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Schauble Makes It Clear: Beggars Can't Be Choosers
Merkel may still be on vacation, but Germany decided to make it all too clear just who is in charge after last week's idiotic headfake by Draghi et cie:
- GERMAN FINANCE MINISTRY SEES NO NEED TO GIVE ESM BANK LICENSE
- GERMAN MINISTRY SAYS THERE ARE NO SECRET TALKS ON BANK LICENSE
- GERMAN MINISTRY SAYS NOT HOLDING TALKS ON BANK LICENSE FOR ESM
Translating Schrodinger Schauble: the quantum state of Begging and Choosing can not co-exist in tensor superposition. Just in case the previous headline from the Bundesbank was not clear enough.
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Herr Schaublel, maybe you are not invited to the secret meetings?
But it's clearly Germany's faul that the others had such a long, hot party - why shouldn't everyone be entitled to party on at Germany's (and FI, NL) cost ?!?
So Germany rains on the parade. Plus didn't Hilsenrath just give the Fed additional breathing room to do NOTHING tomorrow?
From WSJ (emphasis mine): "Markets have risen on hopes that two of the world's most influential central banks will make additional moves to spur growth if their economies don't perk up—if not this week, then in the weeks ahead."
http://on.wsj.com/Q980dK
This is part of the monkey business the German political machine has to go through in order to make the final decision more palatable to it's people.
Note Shauble's words are choosen carefully, and consider Merkle's language leading up to the last summit.
I've planned to keep some Euros marked with the German code stuffed under my mattress, just in case. But, the more time goes by, the more sense it makes to keep my emergency money as gold.
If the end state of all this is a completion of this crooked end of the cycle, those German notes may make for some excellent collector's items.
Try to make sets of high quality differing vintage. Might just be more valuable than gold some day.
it is.
"When things get serious - you have to lie"
That is the basic motto of the Eurozone as frankly spoken from its top official Juncker.
It is all you need to know about any statement released by these officials.
Some of them might escape, some of them will be shot, some of them will be hung. That is what i am saying.
And it's clearly the German citizens' fault that private banks lent money they shouldn't have to the banks of the periphery that now all have to be bailed out with pubic funds on both ends.
Pitting the actual people against one another between nations is just cover for the continued looting . . . by banksters forced to share the take with hedge funds taking advantage of the charade that must be played in capital markets to keep it all looking legit.
There is a finite possibility that Germany will do exactly the opposite of what they are stating - Quantum Mechanical Financial Tunneling.
Merkel and Draghi's Back and Forth Remind Me of the Search For Schrodinger's Cat... :o)
Finally some clarity!
So that means there will be another rumor of the ESM getting a banking license and buying more bonds today?
Yep. It is much more efficient to recycle this rumour as many times as it works than to actually give this banking license right away.
All actors stick to their roles in this theatre.
Quite right
Germans can't seem to give in too easy, even though the German banking system could explode if they don't agree in the end
It took the EU leaders a while to figure out to play this 'two party system' game, like Dems and Repubs in the USA, but now they have learned how to do it on an EU level, they are really enjoying it ... they are following ZH and laughing along
Latins vs Germanics ... a football match for the fans, but the team owners already know how the game ends
Latin v. Germans: so where does Belgium opt for? Well, forgot - it is basically a Non-Country, completely useless and with no opinion and no business model besides running already f+++ed up banking entities and hosting+benefiting from furthermore useless and corrupted eurocrats.
Belgium? Ask UKIP MEP Nigel Farage: http://youtu.be/F3e6IWsJA9U
Can't you just put a quarter into the Banking license vending machine at 33 Liberty Street?
Yeah, but do you think the market will give back its fake gains from last week. Nah, iPhone 5 is coming!
Bullish.
I'm glad some entity is "standing their ground". I'm really sick and tired of this silly nonsense.
this is a dog license with the word dog crossed out and Bank written in crayon
It looks like Tyler has a Physics background!
Interesting!
The wave function need not collapse as long as there is there is no observer interference. If we all look away the euro can stay afloat. Everyone, heads in the sand!
Or not.
no observer interference = no loss of confidence
Are you suggesting a Schrödinger economy model?
TD...... what a quant! :)
What goes up must come down.
From the looks of SPX futures, some people/algos have still not gotten the word. Or maybe they are waiting for Wednesday FOMC.
Steve L says germans do not know shit!!!! ha ha this circle jerk is nuts
When an Europen official publicly asserts something, isn't it actually just the mater of time untill he declares the opposite?
If the market shoots up 600 points because of a rumor, does it drop 600 points when the rumor is refuted?
Sadly, most of the time the answer is no. Nowyou have your answer as to why the rumors keep hitting the tape.
You are spot on. I don't see why talking heads wouldn't keep their mouths open 24/7. Who cares if there is any substance to a strategy if equities go higher.
Because rumors are like QE. Their continuous effects yield diminishing returns.
Really? I think the equity market would disagree with you. Germany just totally shot down the rumor that ramped the SPX by 500 points and we are UNCH on the day. I am not agreeing with the strategy and find it unbelievably frustrating; but at the end of the day, it is obviously working if the goal of central criminals is elevate equity prices.
TT Didnt you mean "talking arseholes"?
Think I may have fixed that for ya :)
I did...thanks for the fix!
Whoops
DOOM ON!!!!
In the end the beggars might really be the choosers... or more appropriately blackmailers! (900bn Target II - growing daily!) That's the real foul here!
Draghi and Hollande are like embarrassing people who keep saying the wrong things in front of other people, you just want them to shut up and leave.
DavidC
Like Joe Bidden
Long on schadenfreude
Finally! an ETF for cynics and libertarians.
without the ESm license, without eurobonding, without increasing the size of ESM funding, Monti, Rajoy and Hollande will be reduced to playing three card monte amongst themselves! Beggar thy neighbor-friend. Pull the plug on euro contagion sink...
What is Timmy doing in Europe if he can't get Schauble to budge on this?
The Draghi/Merkel stand-off is reaching critical point deadline.
Que passa?...If it blows we don't know how to close!
Tyler seems to have majored in physics just like me.
However since he does not live in Germany just like me he completely misoverestimates Germany and German politicians especially Schäuble.
They are neither smart or tough nor do the have a grand plan that saves Germany from the parasite states of Europe and guide our escape to financial solitude.
Not at all. They are just plain stupid politicians.
+1000
ENDLICH MAL EINER, DER DIE WAHRHEIT SAGT und nicht mit diesen beschissenen Hitler Thesen hier ankommt! (s.u.)
DANKE!
bitte
If anyone's curious google translation;
LAST TIME ONE THAT TELLS THE TRUTH, not these shitty theses Hitler gets here!
Ich wäre an dieser Stelle doch gerne etwas vorsichtiger, immerhin kann man davon ausgehen dass im Hintergrund noch Leute mit Verstand arbeiten. Aber in Bezug auf "einen Plan haben" stimme ich soweit zu.
I mostly agree with the sentiments, here and above. But the whole EUR construct has - as a friend liked to say 15 years ago - an "autopilot".
The situation we have is of a quite classic currency war. Everybody would like to devalue. We all knew that after 1971 this moment would come, and many feared it would come before the introduction of the EUR. Now relax and watch the Frankenstein vs Dracula match.
oh, and buy phyz, slowly, every month a bit. call it saving.
Mission accomplished. The stock markets are higher and bond prices are weaker. Could these bankers have said this same thing last week when Mario was talking? This is collusion between the banks and markets.
Expect the same cycle of events to be repeated over and over again. The plan is to provide as much time to pass as possible in order that the European economy may find it's own footing and become self sustaining. This is only the beginning of this nauseating cycle because I think this will go on for years and years just like in Japan with the economy limping along in a near zero growth environment.
He is, of course right. Because the ESM doesn't need a bank licence at all to act like a bank. Maybe you guys should actually read the ESM contract, so you know hat you are blogging and discussing about?
Article 32, clause 9 of the ESM:
The ESM shall be exempted from any requirement to be authorised or licensed as a credit institution, investment services provider or other authorised licensed or regulated entity under the laws of each ESM Member.
Got it now?
Not sure. Everybody here don't want understand that german politicians are playng a role in a comedy as they well know that germany risks more than other countries by euro break up
EU: Treaty of debt (ESM) - stop it now!
http://www.youtube.com/watch?v=5CZr17HLH5U
and so for the second time Germany conquers France...
without firing a shot.
blitzkrieg 2.0
Germany WANTS europe in a mess.
http://www.germanywatch.blogspot.co.uk/2012/07/updates-few-good-germans.html
all smoke and mirrors. As tyler's post on gold showed all the CB work together and politicians do as they are told. germany will get in line, but for now they are being allowed to reap some benefit to keeping the euro low.
Futures are down 0.1% - quick, queue the screams for QE!
how do we in the US continue to get away with it?
It seems to me the beggars keep choosing the politicians.
It is dangerous to believe any side is telling the truth. logic says Germany won't do "whatever is necessary" including cutting off its legs...but can we really assume anything? When we finally get to the "unless we act, expect tanks in the street tomorrow" point...we won't be able to apply any logic...just fear based decisions. Germany may indeed elect to cut off an apendage. you can't short or buy this market, just simply not play. which is why volume is so low.
The illegal drug trade has clearer price signals that the world's financial markets. FACT!
Financial Markets Today
Some believe WW2 has been back on for a while...
http://www.theshrimptonreport.blogspot.co.uk/2012/07/the-dvds-u-boats.html
An U-Boat is a bit unexciting compared to a Vril-powered flying disk.
So the general consensus here is Germany will hoist itself on the batard and self destruct to save the union?
TPTB need to get some new daily circus side shows going, I'm getting bored with the ones they have been playing. The daily ESM/France/Spain/Italy vs the Germans conflicting press conferences are getting old, almost as bad as the daily QE3 rumors followed up by Fed denials (sort-of).
When is someone finally going to bomb Brussels? I cannot hear the bull that is coming out of Brussels anymore!
Looks like some scene of a theatre to me, but it becomes boring. How long does it take to show the final scene?
You have far too much faith in Germans. True, the people themselves might object to selling their soveriegnty to the Greeks but their political leaders desparately want the Euro to work. On the other hand, it's better than them invading Poland. But only marginally better.
Draghi will win this battle. He will ease. Alot of German official protest is political cover.
Everyone is pretty much realizing that if they don't print, the whole thing will be down the tubes. Literally a long term depression in Euroland. What choice do they have?
Anyone beside me thinking there's a quant among the many TD's?
The City of Man
http://shutupnsing.wordpress.com/2012/07/31/the-city-of-man/