Germania, bitchez...