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Germany Rejects Geithner, ECB Refuses To "Print", Greece Gets Final Warning
Looks like no more official trips for G-Pap anywhere very soon:
- ECB'S WEIDMANN-IT IS WRONG TO ABANDON ALL PRINCIPLES OF MONETARY POLICY BY CITING A GENERAL EMERGENCY-SPIEGEL
- GERMAN CSU HEAD - IF GREECE CAN'T OR WON'T KEEP TRACK WITH RESCUE PLAN THAN AN EXIT FROM THE EURO ZONE IS CONCEIVABLE-SPIEGEL
More from Reuters:
European Central Bank Governing Council member Jens Weidmann told Germany's Spiegel magazine in an interview he considered it wrong to "throw out all established principles of monetary policy by citing a general emergency."
In a preview of an interview to be published in the new edition of Spiegel, Weidmann, head of the Bundesbank, said: "Once people start to use monetary policy there will always appear to be reasons suggesting it should continue to be used."
Abd:
The leader of Germany's Christian Social Union (CSU), part of Chancellor Angela Merkel's centre-right coalition, reiterated in an interview with Germany's Spiegel Magazine that Greece might have to leave the euro zone if it failed to meet conditions set by the European Union, European Central Bank and International Monetary Fund.
"If the Greek government and parliament can't or won't keep to the path then we shouldn't wait for the financial markets to force us into accepting reality. Then an exit of Greece from the euro zone must be conceivable.
And in other official news, Germany officially slammed the door on Geithner's face:
Germany’s top two finance officials rejected using the European Central Bank to boost the euro-area rescue fund’s firepower, rebuffing a suggestion by U.S. Treasury Secretary Timothy Geithner.
Inviting Geithner to a euro meeting for the first time, European finance chiefs who wrapped up two days of talks in Wroclaw, Poland, today also said the 18-month debt crisis leaves no room for tax cuts or extra spending to spur an economy on the brink of stagnation.
The German stance risks leaving the euro area without sufficient means to prevent the crisis from engulfing Spain and Italy. Geithner floated a variation of a 2008 policy he developed while at the New York Federal Reserve that would expand the reach of the 440 billion-euro ($607 billion) European Financial Stability Facility using leverage in a partnership with the ECB, said Irish Finance Minister Michael Noonan.
“The EFSF’s sole purpose is the financing of states and that’s in order as long as it’s done via the capital market,” Bundesbank President Jens Weidmann told reporters today. “If it’s done via the central bank it constitutes monetary state financing,” which is forbidden under European Union rules.
"Luckily" for the US middle class, adhering the rules never stopped Timmy-G before...
But the biggest slap down is not that of Pinocchio, but of Bernanke himself:
Luxembourg Prime Minister Jean-Claude Juncker, who chairs meetings of euro region finance ministers, said yesterday: “We’re not discussing the increase or the expansion of the EFSF with a non-member of the euro area.” Instead, the ministers recommitted to a July 21 decision to empower the fund to buy bonds in the secondary market, offer precautionary credit lines and create a bank-recapitalization facility.
“We don’t think that real economic and social problems can be solved by means of monetary policy,” said German Finance Minister Wolfgang Schaeuble, speaking alongside Weidmann after the meeting of EU finance ministers and central bank governors. “That has never been the European model and it won’t be.”
Funny: does Bernanke realize that Europe just mutinied? What happens if the head USD printer suddenly decides to shut down those expanded swap lines after all.
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Outside of the Solyndra baked WH Timmay doesnt carry much weight it seems.
Snap greek elections are good for a country on the brink....right?
Venizelos statement: "There will be urgent gov meetings tomorrow... Time to make political, financial decisions"
wonderful!
so, the ECB can't monetiZe, and they're gonna sell the EFTS in the "markets"?
pardon me while i recover from FOTFL...
...okie-dokie, now,...if the int'l central banksters'Z cabal isn't quite ready to show it's porcine ass all over europa, slewie understands...but will also call...
...bullshit, BiCheZ! unless the SNB also "withdraws" its pegasus peg. but, appearances are important, esp for the finiminiZ. akbar freaking Xmas, zHs, we gots china and japan ready to help, and already-printed digitalis for the patient "un-loaned" in US financial zombies so wtf, let's just take it as "currency/trade war" parlance for: "we ain't gonna let you yankee bastards beat us to the bottom like ya beat us to the top, dammit. janet."
i wld say this is bullish for Ts, USDz, and PMs
also i noticed in doug.noland's weekly summary of the clusterflocking cygnets noirs that (paste PrudentBear ):
One month Treasury bill rates ended the week at negative one basis point and 3-month bills closed at zero. Two-year government yields were unchanged at 0.17%. Five-year T-note yields ended the week up 12 bps to 0.92%. Ten-year yields rose 13 bps to 2.05%. Long bond yields rose 7 bps to 3.31%....
...Japanese 10-year "JGB" yields added one basis point to 1.01% (down 11bps)
L0L!!! so, maybe our bear is wondering what to attack next, eh? if ya didn't get yer cheap puts as part of yer cheap straddles during that monster short-covering rally last week, ya better hurry!
trust me!
I think they should go to double secret probation and just get it over with.
Cops are guarding the bull's balls. See Livestream of protestors on wall st.
http://www.livestream.com/globalrevolution
First it was going to be 90,000 bolshies. Then 20,000. Turns out to be a couple hundred. Oh well.
Uncle Ben, tell us the story again about how you fucked up the US and made us the laughing stock in the world. I really like that story. And by the way I changed my last name.
Greece has the knife to the throat of a number of big European banks. The default threat is no small worry inside the halls of Banker Bonus land.
How big will the bonus pool be if Greece stiffs the European banks who lent them all that money. Who is the real fool in this game? Time will tell.
Umm. I think I will take the next exit and park for a few days...With all the doors locked.
Off topic:
We really had a terrible tragedy yesterday in Reno. I am sure most of you heard about the air races crash with deaths and injuries. My good friend who flies his airplane from Idaho to Reno to partake is safe but the Northern part of our state is in sad shape. Of course races are cancelled and as most of you know Nevada is #1 in unemployment and foreclosures for many months in a row. Nevada is about the worst state in the nation of bankrupt states. And this just makes things even worse here.
Did Geithner ever sell his house?
:)
Did "he" ever buy it?
So I guess stocks reverse this latest BS rally then huh???
Can't monetize , can't default on credit deposits !!!!!!!!!!!!!!!
Not logical captain
The patient must die.......................
www.youtube.com/watch?v=v4fU0Ajo4RM
This crap is just put out for internal consumption.
The lefties here will bail out the lefties there. They are all on the same page behind closed doors.
They will burn the world in an attempt to save European Socialism.
Yes, the Germans could be posturing for their electorates, with what 75% against?
Over? Did you say "over"? Nothing is over until we decide it is! Was it over when the Germans bombed Pearl Harbor? Hell no! [/Bluto]
"Was it over when the Germans bombed Pearl Harbor?"
Nothing has never been over in any respect. Regards from Tokyo.
And it ain't over now.
In that case.....ECB is calling (or attempting to call) Fed's bluff. Fed to bailout Europe's banksters, or at least THEY think so. Dollar goes from 2 ply to 1 ply shortly.
But how effective can the fed be as the sole bailer-out-er? They sure can't do all the ECB can do. Not that any of it matters in any tangible way, except it's consequences.
But as ZH also states, if he shuts the swaps down for a few days....what would the ECB do then? Bernanke is playing with fire, and is in a no win scenario (duh ANY monetary [as in monetarism] scenario is a no-win scenario). Does he become the bailer-out-er of the world forever (or until the pitchforks)? Or does he show Europe who's their daddy and spank them with some market turmoil by removing the swaps line thereby risking unleashing something he won't be able to control without Weimar inflation (and thus still doesn't control).
All of this needless monetary bullshit.
Glass-Steagall
Never mind Glass seagulls. The time for policy wonkery is past. 1860------>2012.
This crisis is about the banksters getting their money. Leveraged money.Leveraged on the backs of people that actually produce. Sure the Piigs don't want to work as hard as the Germans and would rather do a bit more partying, so what?
The banksters decided to do what they do best which is simply usury, and now they want their leveraged return. I say screw them and the bond holders that took the risk. Let them take their haircut and maybe that will force them into more honest money. If my stock portfolio takes a hit, I can't go whining to Timmah to come and make it all better and the same goes for my honestly won savings in dollars or p.m.'s. Quite to the contrary.
Jubilee!
Hermann Goering:
"I joined the party because I was a revolutionary, not because of any ideological nonsense."
Here is what truly truly amazes me...why are the banks and or oligarchs so worried about creditor haircuts...all they have to do after a reset is fire up the printing press all over again (we all know who stands at the front of the line for 1st monetary distributions anyway) and reprint?
The very same creditors who take "haircuts" are the sane guys at the front of the moneyprinting booth...haircuts my ass...lolololol
They're not. This is not about money (the guys at the top make tax-free trillions each year from drug trafficking, gambling and slave trading (both prostitution and shipping illegal immigrants). It's only about power and the necessary steps to reshape the world order.
Maybe if europe goes down hard, it will drag us down quicker than Helo-Ben will let us, and we can get recovering sooner. Anyone with a pulse now knows what the deal is. There is no escape or "growing" out of this mess. I just cannot fathom Heli-Ben actually believeing his own shit about printing. It defies logic, common sense and economic history. He must be a pathological liar. He can't be that stupid. There can be no other sane reason for his actions other than to bail out the banks. Please God....bring this sucker down now!!!!!!!
Ben is a good employee following instructions.
forget it
Was Timmbo an only child?
He certainly acts it.
I bet it will go down something like this. Bernank gives 300 billion in free loan money to vampire squid, the squid keeps half for their fee, then buys euros with the other half, and loans them to greece with greek gold as collateral. The gold gets leased out for sale and price suppression. Voila, problem solved. Rinse and repeat for Italy, Spain and whomever else.
As we know that sovereign money sans borrowing is the only way out of monetary enslavement globally, the search for a spearhead candidate is on.
May I suggest Russia?
They have sufficient oil and gas along with captive customers to fend off any squeeze plays by the banking cartel. Once they establish a beach head, others will follow.
Then the way forward to break the chains of debt enslavement will become clear to all.
First North Dakota, then Iceland, then California, then Russia...Ireland, Slovenia...
Outlaw sovereign borrowing into debt. Outlaw fractional reserve lending by banks.
http://youtu.be/ULEfalVnMJI
Ever notice how the market just floats up on nothing right before shit hits the fan...how fortuitous for TPTB.
Get yer bunkerz ready, folks!
Excerpted from: http://www.cnbc.com/id/44460504
Some people are preparing for the end by buying canned goods or a gun.
One adult entertainment company has their priorities straight: They’re building a massive underground bunker, that will, of course contain all of the obvious emergency supplies and facilities but also a few, ahem, amenities.
The bunker will have multiple fully-stocked bars, an enormous performing stage with a “rotating hydraulic platform with emergency pole” and a sophisticated content-production studio, according to the company, Pink Visual.
So there was some disagreement concerning the immediate effects of a Greek default. Wouldn't the immediate effects be clear?
1) Euro decreases = $ increases ==> T yields decrease as dollars start chasing yield.
Any specific effects on $ denominated assets i.e. gold and crude?
2) S&P takes a moderate hit of -5% to -2.5% based on increased short term uncertainty premiums.
Financials / Banking sectors lead the charge down, about -4% due to increased risk premiums.
Stocks with heightened exposure to France get skullboned, particularly those that feed French capex spending.
Actually, all companies with signif EU exposure get molested by "wtf now?" premiums.
3) Gold October hits 1850-1900 based on EU inflation fears now that everyone looks to ECB to inject capital to inoculate from the contagion and (?) increased probability of another round of Fed asset purchases (?) .
4) EU stock dips could provide a great opportunity to buy German utility companies.
feedback, what am I missing, etc., sans idiocy, appreciated.