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Update: Germany Just Said, You Know It, Nein; Eurobeggars Continue To Be Choosers;
Update: NEIN
- GERMANY WON'T ACCEPT NEW ANTI-CRISIS INSTRUMENTS - GERMAN SOURCE *DJ
Maybe the Italian football team should have bent over just a little.
* * *
Today's edition of the Eurosummit is over. There was some news, however, as always happens, there is a twist:
- EU LEADERS HAVE AGREED A GROWTH PACKAGE OF 120 BLN EUROS BUT ITALY AND SPAIN NOT PREPARED TO SIGN OFF ON IT - EU OFFICIALS - *DJ
- ITALY WON'T SIGN ONTO GROWTH PACT UNTIL BOND BUYING DEAL
So beggars continue to be choosers, as Italy and Spain will not agree on getting aid (!) until Germany relents on buying their bonds. There was a reason why in the summer of 2011 we said that as the Game Theory equilibrium shifts to defection, he who defects first, defects best. Well, Greece is now leaps and bounds ahead of everyone as the global ponzi unravels. And so the posturing for second place is now on. We can't wait for the official German response, to both this, and to the loss by Italy in Euro2012.
EU leaders have agreed a package to stimulate growth in their economies, but Italy and Spain have refused to sign up to it because they want Germany to approve short-term measures to ease their borrowing costs first, EU officials said.
European Council President Herman Van Rompuy announced the 120 billion euros ($149 billion) deal at a news conference, saying it would consist of more capital for the European Investment Bank and project bonds for infrastructure.
But Italy, Spain and some other countries want the euro zone to agree steps to help bring down their high borrowing costs first, including steps to buy their government bonds in order to bring down yields.
"We're in favour of the growth pact and there is a deal on the content, but before we sign it we want a comprehensive deal including short-term measures," a Spanish government official said.
Another official said that France, the strongest backer of the growth pact, had also raised concerns about a deal in part because it does not want stricter measures on budget restraint to be introduced as soon as planned.
Essentially what Spain and Italy are saying is that someone has to buy or else. Well, someone will buy. At the right price. Dear PIIGS: here is a very simple lesson in economics:
What we also learned is that all that matters is tomorrow, the long-term is irrelevant. Which it is: when the Ponzi collapses one only hope to live day to day.
Peak idiocy.
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Spain and Italy win their Euro cup games and now feel they can call the shots on growth pact? Crazy! Will they really "win" the bond buying demand?
If they're playing chicken, I don't just hear clucks. Those are some cock-a-doodle-doos!
I wonder is there anybody actually trading these idiotic markets these days? Besides Fed and other CBs of course.
It's difficult to say because the water is too muddied.
Personally, I agree with sdharbinger in this article, that we are approaching the 'end game' now-
http://theneedleblog.wordpress.com/2012/06/28/approaching-end-game/
The effin Italians got what they wanted from Germany today. Merkel ordered the German players to forfeit the Euro 2012 semifinals. Italians should stop whining already.
Right.
The Germans are pissed off now.
Don't bite the hand that feeds you.
Sacre bleu, MY sack is blue.
MDB. You make sense!
The can shall be kicked!
"So let it be written. So let it be done."
shhh! don't tell!
The reality is that Greece is going to either leave or be thrown out of the Euro and deep down Italy and Spain want out as well. So they either get what they want or they walk. Mind you if they get away with it, the precedent will have been set for more blackmail in the future.
I don't know what will happen tomorrow and certainly not over the next few months but I will bet you the Italians, Spaniards and French will find a way to drink from the German teat. They are extremely adept at getting what they want. Bailouts may be hidden behind other terms but bailouts there will be I can assure you of that. Nobody has the guts to risk a Euro meltdown, not even the Germans. Geithner and Bernanke will be behind the curtain orchestrating the cover up like the Wizard of Oz.
The only way it'll happen is if the Germans agree to front the money with the funds actually being printed by the Fed.
The great debt roll-up to ever larger sovereigns continues. In the end, the Fed will absorb all debts and print to infinity.
I think Spain and Italy (including France) won't get those bond deals. Because Germany knows what it's all about. They buy the bonds and continue to buy and sometime in the very near future Spain or Italy or both say we need to change the rules to the bonds, the bond holders have to take a cut. And so the 200 billion or more than Germany may have bought could be worth 20 billion that they are forced to take and no guarantee they may get that. At least with the loans and such they have some form of control of getting their money back, but with the bonds they can get screwed.
It's all Bullshit!
... didn't you mean bullish? ...
Is there a difference anymore?
There has not been any difference between bullish and bullshit since Bernanke, Cramer and the networks started commenting on the economy since the GFC.
Well, you can't spell 'bullshit' without 'bullish'
lol penn and teller should do a magic trick based on the eu. like the cups and balls but bigger.
Tyler, you know better than that. This is not peak idiocy .... much, MUCH, MUCH more idiocy to come.
A little less conversation, a litlle more PRINTING....
Deficits don't matter....
She said not in her lifetime.
That is the sort of slip that emerges from someone when they are mad and their innermost convictions are revealed.
It's not going to happen unless she is killed (which could happen).
Sarajevo moment
All these cons' inflation ain't satisfactionin' me...
"Peak idiocy"? You ain't seen NOTHIN yet.
Post Peak Post Idiocy, and then some......
We are just beginning to explore idiocy. Only one toe is wet.
Don't worry, Germany. I'd be happy to accept your 120 bln Euro.
Unfortunately, these €120 billion are only the headline number. 60 billion is leveraging up the EIB, another 55 billion are re-labeled funds. That's how we roll in the EU.
Nonetheless, Spain and Italy for the win. Afaik, Merkel doesn't even have the mandate from her coalition parties to support those insane proposals. Furthermore, have Rajoy and Monti actually thought this through? I'm pretty sure that secondary market purchases won't help them much.
In other words, there is no new money and this is typical EU bullshit.
She said no and they will cut or they will die.
Tyler?
Any idea on WHO is growing WHOM for WHAT?
120 billion euros is not enough for Spain ...
If they have to SHARE with Italy ................... Pffffffffffffffffffffffttttttt !!!!!!
It would not hold them through the end of next month.
barliman
They are only going to shuffle various budgets thoroughly and rename them.
There is no additional money in it!
Hollande gets his moral victory within France as he makes good on his pre-election promise and Merkel attributes it as victory as there is no new German money involved. A classical European farce!
I wonder if this blockade tactics is going to work?
you're being too generous. this is nothing but a schoolyard game of chicken ...
Spanish banks wrote €3 trl of loans to resi and commercial development and infrastructure, a conservative loss would be a 40% loss with further to go. Ergo Spanish banks need over €1 trillion as a patch..it's FUBAR, not worth debating. Yirrup needs circa €6 trl of recap to mend the fence and even that might be temporary..
So those 120 billion are a good first step (:
In the meantime, the clock is still ticking, um, the bomb, I mean.
WE WILL TAKE YOUR MONEY AS WE SEE FIT!
And the bill? Give it to that fat guy eating sausages in the corner seat in the back...
if the eu is going to suck the pigs shlong they better do it right. lulz
In the eternal words of Peter Schiff, "The whole thing is ridiculous."
Its over, like the EURO championships. Play your little finale, it wont matter.
pigs play a better soccer it seems. They always take bulls and bears off guard.
Have you heard about PIIGS r' US? Or even better PIIGSFUK r' US? The real fuckers have no nationality at all....
Soccer is a rapid game of sinewy legs ... not a crude show of brute force.
Shit is fucked up and Bullshit
Merkel says: "Over my dead body" and boards the plane.
THAT is the key.
NOT IN MY LIFETIME.
That is the sort of thing that slips out when someone is angry and reveals their innermost conviction. SHE WILL ALLOW NO PRINTING.
That is that unless they kill her. Which they may.
120 Billion € ?
What are they trying to save, a Spanish highway tollbooth...
"We can't wait for the official German response, to both this, and to the loss by Italy in Euro2012."
Should be "German...loss TO Italy in Euro2012.:
I'm only interested in Germany's response to the loss of the EURO.
Something like ... Good Riddance!
Is that a laser coming out of that Price X Quantity chart?
That thing is going to put someone's eye out!
No laser. It's just happy to see you.
tyler has regressed far enuf for this analyst!
i predict we'll be finger-painting our monitors before lunch tomorrow, BiCheZ!
jeez tyler don't junk me! i'm just kidding!
i usta teach bindle-making myself
Why don't the Euros just adopt Obamacare? Plenty of taxes!!!!!!!!!!!!!!!!!!!!! And wealth redistribution, rationing like the UK's system. Euros will LOVE it!
http://confoundedinterest.wordpress.com/2012/06/28/imf-to-discuss-greece-re-negotiating-debt-france-and-us-should-pay-close-attention-particularly-after-supreme-court-upholds-obamacare/
Hyper-Deflation ...
Until all the "waste" is squeezed out of the system.
This is going to take 20 years.
And that, sir, is why the N word is operative.
NEVER.
We don't have 20 years of infinite oil growth. The game is over.
somewhere the elite made a bet on a soccer game and tomorrow we will know what the wager was exactly.
Teenagers, Maladaptation, & Community Failure
Babies observe everything you do, and then everything others do. As they learn language, they compare what you say to what you have been doing, and interject their own language in an experimental feedback loop. Naturally, robots desperate to avoid change at any cost do exactly the wrong thing, at the wrong time, at the wrong place, saying one thing and doing another, pretending to adapt with increasingly anxious busy work, bribing the baby to go along, exemplifying empire profit in extortion.
New family formation adjusts the rate of change recognition, which legacy seeks to avoid. The longer the individual fails to employ the subconscious, the more powerful the disruptive voice of empire TV becomes, and the robots don’t want to admit that they are listening to voices in their head, soothed by the status quo talking heads on empire TV, urging them to continue consuming the poison.
You deal with teenagers by allowing them to f- themselves, until they are tired of f-ing themselves. The empire is run by and for teenagers, determined to avoid decision trade-offs, seeking all of the advantages and none of the disadvantages, as modeled on TV, practical socialism, corporate profit at private loss masquerading as public good. Keep your distance, and accelerate to the extent the empire adds to its edifice, which it continues to do.
If you treat the empire accordingly, as the example for your children, they will slide right through their teenage years. You have until age two. Teenage difficulties arise from the inability to adapt combined with sudden onset of highly variable chemical input, in a feedback loop, which is positive with maladaptive character, and negative with adaptive character.
Go ahead Statey; do what your boss pays you to do, exercise authority in a police state. Your municipality is bankrupt, your pension promise is the creditor, and the Fed has placed the full faith and credit of the empire behind its digitation.
Municipal bankruptcies continue in slow motion, as empire assets are moved in the computer to prevent them, until they don’t, and the gloves come off. The teenagers do everything back assward, expecting a different result each and every time. The empire labels debt as an asset accordingly, to simulate an economy. Stupid is as stupid does and all politics is local, aggregated. Did you put that in your model Quant?
God helps those who help themselves, on both sides of the looking glass. Parents extend the pry bar, incrementally moving the relative fulcrum, until threshold to quantum reversion. Adopt timeless behaviors that eliminate time in your calculations. Over time, quality wins, every time.
From the perspective of the empire, it’s a game of solitaire with 4 bridges of stepping stones. From your perspective, you are placing stones to build a bridge across the bridges to your exit. What happens upon exit, from the increasingly complex regulatory brake / black hole of income event horizons? If the teenagers don’t “think” you are stupid, you’re doing something wrong.
Quantum physics is all about faith in the ability to remove time as a variable, that God guarantees empirical placement of the next stepping stone when and where you need it, if you seek it. When accounts zero out and the emperor's clothes vanish, who will you look to for guidance? Judge not…Funny how corporate officers always proffer ignorance, which Court disallows to the private individual.
Your algorithm REFLECTS, to the extent you choose, those with whom you socialize, relative to distance, aggregated. Seek the counsel of effective parents, beyond the empire, if you want to become one. If you want an effective community, discount out the explicit empire currency feedback, by implicitly backing your parents. Democracy is quantum, by nature, new empire same as the old empire. The a-holes have a bad outcome and that is their excuse for being a bigger a-hole in the next iteration.
The more bridges to nowhere the teenagers build, the easier your job as a parent, if you are genuine. It’s summer, economic activity is increasing, and core debt implodes again, partially written off as peripheral losses to simulate a liquidity problem. Imagine that; the empire rewards stupidity in a Ponzi format.
What does a federally subsidized pension get you at your community bank? An independent business check? Why doesn’t it take personal checks with the same float? What does that say about your community value system?
What’s the price of oil, again?
The price of oil is what it has always been:
5.6 million BTUs per 42 gallon barrel.
It was that yesterday and it will be that tomorrow. It is the ONLY yardstick that exists.
Not enough soccer matches thay can lose to pay for this:
http://www.youtube.com/watch?v=qmCSU6rT70E&feature=related
No European people will forget that.
Go Mario, no mercy this time!
We did the same things, even worst, in Etiopia, Libia, Jugoslavia ...
Mario? What does he got to offer?
European's memory is very lopsided since 1945. Massive funding for widespread indoctrination, propaganda and misinformation will do that to any population. Don't even get me started on the people on the other side of the former iron curtain.
Instead of begging Germans for cash, you should clean out the trash at the Vatican and while you're at it take their wealth for your nation. Also, separate your Northern producers from your Southern leeches.
Ciao
"Growth Package" sounds like a tumor.
Angela Merkel doesn't want to check out the Growth Package in your pants
120 billion? Mere chicken feed.
yup, chump change, a joke really but everybody likes to hear one. 120 billion is a nice round number, its what the sheep fukkers got so its good spin for the sheeple of the MSM. Tells me the disagreements are getting more serious. This can only go on till " the event". What will it be??
You better forget about the Huns bailing out the USA...they're pretty darn stubborn.
Regarding "printing" by the ECB or FED as a way to kick the can down the road, many have hoped and opined as printing being a way to alleviate some of this financial crisis in some places. Yet, right now printing is being resisted, and that is interesting to examine. In the case of the ECB, a lot of the resistance to that effort comes from Germany as it is perceived that the German economy and/or balance sheets will be affected in a negative way as a result. If true, that explains the German stance.
In the case of the FED, the situation is somewhat different. When the FED prints, does that dilute the holdings of foreigners who have purchased large amounts of US Treasuries like China or dilute the investments of other holders of US denominated capital and debt? If so, would they pushback against printing? If the value of Treasuries, etc. is going to be diluted by successive printing, then why hold onto those investments?
In the past, printing may have been a popular way for countries to try to inflate their way through and out of economic crises. As long as the expected pushback to printing wasn't perceived to be as bad as the underlying crisis, then printing generally occurred. But now one has to ask if the pushback effects are getting so large as to be countering the ability to print.
Ahhemm, just where does the money come from for all the chairsatan purchases? I don't care what those assholes choose to call printing.
He creates money and purchases treasury securities.
That is whatever you want to call it, but it doesn't mean anything for gold. All money is printed. ALL of it.
It is only a problem when it is *excessive* and with mortgages defaulting every day causing a disappearance of money, and about to get worse as a new recession arrives, the printing going on is mere replacement to stave off deflation. It's not dilutive.
If you want a real source of new money, put a steep transaction tax on gold.
China in particular ,of the BRICS, has warned the Fed publicly about further QE.
Such a public admonition ,because of Eastern circumspection means the
private warning/threats must have been horrible.
If I were th Chinese treasurer ,I would have borrowed against all those USTs
they hold,and bought hard asset and commodities.
What has China been doing lately ?
What the PIIGS want is for the central banks to distort the healthy functioning of markets that are pricing their bonds accordingly.
Caving in to such distortion exacerbates moral hazard, since the market will reposition its pricing mechanisms to factor in implied central bank support.
This will then tie the central banks towards Red Queen economics.. printing faster and faster just to stay in place.
Why don't they let the winner of Euro2012 rule the EU for the next year? Might make it worth watching, after all.
This shit is unraveling. SHE SAID NO. SHE SAID NO. They are begging, they are demanding and we will get threats next.
They are powerless. They can threaten all they want. They have NOTHING to bring to the table.
This shit is going to fall apart and NO ONE HAS ANY REAL IDEA WHAT SWAPS ARE GOING TO EXPLODE.
AGAIN.
That's not correct.
The issue is collateral. They all have collateral.
But they want the fucking money for fucking free? Just because? Give me a fucking break.
Germany gets Tuscany or no more Euros... for example.
All the beggars have something. They can bring something to the table but they're not interested. Instead they're just leeching. Yuck.
History books will have a special place for Merkel....
Yes… They have begun comparing her to Maggie Thatcher. I'd call that a success. And instead of having to demand "I want my money back" she won't hand it over in the first place. History books will call that "brilliant".
Will Meryl Streep do the movie? ... "The Neanderthal Maiden with the Brass Balls"
Maybe it's time to butcher one of the PIIGS and serve its parts to feed the rest. But whicht one? Greek is too lean to be really tasty, Portugal to old, Spain contains too much Garlic and Ireland would be too green to provide much protein. Hm... Would anyone miss Italy much?
SpItaly. This is going to get weird.
Advice for Germany: get out this clusterfuck while you still can.
Yes, and I believe that they are now making those decisions.
This summit was a waste of time. The credibility is down the drain since the Spanish bailout fiasco. Why meet? What's there to discuss that hasn't been discussed a million times already? Money doesn't grow on trees and the magic growth formula hasn't been found. Germany has some money but refuses to part with it. By the way, all these beggar nations have money. Their people hold amazing amounts of wealth that their governments can go after if they want to truly save their own bacon.
"This summit was a waste of time. The credibility is down the drain since the Spanish bailout fiasco. Why meet? What's there to discuss that hasn't been discussed a million times already? Money doesn't grow on trees and the magic growth formula hasn't been found. Germany has some money but refuses to part with it. By the way, all these beggar nations have money. Their people hold amazing amounts of wealth that their governments can go after if they want to truly save their own bacon."
It buys time, which means another paycheck clears and possibly another election locks in a few hundred more.
That, decent catering, and hookers and blow guarantee more equally pointless summits.
http://www.youtube.com/watch?v=ILtxKWHrGyQ
SERIOUSly-------DID ANYONE SEE HOW GERMANY SCORED THEIR ONLY GOAL----BY A PENALTY SHOT FOR 'HAND' TOUCHING THE BALL? RIGHT at the last minute.
I mean was this not surreal, Italy has their black mohawk guy botacelli score 2 goals and the germany scores on a penalty. hm........fishy!
Agreed, it was a stupid goal. I hate penalty goals.
But if it wasn't for Italy's gorilla, the game would have probably been more even keeled. There's no way stopping that player and he will take Italy to the cup. Even Spain won't be able to stop him. The rest of Italy's team can take a nap.
FWIW .. He's as much Italian as my grandmother is Kenyan.
Is "growth pact" the new term for continuing to spend money you don't have and will never pay back. The trick is to throw the word "growth" in there despite the fact the deficits are killing growth, as if bigger deficits will do what prior ones have not.
Seriously, what's all this talking about?
For months we have been warned Italy & Spain were not TBTF but rather TBTS [to big to save]
Ahh the beauty of denial and delusion.
Please pass the vino.