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The Savage Bull Doth Bear The Yoke
Via Mark E. Grant, author of Out of the Box,
“In time the savage bull doth bear the yoke."
-William Shakespeare, Much Ado about Nothing
Sometimes, certainly not all of the time, one has a certain sense of amusement when eyeing the markets. The head of the ECB says that he will do everything in his power to defend the Euro and the equity markets rally and what did anyone expect the head of the European Central Bank to say? It is rather an obvious statement from his position and one that carries no substance as it is purely rhetorical in nature. We could expect the same comment from Bernanke or the head of any other central bank. The EFSF has only $65 billion left in capital without further funding, the ESM is not in existence, and the German Finance Minister announces that the Stabilization Fund will not be buying Spanish debt and I point out that while Draghi’s remarks are nice and soothing that there is scant evidence that anything will actually be done. The pattern is likely to continue; up on the rhetoric, flat about two days later and then down as nothing is achieved. It is up on the huff and puff, flat as the evidence is awaited and then back down when the door is opened and everyone finds themselves in the hallway of smoke and mirrors of the Mountain King.
As everyone is staring off into the distance and admiring the sunset I advise you to turn your head towards what may be truly important and that is our old friend Greece. The push is on for continuing austerity cuts and the IMF and Germany are none too happy with what is going on in Athens. Crunch time is on in Greece and the country is just about out of money. The Prime Minister of Greece came up with a game plan but could not get his coalition partners to agree with it much less those that have been funding the farce. I use the word “farce” with accuracy because Greece could not pay off its debts without the return of Zeus and Mercury handing over the golden key to the god’s treasure house to Samaras. In the last go round Greece was given just enough money to get by for a few months and now those few months are over. Most of the money doled out by the EFSF went straight back to the ECB to cover the interest on the Greek debt they hold and soon Germany is going to have to make up its mind whether to continue the charade or end the game and watch the fireworks and listen to the very unpleasant words that will spew from the steps of the Parthenon. Summing up the meetings between Greece and the Troika one Greek political leader said, "We agreed on one thing - that we disagree on everything. The Troika men came to Greece as doctors and prescribed the medicine that would save the Greek economy and people; but in the end they proved to be charlatans."
The entire play may be thought of as a stage where various actors play their chosen and appointed parts. Juncker, Barroso, Van Rompuy and Rehn all the mouthpieces for Federalism, all the slap-on-the-back jesters of the chorus and all the singing the same tune from base to falsetto, especially falsetto, when dancing in the chorus line. The Finns all demanding gold for favors and paid in full first please before any agreement is to be carried out. Then there is Maid Merkel and her squinty-eyed uncles who mind the purse, control the strings and humor the rest until an actual coin is demanded and then backs up, purse clenched and the flinty stare of refusal or if not refusal then the learned behavior of Uncle Scrooge. “Them that’s got the gold makes the rules” and never forget that old pirate adage in your thinking. The German’s hold the trump card and the French are along for the ride even if they are no longer riding shot gun and sitting behind the driver now in a somewhat unpleasant cramped seat.
I submit that Draghi can say what he likes. He may wave the flag in front of the gates of Hell filled with good intentions but it is not his call; will never be his call. We are all told and will always be told that the ECB is independent and Draghi politically and as a matter of dogma and background may well favor the periphery and Brunello over ice wine but it will always be the Bundesbank who will allow the monetary spigot to be opened or demand that it be closed.
"I have deceived even your very eyes: what your wisdoms could not discover, these shallow fools have brought to light, who in the night overheard me confessing…”
-Much Ado about Nothing
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More time on being right, less time on "quotation" theme
We bought more long SPY Aug calls this AM...
And the rallies continues http://www.freefdawatchlist.com/2012/07/stock-chart-analysis-of-dow-jones.html
Does this not beg the question of who (really) calls the shots for the Bundesbank?
Work on that one as it will inform on what comes next.
Let's see. There is a Fed meeting Tuesday and Wednesday and the ECB is meeting Thursday. And for the cherry on top, a (false flag?) UFO is clearly seen over the Olympic Stadium during the opening ceremonies. Thank God Nick Pope warned us to look up.
This is getting interesting.
http://www.huffingtonpost.com/2012/07/29/ufo-over-olympics-opening_n_1716887.html?1343595785
Krugman will get that "invasion".
I was just thankful that (the former UK Ministry of Defense UFO desk officer) Nick Pope warned us to be on the lookout for Olympic UFOs in advance. That way we knew what we were looking at when Bollywood came to London.
Can't wait until they "shoot" it down at the closing ceremonies and bring the world together in a unified defense of the War of the Worlds.
I see London, I see France. I see the control system's underpants.
If that really was a UFO, I'd like to offer my personal apologies to the aliens for them having to witness that putrid "ceremony" that was put on.
I have never seen a "ceremony" as terrible as that in my entire life. And I thought I'd seen some bad shows.
UFO>Greece.
Damned drones every where. Maybe Iran can show us how to take those buggers out.
Shoot first and NEVER ask any questions.
http://image.made-in-china.com/4f0j00cMGTuamEJWqs/Woman-Paper-Braid-Wide...
here's a bit of Old Europe
don't be a smarty join the the Nazi Party
YouTube - 'Nazi Party? Adolf Hitler... You Didn't Build That!' sez President Obama
YOu have been consistently wrong about the market for the last few months. There is something flawed about your analysis. Here is why you are wrong. Investors have nowhere else to go but the market. Central Banks are buying time for the politicians. Gold is not going anywhere because money is not circulating so inflation is in check. Corporate Bonds are now only for the Sheeple. Lets get real. The Market is going to a 14,000 - 15,000 range that will last for a couple of years at least and maybe longer.
Agreed, for now.
But the problem with now is that it usually doesnt last very long.
"Aaaaaaand....it's gone"
Considering the market now acts in inverse of the true economy, going to 15k will mean absolute pain for anyone still working on main street. The worse things get for the economy the more traders think the government will step in with stimulus. Which pretty much means direct handouts to them.
You may welcome DOW 15,000. But that will mean true unemployment will be north of 50%.
Gold is not going anywhere because money is not circulating so inflation is in check.
*************
Assbackwards--money is not circulating because money is being hoarded and inflation is in check only because deflationary forces are stronger-
Gold is money and money ie: gold like cash is being hoarded like it always is during a period of weak money/credit availability-
To Mark E. Grant : It's not only a good analysis but also a pleasure to read such a nice prose. Thank you.
"-Much Ado about Nothing"
Pretty much describes the markets of late.
"it will always be the Bundesbank who will allow the monetary spigot to be opened or demand that it be closed."
Thou, how much voteth doeth the Bundethbank hath on the ECB thentral marcket komittee??
Apple has already made back it's earnings bomb. Amazon pretty much says it is going to lose millions, the stock rockets. Chipotle got crushed all the way to the start of the year, wow.
Nothing really matters. The computers are in control and they will trade any stock to any level for no apparent reason. Actual market news can only have an effect on a stock for one day max. After that trading reverts back to the scheduled program.
The worst actual earnings in years and it doesn't matter one bit. Expectations are near zero and virtually impossible to miss. To add insult to injury even missing expectations is seen as bullish. All because of the belief that free money will be handed out to make any bet whole.
And yet they do miss...repeatedly.
I wait for the next post:
"Merkel says yes but she was thinking NEIN!"
"....it will always be the Bundesbank who will allow the monetary spigot to be opened or demand that it be closed."
Seeing as how it's the Buba that is keeping the Euroarea afloat via the Target2 payments system, I think the above quote is as true as it gets. :)
So we are back to Greece. I find it interesting that the battle for freedom is beginning at the birthplace of democracy.
best tragicomedy in modern history
Yes, power to ze Germans and this time I'm glad they have ze power.
Rigged it is boys. I love how the SP follows the Euro on Dhraggi.... and when the Euro revereses back down? The SP says "thanks but no thanks". Crock-o-BS city.
I'm sure the problem is that he can't rig the game that much, as Draghi as a Goldilock-boy probably got used to rig the parties to achieve goals.
The Troika Men In Black and their EU henchmen have overlooked the most important factor in dealing with Greece - Honor and Pride (Philotimo) are keys to Greek self-respect and anything or anyone who violates either or both will find that they get nowhere with their manipulative schemes. So many Northern Europeans have neither Honor nor Pride, having on numerous historical occasions easily sacrificed both for expediency, that they can't be expected to understand the power of these core values to Greeks. People in New Hampshire ( Live Free or Die) might understand, as might certain early American patriots "Give me liberty or give me death". But Northern Europeans, never.
Blink.
Geitner is seeing our FinMin Schäuble today to talk Germany into money printing. Let's hope he resists.
And they are meeting on the island of Sylt, where the richest of the old-money German rich have their summer homes. Germany's equivalent of the Hamptons. How appropriate. I'll bet Timmy had to use the servants entrance.
currency wars bitchez.