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Germany Throws Up Over Draghi Plan To Buy Greek Junk
In a striking admission that Mario Draghi's "strategy" about the ECB's Private QE future, aka ABS monetization plan, is nothing short of converting Europe's central bank into a "bad bank" repository for trillions in bad and non-performing debt, the FT yesterday reported that "Mario Draghi is to push the European Central Bank to buy bundles of Greek and Cypriot bank loans with “junk” ratings, in a move that is set to exacerbate tensions between Germany and the bank." It is expected that the former Goldmanite will unveil details of a plan to buy hundreds of billions of euros’ worth of private-sector assets at tomorrow's ECB meeting.
The ECB’s executive board will propose that existing requirements on the quality of assets accepted by the bank are relaxed to allow the eurozone’s monetary guardian to buy the safer slices of Greek and Cypriot asset backed securities, or ABS, say people familiar with the matter.
Mr Draghi’s proposal is designed to make the programme of buying ABS, which are bundles of packaged loans, as inclusive as possible. If it is backed by the majority of members of the ECB’s governing council, the central bank would be able to buy instruments from banks of all 18 eurozone member states.
However, the idea is likely to face staunch opposition in Germany, straining already tense relations between the ECB and officials in the eurozone’s largest economy. Bundesbank president Jens Weidmann, who also sits on the ECB’s policy making governing council, has already objected to the plan to buy ABS, which he says leaves the central bank’s balance sheet too exposed to risks.
While admirable, at least for those who follow the Keynesian religion, Draghi's revelation will come two days after Europe just reported the lowest inflation in the Eurozone since 2009: something which apparently is bad for the common person, when in reality ordinary folks couldn't be happier that their saving would be worth more tomorrow than today. It is only the massively bloated, indebted public and private insitutions that are desperate for the ECB's to unleash a raging inflation inferno that will wipe away the value of the debt crushing their equity.
While the safer slices – or senior tranches – of Greek and Cypriot ABS only make up a tiny proportion of Europe’s securitisation market, it would free up billions in liquidity for banks in two of the eurozone’s weakest economies, and potentially boost lending to credit-starved smaller businesses in the currency area’s periphery.
The reason the ECB is limited currently in its injection of liquidity into insolvent Greece and deposit-confiscating Cyrpus is because currently "the ECB only accepts ABS as collateral in exchange for its cheap loans if they hold a minimum rating of at least triple B, the lowest investment-grade rating. The ratings on senior tranches are capped by the sovereign rating of the country where the bank is based. If those rules were to apply to the ECB’s buying plan, the central bank could not accept any securitisations of Greek or Cypriot issuers. Standard & Poor’s rates Greece and Cyprus as single B sovereigns – a sub-investment-grade rating. Fitch rates Greece as single B, and Cyprus as single B-minus. Moody’s rates Greece Caa1 and Cyprus as Caa3."
Sadly, it was never the intention of the ECB to boost lending; the Frankfurt bank which is about to become the Frankfurt bad bank has only one focus - how to backstop and, if possible, eliminate several hundred billion in bad loans in Greece alone (and over a trillion around the Eurozone). Bloomberg explains the problem as was framed by Zero Hedge back in 2012:
To Aristides Belles, it’s clear what’s blocking Greece’s recovery: a quiet build-up of about 164 billion euros ($208 billion) in bad loans.
“The inability of Greek companies to repay their loans to banks and their dues to the state is clearly holding back Greece’s return to growth,” said the chief executive officer of Athens-based Nireus Aquaculture SA (NIR), a producer of sea bream, sea bass and processed fish. “It’s more necessary than ever for all parties involved -- banks, corporates and the state -- to agree on an arrangement.”
As Greece and its euro-area creditors meet tomorrow to prepare for talks on repayment terms for its public debt, a less-visible crisis is looming on another front: bad debts of households and companies. The borrowings, amounting to about 90 percent of Greece’s gross domestic product, are weighing on the country’s hopes of recovering from the steepest and longest recession on record.
Non-performing loans at Greece’s banks have reached almost 80 billion euros, according to the country’s Growth and Competitiveness Minister Nikolaos Dendias. To top that, Greek households and corporations had overdue taxes of 69.2 billion euros in August, data from the public revenue secretariat show. Also, “collectible” social arrears to pension funds exceed 14.5 billion euros, according to labor ministry figures.
“Some of this debt can never be recovered and should be written off,” said Panos Tsakloglou, a professor at the Athens University of Economics and Business who was Greece’s representative in the working group of senior euro-area finance ministry officials until June.
Sadly, if one country starts writing off the bad debt, and there is lots of it, all countries will start writing off the bad debt, and next thing you know you have a Cyprus bail in which sucks in trillions in deposits to finally match the bank books for what a viable balance sheet should look like. Of course, if instead the ECB were to step in and somehow monetize said debt, then all would be well
A perfect plan, some would say. Maybe, but not "ze Germans"
According to Handelsblatt, Germany was quick to throw up all over the German proposal, saying that EU officials see “widespread concern” among EU countries about ECB asset backed security program.
The Germany publication made it quite clear how the Germans feel: "Germany rejects Draghi’s pledge for govt-backed guaranties for ABS purchase; "that won’t happen,” the newspaper cites an unidentified govt official as saying. Finland, Netherlands oppose ABS-plans; France rejects giving guarantees
Former ECB chief economist Juergen Stark reiterates the ECB will take on enormous risks with ABS purchases and transform itself into a European “bad bank”, Handelsblatt cites him as saying
So with the ECB bankers set to meet tomorrow, watch for sparks starting to fly, unless of course, Germany is once again just doing the good cop, bad cop routine. After all, let's not forget that the one bank which will be in biggest need of a bad bank ECB is none other than the bank with the greatest notional derivative exposure in the world: Germany's own Deutsche Bank.
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Greeks need more vacation...get to work German bitchez!
Pull over.....I think I'm gonna hurl.
Absolutely everything must be done to prevent true price discovery.
Uh O, did another politician just barf on some diplomates pants? This is getting old.
Looking forward to Gordo explaining why this is actually a good thing.
heh heh....
http://www.youtube.com/watch?v=arZdeg_fL-I
nothing about this shit is "a good thing". absolutely nothing
the whole thing started with fund managers that could not find some countries on a map thinking that the eurozone is a superstate, and so going to bail out single sovereigns as if they were municipalities in the US (those were the times, those were the thoughts, now we are all smarter and better looking)
then The Vampire Squid Attached To The Face Of Humanity started to sell derivatives while consulting on how to use them in order to hide balance sheet bestialities and debt monstrosities
and now it's a mess, and Dr. Krugman wants the ECB to print, print, print. My main comment is further down
I wonder -- given Germany's self-inflicted slavery to the "expirment" due to egregiously misplaced post-war guilt -- I wonder what the Finns, Dutch, Austrians and Luxembourgians are having to say about this?
Prolly won't matter, they were all wrong from the start.
I think it does matter. If Germany has to fork over another massive bailout (devalue savings based on an increased monetary base), when the grumblings start, Claudia Roth will go on TV and explain to the people that Germany has a "special responsibility" to the continent. At this point, anyone who objects is a Nazi and much opposition in Germany shuts up, as it becomes politically impossible to vote against it (because politicians put their careers over that of the country).
Try this shit in one of the 4 other countries I mentioned -- and I would imagine you'll see Hong Kong style protests in the snow.
So they need a financial emanciaption just as bad as we do, then fix ur problems and be done with it, and I only have a 6th grade education too.
I would be glad too. I wish more than anything I worked at the ECB. I would have probably had to exile myself to Russia already though.
The nightly debate between my Russian wife and me is whether to buy a house here in Germany, or to move to the East. I just cannot decide.
The EU has been in a funk
So Draghi is buying Greek junk
Just what could explain
A move this insane?
For years now the man has been drunk!
German king was exiled, theirs was not.
Can we burn the witch called Goldman Sachs, already. To the ground. Perp walks all around.
Have we got a CDS for you muppet!
Almost time to burn the mother fucking house house down.
Central banks will pay top dollar for junk if your name starts with JP or ends with Goldman Sachs.
Playing with the Goldman and one it soldiers (Draghi) usually leads to your financial ruin later on.
Golddman takes all.
"unless of course, Germany is once again just doing the good cop, bad cop routine"
of course the author points again at Deutsche Bank
nevertheless, there is a different good cop, bad cop routine that could be going on. after all, Some Interested Parties need only the impression of the ECB "doing something", while eurozone exporters need only a not-too-strong EUR
unleash Draghi's silver tongue, promises of potential balance sheet increases are cheap
touche.
Looking forward to another "whatever it takes" speech.
looking forward him mentioning Political Capital. though I think he'll avoid that term since it's not understood outside the continent
Until he quantifies political capital, I just see it as a code for
"Well, you asked a fantastic question. If I were to give you the answer it would wreak havoc in the markets. So I'll just say this instead."
Christ, what I would give to get into an ECB press confrence.
This is all a head fake.
There is no Germany
There is no Greece
There is only The Bank
Why must the ECB buy up anything ?
This is the act of concentrating wealth which has totally destroyed european society.
You simply give money back to the people on a equal & individual level.
I believe its called redistribution.
Jesus fucking Christ approvees of this message.
The problem is that Draghi probably thinks he is Jesus Christ.
Well then - will somebody please crucify the fucking cunt.
It's time......for a press conference.
You probably thought I was going to say Toga Party.......nope!
I just came in to say exactly that, but not in such an articulte fashion. Not that I was concerned about the idea of all the German people barfing up at the same time.
All kind of media exists to obfuscate the actual truth. There is always an individual(s) profiting and gettign shafted by all these moves.
You control the language, you control the mind.
The game is this: Ecb is ready to give you money, but you, EU member States have to give up your sovreignity and let the financial industry take control of all the real assets.
most EU member countries have a different idea. they think their banking system are their national banking systems, based on privileges granted by the state, and so to behave or be nationalized. I know, this kind of view is quite outlandish, elsewhere, but there it is, and it's a quite real possibility. Dork of Cork would possibly applaud, for example
Yep printed from thin air.
and the sequel goes like this: the IMF is ready to give you "money", but you, western nations of the world, have to give up your sovreignty and let the globalists take control of all the real assets.
Ya think? Germany's been through this massive printing thing back in the early 1920's and it didn't end up too well.
So lets assume that the ECB prints a shit ton of cash and washes the system in cash. I can only assume that most of these reserves will find their way into Bank's reserves and just kinda sit there.
Given the Quantity Theory of Money is;
MV = Py
When EMZ's velocity of money picks up via either a) an increase in consumer spending lending to the liquidation of said reserves, or b) utilization of reserves in case of a run/insolvancy/credit call, unless the EMZ were to pull this money in very quickly, you'll have either an explosion of P, being price or y being quantity.
Textbook theories are for suckers.
the Quantity Theory seldom mentions the very different psychological stance of foreign holders of assets and currency. yet imho - and some historical evidence - price inflation starts with foreigners, be it through too expensive imports or repatriation of assets/currency
strong price inflation starts with foreigners bolting. and there you suddently need to push the brake pedal, and there you start to think about (actually use) FX reserves (and gold)
I would love to see the historical evidence you have.
Although, I do see your point here, and given the widespread use of the EUR -- when those holding it in reserve start dumping it into the market of use, M goes up, and unless V is going down then you have a shitstorm to deal with.
I need to think on this, but seriously, send me what you have. In theory, the canairy in the cole mine would be, for a currency such as the EUR, is amount held in FX.
But who are we kidding, we are all so fucked, it just seems like the question is how and when, and not really "if" anymore.
the classic historical evidence for this is the hyperinflation that Germany, Hungary, etc. had in the 20's
my favourite tome on that matter is Costantino Bresciani Turroni's "The Economics of Inflation", which he wrote after witnessing the phenomenon himself and collecting the best existing set of statistical data on it. you can find it on the internet in English
Well, it depends how you look at it. Spain, Cyprus, Greece, etc. are being done no favors here. They should have stayed out of this currency union. They should have kept their currency and printed their way out which is essentially the same as a bankruptcy in the private sector. Sure, filing for bankruptcy is no panacea, but it beats being a nation of slaves.
So the plan is to buy the bad loans so that those entities can then issue new loans to the same people who couldn't pay off the first set of loans?
What could possibly go wrong?
That sounds about right.
In the local irish petri dish external credit ( internal credit remains deeply negative) is blowing up asset prices while the "assets" themselves are not in scarcity.
A perfectly preverse banking world.
The above world view of scarcity in a time of plenty was brought to you by Rothschild and local partners in crime.
http://www.reuters.com/article/2009/09/01/rothschild-ireland-idUSL121115920090901
"Advisors" to the irish Government since sep 2009...........
In my neck of the woods (Western Australia) there are plenty of asset holders with negative equity who are simply not allowed to sell their assets on the open market. They are told that they must sell the asset at bank valuations done years ago. But local buyers are fully aware that the assets are no longer worth that.
So the assets just sit there. And everyone hopes that some foreign entity will swoop in and buy at full asking price. But now that China is tightening up on the whole money laundering thing, the local boys are finding that their Knight in shining credit is simply not coming to save them.
Now we just have a Mexican stand-off between the liquidators and the local buyers, with the real estate agents prancing around like utter sluts in the middle. Noone can move. The liquidators can't sell cos the banks won't let them, and the buyers can't buy because the assets are way overvalued. And as you say, the internal credit simply isn't there for the local guys.
Central banking is a beautiful thing.
It all makes perfectly good sense...
In a Lewis Carroll "Through The Looking Glass" sort of way.
With a touch of J.M. Barrie's "Peter Pan".
"I believe I can fly if I wish hard enough."
If only they would ask me for help. In my hot little Hands I have two Fifty Trillion Reserve Bank of Zimbabwe Dollars that I would cladly give them as a Gift to solve all their dept problems, matter of fact the whole Worlds dept problem. All I would ask in exchange is just one ton of Gold.
I wish someone would buy my bad debts....I could be somebody then...no pain ..no gain..these bailouts are just keeping the bankers in their jobs....protecting their own....it has nothing to do with economics....just CYA...
The better question would be why do you feel the need to create the bad debts. Did you pass the 6th grade?, or just fake it??
Draghi could have simply given every greek citizen a 1000 euros
it would have much better effect on EU economy
They always have to do things the hard way......it's in the manual somewhere.
You don't seem to understand. The aim is to get every Greek to give Draghi 1000 euros.
The next generation Europeans will be born and be a million in debt even before the can say Draghi eh, i mean Daddy.
ECB President Mario Draghi's last move towards more QE is no more than stupidity on steroids, even words like misdirected and boneheaded do it a disservice. This is more proof that the Euro-zone is in big trouble, both the union and the flawed currency is again begging to crumble.
One is forced to wonder if Japan and the Yen will crash first considering how each day Japan slides closer to the economic abyss or whether the Euro will lead the way into the wastebasket. Draghi has helped the countries of Europe kick the can down the road but this only delays the failure on the Euro. More on how the Euro-zone has failed to make any real reforms in the article below.
http://brucewilds.blogspot.com/2014/09/euro-zone-and-draghi-both-mired-i...
so europeans are not engaged anymore in a talk-a-thlon? looks like Draghi's words rattled this cage, too. Well done, Mario... I guess
If you would understand the western monetary ponzi regime you wouldn't write this: the ponzi collapses if not exponentially more debt is created, because all money is created as debt carrying compound interest. Paying back debt means the money vanishes. And since debt saturation in the market is more or less reached, the last ones capable to expand debt are the states and central bank balance sheets.
So QE is a very logical conclusion and not stupidity, because Draghi ofcourse acts in the interest of TPTB of this regime.
Hey Bruce, you're advertising so hard, you are starting to repeat yourself, again.
http://www.zerohedge.com/news/2014-09-30/eurozone-inflation-drops-fresh-...
Where are the cephalopods who originated all these shifty deals?
Thats a thougth crime.
You only see what we want you to see.
that's a tough word. google tells me it's a synonym for the nwo octopussy.
At this rate all developed soverign debt ends up trading at 0% I guess. Right? The central banks will end up buying all of it just like in japan. Then they are forced in to the equity markets directly because there is no mechanism left through the bond holders. Yields in the equity market would end up dropping, theoretically, to zero as well when central banks are buying no matter what.
So, public debt is completely monetized. And global stock markets get monetized as well.
Germany is a Paper Tiger, and Merkel is Draghi's Bi*ch
Love is blind.....apparently.
You can't talk someone out of a bad relationship.....you've got to let them go all the way down.
Nothing says "I love you" better than a black eye.
Who knows what is happening at this level? What threats are being made? Angie, you ever want to be in politics again? Angie, do you like it that your family members are currently breathing? How would you feel Angie if you didnt agree to what we want and your friends and family were injured or killed?
Certain people will stop at nothing for money.
"While admirable, at least for those who follow the Keynesian religion, Draghi's revelation will come two days after Europe just reported the lowest inflation in the Eurozone since 2009: something which apparently is bad for the common person, when in reality ordinary folks couldn't be happier that their saving would be worth more tomorrow than today"
This is pure zero hedge Austrian propaganda.
The fall in inflation on tokens is directly as a result of the fall in living standards/ wages .
The direct cause of the fall / extraction of real purchasing power is the credit hyperinflation activities of free banking.
Only after everybody gets a equal share of the nations capital can we safely see wages and thus prices fall.
Not before.
What we are seeing now is totally opposite to this.
We are seeing a ever more darkly absurd concentration of ownership claims on the masses.
So you want a communist utopia?
No communism is just another form of capitalism.
I an talking about reversing the Tudor capitalist experiment which is in fact a demonic money vortice driven by usury.
http://en.wikipedia.org/wiki/Distributism
Something's broken in there....dork. go plug it with a cork. ----> "The fall in inflation on tokens is directly as a result of the fall in living standards/ wages ."
The banking measure of inflation is false.
They pick a unit (lets say a euro) and compare it to a basket of goods.
Yet unless you are extremely rich in money unit terms and therefore hold a vast stock of tokens this does not make any sense.
People have a income
Either a wage, investment or welfare -
They don't hold a vast stock of euros.
This is such a obvious point but is rarely made for some funny reason.
Wage deflation is really just another (inverse) form of inflation when looked at from this perspective.
The key to everything is real purchasing power and certainly since the euros inception in the 70s this has been decreasing for most.
I believe the problem is not "everybody gets an equal share of capital", but "everybody gets a fair share of production and its revenues". At least in France, in spite of foreign ranting, people who work do so way too much. What is not said, when referring to the 35H/per week, is that there is no weekly time limitation for executives. And it turns out that outside of the big corps, more or less everyone is an exec... which mean working on the average from 40 to 50h/week. And the additional weeks of holiday that are supposed to compensate are generally not taken, and transformed into additional salary. Thus, the path in France was one of concentration of labour, and increase of joblesses. If the crisis indeed will stop only once
- more equality is restored
- indebtness is much reduced
as in the US in the 50s, we have to bound the maximum time of work per week, and tax the extra capital to pay debts. No other solution except default. I used to think that Draghi was of the same persuasion as Bernanke, but now I am ready to believe that he's just trying to deflate slowly the financial sector while avoiding an outright default, so maybe we (Eurozone) are on the irght track after all...
About time you and your friends started taking the fat out of the gargantuan state sector, of which the elites sitting in the Senate, National Assembly and regional assemblies are the best examples.
They do no work, as their legislature is totally irrelevant and only makes the functionings of the State even more opaque and complicated. And they are paid huge and extravagent salaries and perks and they are totally sold on the Mussolinien model your friends have installed; aka State monopoly and private corporate oligopoly alliances, running huge sectors of the French economy : EDF/AREVA/ECO-Emballage nebulous/State highways and low budget housing sector conglomerates including cement companies; all run by France's incestuous elites : ENA/Corps des Mines.
And, towering over them like a colossus with clay feet, the House of all demagogic decisions : The Elysee palace; more powerful than the WH, at par with the Kremlin, as no counter power exists in France. (the law courts are crawling in front of executive privilege, like the sons of the original legal cleric named by Philip the fair, Nogaret, who burnt the Templars and tried to assassinate the Pope, or his successor who burnt Joan of Arc). Alas, the only Judge in France with "cojones" is a woman who has Viking blood...she trampled on that other French monstrosity : La Françafrique... Le sang "impur" de Mme Joly (nice name).
With a head up ass system which has no transparence, how can you talk about fixing anything in France?
The new BAstille : The House of Bercy, economics ministry, where no scheme is ever concocted that does not end up impoverishing the people. Our tax system and the Inquisitorial tax code knows no counter powers. "Presomption de culpabilité" stays the rule when a corporate executive from a small company faces the legal firing squad.
To cap it all : Those ENA scions who have made the french banks what they are; aka with a balance sheet which is more rotten than the state public debt (2000 Billion Euro). What Credit Lyonnais did yesterday, these French banks have multiplied by a 100 and its all been done with the blessing of France's best and brightest : The Madoff type promotion of 1978 (Promotion Voltaire) of which you avatar holder was a notable element, as all those who run Bercy.
Who needs leadership like that, worthy of Louis XV's age, when we have reinstated "executive privilege" of such extravagence that it would have Voltaire jumping out of his grave in total outrage.
You have your work cut out!
Germany was not complaining when the first bailout of Greece (of which Greek people profited zero) bailed out German banks and their bad loans to Greece.
Draghi = Robin Hoodwink.
Germany doesn't want Draghi providing more grist for the AfP mill.
Draghi wants to buy the lien on Riot Dogs food dish.
I dunno if Riot Dog has 6,000 Euros worth of bark left in him.
How did Riot Dog get in such a mess?
It's just a dog dish.
"riot dog" ---> http://www.cracked.com/funny-5022-riot-dog/
1917 - federal reserve buys US government bonds so the US can participate in the largest war in world history at the time. 2014 - ECB proposes buying Greek government bonds so Greece can refuse to get a job These times are a changin
Of course, it will only prove to European leaders that they can continue down the same path of buying votes, because the ECB will later buy their bad debt anyway. This is beyond stupid. This is Obamanomics.
What is quality of the assets; separating the good junk from the bad junk. Is that like "this horseshit is fresh and steamy so it is GOOD and that has flies and maggots crawling in it so it is BAD".
The Germans do not understand what the buying of junk by the ECB means. And they are not interestd in either. They are as dumbed down as all other nations after only a few decades of Plutocracy, which calls itself deceitful Democracy.
Sure, everybody bitches about it but is ANYBODY going to stop them from buying the junk?
junk is tasty. hands up those of you who have neva visited Macs.
Shitty Draghi. Buys shit from Cyprus, which was originally Russian shit but converted to euros in Cyprus banks . Full scammer.
Well ZH is an Austrian economics site. So they can't say anything else except : until fiat dies the economy is a mirage.
Meanwhile in the real world Stiglitz is saying we desperately need demand stimulation in EZ.
http://www.theguardian.com/business/2014/oct/01/austerity-eurozone-disas...
And, Mutti is sitting with her butt on a one legged stool, just like Draghi is sitting on another one legged stool and they have a common seat going from one to the other leg called the Euro.
If the Euro seat breaks they both fall.
What Draghi is being obliged to do is to avoid that austerity kills demand in Europe. As the Supply siders are liars today.
No amount of tax perks to big business will increase investment and economic growth.
As its all going to the Casino, the cheap money; 85% + of it ends up in carry trades.
Supply siders are now head up ass casino players running with their bonuses and liquid profits to the Caymans and tax havens and leaving their investments to rot in the real market; along with the dying middle class which will now know no increase in demand spending unless we start investing huge in infrastructure and demand side projects.
How ? By taking money out of the Casino. As printing money is not the solution.
And that is the real conundrum in first world.
The other solution is war, but that means EVEN MOAR demand side spending, as after WW2...Facts of history and acts of greed, don't fit in on the same page. The 1930s taught us that. Are we going to repeat ten times worse now in 2020?
Meanwhile, the rudderless Euro ship heads for the rapids like the Maiden of the Mist.
As Jimmy Goldsmith said back in 1991-- when Outsourcing labour to Chindia and holding on to inflated "paper assets" and R&D in asset pumping mechanisms--the derivatives scam--was the rage-- : "Any economic model that takes labour arbitrage to the extent where first world workers must compete with third world workers in Bengladesh to justify investment in "homeland" is just SUICIDAL thinking. Our productivity cost tradeoffs will never allow us to justify jobs in our back yards. This is totally nonsensical capitalism."--He said that on French TV. And he was a true capitalist, asset stripping, buccaneer, no statist type softie.
He was right and wage deflation is the best medicine to kill the goose that laid the golden egg on on whose backs the Oligarchs have made their "funny money" fortunes since 20 + years of Reaganomics bonanza.
Exactly FP:
This is explained in:
"Zugzwang"
They cannot "Inflate their Way Out" because of Wage Arbitrage.....
Aptly put: "Funny Money Fortunes"
All these comments are fine, ....except for one tiny little detail.
The euro is NOT a currency.
It nver has been never will be and is not now.
It is a fucking voucher, a coupon, something better found inside a package of cornflakes or a cheap soap powder.
It is a criminally inspired ponzi fucking voucher designed to fleece European countries and their citizens out of their own sovereign currencies.
The filthy piece of fucking useless confetti is no more a currency that the the used ass wide found in a Delhi bathhouse shithole, whether Barry had visited or not.
There is no Government that will back that shitty coupon, Not Germany, not France not even fucking Greece, and none of them ever will,
For two simple reasons, One they know its a ponzi scam and two they will not be the ones holding the short straw after every filthy corrupt lying mendacious dictator in waiting all across Europe pulls the inevitable fast one.
The best use for that shit is forcibly stuff it into the Brussels mouths, using a jackhammer if necessary until they fucking choke on the shit.
Indeed....The Euro is Worthless......
Most importantly, unlike US Bills, there is NO DIRECT legal CLAIM on the Treasury of any specific Country......
And ALL US Bills have precedent over ALL US Bonds =
Safer than Cash itself.....
"Federal Reserve Note" =
NOT a DIRECT CLAIM ON the US Treasury.....
In the Not So Distant Future these critical Legal Distinctions will matter....
the BIS working eu as it's got the fed. working america, privatize the profits, nationalize the debt.
the eu citizens are just as uninformed as americans, the BIS slaps a catchy name for their PRIVATE branch banks, americas got the fed., thats makes 98% of americans think it's an american entity trying to help america, eu. has the BIS'S, PRIVATE branch bank the ecb.
this is why there's such a rant on the brics, manipulation of gold, and a ever publicly enticement to start a war with russia.
does everyone know how close the BIS, a PRIVATE bank is to owning 3 of the top 4 gdp producing countries in the world, usa, eu., and japan, it's always stated it will be like dominos first japan, then the eu., then america, and who will the citzens of these countries owe 10's of quad trillions of dollars to, the BIS, a PRIVATE BANK, the owners of the worlds TBTF'S.
the globalism, nwo deniers have to be participants.
one problem getting 1 bil. very angery debtors to pay up, and the BIS owns it's 10's of quad-trillion dollars of paper debts, they personaly printed.