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The ECB Has Opened Pandora’s Box
Submitted by Mark Grant, author of "Out of the Box and onto Wall Street"
The ECB has Opened Pandora’s Box
“I believe that banking institutions are more dangerous to our liberties than standing armies. “
-Thomas Jefferson
I am not going to speculate about anything this morning. No guesses about what the Finance Ministers might do on Monday, no simple addition or subtraction that the data used to forecast Greece’s return to a 120% debt to GDP ratio is a falsification of the numbers, no mention that only nineteen cents of any bailout for Greece would actually go to the country; I am not going to discuss anything except what the European Central Bank has actually done and what we now know with a one hundred percent (100%) certainty and the horrifying implications of their actions.
“There are no necessary evils in government. Its evils exist only in its abuses.”
-Andrew Jackson
The ECB, on its own and without judicial or parliamentary review, has swapped their Greek debt for new Greek debt that is not subject to any “collective action clause.” They did this unilaterally and without the consent of any other sovereign debt bond owners of Greek debt. They did this without objection of any nation in Europe. They have retroactively changed the indenture, the contract made by Greece with all of the buyers of their bonds, when the debt was issued. There is no speculation involved in these statements, there is no longer any guesswork on what might be; the ECB swapped their bonds for new Greek bonds with the assent of the Greek government and it is now a done deal.
Having then done this; the implications must now be considered utilizing the clear light of unadulterated reason. The issue now is no longer a one-off Greek issue but a full on ECB issue. We know now that the ECB can retroactively change the rules, change an indenture, so that if the ECB can do this with Greece then it can certainly do it with any sovereign debt in Europe. If they can exempt themselves from a “collective action clause” then they can exempt themselves from any clause, in any sovereign indenture, for any European country. The fact that they are now clearly senior to any other bond holder, or more aptly put, that any private bond owner is now subordinated to the ECB is one consideration but hardly the most important one. The incredibly grim reality now is that any European and all European sovereign debt can have their indentures changed by the ECB when it is to their advantage. It is the “collective action clause” today but tomorrow it could be the maturity or the coupon or any other terms and conditions in an indenture. It is Greece today but tomorrow it could be France or Portugal or Italy. The “Rule of Law” has been abrogated and tossed aside in the name of political contrivance.
“Necessity; the tyrant’s plea.”
-John Milton
Since the ECB can now retroactively change any bond contract to whatever it likes and with any nation in its dominion then the valuation of European sovereign debt must be re-examined for what it really is which is no longer what anyone previously thought. Starkly put; the bonds issued by the sovereign nations in Europe are no longer pari passu, on equal footing, with the bonds issued in the United States. We have just passed a clearly defined “break point” where the legal rules were changed to the great disadvantage of all the private debt holders. The risk of ownership of European sovereign debt is now infinitely more dangerous in my estimation than it was last week. We still do not know if the IMF will demand and receive the same special treatment but I assert that it no longer matters. The actions of the European Central Bank are all that was necessary to radically alter the value of European sovereign debt and it is just not me but any number of large financial institutions that are in shock given what has happened with one of the largest and most respected bond investors in the world telling me that “financial repression is the softer word for it.”
Leaving anger and hostility aside; European sovereign debt must now be examined with a new set of metrics. How much yield would investors demand if an IBM indenture, as an example, had language that stated “This indenture is subject, at any time during the life of the bond, to any changes mandated by the Federal Reserve Bank.” Stated another way, what yields would be acceptable to bond investors if there was a Federal statute that said “All indentures in the United States may be changed at will by the Federal Reserve Bank upon their sole discretion.” No “Rule of Law,” no judicial appeal and a fait accompli whenever desired. This is, in terrifying fact, exactly what the European Central Bank has done and if we no longer know what we are buying and if the terms and conditions of an investment can be altered retroactively at will without the consent of bond holders and to the advantage of the ECB then either we should not buy these credits, as in Atlas shrugged, or yields should be in the mid-range of junk bonds because European sovereign bond indentures now are worth no more than the paper on which they are printed.
The European Central Bank, in a very misguided attempt to protect itself, has now opened Pandora’s Box. I doubt if they even realize what they have done; but they will, most assuredly they will. The consequences of their horrendous mistake will soon be upon them as institutions not coerced or forced into buying European sovereign debt will be leaving the playing field en masse as the realization dawns upon investors of just what has taken place. You cannot fool all of the people all of the time and the people that manage money for a living are not a forgiving group when governments try to supersede their lawful rights.
“Unlimited power is apt to corrupt the minds of those who possess it; and this I know, my lords: that where law ends, tyranny begins.”
-William Pitt
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OK, I'll bite. The fakes ones will always have at least novelty worth (a couple of FRN each). The real ones only have BTU value.
Well apparently you can buy Nigerian plutonium with the fake ones.
they all 'same same but different"
dude! prez0 was first!
besides, it's only communism
the greatest good
or something
many nannies do not realize they are communists; the ones i know are not at all concerned about the economy, b/c "they" won't let "it" happen. they assume centralPlanning, forever... strawberryFields, BiCheZ! just trust those who are "responsible" to the collective and maybe even "elected" but "leaders" no matter what and representing where you can go to visit what you worked for and earned
they are liberals and some "socialism" balances the excesses of "capitalism"; or something; so they are helping out with that while networking to siphon off wealth to...themselves
faust, again? yup
quite aggressively, too and can we also say: successfully? they have hijacked the "trade" unions and applied them to all levels of goobermint, everywhere, in a fabulous revolution! "give us control of your goobermint budgets and we care not wtf the banksters & MIC doodooo"
the nannies have BK'd everybody & drive new audis and subarus, have health insurance, retirement accounts, homes and condos and live right next door, too! and, the police are, coincidentally, in the same or parallel unions...
if you need help the nannies will give you unlimited options and food stamps while they help you get outa the shelter and maybe find a room. unless you are a convicted felon, of course...
have a nice day...
and, it looks like they like to junque people who don't buy into their MSM-induced hallucinations, too!
cherry-picker, below, notes "governments and huge corporations" [for + 50!]
but what about that pesky "we have met the enemy and they are us" stuff... [that must sound like terrible "security" to nanny-types who must.protect.homeland, i know!]
what about the publicEmployees unions?
listen: i've been in them! so have a heluva lotta others
everyone i know says the same thing: they're great until you need them as an individual worker; then, they can not understand wtf you are saying! and, if you have a problem with some goobermint and one of the jackasses involved, you either crawl on yer belly like a fuking reptile, or you fuking l-o-s-e
any questions?
ain't it funny how the night moves
when you haven't got too much to lose
this stuff makez me talk to myself! L0L!!!
on another string, billBuckler questions wtf has been going on over an amount of debt as statistcally insignificant as greece's, in the bigPicture of fiat/CB/zombieTBTFs [On The Greek "Glitch", Systemic Instability And Skating On Water]
OMG! is the financial system really this unstable? type of thing, if i understand him
greece may not be the "cause" of the systemic tsunamis; the zombies are apparently even more problematic when hopelessly BK, and being used as chamber pots for the nobility's, er, elite's spending
and, in case you hadn't noticed, yet, there seems to be a recurring theme that greek nannyism is somehow not compatible w/ NW0 nannyism as currently being shoved up a continent's ass, sideways, by the EU, as in this fun piece, here, about the "ECB", echoing what tyler has been saying for, literally, months and months = "pandora's box"
you see, even tho the amount of greek debt is truly infinitesimal, nannyism in the periphery may only reflect nannyism from the core, as our german finiMini was saying to the portugese guy, there, off camera... EU to greece: conform to the NW0 nannyism or get tf o-u-t
the troika = nannies
trust me! ask the irish if you don't believe me!
of course, the "masters" who move the debts around and provide "financing" [or not...], could give two shits about the EU, greece, zH, slewie, youie, ireland, and billBuckler, all together! L0L!!! they are "flexible" but only to a point! >>> they are setting up straw men, false dichotomies, and "dualities" which playa/investors in their casinos can bet on, to "make money"
"advisors" and media reporting and analysis have everybody so confused that still don't recogniZe that the "counterparties" of MFGlobal have the clients' money BECAUSE THEY USED A BANKSTER-DESIGNED OPTION TO JUMP AHEAD OF THEM IN THE LINE TO GET PAID
does this mean that "rockefeller" will hire all the nannies he can to run things as long as he can:
or do you still think TPTB "care"? thousand points0'light? well, let us all keep hoping!
meanwhile is somebody pulling off a 3-trillion ww.fxHeist.con to fix a 100-billion problem and "avoid systemic collapse b/c we and only we can print money?" yep! same shit, diff day!
i'm tellin ya, inspector! it's them unionNannies, again!
'If they can exempt themselves from a “collective action clause” then they can exempt themselves from any clause, in any sovereign indenture, for any European country.'
So can any CB. The fact that it's starting with the ECB only shows what a joke the bond markets have become.
'Stated another way, what yields would be acceptable to bond investors if there was a Federal statute that said “All indentures in the United States may be changed at will by the Federal Reserve Bank upon their sole discretion.”
Don't know, we'll find out together soon enough.
So? The Eurozone has kept breaking treaties over 10 years. Maastricht stability criteria, no bail-out clause, no financing of public debt. Now they're breaking yet another one. What a surprise.
very true..all but nothing will become of it...the bond watchmen are died
Always knew Wonderland was madness incarnate, but can ECB et al. really be so dim as to be blind to what will -- not may, will -- occur in financial mkts in very short order? Who the devil is going to buy debt from an organisation (or from any of its members) which has an immediate track record of changing the rules whenever it wishes, and retroactively to boot.
Utter lunacy.
You can kiss goodbye the much awaited Chinese bailout of europe.
+1 on that, m'friend.
The Middle Kingdom would never for a minute put up with this sort of 'pretend' bond issuance or any similar scheme. Sheesh.
Zimbabwe has offered to help Greece.
Reading Zero Hedge for a while it has become obvious that governments and huge corporations are ignoring laws to suit their fancy for awhile, and when caught, get a slap on the wrist if that. I have yet to see a major bank or corporation lose its business license for engaging in criminal activities, yet they pay hundreds of millions and more in fines without admitting guilt. Why pay if you are not guilty?
They are all felons.
That is bullshit, for if you and I were caught under the same circumstances we would likely be behind bars without a thought to keeping our activities going.
This is hypocrisy on a grand scale and it will eventually crumble.
I am not a man who likes to swear but fuck them all.
I am not a man who likes to swear (either) ... but what's the alternative at this point?
.... bullet, RPG, cruise missile ?
If I cast-iron a gun weight 1500lbs, 7 feet long with a 3 1/4 inch bore on two wheels. Do I need a license?
cherry picker
Now you're getting it. Laws are there to be used against you, not the members of the elite tribe. If you break the law, you will be charged. If they break the law they get a pass. Simple.
by the time the masses catch wind of what is going on.. all the mis-leading facts will be used to confuse the masses even more.
it is the JOO's fault.. they by ad large ran wall street! LULZ!
New Reports PLUS PLUS PLUS from 9-11 about the Jews Dancing with tons of explosives in their truck..
http://www.youtube.com/watch?v=I907IJH7_4w
NYPD Radio of Mossad on 9-11
http://www.youtube.com/watch?v=Huf2Kz7bV2k
Mean while the lil Blue Bloods get away with Murder..
and they will be the ones coming in to save us.. out of the fire and into the flames.
so, jumping ahead..
after Greed Crushes us all.. and after we use the scape goats provided.. what is left?
Agenda 21 For Dummies
http://www.youtube.com/watch?v=TzEEgtOFFlM
http://agendadocumentary.com/trailer/
http://www.youtube.com/watch?v=xQf_QfitmKE&feature=player_embedded
if you would like me to source and site how America has exported its Wealth to China? over the last decade? I can..
Sustainable De-Population! LULZ!
I cannot agree more. Laws are made by the elites to control the masses.
I know. Feel the same way...waiting for the collapse; I yearn for it. It makes me sick to hear "good news" because it is ALL fake. Just unbelievable that "modern" nations would enter into such agreements like the ECB, IMF or the FED.
Privilege; Private Law.
LOL on the single (broad spectrum) down arrow "strategy".
And this differs from the Obama/Union-GM/Private Sector bankruptcy bond indenture decree how?
What is a "bond" anymore?
MI6 double O seven agents?
I shut MSNBC off when the (James) Bond report is aired. Why did I have it on in the first place -- it's sort of like "reading" Cosmo, just to see where other are getting "their thoughts".
exactly. when all the money is coming from the government (or central bank) they will eventually act like they own you, because they do
My word is my bond. But that concept may be obsolete until the next turning or at least the end of this one.
The longer we compare any television character that we are told won the presidency, and the people that actually control the government, the longer we will be blind to reality. The longer we cling to blaming an "ism" for something these controllers do, the more chance they can stike the match for the war of isms they want so badly. We would be wise to avoid their direction.
The Bernank probably sees this happen and begins to grin from ear to ear... "Why didn't I think of THAT?!?"
6 trillion in 1934 chicago fed bonds deemed instruments of fraud because the mafia tried to swap them. done.
Dragon family robbed of 6 trillion? Hmmm...
Meanwhile, in Fukushima, you'd almost believe that by doing absolutely nothing, they are actually trying to have the MOX rods melt their way down to the water table. Nah, that would be a seriously evil thought. I mean, the consequences would be disastrous. Not only would Japan be completely erased from the face of the Earth, but all of China's eastern seaboard would be left depopulated and inhabitable for a couple million years. Precisely where China is most densely populated.
hhhhmmmm
HHHMMMMM
HHHMMMMM!!!!!!
While I would love to believe that rational investors would understand what happened here and stop buying bonds, I tend to think it won't do squat. These banks that are now backstopped by the EU will jsut keep on buying and the scam/sham will continue. So sad that my children will have to deal with this.
"l. The consequences of their horrendous mistake will soon be upon them as institutions not coerced or forced into buying European sovereign debt will be leaving the playing field en masse as the realization dawns upon investors of just what has taken place." Who are you talking about?? I know of nobody in their right mind who is not an establishment shill at a pension fund buying this junk... This kind of people does not exist...
I tend to agree--though I'm looking at this from the other end:
What does it mean if, tomorrow, a horde of people are not running for the exits on this news?
Just more proof that markets don't actually exist anymore?
"The “Rule of Law” has been abrogated and tossed aside in the name of political contrivance."
It was ever thus. Enough of feigned righteous indignation. Tell me, again, what the U.S. gubmint did to the GM and Chrysler bondholders ?
The Law and Justice were divorced decades ago.
Yeah, the case of GM comes to mind. The article's premise is right, but this shit got out of hand a while ago, not just now.
They have taken it to a whole different level under Obama with Bernanke as the ring leader.
I was impressed with the video below as to the stages of the Technocrat takeover (NWO) of Argentina as compared to Greece and the US.
Still time to turn this thing around. Argentina did after a decade of Technocrat terrorism.
This ZH article goes with MF Global being above the law. That is why whenever I read the superb articles written by John Mauldin I have to ask myself if higher caliber investors have a clue what they are facing. The governments aren't trying to balance budgets to make a better financial world. They are preparing for war by buying drones, both in the US and EU, to be used against their citizens instead.
Now that the ECB has pulled an MF Global I expect higher caliber investors to start writing articles about the Real World and not the one they believe they live in.
The Argentina Collapse
Isn't Argentina's ruling political party that of the Peronista's? Would this not be a fair example of a technocratic alliance to retain power for decades? I don't follow you on how they turned it around after the technocrat terrorism, if that is who became the new boss, same as the old boss?
Yes, and a couple of years ago, the Peronistas seized and nationalized Argentina's private pension industry. 'All of your ahorros are belong to nosotros.'
Imagine the horror if your IRA or 401k was seized and turned over to the Social Security Administration.
With all their flaws, the technocrats at least had some respect for financial freedom.
Funny you mention those drones. Whenever I mention those to someone, I always get a blank stare, and then a change of subject. Everyone tells me I'm stupid and illogical, but I know what those UAVs are really for......
John Mauldin and "superb articles" is an oxymoron!
Disagree, irrelevant.
All my bank servers are down in three different countries.
????
more details ?
Black monday cometh.
Assets seized. Martial law imposed.
Could it finally be?
Local banks and post office already closed on the 20th (monday) for 'presidents day'
Monday is "Family Day" in Canada all Banks and governement agencies closed.
South Africa, too?
US CANDA UK
That's just really one country.
Its true that policy makers have skirted, rewrote and sometimes clearly ignored laws and treaties as this crisis has unfolded (and make no mistake about it, its all the same crisis).
The difference here is, unlike the equity markets where the clear bias is always for higher prices - even the majority of private-siders have a vested interested in rallyng stocks - bond investors can and do sell their markets. The author's point is simple - if you are a holder of a BTP (Italian govt debt) or Spanish bond, you are now implicitly subordinated to the ECB. Investors in that debt never got paid a premium for being down the capital structure - as such, they shouldn't be inclined to hold that investment, especially before the implicit subordination becomes explicit.
These markets started to show some weakness last week and that will continue. Except we won't get a collapse - the ECB will become the buyer of last resort and then they'll be forced to issue ECB-bonds (i.e. Eurobonds) and print to fund the activity.
We say this all the time here but it bears repeating. Policy-makers have only one tool in the end - reflation or printing money.
Derivatives simply don't exist, all is well. fucking awesome.
Whats a "Derivative"?
Fuck if i care, Amago and watch AI'
So, the UST 10 yr. rallies to a ~0 yield Tuesday?
Prepare for "Mass Default", Entire Eurozone has lost "Credibility" forever and would go "Bankrupt". The PIIGS are no more "Differentiated".... Global Financial Collapse on its way. 2012 Apocalypse to be delivered in the "Leap Year".
Forget it, nothing will happen, markets will move ahead, business as usual.
The first person to call bondholders who realize this "bond vigilantes" is an asshole.
Also, now would be a good time to ask your money market manager if they're buying into european debt. This is subordinated garbage and holding on european sovereign debt is not consistent with a money market's investment thesis.
The Central Banks have realized that they don't need the private bond holder. The CBs can buy and print all the bonds and money. They don't need savers. If you don't like it you can keep your money in your mattress.
If an author uses a quote, he should explain it, otherwise the quote is fluff. This is a fluff piece.
You are a real superhero.
Able to make tremendous leaps of logic in a single bound.
Sitting here in Europe, this just looks like one big fuckup.
When you make the rules and control the currency value, you can make almost anything happen. The paper is good until they decide otherwise.
Perhaps a practical way to view these CB purchases is a sort of DIP financing. Declaring insolvency is an unnecessary formality.
Why anyone would buy any of this financial feces is beyond me.
The 'ersatzification' of all monetary instruments continues...
the latest move towards central banks taking over control, crowding out private demand, increasingly providing the only demand, concentrating sovereign debt, which in the end creates a superior political power in the hands of unelected, ideologically driven technocrats, or even worse, the masterminds behind cental banking, the ones that either made or through attacks subordinated central banks.
No worry, Merkel said she will "save" Greece. What Save is open to interpretation.
Some are wondering if the ECB knew what it was doing--perhaps they saw the writing on the wall and decided they were going to be the first one out the door--because the first one out is also (theoretically) the one most likely to still be standing at the end.
Like the old cliche--you don't have to be faster than the bear chasing you; you just have to be faster than the other guy running right behind you.
Isn't this what the fed does with our dollars every single moment? Who knows how much QE will be tomorrow, thereby devaluing every paper asset? They can quadruple it, whatever, pick an inflation target...oh, and we reserve the right to change the value of the target and state a different value.
This bit of news is "Precisely" what you need for a "Full-Blown Euro Collapse"
Zero from zero is still zero...
A bit conviluted but did the ECB do this to make the PSI the villan to renig thereby cause Greece to withdraw..they must have known the consequences...
Billy Preston - "It Go Round in Circles" and "Nothing From Nothing"
Exactly, this is all meaningless. All they are talking about are digits on computer screens! What am I missing here!? In the end all that matters is how much you have in real assets when the credit bubble finally pops. Position yourself now before all these dummies realize they are just playing pac-man with one another!
Pandora has been spreading her legs for a long time now. Not only is contract law at the whim of fascists, but every other law as well.
Left Behind, Chasing ArmageddonThe current market environment is rather strange right now.
Based on mainstream news and online media, widespread fear and uncertainty seem to be at all-time highs, yet the stock market is exhibiting extreme complacency, and appears well on its way toward retesting its all-time historic highs.
How can that be?
http://www.elliottwavetechnology.com/2012/02/left-behind-chasing-armageddon.html
Look's like a Banker went thru and clicked on all the red arrows. "-1 for all my non-banker friends."
Too funny.
Mark Grant - Thank you for the excellent analysis. What makes the ECB's swap so tragically stupid is the ECB sold its soul for a pittance that is not even a pittance... another Greek bond.
Quote: "The consequences of their horrendous mistake will soon be upon them as institutions not coerced or forced into buying European sovereign debt will be leaving the playing field en masse..."
But aren't 90% of the buyers of European sovereign debt right now exactly those European institutions which have sucked up ECB's free LTRO money, or did I get it wrong? They will probably be pressured into continuing to buy EU-peripherial bonds, either by "soft" persuasion or hard regulations, so if that's the case, don't expect the bond market to revolt at this point. Either way, we will see in the bond yields which scenario is the correct one.
Well-written piece. Thanks for sharing.
The ECB's actions show just how horribly dior the situation has become.
The CB's show how "Christian Dior" the situation has become for themselves. Fixed it for ya.
Euro +40. "Scoreboard!"
All-in gold & silver this week. Mission Accomplished.
Mr. Draghi, please feel free to screw the Euro dry & hard. (Oh well, you already did...)
Isn't this just a cryptic way of saying Greece shouldn't be allowed to default?
More like Greese should leave we'll pay your debts to go...
This is so fucking hilarious it is tragic.
They blame the "evil ratings agencies" and they arbitarally change the rules of the game.
I can't wait for the declaration (by the credit agencies) of a "credit event" just because of the restructuring of the worthless bonds.
A bond that is continually "reset" is worthless and the "reset" is a default.
Some creditors are more equal than others. FIRE will be bailed. Private investors, absolutely not.
I view this comedy as a template for how the US will handle muni restructurings. 70% of US munis are in private investors' hands. That's a dead giveaway what's going to happen.
Jim Sinclair said it first, and said it best: QE to INFINITY!!!
Jim also pointed out the idea that infinity is not about time, but about the printing itself-- as in the amount they will print is infinity. This is true of all fiat. This needs to sink into our bones, the marrow, and every braincell we have.
“Let us control the money of a country, and we care not who makes the Laws” -Amschel Rothschild, original head of the House of Rothschild.
But think how much better positioned they are now that they control the currency AND make the laws.
I for one welcome my new seritude to our banking overlords, but they need to remember what my mama always said, "It all comes out in the wash." Even the ink on printed money.
Was this illegal or just slick. Are you trelling me that some bankers got slicked?
Oh, horrors.
I
You can't get something for nothing, except right now you can get physical silver at the absurdly cheap price of 34 soon-to-be-worthless american dollars.
"I will make it legal." - Darth Sidious.
"All laws which are repugnant to the Constitution are null and void." Marbury v. Madison 1803
Some bond holders are more equal than others, is that it ?
It just gets worse.
Organized crime. Global dictatorship of debt slavery. Variant Perception shows it is better to default than to suffer austerity.
http://www.acting-man.com/blog/media/2012/02/February-2012-Eurozone-Brea...
Habeus corpus, contract law. What's next?
"...The “Rule of Law” has been abrogated and tossed aside in the name of political contrivance..."
a conservative is a liberal mugged by reality....oh how foolish we have been if we never supposed that the eu was all about power and an aristocracy of purpose, as the bilderberg group puts it....laws are for the little people....the bureaucrats and officials of the eu have nothing but contempt for laws and rules as they are so above that....the raping and pillaging in which they engaged in foreign lands has been brought home to the continent....
fuck you eu cunts....you were stupid stupid stupid...fuck you you god damned idiots....
the same will and has happened in the usa - just look at how indonesian citizen obama handled gm and chrysler contracts and debt......little people, bend over and squeal.....
"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves."
Andrew Jackson, 7th US President 1836.
I see that call and raise you...
"There is no nation on earth so dangerous as a nation fully armed, and bankrupt at home."
--Sen. Henry Cabot Lodge (1916):
The international banking Ponzi scheme will continue to be supported at all cost, simply because it must for the banks to survive. Thus, the colluded forces of high finance at the top of the Ponzi pyrimid are tyranical and corrupt in direct relationship proportionately to their power and wealth. The rule of law means nothing to them. Money and a continuance of dominance mean everything.
Plant your garden, get some gold and silver, and clean your protection.
If the EU could not deliberately devalue their EURO with PIIGS, then it would do it through a lack of confidence. This is Germany's second wall breaking event in an attempt to raise it's export market after it's humiliating defeat by China uhmm US.
Is this what the peoples of Europe allowed their political leaders to sign on to when acceding to the various treaties ?
Dunno ... Don't recall any elections being held to hear the vox populi.
Didn't contract law go out the window with Linda Green and the robo-signing settlement? And bankruptcy went out the window with MFG.
Set a precedent and let the fleecing begin...
ECB needs some motivation:
http://www.youtube.com/watch?v=MsmybQKpmTw
Message to the ECB: "Never meet a margin call."
while the following is marketed as fiction, keen minds will recognize that Janet Tavakoli would not write "fiction" (allegory) not based on reality:
Interesting that Italy just announced they are forcing the Vatican to pay property taxes on 100,000 properties.
Mario Monti has some serious balls!
http://silverdoctors.blogspot.com/
It's all talk and no walk.
They do that every once in a while to appease the sheeple.
The Catholic Church owns directly and indirectly through its orders and monastaries appx 25% of the real estate in Italy. It owns among other banks the bank Intesa San Paolo which owns appx. 30% of the Italian gold reserves. Plus the gold reserves of the vatican itself which are unknown in their seize. And these riches are only a tiny fraction of all the riches the Vatican controls or owns in the whole Western world. If one understands, that in Italy nothing of importance happens without the blessing of the Vatican, then he might also understand, that the Vatican has many bodies and lifes and a few fingers of one body is the Mafia. But this should not surprise anybody, since common sense tells, that it takes a lot to become the unmatched richest private organization on this planet. Not in fiat but all in real hard assets. The biggest corporation on this planet but nobody can look into their books.
it would be good to know what the jesuits are thinking about all the defaulting mortgages and falling R/E in Spain, USA, etc.
http://troyspace2.wordpress.com/2008/12/25/excerpts-from-does-the-vatica...
I wouldn't let the Vatican hold a pile of my shit. In case there are any pissed off (ex)Catholics, try reading 'The Faithful Departed' about the collapse of the Boston Archdiosese. Any one else catch a look at the obsene spectacle at the Vatican yesterday? Biggest lot of pedophiles ever assembled in one room.
Slam dunk. Is the Golden Ticket rule next to go?
I'll be shocked, after watching this market do nothing but ignore all of this, if money managers which only care about chasing risk vs protecting capital even bother trying to understand what just happened. Until the public starts to sell everything these "Corrupt Money Managers" will just pretend it isn't a problem. No bonus for protecting capital.
Tsk tsk Mark, should've read your contract more careufully, you clearly missed the most important clause. You know, that sticky clause present in all financial contracts, "Depending on how much money you have invested with us this document is likely worthless"
Better luck next time!
Europe Crystal Ball 2022 Flashback : Watching how different dynasties and empires have ravaged Europe and Asia over the last 3,000 years.....STFU forever that Israel doesn't have a right to exist ! If you can possess it and defend it and make it fruitful.....it's yours ! Just like everything else in life including your wife, your stack and even your soul ! Monedas 2012 Unofficial Spokeshole For The Jewish People !
What law? for these guys law VAPORIZED long ago...
EUR rallying right now ...
I think by rule this is a default event. How can the ISDA see it any other way? I don't give crap if they make the rules and have all their banks on the ISDA board. This is a default. Period.
I buy my insurance in case I need it. If the event I am insuring against (not getting my money back) hapens, I'm going to hand in the fucking bill to my insurance company and make a claim. They could decide this is not an event, and not pay me, but going forward, I know that insurance companies don't pay. I won't waste my money on insurance any more and I will make my decisions knowing I am not insured.
They cannot avoid the pain by suspending the definition of a default. Money will dry up and mattresses will be lumpy everywhere. Nothing big will be doable. No maintenance will happen on anything big.
This bitch is coming down, they should just cut the shit.
how naive i was. an astute friend pointed out last year - anybody that writes CDS or insurance never intends to pay. in the event they have to pay - they pack up and go home, bankrupt. even for example - metlife. sure - they pay some claims, but in the event of a disaster - you ain't get any 'hope' or any chump 'change'. in the mean time - they get rich and move the money out into assets you can't claim on. and open up shop under a new name.
That's nothing. You should familiarize yourself with what AIG did.
Actually, I think that is the point.
They have saved the ISDA the decsion and the legal BS.
In short - a default is not a default because the contract NOW says 'there will never ever be a default'.
My guess is, they listened to Jim Sinclairs interview on King Wolrd news and thought....'s**t'.
This is a preemptive strike, no doubt about it! Get your money out now, if you haven't already, things must be ready to fall...
This is now a game of poker, where the loser puts his gun on the table and simply says ' I Win'.
The game is now over
Have the ECB just decided to beat Greece or Germany to tipping point?
ECB: We have Trillions available in our Cloud storage account. We just can't access it.
/sarc
LEEEERRRROOOYYY JENKINS
+10000!
We 'now' know? The global racketeering ring known as international banking will get away with this so long as people still cling to their illusion of living better than ever before in human history. Chasing their FICO scores, and living on credit, the system will not come crashing down until its weight brings it down. Who in the hell knows when that will be.
+1
And the US is any safer after what Obama did to GM's bond holders ? There are a whole lotta "smart" people out there who are really, really late in waking up to the fraud.
That fact of the matter and in very simple terms. Everyone who holds debt along side the ECB just got downgraded. Going forward anyone dumb enough to buy the same debt that the ECB is buying should be buying it at a discount to the ECB or they are just giving their money away.
Yeah, they can invest here and help create even more ingenious 'WMD' to murder the next generation of innocents. Or they can invest in China, where the hightest paid worker in manufacturing makes 160 Euros a month. Or they can invest in Africa, set for an average temperature increase of 5 degrees in the next 20 years. The asylum is now being run by the most seriously ill patients
I docked you for that fantastic prediction of temperature rising in Africa.
meanwhile, back on the homefront the US continues to be fooled. What rude awakenings that await us all.
Speak for yourself...I woke up 10 years ago, and am fully prepared for whatever comes.
The Declaration of Independence 1776: All men are created equal and there are certain unalienable rights that governments should never violate. These rights include the right to life, liberty and the pursuit of happiness. When a government fails to protect those rights, it is not only the right, but also the duty of the people to overthrow that government. In its place, the people should establish a government that is designed to protect those rights.
Quite !
Executive Order 9066, signed by Franklin D. Roosevelt on February 19, 1942, allowed authorized military commanders to designate "military areas" at their discretion, "from which any or all persons may be excluded." These "exclusion zones," unlike the "alien enemy" roundups, were applicable to anyone that an authorized military commander might choose, whether citizen or non-citizen. Eventually such zones would include parts of both the East and West Coasts, totaling about 1/3 of the country by area. Unlike the subsequent detainment and internment programs that would come to be applied to large numbers of Japanese Americans, detentions and restrictions directly under this Individual Exclusion Program were placed primarily on individuals of German or Italian ancestry, including American citizens.[25]
These edicts included persons of part-Japanese ancestry as well. Anyone with at least one-sixteenth Japanese ancestry was eligible.[29] Korean-Americans and Taiwanese,[citation needed] considered to have Japanese nationality (since Korea was occupied by Japan during World War II and Taiwan was a Japanese colony), were also included.
Isn't it possible that this was the plan all along? Greece may have been a pawn all along (not excusing their behavior) in the grand scheme. Complete and utter control by the banks. It's the conspiracy of the ages. Wow, this would be even bigger than the Rothchild coup at Waterloo. After watching "The Moneymasters" http://www.youtube.com/watch?v=JXt1cayx0hs (and yes, there are some errors in the film) this has to at least be a plausible consideration.
Of course it was. GS engineered Greece's entry into the EU and her concommitant Euro usage. Doomed, I say. Doomed Greece has been for years.
Funny you should say this... when I read this GS was the first thing that came to mind. I'm sure he's somehow making a fortune in all of this.
so seriously, is there no rioting going on in Greece today????????????
they deserve what they get then.
Just like Americans deserve the NDAA of 2012 for not going to the assistance of the innocents in Waco. We let the Federales kill people who just wanted to be left alone.
What the heck is the problem.
It is common knowledge, that the greek debt is not worth the paper it is printed on. So why getting upset when the ECB is doing some cosmetics which is in their favour. After all its currency war time and therefore everything is permitted.
Anytime the final declaration of Greeks default can occur on the screens. Then the CDS should have their great moment in history. The US president has then to decide if he is backing once more the then once more bankrupted banks. Or he might just simply say ....... (what do I know). Its simply unpredictable what might happen then. Could be the end of the current global financial system. Maybe all the mayor players are already prepared for the negative "big bang". Its all prepared behind the curtains but we still have to wait till we are aloud to see what is prepared for us. Only one thing is sure. Its nothing good.
Isn't this what happened to GM bond holders a few years ago? Guess we taught the Europeans another new cool tool ...
@Freegold : -why is the ECB buying up sovereign debt when it should not be "monetizing" ? - why should you own the euro instead of Gold ? - is the ECB balance heet really marked to market ? - do they REALLY know what they are doing with interest rate to banks @1% when the sovereigns borrow at much higher rates ... ? They dont know what they are doing , stumbling as they go along, it is all political
You NEED to READ this BOOK !!
WALL STREET AND THE RISE OF HITLER.. FINANCING THE WW II
http://www.scribd.com/doc/80081087/Antony-Sutton-Wall-Street-the-Rise-of...
PP
Awesome! Do you know what the first two books are? Thanks.