This page has been archived and commenting is disabled.
Spain IS Greece After All: Here Are The Main Outstanding Items Following The Spanish Bailout
After two years of denials, we finally have the right answer: Spain IS Greece. Only much bigger (it is also the US, although while the US TARP was $700 billion or 5% of then GDP, the just announced Spanish tarp is 10% of Spanish GDP, so technically Spain is 2x the US). So now that the European bailout has moved from Greece, Ireland and Portugal on to the big one, Spain, here are the key outstanding questions.
1. Where will the money come from?
De Guindos, Schauble and the Eurogroup, all announced that the sole source of cash would be the ESM and/or the EFSF. The problem with this is that the ESM has yet to be ratified by Germany, whose parliament said previously it is sternly against allowing the ESM to fund a direct bank bailout, something which just happened. Thus, the successful German ESM ratification vote, whenever it comes, and which previously was taken for granted, now appears to be far more questionable.
Which leaves the EFSF. The problem with the EFSF is that there is about €200 billion in dry powder. And this includes the Spanish quota of €93 billion, which we can only assume is now officially scrapped.
Which brings us to a bigger question: now that Spain is officially to be bailed out, what happens next. And by that we mean of course the big one: Italy. Recall that as we posted in Brussels... We Have A Problem, once the contagion spreads again to Italy, and that country also needs a bailout, it is game over. From the world's biggest hedge fund Bridgewater:
In other words, it is very likely that the funding for the Spanish bailout will have yet to be procured. Who will provide cash which is virtually certain to disappear forever in the Spanish real-estate market mismarking vortex?
2. Where will the money go?
According to the de Guindos press conference, the bailout cash will go to the FROB, or the Fund for Orderly Bank Restructuring: as the name implies a sinking fund to fund insolvent banks. This is merely a liquidity vehicle to net out evaporating capital due to realistic marks of assets, or ongoing deposit flight. However, a far bigger concern is how will the FROB be treated from a sovereign debt perspective?
As was noted previously, the bailout will come in the form of a loan, which while at better terms than market, will still result in a material increase in Spanish debt/GDP. In other words, while the bailout itself may have been without sovereign conditions, it will still impair the country in the eyes of sovereign creditors. And just as important is the mention that the loan will have "better terms than market" - this implies added security compared to general Spanish obligations. Hence priming.
Recall the official breakdown of the complete Spanish debt, presented here courtesy of Mark Grant 2 months ago:
The Data
Spain’s GDP $1.295 trillion
SPAIN’S NATIONAL DEBT
Admitted Sovereign Debt $732 billion
Admitted Regional Debt $183 billion
Admitted Bank Guaranteed Debt $103 billion
Admitted Other Sovereign Gtd. Debt $ 72 billion
Total National Debt $1.090 trillion
SPAIN’S EUROPEAN DEBT
Spain’s Liabilities at the ECB $332 billion
Spain’s Cost for the EU budget $ 20 billion
Spain’s Liabilities for the Stabilization Funds $125 billion
Spain’s Liabilities for the Macro Fin. Ass. Fund $ 99 billion
Spain’s Guarantee of the EIB debt $ 67 billion
Spain’s Total European Debt $643 billion
----------------------------------------------------------------------
Spain’s National and European Debt $1.733 trillion
Spain’s OFFICAL debt to GDP Ratio 68.5%
Spain’s ACTUAL Debt to GDP Ratio 133.8%
* * *
Now we have another €100 billion or so in admitted sovereign debt to add to the top of the list. In other words, total Spanish admitted debt will likely increase by up to 17% from $732 billion to $857, adding the $125 billion FROB "loan."
3. What happens to Spanish sovereign debt?
Perhaps the most important thing to note in the above analysis is that the FROB loan is effectively a priming DIP: think Troika loans to Greece, Ireland and Portugal.
In other words, Spanish bondholders just got their first taste of subordination!
Basically, first thing Monday the trade off will be: does the temporary improvement in bank solvency offset the fact that bonds just got primed, hinting at a future that in the case of Greece has resulted in the old Greek bonds trading an equivalent price of sub 10 cents on the dollar.
How long until Spanish bondholders get the hell out of Dodge, knowing quite well that their Spanish bond holdings will suffer the same fate as GGBs?
Our advice for those who need to have exposure, as we wrote 5 months ago: sell local-law, covenant-lite Spanish bonds, and buy their UK-law, covenant-protected cousins.
Then sit back and watch the spread explode.
4. Precedent
Naturally with Spain now officially biting the bullet, the only question remaining is: when is Italy going to drop next.
And ironically, what just happened, is that the Eurozone, with the tacit agreement of Germany, essentially gave insolvent banks a green light to short themselves into a full bailout.
How long until Italian banks get the hint, and proceed to short each other, or themselves, either with shares of stock or , better yet, through CDS which unlike in the sovereign case, can be held without an offsetting cash basis position. In other words: is it time for the Italian bank suicide trade?
Because only when they are on the verge of nationalization, will Italian banks be rescued. And remember: he who defects (or in this case drops the fastest), first, reaps the biggest benefits of the resultant action.
We also wonder how will Ireland feel knowing that it has to suffer under backbreaking austerity in exchange for Troika generosity, while Spain gets away scott free.
Finally, there is the question of how today's action will impact the Greek elections. As noted earlier today, today's precedent will likely serve as a huge boost to the popularity of Syriza. Oh yes, the Greek elections next Sunday. Remember those, and the whole Grexit thing?
5. Market reaction
The long-term reaction is obvious: this latest confirmation that Europe is a sinking ship has been predicted by many for years. As such, that European risk markets will continue sinking, and capital flows continue rushing to Germany, is a given. In the short run, however, courtesy of a new all time record high number of EUR shorts (at a record -214,418 net non-commercial contracts as of this past week) it is likely we may see an aggressive short covering squeeze.
This will send all risk higher as well. Of course, the really is to be faded aggressively as soon as the weak-hand shorts capitulate and cover.
* * *
For those curious just what this mysterious FROB is, which simply stated is, or rather was, a woefully underfunded FDIC equivalent, and is now the Spanish banking system loophole, here is a succinct presentation:
* * *
Finally, for those wondering if today's action will halt the catalyst for the entire move, namely the furious bank run that Spain has been experiencing in the past month, we don't know. It likely all depends on how many Spiderman towels are in circulation and held in inventory by Spain's insolvent banks.
»
- 78353 reads
- Printer-friendly version
- Send to friend
- advertisements -
Arab Spring you say? Just wait until you see the "Asian Fall"... China relaxing rates, as if 8% GDP isn't good enough. It ISN"T! China is a powder keg! The natives are getting restless. The last time I was there, was the last time I was there...
And as oil becomes more scarce, it's price dutifully falls. Huh ?
Our problem is the destruction of money, leading to chaotic price discovery, as financial dinasours stumble from one game to the other.
now you sound very oily like a snake who is lost for metaphors chasing his own tail.Need some help on that? Huh?
It falls 'cos it not the projected and honest price of future market but the probable spot price after correction for it being jacked up artificially already by lousy commodity king speculators. Remember 2008? It went from 150+ to 40 as the bubble burst, thats speculation for you if you saw that film. Huh? Ya don't know the commodity market is manipulated by a few BIG players?
Dinosaurs are not the only ones who stumble looking for their tails. Take a walk from you cave, kave-man.
banksters have won another round of their global subjugation war on the world....
Methinks the bankers have outsmarted themselves. Public debt begets taxation. Taxation on the Productive people has its limits.
As Government grows as a percentage of the GDP, the productive private sector (excluding crony capitalists) say fuck it, carry your own weight, I refuse to, and I do not need to, generate any more wealth for the Parasites.
The world can live without "bankers".
"The sky is falling, I tell ya the sky is falling"
Fuck off and die.
The impact on the public debt is capped @ $27 Billion, if you believe the FROB presentation's Slide 4.
The banksters OWN the militaries; and, they create the loopholes in which to wiggle through. People will, as they always have been, be forced to pay out.
"Keep Stackin, Bitchezzz!"
WTF...??
http://en.wikipedia.org/wiki/BK_Stacker#BK_Stacker
We are all Greek now. That means enjoy taking it up the asshole.
Greece...birthplace of fillassholephy.
everybody sing now.....
Greece is the world
Greece is the world
It's the world as a turd
Polished shiny and gleaming
Greece is the 1st, in a long line of sovreign implosions
Greece is just the beginning
How long before Spain needs a 2nd bailout because the number on the 1st one is too low?
Debt jubilee the only answer.
Fantasy! Enslavement of the people is so much easier.
Agreed. No other way.
Let the mother of all squeeze begin, enjoy your popcorn
Montezuma's Revenge
I had never imagined, I will be retiring in a seaside Spanish Villa.
wasn't Spain supposed to be too big to bail out?? When does this STOP dammit!
When they have all your wealth... and all your children's wealth...
the awesome thing about bailouts is that they don't fix a damn thing, so there's always another one needed... it's the perfect scam - nice currency you got there Angela would be terrible if something happened to it
It's all Bullshit!
When you've got $1 million in your pocket, and start checking under the sofa cushions for an extra $200k so you can get cinna-sticks with your pizza.
Then everybody's good.
This is a bank bailout, not a sovereign bailout...apparently .
1. Where will the money come from?
How cute
got a mirror?
Which brings us to a bigger question: now that Spain is officially to be bailed out, what happens next. And by that we mean of course the big one: Italy. Recall that as we posted in Brussels... We Have A Problem, once the contagion spreads again to Italy, and that country also needs a bailout, it is game over.
Getting there!!! :)
it is game over.
Its only game over, when we say so. We are playing this game with "unlimited ammo" remember!
No get back to yoru whiniing and complaining. We kinda like it when you people do that, just dont stop participating.
yup. Nothing is fixed...the final round of extend and pretend in this shitshow.
The FIRST question you have to ask is "why Spain." If you say "because they need the money" you are in fact incorrect as "everyone needs the money, man." EU could have chosen Italy first and indeed i'm sure there was a lot of "back and forth" on that one in the Brussels' Spouts. Of course once you look at Spain's public finance situation "they chose Spain"...i'm sure was the rationale...but it was one hell of fight i bet. Obviously "the German Banks are determining this" and their needs to be bailed out. To me THAT could explain why US markets regard this as...ahem..."positive news." In effect you're creating a "go to guy" for Europe in the form of Germany. The second question that should be posited here is "will it work." That is a lot of money and my money is on "hell no." That's right..."not just no, HELLLL no." Which again puts the US Banker Media "on notice for slow rolling this bitch right up to election day" just like they have everything else. (all of it minor of course. I mean "Fukushima, the Arab Revolt/Revolution, municipal bankruptcies in the USA, border chaos in Mexico, the entire US fleet deploying, ramping up not down Afghanistan" etc, etc. These really are no big deal and go to prove "there really isn't a lot going on other than a quality re-run of Dancing with the Stars." Or is it Dancing in the Stars? Markets open Sunday sheeple. Prepare for the strafing run!http://www.youtube.com/watch?v=Gz3Cc7wlfkI
What's the Spanish bond auction schedule?
http://www.zerohedge.com/news/presenting-europes-complete-%E2%82%AC1-trillion-2012-monthly-bond-redemption-schedule
Thanks! Good luck rolling over all that July paper...
Italy, Morgan Stanley, California, UK, USA - they're all fucking Greece. Big fucking deal. Gold and hold, baby!
You could almost come up with a NWO socialist conspiracy theory here. The ECB or Germany or Brussels is stealthly wiping oit hundreds of billions of dollars owed to the private sector and replacing it with debt owed to a unelected central beurocracy.
At the end of the dau the pensions of the popilace and the wealth of the unconnected 1% will be evaporated. But the debut will still be there. owed to some unelected central collectivus entity able to override the democratic choices of any nations people in the name of paying off the debt.
Genius system... It works and will keep on working. The percentage of people who actually realize this is very, very small -- and even smaller is the number of people who will stand against it.... Like almost zero. This is just the beginning; "Stockholm syndrome" has become "Life on Earth" for us slaves (the 99.99%).
Its no conspiracy theory that is what is happening. These people are our enemy.
Bank bailouts=Bonuses in astronomical sizes=Austaritys in equal astronomical sizes,only astronomys will understand this constalation:So here comes Italia,whos X pimp Berlusconi,claimed Italien economy is rocksolid,lets se if it can stand a" Ricther Grennspan 1.0!
Funny though,Europe is in Austerity,but still pays bailouts to bank,something, IS rotten in Denmark!
Unless Germany and Merkel are BS us, they will not agree to a Direct bailout to the banks. So, who is going to approve all this money to the "Spanish Banks". Too many questions at this point. But there will be a short squeeze Monday, and as usual shorts get killed before the market evern opens. Might be good for us though.
The good Irish people are probably feeling they have been duped. I would not want to piss them off too much. They do have a temper.
I don't think even Steven Spielberg could make this shit up. And he has one hell of an imagination.
was wonderig that too - something not fully right about the statement coming out. my guess is its a face saving exercise, these were the FMs meeting sill have to hear from Ms Merkel herself this is he way things are going to get done.
something not quite right here
From the statement this is not a direct bailout. Spain is on the hook for the loan at better terms than their bond rate. All is solved, right?
Spanish tercios trampling central Europe once again.
Would that be solar powered tercios?
Charlie owns the night.
I thought you get to chose between solar and windmill powered in Spain.
Yeah. Kind of like choosing between Cpt. Hook and Tinkerbell.
Any nation making that choise is already in la la land.
The tragiCOMEDY of all this is that today, Joe Jerkoff Banana Slice is going to get off the golf course, pay off his $5 nassau loss, go home & get 'denied' by his wife (who spent the day with Max Fischer's poolboy)... But then, feeling sorry for himself, he'll log on to his Fidelity InWestment portfolio on Monday & see that all is right with the world...
So then, Dr. Jerkoff, will be ready to do another week of nose jobs & liposuction to the local hags trying to offset the final & most cruel wave of hagdom...
If instead, Dr. Jerkoff has a money manager handling his affairs, his money manager will point to the green and KEEP HIM IN, through the end of the quarter (or before redemption notices need to be submitted)...
Cue the carnival music...
I'd love to call you a cunt but they are so much more useful than you. I guess I'll call you an ass because you do nothing but shit out... well... shit.
So. How's that predicting the end of world working out for you?
I don't predict....I prepare.
Well, make sure you rotate the old stock, or you might get food poisoning before the end times. The End has been predicted for a long, long time.
only poisoning one should worry about here is lead. And it won't be me.
More power to you, Kick Ass Girl.
The world would be a lesser place without folks like you. But, be sure to rotate the stock in the bunker. It'll be a long, long time until the barbarians in the oil producing nations stop trading us oil for paper.
Cone on negative voters. Tell me how the House of Saud values anything in this existence more than hookers and blow, and I'll apologize.
Like that is likely. I already know the human trafficking in blonde Ukranians would be cut in half if Saudi Arabia, and Albania died suddenly. And I should mourn the kleptocrats in Paris?
Fuck you and all those who look like you.
The garbage men came yesterday so it's all good. I asked the same question about the end of the world to the sanitation driver yesterday and he called me a fucking asshole.
Predicting IF Garry Kasparov will win a chess game is easy. Predicting exactly how many moves it will take is not quite so easy.
This is a grand chess game we are watching - and the pawns are being sacrificed in quick succession. But there are still a few moves left to play by each side. Who can tell exactly how many?
The greatest private fraud of human history.
Who are the great fraudsters who are becoming the murderers of the human kind? How does the economy "illness" threaten Democracy and the freedom of people?
http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
---------------------------------
By knowing what happened in indebted Greece, where loan sharks created “bubbles” and the current inhuman debt, one can understand the inhuman plan in total ...understand where this plan started just to bring all states at the same end ...understand how this type of plans are established...
Yeah, cos it's 100% the lenders fault, isn't it? Sure, anyone lending to a Greek is 100% stupid, since those cocksuckers have no honour, but no one holds a gun to your head and forces you to borrow. Grow some balls and man up, you greasy slimewad.
So Spain were supposed to contribute €92bill to the EFSF.
That's ok, don't contribute, and you only need €8bill
Sorted. Next.
Not paying bill collector #1 does not conjure up the cash to pay bill collectors #2 - #infinity.
Irish banking bailout=85 billion euros,Spanish=100 billion euros,BUT Spain's population is 11.5X greater than Ireland's.All in context folks.
Point taken, but wait until the total is in at over 1Trillion, not including derivatives.
The more of these bailouts they do, they worse Europe's collective credit becomes, and more damage each iteration does. In the end they're pissing in the ocean, because the whole world has 400% debt to GDP, and you're left with broke bailing out the broke which can only end in hyperinflation.
Indeed. Spain is the better of the two horses at the glue factory.
Spain's housing bubble has barely begun to implode. Ireland's is much further advanced. The Spanish horse has terminal cancer with few visible signs. Before it is all over, Spain's bailout cost will be in the trillions.
Spain national, state, bank, and guaranteed debt = $1.7 trillion
U.S. national, state, bank and guaranteed debt = $XXX.X trillion ??? ..... $X.X quadrillion ???
I though Italy was the big one?
Spagetti fail? Ya. right.
Americans are too propagandized to allow the failure of even the most genocide worthy European shithole.
That is why they are arrogant fucks too stupid to save them selves, whatever the hypociritic asshole claim in public.
And we'll drone carpet bomb your piece of shit back to the stone ages while watching AGT.
Jealousy of our huge military cock can be easily solved by your swallowing of the jizz we unload all over your shithole existence.
Could you define"We" you dipshit?
Cuz, the US is still so fucking far above the average, we have to sit down and take a shit just to remember most other militaries. Hell, even the massively underfunded forces of the UK could detroy most of the shithole nation's forces before lunch, and the UK forces are not strong.
Who are you to challenge the giant that is the US? You know you are full of shit. Maybe in a few decades. Until then, youR best hope is you are too lame for us to notice you.
Sounds like someone's been hitting the bottle pretty hard tonight!
Italians have big ones!
Big what? Egos?
They beat the shit out of African shitholes due to German technology. Chaemical weapons? Didn't matter. Just kill the Wogs.
Fuck you Europe.
You have no moral high ground. Only idiot asshole American college students believe that kind of collosal bullshit lie.
Fuck you European lying shit mother fuckers. You deserve to die in fire for that kind of lie.
Easy on the bath salts, dude.
That shit'll make you have thought processes like rodent F.
Has it been so long?
Are you now the ally of those who set the tripwires?
I can't wish you evil, but I can grieve for you.
Any factual debate, or just a Pelosi-ish character assault?
Yeah, thought so, lefty fuck.
Rodent you are a worthless human being, pls die.
Wow, you must be over 18 if you use words like that.
You see this is what happens when you give your kids a gun without teaching them to respect it.
Big ego, small dicked juvenile wannabe's
I loves fuctards like you's. You's got nice teef...
Stop being so boring, Rick.
http://www.youtube.com/watch?v=TLwc9lbJlIQ
Fuck you rodent you fucking internet big man.
I will stand side by side anyone, dont mattter who they are or where they come from to fight the machine which grinds us all.
Idiots like you will get yours, count on it you stupid cunt.
I thought I'd find your cowardly ass hiding further down in the comments. So hey buddy, where does most of your oil come from?
Is GWB still holding hands with Saudi royalty? Is GWB still getting financing from terrr'sts? Oh that's right... there's a new fuctard in town... BHO.
Deus ex machina: the IMF with a few trillion SDRs. Didn't someone at the BIS write that 100 trillion $ of new credit should viagra up the entire world economy at last?
+1 the percentage of SDRs in the CB reserves is falling, indeed.
Time for Viagra, call the helicopters, bring in the trillions!
This is not a bailout, they're just buying time. Some of the politicians are probably stupid enough to believe its a bailout, but anyone with a brain knows better. There isn't enough money to actually bailout the Spanish banks, and Spain, and Ireland and Protugal, and what's left of Greece. And then you have Italy. Even scarier is that France is probably in worse shape than Italy, with its banking sector leveraged over 70:1. They're all lying, so who knows?
But they have waited too long. Any chance of a real soltuion is gone. A few years ago they could have restructured some of these banks and started down the road to solvency. But not now. The avalanche has started and will take its natural course.
So we get to find out the answer to the BIG QUESTION: how much can the collective central banks print before they get pitch-forked? That is, before their populations rise up and throw them out, literally. They will print because that's all they have left, but it's just trading deflation (creative destruction) for hyperinflation, and the inevitable (or Axiomatic as Jim Sinclair puts it) global currency reset.
This generation of bankers, bureacrats and politicians will go down in history as the most incompetent ever. And that's saying something.
"So we get to find out the answer to the BIG QUESTION: how much can the collective central banks print before they get pitch-forked?"
central banks + hubris + print + bi-flation + peak oil + entropy + global chaos = WWIII
You had it all right until the last sentence. The banksters, the big ones owning the Fed that is, are not incompetent. They are piling as much debt on the world as possible to bring the final big crisis that will create the new system. Their new system.
Throughout history, their game is 1) piling debt upon nations, then 2) create a crisis by calling loans and withdrawing credit and then 3) dictating terms. Same now, only this time their game is global, sinking the whole West at once. Good luck.
Agree age of use. But herein lies the rub, wankers like me know whats going down thanks to the interweb.
As long I have a hole in my arse I will fight these fuckers. Just for the future of my two kids, no one harms them, especially not these globalist fuckers. Fight I will, will anyone join me???
And seeing as your monitering us you vile cunts, come on then, there are to many of us to take down you faceless bastards. Step out from behind your veil and give me a fucking target, I have had enough of the bullshit, lets get this fucker started, come start with me you fucking cowards.
Fuckin' Aye! Finally, a dude with some balls, inthemix96.
Stand up and fight, mutherfukkers!
I am with you 100%. I'll even step in front to take the first bullet because living through this shit as a frightened coward, like 99.99999% of the fukking sheeple on this planet simply isn't in the cards for me.
I will die with my dignity inact at the very least, and, hopefully, take a few shithole banksters and politicians to hell with me.
There's at least two of us now. Hoe many more? Come on you chickenshit big talkers. Man up!
(of course, nobody could have expected this)
The new system will be the "Mark of the Beast Currency" prophesized in Revelation. Totally electronic, biometric, and global, it will give TBTB the full control that they do not have now. If they want you to spend, they will just slap expiration dates on your points. If they want you to save, they will force you to do so. If they want you to borrow, they will force you to borrow. They will give money a "color", so that money of a given color can only be spent on particular items, much like Food Stamps or gasoline ration coupons. It will be the system with no escape, no exit. Everything will be centrally micromanaged until a solar storm knocks out the computers. Then all hell breaks loose.
EVERY COUNTRY - with a Central Bank, fiat currency, and fractional reserve lending is 'Greece'
Bailout = The New Prosperity
Spain's Rescate:
http://www.wallstreetexaminer.com/blogs/winter/?p=5040
Dear Spanish banks - I have one shiny gold Eagle right here in my hand and it can be all yours if you have a nice seaside villa that you would care to swap for it. But it better be a really nice villa, or no deal.
So, bottom line, they are going ram rod the fucking shit of the market even more.
"NEW YORK — Moody's Investors Service said Friday that it may consider downgrading debt ratings for some eurozone nations if Spain seeks a bailout for its banking sector or Greece ends up dropping the euro as its national currency.
The ratings firm said it is assessing the implications of a bailout for Spain and is prepared to make rating changes to reflect any heightened risk for Spain's government creditors.
There's growing speculation that Spain could decide within days or weeks to ask the European Union for a bailout for its banks, which have been crippled by soured real estate investments.
If Spain ends up asking for aid, that would make it the fourth country in the 17-member eurozone to do so since the EU debt crisis broke out.
Under Moody's rating scale, Spain now has a rating of "A3," which is still investment-grade. But the outlook is "negative," which means there's at least a 40 percent chance Moody's will downgrade its ratings for Spain." http://www.dailyjournal.net/view/story/8b23ee26f992481cbd0f098e9ec71c32/...
HOE-pa!!!!!
oh wait...arrrrriba
You can think of it as a modern feudal system with Banks as King as they literally own the currency. The serfs pay tribute (interest) to the King for use of the King's currency in our debt-based money system. It's trickle down economics on the grandest scale.
In our debt-based system - money is ONLY created as loans from the King (banks). Therefore, the banks solely determine where new money gets allocated (think largest corporate borrowers). Is it no wonder we have such poisonous concentrations of wealth in our society.
Now, say the gov't wants to stimulate a lagging economy. In our system, the money gets allocated to the banks. In a non-debt based system, you could send a stimulus check to every household and then the stimulus would actually work and get to Main Street.
Folks, the problem is with the very core of our financial system - the Banker as King - Federal Reserve system.
Jamie Dimon is using the newly created money to refresh his banks 'excess reserves' so as to maintain bank "solvency" and perpetuate the Banks as King system status quo.
The people get the bill in the form of a devalued dollar (devalued savings, commodity inflation) -- you see, the newly printed money is free for the King Bank but is a costly tax on the population.
It's all a rather simple exercise -- the parasitic banks steal from We the People. But our country is so complacent and dumbed down -- that MBAs and Economics majors are, ironically, the last people to recognize what's going down because they have been indoctrinized and go on television blathering on about the failures of We the People rather than helping the public understand that they are being stolen from. PATHETIC!
Interestingly, Ron Paul has consistently won the 30 and under vote in the primaries.
The young instinctively know that they have been born into debt servitude. They may not be able to explain all the details - but they know, instinctively, that Ron Paul is fighting for We the People, rather than the status quo system of Fed Bankers as King.
It used to be that only the man of the household had to work to comfortable support a household. Federal Reserve theft has gradually devalued the dollar so that now, generally, both spouses have to work.
There is nothing 'American' about the FED. The Constitution says 'all men created equal' Folks, the Federal Reserve Act of 1913 created a superior class of citizen - the banker class. the Act gave ownership of the currency and financial system to a cartel of private bankers. It is, literally, unconstitutional.
The Federal Reserve system is a poison to Americans’ standard of living to the benefit of the banker class.
Loan sharks knew that if they took the dollars printing machines under their control they could suffocate the world ...they could initially suffocate USA and after taking the USA from the Americans, they could move and suffocate the whole world and take the countries from their people.
FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing”...
It cannot be possible but just in the USA for only the last year, more than one million houses were seized. It cannot be impossible but the New World has returned to tents and shelters ..has returned to the ages of Columbus. It cannot be possible that we allow to a few loan sharks looting the toils and the assets of people...
http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
------------------------
Global Debt Crisis
LTRO squared. If there is any collateral left?
Collateral???? Fuck yea! Lots. And NO, you can't do an audit. So, just get that shit out of your head now.
Lateral??? Itz gotta b around here somewhere...
How many times must we remind you of the spiderman towels?
We are often subjected to terms such as TBTF. I suggest that we rename this to TBTFL which means Too Big to Follow the Law, moral or constitutional, as it is what really sets the tone, doesn't it?
Who gave the governments permission to continually spend more than what they take in?
Why does Martha Stewart serve time to protect her assets and Corzine and the others walk without so much as a slap on the wrist?
I am no lover of Stewart, but it is plain to see she wasn't TBTFL while others seem to be made of teflon.
Now Europe is breaking its own laws for expediencies sake, while I, a lowly commoner have to pay the consequences for my actions.
Scary isn't it?
Spain is nOT Greece; here we are in the heart of the matter : private banking debt. Whereas Greece was a special case of a non-state run by an Oligarchy mafia; the state was totally corrupted by the Squid disease.
Spain is like USA, Germany, France, and the UK, all with a banking sector of private Oligarchy hocked beyond redemption. THis is why the Buck HAS to stop with Spain or its the end of western banking system.
Did finland not get the memo
So is this bullish for US markets or fucking what? The talking heads were saying a 1000 point rally if Spain gets bailed out. Of course for normal investors that means nothing because thanks to HFT's the 1000 point rally will be done and over with in 3 days. Then once again the markets will wait, wait and wait for good news that never fucking comes, drop and then rally again on Italy's bailout. Only when absolutely everyone has been bailed out and it is obviously clear everyone is still absolutely fucked will we get a selloff. LOL.
Spaxit?
Shortly followed by Itaxit?
In Just Two Words.
España: "ESTAMOS JODIDOS"
Italia: "SIAMO FOTTUTI"
Yeah. We said in 2001 "estamos fritos".
http://www.youtube.com/watch?v=NOzR3UAyXao
Here is a short-term look at a very important USD index chart, which will have a big impact on the markets over the next several months. http://bit.ly/MvP8Q9
With all the trouble that the European Union countries will continue to have, we should really begin to see the USD appreciate as the debt crisis becomes more severe.
C'mon, people! A measly 100 bil? In real money that's wot, an eights of a trillion bucks? You gonna bicker over that? That's like a two-day print run over at Benny's Print'N'Mint ("We give new meaning to 'offset'"). Gimme a break, WTF?
Come on, bitches. Ace of Spades Blog just deicded to commit suicde.
So, I'm rested, I'm ready, and I'd like to take scalps, and chew gum, and i'm all out of gum, you pussies.
Let's rock.
There's more oil residue in a Vancouver hippies hash pipe than there is in Texas. As for Texan's, they're great people... and they're all up in Canada now. Ya know... Canada... Alberta oil sands... Canada... we export more oil to the USofAID (bankster bailout joke) than Saudi Arabia, yet GWB went around holding hands with all the Kings and the Sheiks of the Arab realm on walks around the White House lawns for photo ops.
That should get ur "goat", eh boy?
I think I've endured enough of this nonsense. Just print century bonds, pay 10% interest and let the children of tomorrow pay the tab. Tomorrow's kids must shoulder their part of the burden, so they can feel they 'belong'.
You shouldn't change horses in midstream, also.
Looks like Ireland wants to renegotiate
http://www.france24.com/en/20120609-ireland-wants-rescue-deal-negotiated...
Worms in cans, meet freedom.
A 12 step program works better than maintenance.
Smoke and mirrors. Show me the money. Germany is almost there--but not quite. German voters are agin it.
No one wants to fight? Not surprising. Go back to your third world shithole hovels and STFU or die.
You are superior to America in nothing. Not a single fucking thing. Fuck you barbaric, woman hating neandrothals for even thinking you deserve to breathe while you throw acid in the face of school girls. Die you fucking apes.
Bring it. I will not surrender to your evil.
While bankers and politicians of all stripes fuck you straight in your ass at home, piling debt upon debt on you and your children while destroying due process and claiming the right to spy on, incarcerate or kill any American citizen anywhere, anytime, you worry about 'goat-fuckers' and their civilizational failings on the other side of the globe?
Gee man, you are not very bright, are you? You must be the useful idiot of the month, congratulations.
FROB? Is that all you have to do to be a banker or politician to come up with acronyms? Zionist fucktards.
Spanish fucking Zionists?
Really?
Do you want to hang you reputation on that kind of wild bullshit?
Say that you do. Please.
I await your response, Achmed.
I'll hang my reputation that on a per capita basis there are MORE jewish (in name only) banksters who are zionists than there are any cultural religious or identifiable group. If you have anything else to add...go ahead I will await your response. Oh politicians too, ever heard of AIPAC douchbag?
Hey, moron....
If that were true, explain whay the majority of American Jews support the pro-islamist Obama.
Modern Jews are not only anti-jehova, but are truly traitors to the Jewish state.
70% of American Jews might as well be Nazis for what they vote for.
Won't save them from nazis like you, but if they are that stupid. let Darwin reign. I'm not jewish.
Fuck 'em if they are that moronic.
Nazi? We're on different spiritual planes man, Jah bless all my righteous and spiritual Jewish brethren.
Sure, I believe you. Just showers, right?
Never again.
Feel the restistance. Sounds like thunder.
IMHO in Jewish culture there are two (stereo)types: the intellectual free thinker on the left (Einstein, Chomsky, the tradition of the never ending borgian study and discussion of the torah) and the avid money grubber on the right (we all know them, the tradition of the first european money lenders that had all the bullion, the only “property” they could secure and carry as they fled from place to place, no?
Jews are inherently liberal, and have a deep seated knee-jerk anti-Christian bias. There is also a rational component to their madness. If you, as a Jewish American, consider the State of Israel to be non-permanent, you want to be able to evacuate your Israeli family to the USA at any time in the future. Long term survival of the Jewish people is much more important than Israel per se. Showing absolute electoral loyalty to the Democratic Party gives your Israeli family relations a bolt hole in the event of a disasterous Israeli loss in a Mideast war. Democrat politicians will allow your immigration because they know that the new migrants will vote for them. Republicans strongly support the State of Israel as a geopolitical entity, but are unlikely to condone unlimited Israeli evacuation to the USA in the event of an Israeli loss.
I'm still waiting you low life fuck wads. What nation is morally superior to America?
If you want it dead, youi are an Islamic ape, or an wannbe new Napolean.
Never happen. Western pussy would demand your death, and western beta males would slit your throat without a second thought if it meant getting laid.
End of revolution. Sorry for yoru loss. Idiot.
Never vote against the power of the pussy.
I don't want anything dead, I'm watching Babylon slowly burning all by itself. Jah bless.
The funny fuciking part is you don't think you live in Baby-lon. It is best to stop the decline before it becomes a tyrrany, but it is even worse to find the police state is the best choice left because4 the Democrats are even worse than Stalin's wet dreams of mass human slaughter. Good luclk with that.
I live in Texas. I wish you lots of luck in your police state slaughter of Detroit. Show me you can achieve peace.
Otherwise, I will defy you even if you show up with the entire strength of the US Army. They are not smarter than me, just bigger. I can adjust.
I CHOSE to be free because god gave me free will, nothing not even a bullet can take that away from me.
but i thought baby jesus gave us christmas
Ahhh....how sweet, you still think team a/b matters, i remember when i was as naive as you, stick or carrot they're both instruments of control, if you have no greed or fear then they have no control.
dafuq did i just read?
Mommy.....
Are we there yet...????
I'm tired...!!!!!
China and Europe now make 4 times as many cars as than in the United States. From 2 million a year to 18 million a year. USA has built 4 million a year less than in 2000.
The USA's decline is only matched by Italy, Belgium UK and Spain. It is a sad day for capitalists as the bankers have destroyed our nation, by allocating capital to garbarge instead of manufacturing.
http://en.wikipedia.org/wiki/List_of_countries_by_motor_vehicle_production
Thanks Goldman for your BRICS call.
Sorry boys, Banksters win again. Gold may go to $10K some day... the day the Banksters own the last oz. And Buck Fernankie? Well, looks like he gets his 1000 pt Dow wealth effect move with no QE. You can't tell me somebody did not know all this was coming Friday afternoon......as they bought up the Dow right into the close.
Spain is Greece??
All of Europe!!! They are all going down the sink!! U.S. Next in the toilet vortex.. This is over folks, welcome to the new survival paradigm..
supossedly all accounts are frozen at Spains BNI as of this morning-no link just read it on a bb
This 'bailout' of Spain is probably just a ruse to get through the Greek elections with a 'favorable' outcome (if that were possible) for the euro.
How can it not be, there is no real money To bail Spain out. It's all BS.
Spain... and another one bites the dust. In sequence. The people of the EU ought to just stand up together to negotiate terms with the banks instead of letting the master race of technocrats sell them down the river one by one. Sue the Goldman Sack!
Von Greyerz at Swiss investment, Matterhorn, insists all the Western CBs are now converging and getting ready to do one big massive print of money. Shock and awe. They know piecemeal is producing diminishing returns. Soon. Very soon. It sounds just like the 2 year old Davos plan of printing $100 Trillion to refloat the world. He's talking about the same kind of numbers. Naturally, to be coupled with capital controls and financial repression big time to keep money from secreting around.
Those anxiously awaiting doomsday need wait no longer.
The Vatican will save Italy.
Original time window based on past performance on track > WW3 begins 2015-2018 based on 1907 and 1929, the previous 2 big crashes.
How much did they pay for the acronym & logo?
A Spaniard once asked me:
¿Piensas que España es la cabeza de África o el culo de Europa? (Do you think that Spain the head of Africa or the ass of Europe?)
I imagine that right now they're feeling like the asshole of Europe. Too bad, because Spaniards are good people.
I wholehartedly disagree with you!!!, they are only good at soccer and Toros, look at LatinAmerica, their semen fucked those countries for 500 Years since Columbus set foot on this continent.
They have always been an imperialist fucked up society, not unlike the US but in spanish. they both have all the same symptoms, 20% unemploymnet, broke housing bubble, corrupt banks, corrupt politicians, fanatics for sports as a way to distract the masses and somehow at odds with Islam since the crusades to this very day. Not that I give s hit about Islam as all religions are fucked up!!
It is amazing the similarities....
.