• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

EU Deal and Hell Freezing Over

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Mon, 10/31/2011 - 07:07 | 1827897 HD
HD's picture

Someone please inform CNBC...

Mon, 10/31/2011 - 07:08 | 1827898 williambanzai7
williambanzai7's picture

EURO TRICK OR CHEAT

Mon, 10/31/2011 - 07:10 | 1827904 Dick Darlington
Dick Darlington's picture

When things get tough I have to lie...

 Oct. 30 (Bloomberg) -- The euro area would be able to
resolve the debt crisis without investment from surplus
countries such as China, Luxembourg Prime Minister Jean-Claude
Juncker told Germany’s ARD television in an interview.
     While an investment by China in the European Financial
Stability Facility “makes sense” given the magnitude of its
surpluses, the decisions taken by European leaders last week to
overcome the crisis could stand on their own, Juncker said.
     “If China and other investors were not to invest in the
end, the decisions that we’ve made are substantial enough alone
to master the debt crisis,” Juncker told ARD.
     EFSF Chief Executive Officer Klaus Regling visited Beijing
last week to seek financial support from China, holder of the
world’s largest foreign-exchange reserves. Chinese Vice Finance
Minister Zhu Guangyao said Oct. 28 that his government wants
more details about the “technicalities” before making any
decision on investing in the fund.
     Juncker was also asked on ARD whether banks would be
“taken to task” further at this week’s Group of 20 summit in
France. He responded, “I hope so.”

Mon, 10/31/2011 - 07:16 | 1827914 Ghordius
Ghordius's picture

The Chinese - how and why should they? At the end it might all go back to recapitalize the banks so that they fill their coffers with European bonds. Nothing new, nothing that has not happened often enough...

Mon, 10/31/2011 - 07:19 | 1827916 GeneMarchbanks
GeneMarchbanks's picture

'QE3 is allegedly back on the table. I guess it is never far removed. I've lost sight of what this is even supposed to do other than makes stocks go up for a bit. Since Europe is finally saying growth and exports rather than austerity are the way out of the debt problem, and dollar weakness because of more QE won't be tolerated. I guess there will be a focus on mortgages if we get one, as it can be sold to the public better that way and can help the European banks liquidate some of their portfolio to reduce dollar funding needs and potentially reduce capital required'

That's some crystal clear logic I'd say. The Bernank wears a cape.

Mon, 10/31/2011 - 07:23 | 1827925 GerritB
GerritB's picture

The dutch social party PVDA has said that it will NOT back the EU plan if it isn't strong enough. I really hope they will not support this because this EU plan isn't solving ANYthing.

 

Mon, 10/31/2011 - 07:54 | 1827975 DutchR
DutchR's picture

Pvda are socialists and will vote for anything to keep themselves in play, they don't give a rats ass about whether it's a good or a bad thing to do.

Mon, 10/31/2011 - 07:31 | 1827935 topcallingtroll
topcallingtroll's picture

Ok maybe I gloated too soon.

Mon, 10/31/2011 - 09:03 | 1827954 Zero Govt
Zero Govt's picture

Looking good guys, looking good

there's nothing like a sack empty of any money (good start) full of political promises (luv those) backed by political repayment 'guarantees' (oh luv those too) and leveraged (adds more "stability" you see) from already bankrupt running on empty Govts like France (the news just gets better)

i'm shocked the financial markets haven't every confidence in this EFSF barrel of bollocks ...have they not priced in Jean Claude Trichets favourite word "stability" yet?

shame Trichet is leaving. His interview is on CNBC tonight on how he provided "stability" over the past 2 years and how the Eurozone banking and political world is "all going according to plan". Ok the ECB Plans bailout figure has exploded from €360bn to €500bn to €650bn to €1 Trillion (budget control is real "stable" too then Jean Claude?)

..and the next figure in the air of this mushrooming cloud of political delusion is €2 Trillion. Yep, the ECB's plan is "stable", it's just the bill for it has rocketed into space out-of-control toward planet Uranus!

.. grab your popcorn and give the carpet a hoover as you're going to spend most of the evening rolling all over it pissing yourself laughing

Mon, 10/31/2011 - 08:21 | 1828015 jdelano
jdelano's picture

Not triggering CDs was a tragically bad idea. Yay! Excited to watch Italy blow past 7%

Mon, 10/31/2011 - 08:39 | 1828049 mccoyspace
mccoyspace's picture

Does anyone remember back several years (late 08 or early 09 maybe) the 1 trillion euro plan? I forget what that was even all about.... Was that a bank recap? Who can even keep track anymore.....

Mon, 10/31/2011 - 08:43 | 1828054 Pseudo Anonym
Pseudo Anonym's picture

China has money, and I don't doubt that under the right terms will invest in Europe. But they need terms. What terms is the EFSF getting on the bank recap portion?

if I were China, I'd ask for collateral in the form of gold/silver/platinum FOB Bejing

Mon, 10/31/2011 - 08:46 | 1828061 Dick Darlington
Dick Darlington's picture

Latest Youth UE-figures from Eurostat out today:

Oct. 31 (Bloomberg) -- Following is a table detailing
eurozone youth unemployment rates for September from Eurostat
in Luxembourg.   
*T               
==========================================================
                       Sept.      Aug.      July      Year
                        2011      2011      2011       Ago
==========================================================
                    ----------------Under 25s-------------
Eurozone               21.2%     20.9%     20.8%     20.8%
EU27                   21.4%     21.2%     21.2%     20.9%
----------------------------------------------------------
 Belgium               17.4%     17.3%     17.6%     20.8%
 Bulgaria              26.8%     26.9%     27.0%     23.5%
 Czech Republic        18.8%     18.6%     18.6%     17.6%
 Denmark               13.9%     14.1%     14.0%     15.0%
 Germany                 n/a      9.1%      9.0%      9.4%
 Estonia                 n/a       n/a     21.8%     27.8%
 Ireland               29.5%     30.8%     30.1%     28.2%
==========================================================
                       Sept.      Aug.      July      Year
                        2011      2011      2011       Ago
==========================================================
                    ----------------Under 25s-------------
 Greece                  n/a       n/a     43.5%     34.2%
 Spain                 48.0%     47.6%     47.3%     42.3%
 France                24.0%     23.9%     23.9%     23.7%
 Italy                 29.3%     28.0%     27.8%     27.7%
 Cyprus                22.6%     22.6%     22.6%     15.2%
 Latvia                  n/a       n/a     29.7%     33.1%
 Lithuania               n/a       n/a     32.7%     35.0%
 Luxembourg            14.7%     14.7%     14.7%     14.1%
 Hungary               23.1%     23.7%     24.2%     25.6%
 Malta                 15.3%     15.1%     15.1%     13.1%
 Netherlands            8.0%      7.5%      7.5%      8.6%
 Austria                7.1%      7.2%      7.7%      9.1%
 Poland                23.8%     23.7%     23.9%     24.2%
 Portugal              27.1%     26.9%     27.2%     29.3%
 Romania                 n/a       n/a     22.8%     22.1%
 Slovenia              13.4%     13.4%     13.4%     14.6%
==========================================================
                       Sept.      Aug.      July      Year
                        2011      2011      2011       Ago
==========================================================
                    ----------------Under 25s-------------
 Slovakia              30.7%     31.2%     31.6%     33.8%
 Finland               20.4%     20.3%     20.2%     20.8%
 Sweden                22.1%     22.9%     21.5%     24.7%
 U.K.                    n/a       n/a     21.2%     19.2%
----------------------------------------------------------
U.S.                   17.4%     17.7%     17.4%     17.9%
==========================================================
NOTE: Rates are compiled based upon ILO definitions.
Unemployed people are those aged 15 to 74 who are without
work, are available to start work within the next two weeks
and have actively sought employment at some time during the
previous four weeks.

SOURCE: Eurostat 

Mon, 10/31/2011 - 10:11 | 1828248 srsly-wtf
srsly-wtf's picture

Normally I'd say that chart spells utter catastrophe, but does that just mean we're gonna get QE3 and its all good...Bullish?

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