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Republicans Demand Block Of US IMF Funding To Bail Out Europe
In an odd coincidence, we were just updating the notional amount of FX swaps that the Fed has conducted with Europe in the past week, when we noticed that the GOP has finally made it an issue to fill in the gray area void of whether or not the US will be required to fund the IMF bailout of Europe. Tangentially, the Fed's USD swaps - an indicator of dollar-denominated last resort liquidity - just hit a 2012 high of $84.5 billion, increasing by $2 billion from the $82.5 billion in the prior week which makes us scratch our heads just how is it that Europe is "getting better" if instead of declining, usage of USD swaps is increasing confirming interbank liquidity is non-existence. This merely confirms that 4 weeks after peaking at a multi-year high of $85.4 billion in the last week of December, the European liquidity situation has once again started to deteriorate. It also means that the "self-reported" to the BBA 3M USD (but it's 'declining') is and continues to be about as worthless as any data out of the NAR. Finally, it disproves that statement under oath that Bernanke made to Congress that he would not bail out Europe. However, while Bernanke does not have any direct checks and balances-type supervision (the private Fed is merely beholden to its bank supervisors - just note the Class A directors on the FRBNY's Board) and does not have to concern himself too much with the nuances of perjury, the same can not be said about the US Secretary of the Treasury, for at most another 11 months, Tim Geithner, who doesn't have very powerful interests watching over him. It is Tim Geithner who would ultimately be the person responsible for permitting any IMF (of which America is the largest quota member, and thus, funder) capital transferm in which US taxpayer capital is used to rescue the lost cause known as Europe.
Which is why we were delighted that after months of modest confusion on the topic, the Congressional Committee on Financial Services (including subcommittee chairman Ron Paul), have demanded that not only Geithner make his stance on a US-funded IMF bailout of Europe crystal clear, but that they are openly opposed to "American taxpayer dollars being used to bail out Europe...through additional contributions to the IMF." We are curious to see just how Geithner will weasel his way out of responding to this: perhaps the only logical stall tactic is to reply that he will be busy helping Mitt Romney in his tax "revisions" over the next several months.
Incidentally, the House Committee on Financial Services may want to also ask the Fed Chairman how he reconciles his "no European bailout" statement with the chart below:
The press release issued by the "Republican Leaders." We are confused why Democrat Leaders are also not interest in the SecTres' response on the question of whether and how much US citizens will be bailing out the Italians and French with.
Washington, Jan 25 - Republican leaders of the House Financial Services Committee are seeking assurances from the Obama Administration that U.S. taxpayers will not bear the burden of bailing out debt-ridden European governments.
In a letter sent Wednesday to Treasury Secretary Timothy Geithner, Chairman Spencer Bachus, Vice Chairman Jeb Hensarling and the chairmen of the Committee’s six subcommittees ask for confirmation that the Administration will not use taxpayer funds to subsidize Europe’s financial programs through additional contributions to the International Monetary Fund (IMF).
The IMF has requested up to $500 billion to respond to the Eurozone debt crisis. The U.S. is the IMF’s largest member country.
“The European Union includes four of the ten wealthiest countries in the
world. European countries have the ability to implement austerity measures to reduce their countries’ debt over the long term and they also have the means to restore confidence to markets,” Chairman Bachus and the other Committee Republicans said.
In addition to Chairman Bachus and Vice Chairman Hensarling, the letter was signed by:
Rep. Scott Garrett, Chairman of the Subcommittee on Capital Markets and Government Sponsored Enterprises
Rep. Ron Paul, Chairman of the Subcommittee on Domestic Monetary Policy and Technology
Rep. Shelley Moore Capito, Chairman of the Subcommittee on Financial Institutions and Consumer Credit
Rep. Judy Biggert, Chairman of the Subcommittee on Insurance, Housing and Community Opportunity
Rep. Gary Miller, Chairman of the Subcommittee on International Monetary Policy and Trade
Rep. Randy Neugebauer, Chairman of the Subcommittee on Oversight and Investigations
And the full letter to Geithner:
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Geithner = Loser. Another slimy, corrupt civil servant that takes more from the people than he gives back - the exact opposite of what someone in his position should be doing. He was a failure as head of the NYFed and is a failure still today.
Maybe he can be the next JPM ceo? Or is that going to be Corzine's?
In more important news, Bwaney Fwank is getting hitched.
To what?
A human plow, or to be more PC, his long term significant other.
Republicans = Democrats = Political theater to pass time. Bankers rule. Both parties will do what the bankers want.
Not the same according to this article. Who btw is the equivalent of Ron Paul on the democratic side?
That would be Ron Paul.
well.. it looks like the polite blue blooded, blood suckers have voted Death for Greece.
That would be the presbyterian's NOT! the Jews that they bank roll.
http://www.youtube.com/watch?v=JDCUJnoQL8s&feature=uploademail
Portfolio: Eurozone Prepares To Eject Greece by Stratfor
http://www.youtube.com/watch?v=Z_nbDJoC58w&feature=uploademail
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All I have to say is -
Is this like when The Bernank pledged to the House & Senate, on multiple occassions, that he would NOT monetize U.S. deficit spending, and then proceeded (and is still proceeding to this day) to monetize U.S. deficit spending?
If The Bernank continues to bail out Europe (through currency swap arrangements, the IMF or World Bank, or any other direct or indirect, stealth route), there ought to be a law against this asinine bullshit.
Wait...wait...I do believe there are several laws precluding this asinine bullshit, prohibiting The Non-Federal Reserve-less Non-Bank from facilitating a 'bail out' of the EU, European Nations or or any foreign sovereign [never mind for the moment that The Fed is the most toxic repository of bad assets that history has ever been witness to, and that it's literally an illusion of a solvent entity projected onto a rationality-bending hologram) already in place, so it's a moot issue and we must be imagining that The Bernank's currency swap scheme (and who knows what else he's up to at present or planning for the future) is taking place, as it can't be taking place, right?
If The Bernank were to facilitate the bail out of the EU or any foreign sovereign it would bring about serious criminal ramifications for The Bernank, his cohorts and co-conspirators at The The Non-Federal Reserve-less Non-Bankand any other governmental agency, quasi-governmental agency or non-governmental agency, especially since it would have to be done with the direct or semi-direct use of U.S. taxpayer monies.
That could never be. Breaking such significant rules of law, fundamental to The The Non-Federal Reserve-less Non-Bank limited authority and narrow mission plan, empowered by a single act of congress, subject to being repealed at any given time, would lead to sweeping criminal prosecutions of the members participating in such activities, and if that did not happen, certainly foment revolutionary fervor by the masses, as soon as they became aware of such dubious, sinister plotting, right?
Right?
If SOME Republicans (or maybe even Democrats), want to fire themselves from the same paymasters that fund 'both' political parties in the U.S., now would be the most opportune time to declare their independence loudly, and come clean with the American People on what The Fed & The Bernank are up to these days, and they may just have much deserved rewards and glory heaped upon them (assuming they survive to tell the truth).
Where's Congress?
Where's anyone in a position of power, legislatively, or otherwise, to stand up and call Bernanke onto the carpet right now and demand a detailed explanation of all of his actions, to ensure that he's complying with, and not violating, basic rule of law vis-a-vis clear, unambiguous U.S. statutory authority?
Where? When? Who?
it's not just "money to help bail out europe". it's what the money is used for. it is still, to a considerable degree, to make up for losses that broke bank bondholders should rightfully bear. it makes zombie banks like japan's that prevent organic recovery. the banks cannot be too big to fail. they must be reorganized in bankruptcy.
oh, and as for who is ron paul for the democrats? kucinich and sanders? none of the three seem to be getting close to the real levers of power. this may change if the sheeple begin to change. ron paul '12.
also a decent critique of clinton/obama from the left http://www.truthdig.com/report/item/obamas_faux_populism_sounds_like_bil...
No, Bernie Sanders. But he doesn't pretend to be a democrat, and RP shouldn't pretend to be a Republican.
Ron Paul is on nobody's side, because nobody is on his side... except for the people and they don't count.
If they counted, they wouldn't be allowed to vote.
Haha... So true... I will add...
The people are allowed a vote OR a fair count, but not a vote AND a fair count.
Same in every 'democracy'. When setting up such a 'democracy', there is considerable flexibility in how you may as 'a people' organize it;
You can have the universal right to vote, the right to a fair vote (count) and the right to choose between a selection of candidates who aren't all assholes. But you only get to pick two of the three.
Pick option A and you get 'the government will support my right to slob on the couch with other peoples' money!'
Column B leads to a society with so many rules and regulations required to enforce honesty on a population which comprises at least 10% lazy, greedy, corrupt pricks, that it rapidly turns into a police / nanny state.
And C might get you a decent leader, but only if it suits the interests of whichever group is allowed to vote at all / counts the 'universal' votes.
Over time, a 'democracy' may abandon one of these options in favour of another, but never (to my knowledge at least) has any populus trying such a system ever managed to maintain all three. The USA in it's early years doesn't count; it was a constitutional republic in more than name. You only ran into trouble when that shifted more radically towards a democratic system, as far as I can see. Shortly after the formation of Standard Oil, though that may be pure coincidence...
Closest I can think of is Congressman Dennis Kucinich (OH)...independent version Senator Bernie Sanders (VT). I'd ban both parties for all national office (not state level though).
IMO Ron Paul is not long for the Rep. Party anyway...he'll run for President as independent, and hopefully win.
You're mostly preaching to the choir here, but keep spreading that message. I don't think most Americans realize exactly how corrupt the system has become. When people put the blame on Republicans or Democrats, it means they don't get it. This is what the status quo wants to maintain. It's obvious that they're terrified of a critical mass of people seeing through the lies, so they'll do anything they can to prevent it. Keep shining the light.
traders still have an edge- ish
http://evilspeculator.com/?p=26715#disqus_thread
SAME SHYTE DIFFERENT SMELLY PILE.
What don't people understand that there is no party's anymore. It's Rome all over and I think I smell something burning.
Actually, the famous burning of Rome happened at the height of its power and glory.
What I smell today is a horde of unwashed, angry Visigoths outside the city gates --- and they want gold!
As in dog knot?
Who's the lucky guy?
Or the unlucky gerbil?
http://www.youtube.com/watch?v=XQ8_nAeeXaE
I'm getting married in the mornin'!
Ding dong! The bells are gonna chime.
Pull out the stopper!
Let's have a whopper!
But get me to the church on time!
http://www.youtube.com/watch?v=EGzAPP_7uEY
I thought Geithner is retiring???
-John
http://www.youtube.com/watch?v=4O6x0U39gP0&feature=channel_video_title
It will be interesting to see if he shows more commitment to his marriage than Newt does to the dalliances he refers to as marriage.
Who gives a fuck? We can only hope they both get what they deserve. I'm counting on karma taking care of those corrupt lying solipsistic cock sucking pieces of shit.
couldn't have said it better myself...
Oh, and I almost forgot, hypocritical motherfuckers.
Sounds like Bawney is getting what Newt deserves.
Long live Math!!
It is an absolute impossibility to manipulate, spin, print, or destroy Math!! Deep beneath the outward economy Math is doing it's work - an unrelenting, dispassionate force of reality. Math works slowly at first, building pressure, but there will reach a moment in time when a tipping point will be reached and Math with have His day!!
Long Live Math!!!
The simplest sermons are the best.
I think you have just won the award for the best comment in the history of Zero Hedge.
well if u like math then go to evilspeculator.com - full of math
http://evilspeculator.com/?p=26715#disqus_thread
Exponential functions, baby. Learn what is meant by the term "knee of the curve".
Arithmetic is The Bernank's kryptonite, bitchez.
[Arithmetic is all of fractional reserve banking/alchemy's kryptonite]
Please to keep "knees" away from my 'nads -- thanx in advance! :>D
It's all for show. The Republicans will fold because their masters on Wall Street want them to.
As importantly, this little concern by the supposed holders of the purse strings is treated as just a minor nuisance by those actually running things.
No CEO role for Timmay, but he will be a Managing Director or Vice Chairman paid something on the oder of $10m or so per annum.
That is the way the door revolves.
Or Little Timmy could end up as Attendant in the Executive Bathroom at Goldman Sachs. Does not pay much but he would get an occasional tip. Most of all it would fulfill a lifelong career goal for Timmy: to work at Goldman Sachs...that is, officially, on the books.
Message above
http://online.wsj.com/article/SB10001424052970204661604577186493802482230.html?mod=googlenews_wsj
http://www.youtube.com/watch?feature=player_profilepage&v=cJg99tGolNI
ZH WAS FEATURED IN THIS VID
Come on, this should of went to Bernake
But....but.....if the US does not bail the Euros out again, why, they may turn into socialists.
Bankrupt socialists. Fixed it. :)
vs bankrupt capitalists
America the land of the free and the home of the brave can pay for all of Europe.
Alls we gotta do is sell Bawney's salted gerbil bars
I prefer bailed out crony capitalists that have in turn bankrupted real capitalists like small business owners and farmers.
Close, but farmers are certainly socialists.
Oops, when fresh mony is printed, it is the taxpayers? Ok, print more..
Hey Timmy I want my 2K+ refund tomorrow not Monday. Never in my 10+ years of refunds have I got a DD for a Monday.
Run out of money much with those gov pension accounts? Debt ceiling a heck of thing. Good thing you can print a trillion more tomorrow.
Fall is a coming......
speaking of Ben Shalom, just saw that he will be giving a series of lectures at George Washington University.... guaranteed to increase GW's spinning in grave to 5,000 rpm's
If we could just harness that energy.....
actually, america did until reagan came along..
NIXON/CARTER '12 -- Balls'n'Sanity
N'Sanity is right
heheh
Pretty sure we can. Just 100M of taxpayer money and a nice fat BK filing after two years should do it.
I don't vote 5* due to the usual "US taxpayer uber alles" rhetoric. The Fed can create money out of thin air.
Of course they will say it is naive to let Europe burn because any genius who has worked with the squid 10 minutes knows that the whole plate of spaghetti goes down together when it goes.
Except for the naive part they are right. What their optimism bias prevents them from understanding is that it's going down anyway, gasoline on the fire notwithstanding.
I could"nt agree more with "reconciling that chart" Mr Chairman...we're waiting.
Ah, yes, the feigning of restistance. Awesome tactic, never seen it before.
Always best served in an election year....rally the crowd!!! Lets do the wave as the cheerleaders shout "Give me an R, give me an E, give me a P, give me a U..........
If we are going to save Europe why stop there? shit lets bailout Japan, and China too! then all the worlds leaders can meet in one place and come up with a plan to make the American tax payer work until he is 250 years old. I love paying higher taxes (sarc on)
This is what Roach missed (and others) that the ECB is the real danger. The FED is backstopping the ECB massively with USD swaps. The only reason that since Jan to now with all the fudgy stats and bond auctions, is the ECB is clandestine buying PIIGS debt. That dropped the yields. Whilst re-capping EZ banks. Greece has to go, as does all the PIIGS one by one. The US should grow balls and not fund bankrupt countries via the IMF.
Block it. Send Europe a message
Indeed the USA does not have yet balls. You needed Europe to help you fight your Afghanistan war.
It has balls, big ones. Just needs to believe in the power of the ball sack. As for Europe...no balls. Weak and pathetic run by lunatics and French midgets.
Slight, very slight respect to Germany. You can see some balls forming there, not much though.
The US should allow Europe to sort out it's own crap. You can have Bernanke and the FED, that f*cker is running is own freak show with the ECB.
After starting to believe it's ball sack, America needs to fix the brain. Make up your mind if you want to cooperate or compete with Europe! You can't ask Europe for help on your wars and then attack the same Europe weak links
Cooperate doesn't mean US has to bail out EU. I didn't see EU bail anyone out except themselves. Maybe Europe should stop asking the US for help in its wars like Bosnia and Libya
"Snatch-big brave balls" on youtube. Your words somewhat personified.
So good and so true.
London. Great city.
London is the anus of the world. (I'm feeling polite tonight)
I lived there for awhile, many yrs back. the English/Londoners were a blast to hang out with. The city, historic. Holland was cool too.
But the way Europe is now. It's a bad joke.
Long live Arthmetic! It will take these bastards down in the end.
It is not difficult to see what is happening here: stringing out and postponing a mathematical certainty - debt implosion both here and abroad - with band-aid after band-aid.
We need to cancel debt - nearly all of it - and start over. The PTB will never do that, so we have to do it ourselves, throught the legal mechanism left to us by our anecestors: the constitution.
http://strikelawyer.wordpress.com/2011/12/27/saving-the-world-revised-ed...
http://strikelawyer.wordpress.com/2011/12/27/saving-the-world-revised-ed...
http://strikelawyer.wordpress.com/2011/12/31/brief-history-of-jubilees/
Allow me
“The European Union includes four of the ten wealthiest countries in the world. European countries have the ability to implement austerity measures to reduce their countries’ debt over the long term and they also have the means to restore confidence to markets, ...”
... if the USA stops it's negative bets against the Euro, trolling PIIGS and so on.
LOL poor boohoo EU
I'm sure EU banks aren't involved in CDS and shorting the PIIGS
Idiots like you probably blamed the NASDAQ and RE crash on shorts
The PIIGS are in trouble because they are spending way more than they take in
Let that sink into your dense noggin
And they cannot raise taxes or their business will relocate to the USofA where the effective tax rate for Crony Capitliasts is -30% paid for by the wages of the working class, small business owners, and the debt slavery of their unborn children.
The IMF are a f*cking a joke.
ES IS FREAKING OUT!
Only up a few handles instead of the normal 10!
AHHH, who gives a damn.
We all know that we are wasting our time, EVEN THINKING, a healthy financial resolution will occur.
Prepare Bitchez. This ship is going down.
Perfect, lets see if it works.
these clowns could care less...
the banks that pay the pepsicrats pay the republicokes.
if europe goes down, so do jpcitisachs et al.
just more blubberblubber.
Such fun to listen to the endless info-vomit from our political elite. If they really want to stop funding bailouts of Europe via the "U.S. taxpayer" how bout they deal with those pesky unlimited USD swap lines. Oh wait, I forgot, that would actually mean reminding double b that the miserable and sticky crap that's stuck to the bottom of his shoes is actually the "U.S. taxpayer".
"The Honorable Timothy Geithner"
surely they jest
Looks like I picked the wrong week to stop smelling the Hopium...and stop calling me Shirley!
Now there's the spirit!
should read "The Horrible Timothy Geither"
6 chairs and prez0?
whose deal is it?
Too busy laughing at all of Tyler's great lines...excellent.
Forgiving the debt would do the trick, but we can't accept that a few banks would go away. Allow the entire world to fester instead of toppling the Vampire Squids of the world.
let's hear it for "Ron Paul"!
What's that bad smell over by the fan ?
uhhh, uh - oh..................
Looking forward to voting for the Honorable Ron Paul this coming Tuesday. "The Horrible Timothy Geithner" can suck my sweaty ball sack '...I wanna look him straight in the eye and ..." http://www.youtube.com/watch?v=afbLb8A6oSE
Is this the same kind of fake opposition that the Republicans put up during the debt charade in August?
Yes. Our one-party government is great fun. Who believes it matters one bit who the next President of the U.S. is? Anybody? Is there one starry-eyed innocent left?
No Reece. but the humor is awesome and the good news. 1.8 B in 1911 and near 7 B now. It was past time for taking a bow while drinking a cup of hypocrisy ale. But no need to pay for a certain kind of play as we're collectively lit up like Christmas trees online.
"Is this the same kind of fake opposition that the Republicans put up during the debt charade in August?"
Indeed it is. Glad you caught that.
The sheeple get what they deserve. When it collapses the Free Shit Army will hurt the most. Be prepared to defend your family and property from the FSA
negative ghost rider; you get what YOU DESRVE.
How are we gonna kill the dollar WITHOUT bailing out Europe?
Big picture, huh?
Meanwhile back at GOP headquarters, Newt is busy planning his Mars Colony and Romney is busy hiding his tax returns.
At the White House Obama & Crew are busy doing a happy dance.
#clusterfuck
I don't know about all that politicin' but I got dibs on Mars rocket!
#CircleJerkClusterFcuk babe ; )
Sounds like the banks are squeezing their whores in Washington.
Grandstanding. Republicans are the wholly-owned subsidiary of Wall Street. We got Republicans for Deregulation. Deregulation ALWAYS leads to increased risk. Republicans are too dumb to figure it out in advance.
Comes down to who pays: the Rothschilds, Warburgs, Rockefellers, Kissingers, the bank cartel, or the Saudi Arabians.
When there was an FOIA for Bernanke to release who got the bailout money, weren't the Saudis recipients? So it makes sense for the Saudis to bail out the Republicans in the US if the Rothschilds aren't going to. Given the Rothschilds are in Europe, maybe they'll bail out the IMF! After all, we have a major debt crisis in the US and the dry drunk former Republican President, George W Bush, hasn't come out of his hole in Crawford, Saudi Arab--sorry, Crawford, Texas. Good thing the Bush family knows the Saudis!
You might be a starry-eyed innocent! It's like seeing a humming bird these days!
"Deregulation ALWAYS leads to increased risk"
Typo here.......should have read "increased theft"
You mean both parties are wholly owned by Wall Street. Every 0bozo financial regulatory or advisory nominee has been a Wall Street alumni. John Corzine is still walking free. Angelo Mozilo got a slap on the wrist. No Wall Street bigs were ever charged with a crime. 0bozo's top contributors were the Wall Street firms. Schumer, Dodd, etc are all in the pockets of Wall Street. I also haven't seen oil prices come down since his Higness became TOTUS, but no complaints from his admirers. We all know who bowed down to the Saudi king
Nice attempt at pointing the finger away from your Messiah in Chief though. Amazingly, he's an even bigger fuckup than Bush Jr.
Obvious typo as Sun Tzu pointed out.
Regulation always leads to greater risk and theft.
JFC the US banks had seven or eight federal agencies and state regulators and amongst the highest reserves in the world at shit hit fan moment and how many of the no show beaurocrats were held accountable? They basically failed at the peak of their regulatory burdens.
There is no regulating stupidity and the buyers of the subsequently worthless debt were stupid. No buyers, no sellers, no market-the rest is bullshit.
FTR some of the banks like WAMU founded in 1880 or something, existence predated the alphabet soup agencies and things like Glass Steagall by decades.
I do realize the confusion at times though, not like a country needs a banking system, military, food and fuel to exist.
Friends, the truth is that the old (jewish) money congrlomerates like Rothshild, Warburg etc etc control the US banking system to a great degree through proxies. Remember when Paulson went to Bush and put a gun to his head? And billions of dollars were being transferred out of the US in minutes? That was a very clear message that they will not be messed with. I can guarantee you that they know how to pressure on Mr. O's ballsack to force him to bail out Europe if its in the bankers interest. While over on this side of the ocean the bankers still get their million dollar bonuses, the SEC is still a joke, legislation to curb financial excesses has been watered down more than my single malt on the rocks.
This IMF deal could be a great opportunity for the U.S. to save the Euro zone and ourselves at the same time.
We rehypothecate the $1.5T of special Treasury bonds in the SS Trust Fund to the IMF. The IMF levers the funds to $8T and buys high-yield European PIIGS soveriegn bonds. The PIIGS get over their temporary economic rough patch; the bonds skyrocket in value.
The IMF returns our initial investment to the US Treasury X3, or $4.5T. Treasury returns the original $1.5T to the SS Trust fund and uses the remaining $3T to cover the deficit through the 2012 election cycle.
What could go wrong?
Dude, if you are being serious, you are definately one fucked up individual...
You're right.
$3T would not see us through the 2012 election cycle. We need to think bigger.
But it's a start!
I am very sorry to see that RP signed onto this letter but I would not question his motives. Boilermaker has it right; "feigned resistance", manipulative politics and dishonesty on parade yet again. I personally,am tired of lying. Therefore I am proposing a new law be passed that would apply to that branch of government known as "the media" and also the other branches consisting of legislative, judicial and Executive. My modest proposal is this; "You lie, You die", That would be a very tight summary of a bill that might run to several hundred pages, and in the spirit of recent legislative tradition would be titled "The Defense of Lying Act" If someone were drowning and you could quickly drain the water they were drowning in wouldn't you do it? If the answer is yes then I think my proposal has some merit. Why not protect the country from this couldburst?
You have to love the fact that we've come to the point where even the rescuers need rescuing.
Equity bulls are blind, insane or both.
Simple, they'll just create a new organization that'll rescue the rescuers of the rescuers and so on and so forth. It's like debtception. A bailout within a bailout within a bailout.
And FYI: if you did not realize it, the end scheme is the destruction of "countries" and the formation of world government. A healthy society puts up too much resistance, so you have to weaken it. bleed it out and then when they're sick and begging for treatment, they'll save you alright.
And anyways, they're gonna kick this can until your great great great great great grandkids feel it. The top'll keep spinning. Keep on dreamin'.
Has anybody noticed this story running in Der Spiegel?
Revenge for EU Sanctions Iran Set to Turn Off Oil Supply to EuropeThe European Union embargo on Iranian oil will only come into effect in six months, but the leadership in Tehran wants to act first: Exports to Europe are set to be halted immediately. It is a move which could mean added difficulties for struggling economies in southern Europe.
It's a move which has tit-for-tat written all over it, but one which could nonetheless have a serious impact: The Iranian government wants to present a bill to parliament this weekend calling for an immediate halt to oil deliveries to Europe. The move, with most reports citing the Iranian news agency Mehr, has come about in response to the EU agreement to impose sanctions against Iran, which were announced earlier this week.
The sanctions banned any new contracts for buying oil from Iran, but allowed existing deals to continue until July in order to give countries time to find other sources. But that process is now at risk after the latest move from Tehran, a step the Iranian government had already threatened.
"If this bill is passed, the government will be forced to stop selling oil to Europe before the actual implementation of their sanctions," said Emad Hosseini, spokesman for the Iranian parliament's energy commission, reportedly said. The bill is set to become law on Sunday.
Full story here:
http://www.spiegel.de/international/world/0,1518,811507,00.html
+100
The best news I've read all day, I was wondering why Iran didn't just tell the EU to go get fucked. It makes perfect sense. Now wait for the false bravado from the EU tossers, I'll be ROTFLMAO!
Yes. The EU revealed its weakness by rambling on about exceptions and now the chess masters are going to shove it down their throats.
Iran has plenty of customers for its oil. India and China can easily consume all of Iran's oil exports
Chairman Bernanke admits his Zero Interest Rate Policy (ZIRP), that now extents to the end of 2014, is a massive transfer of wealth from savers to borrowers, which reduces capital formation. Consequently, savers and over-indebted borrowers are not spending, reducing demand. Quantitative Easing (QE) by the Federal Reserve to monetize the federal debt, which keeps interest rates low, only increases inflation and asset prices on items everyday workers desperately need, i.e., gasoline, food, clothing. This transfers money from the real economy to the financial markets, further hurting demand. (Another result, increasing asset prices in the stock market mainly goes to the top 10%).
Since 2000, the national debt has increased from about $5.6 trillion dollars to $15.3 trillion dollars, or 273%, in twelve years. Adding in the increased debt at the Fed for QE 1&2, +$2.1 trillion dollars, and Fannie Mae and Freddie Mac debt, +$5.3 trillion dollars, brings the US national debt to $22.7 trillion dollars, or 149% of GDP. Fiscal policy is under severe strain and politically, expanding it is unworkable.
Public and private debt is about 370% of GDP. As the public deleverages, mainly through bankruptcy and defaulting on their underwater mortgages, government has attempted to spend more to maintain demand. The problem is we have hit a debt wall, it is impossible to service debt when it is 370% of GDP.
All the stupid decisions by the financial elite have already been made (Mortgage fraud, securitization, MERS, robo-signing). The American people no longer want to use taxpayer money to support the status quo. The only solution is debt forgiveness. Let the zombie banks die. Raise interest rates to increase demand. Let’s transition out of this casino financial system and start growing the real economy again.
Very well said.
'... it is impossible to service debt when it is 370% of GDP.'
Isn't it possible to service that debt by printing?
"The American people" have no fucking idea where the money comes from, and they most certainly do not want to see an end to the status quo!
They just want "the government" to keep sending them more ... and more ... and more.....
The Bernank and The Midget are doing exactly what the public wants and the public will praise them for it. Indeed, the public would mount a "Bernank/Midget 2012" campaign before they would give their votes to Ron Paul.
Jubilee!
What would be really nice is if they actually submitted a budget for 2012. How can a government function on vague continuing resolutions for more than two years?
These are not serious people.
They have but Harry Reid (D-NV) will not bring any budget up for a vote(even when the Dems controlled the House). So all we get is continuing resolution votes with the $857B porkulus bill cooked in.
those waskaly wepublicans!
Newt looking in his wine glass.....bail out europe....or....GO TO THE MOON?
"Dear Committee on Financial Services,
To reach clarity on these issues, as a committee please define to the best of your ability the following terms:
Once I receive your definitions, I'm certain that we can come to some form of agreement on the meaning of this crisis (definition needed) and the complex permutations involved.
Sincerely,
Timothy Geithner"
who wants to challenge Geithner to a duel ?
Off topic, but I wish those obnoxious Ron Paul supporters in Florida would shut up. I can't hear the real news....you know, like Gloria Borger/David Gergen debate over whether or not Newt was a Reagan foot soldier and the impact of super PAC-sponsored PAC ads.
(sarcasm)
I loved how Paul totally refused the Kool-Aid not only on Castro, but on which ethnic pet he would pretend to like for the rabid voters. He said sensible things that are political suicide in Florida, and did with grace and good humor. I had to ease my jaw shut.
I only wish he had been given some time on the Israel-Palestine issue.
Notice how the others are now visibly remembering to say we won't just invade the shit out of everybody on Earth while glancing over at Paul? Hilarious and deeply disturbing at the same time.
Santorum said some of the most loathsome and reprehensible things I have ever heard from a Presidential candidate. For shame. Liberty depends on Christianity (so America's promise to the world is nil)? The Constitution is just an operator's manual? Fuck you, Senator.
Christine Lagarde was just another cunt put in place to push the agenda forward. After the scandal with DSK occurred, the fog was lifted. My 1986 childhood memories immediately surfaced!! Side one of vinyl, song 5 [ http://www.discogs.com/viewimages?release=1536720 ]
MY DAD IS DEAD (MDID)
Like a Vise
You better watch out for that man.
He’ll dig into your soul, deep down
And he’ll hold you like a vise
Squeezing out your will
Drop by drop no resistance.
And he’s grabbing your heart and he’s shaking shaking shaking
And it just won’t stop
Your shaking just won’t stop.
You won’t allow it.
I just watched a room full of Republicans put their hands on their hearts and sing a national anthem to a telesviion. Then I watched 3 of the 4 men on the stage talk up a national e-verify system possibly run by mastercard, visa, or american express.
The Pledge of Allegiance would have been to challenging and racist. Now they can 'play ball' with debate. Winks.
Tonights episode seems to have involved a slightly different quality of writer.
Fuck yeah, let those Euros work into their 70s like Americans have to, or if they want to bankrupt themselves, let them.
The Honorable Timothy Geithner
These guys lie even in how they address each other.
Hegemony has its price...
Double top in the Dow Jones bearish divergences with MACD and RSI14 Figure "M" to be configured?SP500, the downtrendline touched in chart monthly. It's The End Of The World? See here :http://pracompraroupravender.blogspot.com/2012/01/its-end-of-world.html http://www.gstatic.com/translate/buttons6.png); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: initial; opacity: 0.667; margin-top: -3px; vertical-align: middle; background-position: -94px -3px; background-repeat: no-repeat no-repeat;">But US fiat money should bailout Euro fiat money to a good purpose.
Asian markets have lost the plot.
USDs were slammed back down, major momo stock rally kicked in. Lets see if the ECB goes for broke before Germany finally remembers how they got boned Weimar style. C'mon Merkel the ECB is rogue buying everything. Your backlash will be historic.
So, the swaps are the source of monies for the S&P 500 melt up since xmas.
Put the "x" back in xmas!
L0L!!!
hi!
Correlation is causation.