Here Comes The Non-Boring Weekend: G7 Says "Central Banks Ready To Provide Liquidity As Required"

Tyler Durden's picture

The G-7 is in full panic mode. The organization for the prevention of harm to the Status Quo was expected to release a communique possibly over the weekend, but the speed with which one was dropped for mass circulation is stunning and confirms that its members are in full meltdown as the weekend comes. It is now certain that the G-7 will attempt some major intervention over the next 48 hours to inject a last dose of hope into capital markets, or else the Monday open will be an epic collapse.

G-7 Statement on Tackling Slowdown, Supporting Banks

“We met at a time of new challenges to global economic recovery, with significant challenges to growth, fiscal deficits and sovereign debt, stemming from past accumulated imbalances.

This is reflected in heightened tensions in financial markets.

There are now clear signs of a slowdown in global growth. We are committed to a strong and coordinated international response to these challenges.

“We are taking strong actions to maintain financial stability, restore confidence and support growth. In the U.S., President Obama has put forward a significant package to strengthen growth and employment through public investments, tax incentives and targeted job measures, combined with fiscal reforms designed to restore fiscal sustainability over the medium term. Euro area countries are implementing the decisions taken on July 21 to address financial tensions, notably through the flexibilization of the EFSF, reaffirming their inflexible determination to honor fully their own individual sovereign signatures and their commitments to sustainable fiscal conditions and structure reforms. Japan is implementing substantial fiscal measures for reconstruction from the earthquake while ensuring the commitment to medium-term fiscal consolidation.

“Concerns over the pace and future of the recovery underscore the need for a concerted effort at a global level in support of strong, sustainable and balanced growth. We must all set out and implement ambitious and growth-friendly fiscal consolidation plans rooted within credible fiscal frameworks.

Fiscal policy faces a delicate balancing act. Given the still fragile nature of the recovery, we must tread the difficult path of achieving fiscal adjustment plans while supporting economic activity, taking into account different national circumstances.

“Monetary policies will maintain price stability and continue to support economic recovery. Central Banks stand ready to provide liquidity to banks as required. We will take all necessary actions to ensure the resilience of banking systems and financial markets. In this context we reaffirm our commitment to implement fully Basel III.

“We reaffirmed our shared interest in a strong and stable international financial system, and our support for market- determined exchange rates. Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We will consult closely in regard to actions in exchange markets and will cooperate as appropriate.

“We look forward to working with our colleagues in the G20 and the IMF in the coming weeks to rebalance demand and strengthen global growth. As previously agreed, structural reforms will make an important contribution in this regard.”

 

 


Translation: the great experiment in encroaching statism, failed monetary policy and central planning continues... Until imminent failure.

 

And select soundbites of last ditch desperation courtesy of Reuters:

 

FRENCH FINANCE MINISTER FRANCOIS BAROIN

"The G7 reaffirmed its comittment to safeguarding the solidity of sovereign ratings."

"We have to get away from the idea there is only one solution for all... It's not rigour versus growth."

"It was a G7 where everything was raised. There was no dead time."

BANK OF FRANCE GOVERNOR CHRISTIAN NOYER

"There is an extreme tension on the markets, what's important is that very strong measures are taken by governments concerned."

"It was really a meeting of great cohesion and force. There was a determination by everyone to meet challenges."

G7 OFFICIAL

"The G7 sees a need for a concerted effort at global level in support of strong, sustainable and balanced growth.

"We must all set out and implement ambitious and growth-friendly fiscal consolidation plans rooted within credible frameworks.

"The G7 affirmed its interest in a strong, stable international financial system."

EARLIER COMMENTS

U.S. TREASURY SECRETARY TIMOTHY GEITHNER

"It is completely within the capacity of the stronger members of the euro area to absorb those costs. Those costs would be much, much greater for them and their economies if they sit here and do nothing and they recognize that."

CANADIAN FINANCE MINISTER JIM FLAHERTY

"I hope we would all agree we have to stay the course, that we have to go through the pain of fiscal consolidation. It's not easy, it creates stresses in some countries, but it's necessary, we have to get through this rough patch.

"There's no point kicking the can down the road. If we don't deal with it now we'll have to deal with it later and we know that these problems do not get better with the passage of time."

EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN

"We support the United States in its work so that the U.S. recovery can continue, while in Europe we have our own challenges related to fiscal consolidation and restoring confidence in the European economy."

On bank funding:

"Solutions should be found from private markets, from private investors and if that is not is possible there should be national backstops in place to ensure recapitalisations or restructuring for these banks."

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RockyRacoon's picture

Why dintya just say, "Print, print, print.  That's what's for dinner!"

"The G7 sees a need for a concerted effort at global level in support of strong, sustainable and balanced growth." = Inflation for the masses, tea and cakes for the elite.   Key misleading word, "growth".

"We must all set out and implement ambitious and growth-friendly fiscal consolidation plans rooted within credible frameworks." = Bank buy-outs so we can hide the sausage.   Key clue, "consolidation".

Popo's picture

The collapse is already complete. Markets just havent played it out yet.

Even if they inject more liquidity, is there anyone left who believes it will work?

Collapse now or collapse later, what's the difference?

Position yourselves accordingly.

In the words of house Stark: Winter is Coming.

LeBalance's picture

The "certainty" of a collapse is absolute, one does not fight gravity.  Yes!

But it is strange to say that statement with the words: "The collapse is already complete. The Markets have not played it out yet."

It is IN that playing that the Wars, the Famines, the Dogs and Cats living together come about.

Those events playing out in Theater is the whole Point!

 

:)

Oracle of Kypseli's picture

It's appropriate that you used the word gravity, since it is the only force than cannot be stopped or interrupted by anything.

nope-1004's picture

 

U.S. TREASURY SECRETARY TIMOTHY GEITHNER

"It is completely within the capacity of the stronger members of the euro area to absorb those costs. Those costs would be much, much greater for them and their economies if they sit here and do nothing and they recognize that."

 

Geithner you commie!!  From each according to his printing ability, to each according to his credit worthiness.

Twisted prick!

OT:  Loaded up on silver again today.  Phyzz... not the smoke and mirrors type.  You can feel something big coming, yet it's all being downplayed like some additional "liquidity needs to be injected and the patient lives".  Except, patient passed away 3 years ago, gov't morons.

 

IQ 145's picture

It's going to cost them a lot more if they do "fix it" too; that's what all the cognitive dissonance is about. Does anyone remember what the famous "handwriting on the wall" actually said? I'll leave it to someone else to post it. It's classic; because it's exactly what the "leaders" will not see until it falls on their heads.

wisefool's picture

No it wont. When people dig up the ZH hard drives 200 years from now. They will say "this is a good one" Not because it has trace ammounts of silver or gold in the back plane. They will dig it up because the head of the IRS is a tax cheat and he does not really give a shit.

Then they will raster out the boot sector to find the letters k e y n e s. There are two rules of keynseanism

1. We are all going to die, so print money.

2. The only intellectual pursuit with any reward is avoiding taxes.

 

Timmay=Tyler.

WmMcK's picture

Time for a reset if not a low-level format.

wisefool's picture

It is to late for me. (wisefool)  But Ron Paul has consistently been saying "fine, you wont elect me because you think I am a wing bat But my ideas are young ideas."

There was supposedly some hub bub about Rick Perry using a mason handshake on our favorite sound money dude during the republican debate ...

Ron Paul/Herman Cain 2012. Sound money/simple tax code = free will.

samslaught's picture

Global Elites have seen these sovereign debt issues coming for a minimum of 15 years now.  Do you really think a collapse is going to come when everyone MOST expects it?  I’m assuming gold will be revalued and brought to its true value as a global sovereign asset and will instantly recapitalize all governments.

samslaught's picture

Global Elites have seen these sovereign debt issues coming for a minimum of 15 years now.  Do you really think a collapse is going to come when everyone MOST expects it?  I’m assuming gold will be revalued and brought to its true value as a global sovereign asset and will instantly recapitalize all governments.

wisefool's picture

EDIT: When I said Timmy=Tyler I meant the Tyler in the movie, giving the "two rules" speach. not our Tyler(s).

my post is still junk worthy, but hopefully not for that lack of original context/sarcasm. Look up what keynes really thought about money printing and taxation, and then you will understand what this administration and its seers (krugman) have made zero progress in the last 3 years. That, and it being Bush's fault.

45north's picture

 

“This is the writing that was inscribed: MENE, TEKEL, and PERES.  These words mean:

 

 MENE, God has numbered your kingdom and put an end to it;

 

TEKEL, you have been weighed on the scales and found wanting;

 

PERES, your kingdom has been divided and given to the Medes and Persians.”

 

 

http://www.usccb.org/bible/scripture.cfm?bk=34&ch=5

 

akak's picture

"Mene, mene, tekel, upharsin".

"You have been weighed, and found wanting."

bid the soldiers shoot's picture

triplicate sorry (iPad for sale)

bid the soldiers shoot's picture

More likely:

"You have been weighed and better go on a diet."

Zadok's picture

@ IQ 145 

Sorry for late reply and apologize in advance in I tread on someone else's response, just getting through the comments...

Dan 5:25-28

MENE MENE TEKEL UPHARSIN

Essentially...

Numbered, numbered, weighed, divided

God numbered Belshazzar's days, weighed him and found him wanting, divided the kingdom and gave it to the Medes and Persians.  

Danial stated the reason for the message was that Belshazzar did not give credit where credit was due, the King came to collect and he could not pay, therefore his kingdom and life were taken the night of the interpretation.  

Interesting they had to bring in a foreigner before the king to interpret what all the in-house experts could not.  That foreigner was a Jew in forced exile ordained by God to be in place for such a time at this.  

Zadok

blunderdog's picture

Perfect.  Heeb mythology is definitely gonna be the secret that saves us all...

 

ZeroAffect's picture

Zadok - good timing for this teaching. Others will mock and perhaps babble on about ancient wisdom being mythos but the day is coming, and could be sooner than we imagine, when they will give an answer for their mocking disbelief. 

blunderdog's picture

I personally am looking forward to when the dead rise from their graves.  My friend Matt's gramma made really good cookies. 

I'd pay $5 a dozen.

If I'm in hell at the time, I'll pay $10.

chipshot's picture

checkmate is imminent.......

bid the soldiers shoot's picture

God keeps seven billion balls in the air like it was child's play. And all we can do is whine about QE3 and margin calls.

Wild tree's picture

The grandeur of God cannot be measured. We have somewhere near an estimated seven billion (give or take a billion) stars in our own Milky Way Galaxy with an unknown number of planets orbiting them. The Hubble did a deep space "stare" about seven years ago where they blew up one degree of space and then they counted the galaxies. They presented the findings that based on extrapolation, that there were estimated to be 250 BILLION GALAXIES. Jewels each and every one, set in the splendor of black space to be admired and marveled as they blaze from the fire of their individual suns. That alone is staggering; but then there are black holes, dark matter,  expanding space, et. al. that keeps things interesting. Nemesis might be bringing the "shock and awe" later this year that our planet would prefer to avoid.

bid the soldiers shoot's picture

I don't disagree with your synopsis. The only thing one can know about God is that nothing can be known about him.

Are you sure that 'Nemesis' and his bag of tricks isn't already here?
(Of course, he's here. How could anything operate independent of God?)

chalcedonite's picture

... and he gives us a transparent atmosphere to see it all.

FreedomGuy's picture

I seriously doubt tax cheat Timmy even ran any numbers before he made that stupid statement. Just like his statement the US would never be downgraded.

These guys are playing a paper game that is completely divorced from economic reality. Goods and services are not increasing...the mark of true economic health and growth. They are all just moving debts around the European game board. Whoever holds them last gets burned.

Germanyl may be the economic battleship but it will sink too if all the little sinking ships tether to it. It cannot hold up all the PIIGS and I really don't know why it wants to. The losses will be even larger and transferred to their country with these stupid interventions. Let the morons fail and fall.

Lord Welligton's picture

I get it now !!!!!!!

It's Operation Twisted Prick.

IQ 145's picture

Of course, I agree with you; oh Oracular One. But if one believes in the science of Von Mises; there is another force which cannot be stopped. "The Crack-up Bust after the Boom, cannot be avoided"; or to that effect. My photographic memory is a little foggy these days.

WmMcK's picture

Mine has double exposure.

max2205's picture

Epic may not be a strong enough term

Die Weiße Rose's picture

Oracle of K.

please read up on Newton's Law or Eistein's Theory of Relativity, before you make such sweeping statements of Gravity.

there is NO force that can not be stopped or interrupted by anything, like an equal and opposite force for example wr;)

Modern physics describes gravitation using the general theory of relativity by Einstein, in which it is a consequence of the curvature of spacetime governing the motion of inertial objects. The simpler Newton's law of universal gravitation provides an accurate approximation for most physical situations.

Newton's laws of motion are three physical laws that form the basis for classical mechanics. They describe the relationship between the forces acting on a body and its motion due to those forces.

  1. First law: The velocity of a body remains constant unless the body is acted upon by an external force.[3][4][5]
  2. Second law: The acceleration a of a body is parallel and directly proportional to the net force F and inversely proportional to the mass m, i.e., F = ma.
  3. Third law: The mutual forces of action and reaction between two bodies are equal, opposite and collinear.

In general relativity, the gravitational force is a fictitious force due to the curvature of spacetime,

in fact, Gravity itself is one of the weakest Forces there is in this Universe and entirely depending on mass and relative distance, trajectory and velocity ;)

how else would we be able to escape the gravitational field and fly ? ;)

AmCockerSpaniel's picture

Gravity is not a force, but an effect of spacetime. To long to post all, but it's that E=M(CxC) stuff. All energy/ matter, is kinetic (moves thru spacetime).

B9K9's picture

Yep, manipulating the theater of the absurd is their entire raison d'être. It's ironic, but the ultimate game is nothing more than recognizing fear & greed - writ large - and playing the results accordingly.

For greed (read:hyper-inflation) to ascend primacy, it's takes energy, action & determination: printing, speeches, rallying the troops, etc. For fear (read:deflationary collapse) to win, all it takes is resignation; a final recognition that all things must pass.

So, sit back and place yourself in position of  one of the Chosen: for thousands of years, they have watched the ebb & flow of human emotion drive regional & global markets. No need to invest in knowledge, technology, morality or any other activity that takes a modicum of effort.

Nope, simply sell the drug(s) that satisfy the ancient sins and watch the emotional state of the marks as they experience each degree of successive denouement. Will there be yet another (weak) rally geared towards marshalling the last stores of energy, or is capitulation near?

That's what the masters have studied, with their knowledge passed down throughout the ages. Wait & watch, but only stike when the death throes begin. Ever see a zebra's eyes glaze over as they realize the game is up? They too are ready to accept their fate as the lions' jaws snap shut.

bankrupt JPM buy silver's picture

Good I loaded AMZN PUTS at 3:58.  Fuck that stock.

sschu's picture

Great post!  The must be a special place in h*ll for these guys, their evil is profound.

sschu

 

Jumbotron's picture

Don't forget Chaz Bono on Dancin' With The Stars.

oldman's picture

Popo, a green, of course.

But the Canadiean dude may be a closet ZHer from the last sentebce of this quip:

CANADIAN FINANCE MINISTER JIM FLAHERTY

"I hope we would all agree we have to stay the course, that we have to go through the pain of fiscal consolidation. It's not easy, it creates stresses in some countries, but it's necessary, we have to get through this rough patch.

"There's no point kicking the can down the road. If we don't deal with it now we'll have to deal with it later and we know that these problems do not get better with the passage of time."

'----no point in kicking the can down the road.'

these guys will co-opt anything to make themselves feel good. They are in complete denial, so--------where's cog dis when we need him to deal with an acute psycho-crisis such as the one these dudes are in????????/

Nice post                 om

jal's picture

So-o--ooo!

Greece will be saved ... 

 

Now has someone managed to hack into their private conversations and tell us how.

jal

SumSUN's picture

The conversations between them are probably very irrelevant to what is going on in the real world.  

heyligen's picture

Greece will be saved by giving money to the banks. The standard "solution" protecting the standard profits.

sun tzu's picture

Greece will default and be kicked out of the EU. The ECB will monetize the bad PIIGS debt to save the EU banks. The German politicians cannot justify a bailout that allows Greece to stay in the EU

Arkadaba's picture

Lol - can't wait to read the latest but want to re-read the whole series before that.

KennyG09's picture

"The man who passes the sentence, swings the sword." - Ned Stark

 

Sgt.Sausage's picture

Collapse later means you have time to prepare now.

What are you waitin' for? An invitation?

Get busy!

ISEEIT's picture

True enough but its the manipulation that kills traders. These asshats use our future to vainly attempt securing their own failed asses today. The EUR has been artificially propped up long enough to cause real pain for so many fundamental traders. They do the same with EVERYTHING. The same brain dead useful idiots who love to ramble on against the 'evils' of free markets and capitalism are doing far more damage than either supposed beast ever could. It is the artificial that is killing us. It is the lie that is killing us. In trying to make life 'fair' they are destroying it.

Buck Johnson's picture

You are correct, this is going to happen might as well have it happen at the time of your chosen. 

As Stark did say in the Game of Thrones: Winter is Coming.  And guess what, in the economies of the world they aren't truly ready for it.