Eurozone As Hogwarts: Where Are Albus Mario Dumbledore And Expelliarmus Debtus?
If there was one analogy for the failing artificial Eurozone system we had not heard so far, was one comparing it to Hogwarts (thank you Harry Potter). Now, courtesy of Tullet Prebon that is no longer the case...
From Tullett Prebon: New Term Begins At Hogwarts
Albus Mario Dumbledore and Harry Constancio Potter are due to assemble next Thursday for the next episode of the sovereign Voldemort saga. It is foretold that during the press conference the headmaster will unveil his wand and deliver an almighty spell, ‘Expelliarmus Debtus’, whereupon the dreaded Troika Dementors will be vaporised disappearing into the austerity vortex, leaving the Muggles to live happily ever after.
Fact is stranger than fiction, the reality being that J K Rowling’s stories are tame compared to the economic realities facing the declining fortunes of Europe. Hungary is rapidly becoming another Greece, Ireland is poised to return to official recession (so much for the austerity poster child), Spanish unemployment rises unabated, Unicredit offers a 70% discount on shares to entice investors, the SNB president has allegedly been caught with his hands in the till and the revelation in the Daily Telegraph this morning of cynical tax evasion by wealthy Italians merely represents the tip of the iceberg.
The only surprise really is that the Euro edifice and the neo liberal free market globalisation ideology still remains for the most part intact – the ECB, alongside the other major central banks, have done everything in their power to save the banking system or, rather, intrinsically insolvent institutions, but the armoury is running out of supplies. We have observed Euribors falling fairly dramatically of late based on nothing more than thin air but lending into the real economy will not be improved, exacerbated by, or even because of, the wholesale cut backs in the public sector as recommended by the fiscal rectitude hawks.
As anticipated the eonia slid to 0.369% from 0.385% last night due primarily to the reduced participation from Germany (regional holiday), this value or thereabouts to be repeated again tonight. The scene is set for the eonia to resume on Monday adjacent to this figure and dwindle for the remnants of this MP indicating an average for the December run somewhere near to 0.46%. January, in comparison, will be beneath 0.35%, the halving of the reserve requirement being of major significance.
The Harry Potter series began in 1997 and ended in 2011 – the Euro commenced in 1999…