Highlights From G-7 Statement Which Basically Says That The Plunge Protection Team Just Went Global

Tyler Durden's picture

Highlights from the just released G-7 statement:

  • G7 Says Will Take Every Action to Stabilize Financial Markets
  • G7 says it will commit to secure liquidity in market
  • G7 will cooperate closely on currency market actions
  • G7 says it will be in close contact next few weeks
  • G7 says disorderly moves in markets hurt economy
  • G7 says currency rates should be decided by markets

But the winning bullet point of the year is...

  • G7 says currency rates should be decided by markets

As the G7 commences the biggest market intervention in history to prevent the final Ponzi unwind...

Full statement from G-7:

The Finance Ministers and Central Bank Governors of the G7 on Monday made the following statement ahead of the opening of trade in Asian markets and following the downgrade of U.S. debt on Friday:

In the face of renewed strains on financial markets, we, the Finance Ministers and Central Bank Governors of the G-7, affirm our commitment to take all necessary measures to support financial stability and growth in a spirit of close cooperation and confidence.

We are committed to addressing the tensions stemming from the current challenges on our fiscal deficits, debt and growth, and welcome the decisive actions taken in the US and Europe.

The U.S. has adopted reforms that will deliver substantial deficit reduction over the medium term. In Europe, the Euro area Summit decided on July 21 a comprehensive package to tackle the situation in Greece and other countries facing financial tensions, notably through the flexibilisation of the EFSF.

We are now focused on the quick and full implementation of the agreements achieved. We welcome the statement of France and Germany to that effect. We also welcome the statement of the Governing Council of the ECB.

We are committed to taking coordinated action where needed, to ensuring liquidity, and to supporting financial market functioning, financial stability and economic growth.

These actions, together with continuing fiscal discipline efforts will enable long-term fiscal sustainability. No change in fundamentals warrants the recent financial tensions faced by Spain and Italy.

We welcome the additional policy measures announced by Italy and Spain to strengthen fiscal discipline and underpin the recovery in economic activity and job creation. The Euro Area Leaders have stated clearly that the involvement of the private sector in Greece is an extraordinary measure due to unique circumstances that will not be applied to any other member states of the euro area.

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 will remain in close contact throughout the coming weeks and cooperate as appropriate, ready to take action to ensure stability and liquidity in financial markets.

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narapoiddyslexia's picture

Slaughterer sold his gold last week. Ha! Nanner nanner nanner . . .

Threeggg's picture

From the Webster's Dictionary


Law . a secret understanding between two or more persons to gain something illegally, to defraud another of his or her rights, or to appear as adversaries though an agreement:



Michael's picture

G7 says currency rates should be decided by markets

Isn't that what Dr Ron Paul has been saying about interest rates for the past 30 years?

These fucking markets manipulators are so going to get what they deserve with a complete and total worldwide economic collapse of biblical proportions.

global's picture

We are all going to get what they deserve. 


And before someone jumps on this with a comment about owning Gold, gold is a means of transfer...if they other guy aint got fuck all to transfer to you in return for your gold, what good is it?  Yes it sill store some value and is clearly better for that purpose than fiat, but value is relative and its going down with the "wealth" of the world.

IQ 145's picture

---"rates should be decided by markets"; they figured that out all by themselves, ehh? I'll be damned.

g's picture


"Quixotic_Not 5,430 oz. : slaughterer -0-"


Your post there is probably going to take the top spot of all posts I have ever seen posted at ZH. I have been here for a few years long before I ever started posting. I am still LMFAO.

Quixotic_Not's picture

Glad to be of service  ;-)

P.S.  I was over on TF when it started and read ZH too, converting over only this year as a poster...

Can't believe the tyrannical insanty I put up with via Karl, what an incredibly self-deluded A$$HOLE!  Should have fled that shithole (aka ticker forums) before!

g's picture

I am a ZH convert now, this is the only econo-blog, that I post on anymore, although I read quite a few still. The trolls are everywhere and provide for amusing comment. Once again great post.

fuu's picture

Since I lack any buttons beyond reply:



d00daa's picture

still puking up blood from last week?  got any more shitty calls for us donkey?

your trolling sucks as bad as your calls.  momofader is much better.


Placerville's picture

I agree - I really appreciate ZH's info and insight, but I think it's too fatalistic at times.

Never underestimate the ones with the printing presses.

TruthInSunshine's picture
by Placervilleon Sun, 08/07/2011 - 21:14#1534722

I agree - I really appreciate ZH's info and insight, but I think it's too fatalistic at times.

Never underestimate the ones with the printing presses.


"Never underestimat[ing] the ones with the printing presses" as a strategy is viable because of the long historical streak of consistent, fundamental successes they've had in all matters economic, right?



BigJim's picture


Though the REAL powers that be - the Rothschilds, Lombard, Morgans, et al, seem to do quite well.

doomandbloom's picture

Arent all these 7 nations deeply in debt?!


Are they still important to any economic decisions of the world??

Growyourownfood's picture

Not Caaaanadaaaa

30% debt to gdp, bitches. And falling. Want some pancakes?







disabledvet's picture

i think you mean "not the livestock, George...
the big boys are moving--but so are the bank robbers:

oldpond's picture

That's because our banks are regulated.  How do you like your free market now?

Mec-sick-o's picture

I agree to our NAFTA partner, we also had our own bank loot back in 1994.  I'm a bit worried on the pace manufacturing is coming back from China, still too slow for my taste.

BigJim's picture

LOL, what 'free market' would that be then?

Here, do us all a favour and educate yourself: http://mises.org/books/freebanking.pdf

Spitzer's picture

Can/will  they hold down gold ?

Why didn't they just pay somebody at S&P to just shut the fuck up then ? I think this is a  behavioral economics ploy. Similar to the FRBNY changing fees for deposits 

They wanted the downgrade to lower the dollar. The keynesians think productive industry will just fall out of the sky with a lower dollar. They forgot that productive industry is capital intensive and a lower dollar will starve America of capital when she needs it most.

Sad what these mental cases are doing to this country.

jdrose1985's picture

If "they're" so hell bent on lowering the leper with the most fingers, "they're" doing a piss poor job of it!

Crude oil priced in fiatscos has plummeted which is indicative of the ultimate risk off scenario we are headed for.

Gold can go to 10kUSD and if crude is at $60, gold is something other than an inflation hedge.

Some might wish to rethink what's going on and what crude is trying to tell you...

To initiate currency debasement/inflation the USD/Crude link must be broken or all attempts are lies being promoted as truth.

Spitzer's picture

 Gold IS something other then an inflation hedge smart guy.

And if you think that the USD is the best of the worst then you need your head examined.




So make the case that the USD is better then the Euro.....I am waiting....


Ghordius's picture

I'd love to make the case against... I just can't...

BigJim's picture

I hear what you're saying, but - for the moment - the USD is the currency you need to buy crude oil. And the chief reason for that is US military superiority - as long as the satraps sitting on Middle-Eastern oil rely on the US to maintain their tyrannies, they'll do as Uncle Sam says - ie, keep demanding USDs for payment. That in itself provides a bouy to the USD's value that the euro lacks.

Of course, that's a mixed blessing, because its artificially high level has led to the decimation of our manufacturing sector. I guess you can't have everything :-P

camoes's picture


Abitdodgie's picture

Thank god finally they are letting the markets be free to decide the rates , got to go my unicorn has its head stuck up its ass

Harlequin001's picture

I bet that's gonna hurt...

StychoKiller's picture

In other wordz:  "Raping of the Spanish/Italian peasants will continue until morale improves!"

combatsnoopy's picture

ITALY is part of the G7.  The same Italy that was cornered by subsidized Wall STreet with their interest rate and credit default swaps.  Without TARP and QE, these interest rate and credit default swaps would've been cancelled had the banks been allowed to fail, like they were with Lehman Brothers.

So now the banks are begging Italy to save them.   


All I got to say is, "KARMA'S A B*TCH"! 

mayhem_korner's picture

Best avatar I've seen (except Sudden Debt)!

Since you're senior to me in time here at ZH, I will respectfully find another.

Carry on, sir.


EDIT:  ...and the new look - WWI Ace yields to Gossamer

IQ 145's picture

Sir; in order to have a safe and happy Unicorn, the US Veternary service reccomends you replace his horn with "anal beads". Cheers.

FoieGras's picture

Why is ZH not reporting that Crude Oil is getting pole axed? We've had a news story on every $1 move up to $100. Now we plunged $20 and haven't heard since. Wonder why?

Stormdancer's picture

So why don't you enlighten us with some pearls of wisdom on the topic?  I'm sure you must have some....ZH has been a little stretched covering current newsflow don't you think?

So, c'mon dude?  Give it up!  Tell us what's up with oil!  We wait with bated breath......

Michael's picture

The answer is simple;

Unemployed people don't use a lot of gas driving back and forth to work everyday. Nor do people drive around a lot and go shopping because of their low wages.

j0nx's picture

I don't know about you guys but gas hasn't done shit but go up for me and is still $3.79 a gallon for 87 octane. It should be $2.79 by now but it isn't...

cosmictrainwreck's picture

exacto-knife. can you spell "hahahaha ya sleazy peons...fooled you, didn't we?" so what if we're paying 30% less for crude...got shareholders to answer to, ya know?

nmewn's picture

More press releases! Wheres my pen! My kingdom for a pen!!!

Mec-sick-o's picture

You can take my horse ;)

qqqqtrader's picture
  • " G7 says currency rates should be decided by markets "
  • http://www.scribd.com/AndysTechnicals


    winning's picture

    VERY BULLISH for my ink and paper ETF ... WNNING !!!!!!!!!!!!!!!!!!!!!!!

    snowball777's picture

    Pssst...you dropped your molars, Charlie.

    Danno Anderson's picture

    The Great Liquidation continues and nothing is going to stop it.  The European Financial Stability Fund or EFSB just admitted they don't have enough resourses so another fund the SMP or Securities Markets Programme must take over.   It's not going to work.



    FunkyMonkeyBoy's picture

    When does the violent uprising by the people start?

    Its the only proven solution, right?

    Or did i accidently skip over a succesful historical period where sitting idle, apathetic and docile removed fascist tyranical governments?

    nmewn's picture

    When they're doing such a wonderful job all by themselves...just stand aside ;-)

    j0nx's picture

    Seems the blacks as usual have already started and as usual someone forgot to tell the whites.

    Oracle of Kypseli's picture


    Best revenge is to buy Gold and Silver, when they are defeated and demoralized, then you strike. keepyur power dry for a bit. 

    BigJim's picture

    When does the violent uprising by the people start?

    Most of 'the people' believe they are the government.

    Try talking to the average voter about the shortcomings of majoritarian democracy. It'll be a very short conversation.

    There's not a lot of point violently overthrowing your government if the people will just install a new one exactly like it ten minutes later.

    We need to educate, educate, educate... otherwise, we risk exchanging one bad form of governance - oligarchic fascism - for a worse form - communism, Pol-pot stylee.