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There is some fairly large ECB-supported Spanish and Italian gov bond purchases taking place today right now. IF you are asking why futures are green...
Lots of folks just keep forgetting that the EUR was designed as a result and as a "solution for eventuality" of this kind of currency wars as we are experiencing now (same as that the EU was designed for an eventual trade war as in the 30's that hopefully we'll not have).
Leaving the EUR at this stage is economic suicide - leaving the EUR at a different point in the future is another matter altogether (this eventual future would have to be very rosy, though - or when you have no other alternatives).
The irony is that leaving the EUR has similar implications/game theory aspects as leaving a gold standard while most other economies have already left it. Again, this part was designed into the scheme...
The future of the EUR depends now on the performance of the GBP - if the Pound is still a good proposition in a few years, then perhaps some will break out. If the medium-nation-state-currency proposition is too much under attack by speculation (and the more liquidity you have in the markets, the more speculation you have), then we could even witness an entry of the UK into the EuroZone... the horror!
Stop thinking in terms of "in a few years". There are no more "in a few years" left in this can, it's just that you've been conditioned to think that way.
"...you've been conditioned to think that way" ??? LOL
You think I am one of the Goldilocks Propaganda troop?
I'm expecting some "resolution" (I still think serial defaults will be as likely as anything else) since the early eighties.
At that time some of my bonds had a yield over 16%, btw.
Why would a euro exit cost anything at all? Perhaps it will save even more. Sovereign countries don't have to borrow at all. They can simply print (see the United States Note).
Default on the debt. Print debt-free money. Allow trading in gold and silver. Done. Saved you bunches of 'money'.
because it depends on the scenario:
if only one country leaves, then the debt stays in EUR - you suddently have a foreign FX debt that can't be inflated away, only defaulted. Then you start wondering why you left the EZ at all...
if all or most countries leave, then you might be able (perhaps) to redenominate the debt into the old/new currencies. Probably only part of it, though...
DEFAULT and tell them to fuck off. The debt doesn't stay in EUR, it vanishes in a millisecond. It's been done before, this time is no different.
well, I'm talking about currency - funnily very often defaults strenghten a currency, btw.
The euro was accompanied by high hopes, it was by design a hard currency, coupled with Europe's 'principled' anti-semitism the Europeans believed they could get a better deal on crude from the sheiks than could the Americans.
From the beginning the euro was an energy hedge, now it's blown up by very high prices. A currency constraint necessary to give the euro 'value' leaves too little in circulation, the result of the latter is deflation and the result of lifiting currency constraints is fuel that even more expsnsive than it is now.
Which leaves the Eurozine as a ponzi scheme where new funds from the outside are necesaary for the EU to gain liqidity while keeping the euro 'hard'. This dilemma is what Merkel, Draghi, Sarkozy and Camreron are agonizing about. They need to have the Ponzi because there is nothing else ...
Cameroun has exited the Ponzi and the issue turns into game theory. Someone will be next and someone last. If Germany is last all is lost, she will hold the bag of European liabilities. Exiting first would ruin Germany as it would be a default. The UK govt does not hold enough euro liabilites or assets to make a difference. A euro balance sheet is all Germany has!
The only hope is for all to exit together which is unlikely. Game theory, someone will lose this game.
I totally agree it's all fearmongering so that we keep signing on to these banksters debts which is at the base of their power.
In fact a default will and would have saved us a lot of money in rent on loans just to pay of debts incuced by fraud which are getting more and more expensive with the rising risk accompanied by the rating agencies onslaught in Europe.
Most of the wars of the last 100 years were private bank consolidations. Interesting that most of the countries that are against the American way of life print their own money.
You mean there are countries in the world that don't print dollars?? Shock Horror.
cds outstanding...yeah right. Europe can implode the the ptb won't allow default swaps to be triggered. Heck, Europe, Japan and the US could implode and the PTB won't allow a triggering of default swaps. That's not how the game works. Transparency is not allowed unless it benefits the PTB. We'll just coast along until one day we wake up and all fiat currencies are hyperinflating. The 3 day grocery supply will be gone in an instant and then we will be nearing the inevitable conclusion of totalitarianism.
The future belongs to (more) central planning / command economies. If we like it or not.
And the NET effect is ... looks kinda EX soviet union-esque ...
go long lentils and wheat
I like to call it "realized wealth destruction."
A lot of flight into quality when the shit hits the fan.
I wonder what kind of golden quality with silver linings they mean....
BCG seem to have plagiarised straight from 'The Ten Planks Of Communism'. They might as well add an extra couple steps for the sake of it:
1. Put a photo of the dear president in every room.
2. Build an impenetrable border fence and some gulags out west.
Fucking bunch of tyrants, the government in exiting countries has already caused enough problems why give them more licence to strangle freedoms and trade?
Recapitalise the failed banks and increase the moral hazard. Determine what do with EVERY company account and commercial contract. BCG congrats on producing a roadmap to serfdom for the political class to use.
OMG! words cant describe how much i hate bloomberg tv and cnbc. i havent watched it for years, but i thought fuck it! for a laugh ill see what they got to say, what alot of fuckin crap!!!!
who the fuck can say with certainty that the sp500 is gonna be at a SPECIFIC level at the end of 2012? thats not analysis thats a fucking big guess!
Unless they knew beforehand what it was going to be.
ah yes maybe the likes of bernanke know, but dickheads on cnbc dont!
"you can pay me now, or you can pay me later!" :)
"later!" - Iceland
BTW, How is that Greek 2.5b Euros debt redemption to the Private Investors going today?
Anyone knows is payment has been executed?
just a reminder peoples! the soon to be in hell globalists, are buying up all debts hand over fist! when ready, they will demand payment! they'll make you rent your dwellings, take away medicare, your jobs. once the infrastructure is in place to handle mass riots, they'll take away your food stamps and welfare checks! just look at all the debt placed upon more debt, upon more debt! nothin' being paid off! we will be dependant on them if you want food, health, a roof! GET OFF YOUR BUTTS, AND DO SOMETHING TO TAKE IT ALL BACK! NOW!!!!!
Apart from bumming your chat, what positive action have you taken to date???
i, uhh, JUST JUNKED YOU!!!!!!!!
You're like John the Baptist...without the cool shroom-trippin' imagery.
According to the EU monetary chief, the eurozone may only have a few days left to find a way out of the crisis. But economic analyst Michael Mross believes that Germany would rather let the euro die than support the idea of Eurobonds.
I remember reading somewhere a few months back, that if there was going to be a break up, Germany would do it first, and they would do it on 23rd December. Reason being that no markets open again unitl January, letting the dust settle somewhat.
Anyone think this is a viable option?
So where is the Manual for the Exit?
Interesting vid on the EU collapse. Europeans here might want to give it look. Just maybe, eh?
Shut the fuck up.
WOW. Um, stronger language might be appropriate...
Holy fucking wow.
Total bank takeover. Only way out of it would be war.
People you should go out and take some fresh air. So many of you didnt even know where Belgium was 6 month ago, and now you make informed comments on the euro-zone. Come on.
'Inflation" in every instance for the exiting countries.
CDS outstanding? A non-issue. We've already seen that CDS are never triggered because the defaults are always "voluntary".
If one were to think recapping the banks after insolvency without restructuring incentives/business model would simply make the same mistakes that will lead to another financial crisis.
The world recession or calamity is not borne from a breakup the euro, but because of many years of maligned growth/debt based policies.
So the impact of leaving the Euro is the destruction of the world economy and the economic downgrading of the exiting nation into 3rd world status? Who would've known....
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