This page has been archived and commenting is disabled.
Dear Germans: Bring Out Ze Checkbooks
Something funny happened on the road to a "fixed" Europe.
A week ago we presented the €2.5 trillion closed liquidity loop at the heart of Europe's (solvency and mercantilist) problems: the cumulative capital account deficits of Europe's import countries (virtually all of them except for Germany and Holland), and the under the table funding mechanism, in the form of Germany's subsidizing of said countries via the ECB TARGET2 cash settlement process. In simple terms, in order for the PIIGS to import German "stuff", Germany had to fund their economies in a very roundabout, yet unmistakable fashion (see chart). Well, as the latest update from TARGET2 shows (courtesy of Sean Corrigan of Diapason), the fact that this now accepted enabling mode of existence continues, as nothing has changed in Europe except for Greece going bankrupt, and all the PIIGS still pretending they have fixed their economies when in reality all that has happened is a $1.3 trillion cash injection providing some very brief dry powder to drive bonds to lower yields temporarily, Spain and Greece have just posted their biggest draw on TARGET2 bringing the total to just under €400 billion! Congratulations Germany - This is the amount that Jens Weidmann and the German Bundesbank will have to fund to keep the ponzi going. But at least BTPs and Bonos will be at 0.00% as the ECB floods the market with a quadrillion in paper at a point in the very near future to pretend that the system is solvent judging by bond yields.
To all our German readers: sorry. Yes, extend and pretend actually has a price.
To summarize: the bond market, courtesy of the ECB, has signalled the all clear, if only for a brief amount of time (remember what happened with the first LTRO back in 2009). In the meantime, the PIIGS economies are getting worse and worse. But for the time being Germany can keep them afloat. However, Germany, unlike the ECB can not print money. And in fact, largely does not want to.
And here's the Bundesbank. How does one say exponential in Germano-Grecian?
»
- 25027 reads
- Printer-friendly version
- Send to friend
- advertisements -
Ze Germans are the same as the Chinese. Wealth is goods, if you run a current account surplus for an extended period, you end up wis nossing.
Let me say, wealth is not transferring from WEST to EAST but poverty is being transferred from EAST to WEST.
BUBA wishing Target2 balance will just simply vaporize. Weidmann consulting Corzine.
They better don't wish. Maybe the PIGS do it as they consulted GS to cook the books like Greece.
Would be Gold flowing to Germany in earlier times, today just IOUs and wealth illusion. Germany has two problems: Giving away wealth because of a too weak Euro for their exports and helping finance those exports when in the eurozone. But this will go on because there is no real public resistance to this kind of theft.
Ok, I am German. And I am pissed! For the third time within the last 100 years we will be the fucking assholes when this sucker comes down.
Ck out the former German Prez' retirement pay (he served less than 2 yrs on the job)....from Der Spiegel Online-
"The politician continues to be dogged by controversy. Last week's torch-lit ceremony was marred by the whine of Vuvuzela trumpets blown by scores of demonstrators against his receipt of a presidential pension totalling almost €200,000 ($262,000) per year until the end of his life, even though he was in office for less than two years."
http://www.spiegel.de/international/germany/0,1518,820813,00.html
I bet the US ambassador in Berlin (Goldman) will do multiples of that at the time he retires.
Weidmann concerned too:
http://www.eurointelligence.com/eurointelligence-news/archive/single-vie...
He won't be able to reverse the trash-for-cash trillion on LTRO's.
Right, but lots smoke & mirror around Target2 until Weidmann made it clear, what risk does it involve and confirming HW Sinn's concerns, which had been discredited heavily for almost a year.
"Ok, I am German. And I am pissed! For the third time within the last 100 years we will be the fucking assholes when this sucker comes down."
Don't be so modest.
It makes you feel bad for the numbnuts who short gold in the midst of an intervention after watching CNBC instead of loading up.
Durch eine grossenzuvieledeutchemarkenschittensturmunddrang geficken wir sind!
Not sure this is gramatically correct.
Ich fur diene kommenter grammatische unsinnlich und unnotig viele dankes abgegeben haben. Gezundheit!
Through a big assed shitstorm of fiat currency, we are totally fucked. (or something like that)
Sie sind richtig! Sie freibier gewinnen!
Prosit!
You velcome are!
In case you haven't figured it out yet Europe is trying to avoid another currency disaster by purchasing large amounts of gold (they have experienced several hyperinflation events in their history). This is contradictory to the United States which has been disposing of the crap since World War 2. USA ditches 12,000 tons, Europe picks up 12,000 tons. The price of gold is being increased by European and Asian purchasing. Does anybody really think that the gold buying strategy is going to get anybody out of any mess? The USA certainly doesn't, and our track record since WW2 has been significatnly better than the rest of the world. Seriously the Fed is not out to destroy the country or create a New World Order, there job is to control interest rates and inflation. Inflation in the USA is not nearly as bad as the rest of the world besides maybe Japan or Germany. And seriously hyperinflation in the USA when the rest of the world is creating just as much or more debt than the USA? Get real. Do you really think Bernanke is going to create a hyperinflation scenario? Buying gold is a scam and a greedy Swiss one at that. The only thing gold can do is be traded in for more money when goes up in value, and just like real estate who ever said it keeps going up in value?
And just in case your wondering. If hyperinflation ever does happen in America, a gold nugget is not going to solve any of your problems. Its not even a basic necessity.
Promotional Products Top China Wholesaler-Buy Wholesale Promotional Gifts Promotional Products from China. Our main products are consumer electronics, gifts and souvenirs, health care products, beauty products, automobile parts, household items, plastic products, metal products, kitchen supplies, stationery, sports goods, toys, watches, leather products, etc. China Wholesale
Giveaway Material PortfolioPoncho Raincoat Ice Bottle Badge Reel Digital Money BankCar Mini Refrigerator Car Mini Refrigerator Wholesale Raincoat Bottle Opener KeychainWater Bottle Beach Towel Cake Towel Digital Spoon ScaleWholesale Memory Card Wholesale Calculator Pen Holder Magnetic Clip DispenserName Card Holder Frosty Beer Mug Wholesale Bangle Stapless StaplerMoney Clip Lady Beauty Care Wholesale Cooler Tire ToteWholesale Socks Pen Holder Wholesale Massager Foam MittPersonal Safety Products Hair Products Bottle Holder LED Flashing CapChina Wholesale Crystal Gifts Wholesale Fan Ring OpenerCorner Flag Wholesale Binoculars Wholesale Ruler Electric Heating MugWholesale Scissors Wholesale Frisbee Wholesale Hardware Tools Dog Training ClickerWholesale Compass Wholesale Lighter Wholesale Album Lunch BoxWholesale
This is why Fed should ease further.
http://www.cnhedge.com/thread-3032-1-1.html
http://www.jinrongbaike.com/
Dear Americans (taxpayers of last resort for the World Bank, the IMF, MFGlobal, every fucking bailout and stim-ur-ass scheme)
Bring out your lubed asses and SQUEAL "Yes Sir, more please, sir"
Germany should just get the hell out of the Euro .RUUNN while you can guys !!!