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Is Spain Running Out Of Cash?
Some hours ago Spain finally bit the bullet, and after months of waffling had no choice but to hand over €4.5 billion (the first of many such cash rescues) in the form of a bridge loan to insolvent Bankia, which last week reported staggering losses (translation: huge deposit outflows which have made the fudging of its balance sheet impossible). As a reminder, in June Spain formally announced it would request up to €100 billion in bailout cash for its insolvent banking system, which subsequently was determined would come from the bank rescue fund, the Frob, which in turn would be funded with ESM debt which subordinates regular Spanish bonds, promises to the contrary by all politicians (whose job is to lie when it becomes serious) notwithstanding. And while Rajoy has promised that the whole €100 billion will not be used, the truth is that considering the soaring level of nonperforming loans in Spain - the biggest drain of both bank capital and liquidity - it is guaranteed that the final funding need for Spain's banks will be far greater. As a further reminder, Deutsche Bank calculated that when (not if) the recap amount hits €120 billion, Spanish total debt/GDP would soar to 97% in 2014 from an official number of 68.5% in 2011 (luckily the endspiel will come far sooner than that). But all of that is well-known, and what we wanted to focus on instead was the fact that bank bailout notwithstanding, Spain will have no choice but to demand a full blown rescue within a few short months for one simple reason: its cash will run out.
Before we dig deeper, a quick reminder: while everyone focuses on the cash generation by the Spanish sovereign, via the almost daily Bill and Bond auctions, what many forget is that the bulk of the proceeds is merely used to refinance existing debt. The remainder goes to fund the actual national deficit (of which there is plenty to go round), and to be deployed via various less than legitimate channels to keep insolvent financial institutions "solvent" until such time as these can become someone else's problem. Namely Germany's. Until that happens however, Spain is facing crunchtime as it has to fund over €40 billion in debt maturities in the next two months alone.
A secondary problem is that not only is Spain still facing a gaping primary deficit, it also has to pay the interest on its rolling refis which as everyone knows, and Rajoy most certainly, are unsustainable in the 6%+ range, not so much standalone, but certainly when juxtaposed with an economy which is collapsing in nominal terms, and is "growing" at a -0.4% growth rate. In other words, compounding the refi issue, is the fact that ever more of the organic growth from the economy has to be paid out to various state creditors.
Add the fact that the economy itself continues to collapse, with unemployment deteriorating with no bottom in sight, only completes the triangle of terror.
Which brings us to Exhibit A: the chart below shows Spain's National Account monthly cash balance, broken into its two subcomponents: the deposits at the Banco de Espana, and the Treasury Liquidity Tenders (columns 11 and 12; full historical breakdown here). The reason we bring it up is that this is the chart that everyone loves to forget.
The chart shows is that in July the Spanish cash balance dropped to €23 billion after hitting a 2012 high of €54 in March. It has plunged straight line since then, unable to repeat last year's July cash surge (when the number was more than double), and if the recent deposit outflow is any indication, the government will have had to plug many bank holes using fungible cash using any means necessary and possible. In other words, once the next Spanish State Liability update is posted, we wouldn't be surprised to see this number plunge to a new post-Lehman low. Yet what is scariest is that all else equal (and it never is), at the current run rate Spain may well run out of cash by the end of the year even assuming it manages to conclude all its remaining auctions through year's end without a glitch.
What all this really means it that any debate over whether Spain needs a bailout is at this point moot. It also means that absent a direct cash injection into the Spanish sovereign, Rajoy will have no choice, but to demand a bailout. What he does subsequently - whether he stays or he goes - will determine if the Spanish transition from a sovereign state to the latest vassal entity of the Troika and, more importantly, Germany will be peaceful (as much as possible) or rather violent.
h/t Wallstreetmane
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Spain is running out of lies.
Spain ran out of "cash" (real money")
A long, long time ago.
Where is their gold?
Long gone.
This could go on FO EVER.
Or at least until they run out of ink.
The people who love Running of the Bulls is now running on the bank. The Ruin of the Bulls.
CTRL-P(amplona) and they'd better keep up.
The Germans and the EU really mind fucked the Spaniards. One of these days they will figure it out but I am not holding my breath.
Mr. and Mrs. Bearing are going on vacation to Italy. That is one reason why I was unable to review Barron's this weekend (packing and all). But I will have ample time to judge what is happening in ITALY and will report back in due course. A piss-poor review (if that) of Barron's and what seems to happen when WE go to Europe in September...
http://tinyurl.com/caeeqrz
DoChen
all the politics is a sideshow, we have been told. The real focus should be on the ECB and how it handles these issues. My guess is that there will be some funding which implies some political integration. What choice do these spendthrift nations now have? They have made their bed and now wind up sleeping with Ms. Merkle. Draghi will not sacrifice the Precious Euro for Spain or Italy...period. Germany will ultimately give in but they will have their hands firmly on the cojones and purse of any country that comes begging.
I suspect the ECB will act as Keynes suggested the FED act...punitive loans on good assets (good luck finding those) at a punitive rate. Socialism is about to slow down in the EZ as real bills have to be paid wilth real money...NOW!
The USA will continue on its merry way for now but when the rest of the world decides to withdraw even the structural support it now gives....then we get our turn.
Enjoy Italy!
Grazie!
Go green baby!
Boom......WINNING!!!!
Be sure to bring your GOOD (Get Out Of Dodge) bag, include a couple of gold eagles (accepted more places than VISA, Mastercard and AMEX combined).
+ $5500! (1/10th...)
I am indeed bring along several 1/10th oz Gold Eagles with me along with CA$H and euros. Will pay the big bills (hotels) with the credit card, but we were swindled out of 80 euros in a restaurant in Naples, so we are mostly cash on the ground except the hotels.
Got a needle and thread?
If we are talking about the need of a GOOD or BOB then I'm confident we are also talking about a very bad world situation.
If that's the case electric grids will be down, no 911 calls, no running water, no nothing that runs on electricity inculding the pumping of gass ...... so whose gonna take a credit card?
It's kind mute anyway since the obesity rates are so high the fatties and those unable to use shanks mare to travel the back country will all easily get taken down ....
A bug out bag is a must have item. I would however suggest junk silver since very few sellers of anything will have change for a 1 oz gold coin ... I'm guessing a larger percentage will understand pre 1964 90% silver dimes and quarters. Dimes being the majority of your funds.
Do take some gold but if thats all you have in the early stages of a catastrophy all you'll get as change is script...not good.
Doesn't matter...
The FED will provide as much US taxpayer dollars/liquidity as required to prop things up past Election Day.
Then they could care less if it all falls apart. Obama's cronies will be buying assets for pennies on the dollar.
HOPEY-CHANGEY, SUCKAZ!
Economist Robert Johnson IMO is right on the money with his analysis of the oligarchs - - - they are at the point where they are arrogant and don't care what we think. We'll see how that works out for them:
http://www.youtube.com/watch?v=4FeXUvEFanU&feature=relmfu
Yea, according to Bernie Sanders they already have to the tune of $16 trillion
http://www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3
Lol they should change it to the Running of the Bears. But Ursus would rip the tourists to shreds. Bear over bull any day, baby!
Or till September 13th.
@ Crisismode
Well, a few months ago, they got 17 TONS back....
http://www.dailymail.co.uk/news/article-2106373/Spanish-treasure-lands-2...
I wonder how much of this actually made it to the Spanish museums?
That was Ag, ya cain't eat Ag!
I wonder how much of it made
into Politicians Pockets. . .
Exactly.
nice to see it returned to the propper owners. well it would one day be nice. i didnt realize loottage was considered rightful ownership. tough luck you native americans.
The Spaniards have now been reduced to selling their gold teeth. F'ing Banksters...
I stood in front of the Royal Palace in Madrid several times last month and pondered, "Where did all of that gold they stole from my Wife's ancestors (Native American) go? Where did all of that gold that Spain stole from the Portuguese--who stole it from my Wife's ancestors--go?
Running out of Cash? Pshaw.
A few well placed zeroes and - bada bing - back in business.
What's a few hundred billion when there's at least $6 trillion of counterfeit US bonds out there?
Italian police seize $6 trillion of fake U.S. bonds
http://www.reuters.com/article/2012/02/17/us-usa-bonds-forgery-idUSTRE81G11620120217
Those countereits are just as worthless as the real ones. LOL!!
15 Trillion Greenspans, Timmah & Lord James...
http://www.youtube.com/watch?v=Wm4z98QzWlg
A gentleman who retired from Wall Street once told me that the world was run by criminals. I thought he was exaggerating to make a point. - - - He wasn't.
and OUT OF VASELINE, like Greece...
You never run out of lies. You only run out of believers.
The Pain in Spain Falls Mainly on the
Students who are at 70% unemployment.
Via Con Stupendo
i used to care
Yes, so did I.
Not any more.
You are correct.
Just print the shit and get it over with.
YES! YES! PRINT ALREADY! Ruin the world! Get on with it!
I have a shit load of silver and I want use it to buy weapons and mercenary's and make myself warlord of Seattle! Just get on with it ferchristsake!
( sigh )
I guess I'll watch Road Warrior one more time.
Everyone is spending more then their credit limit. I wish i had such credit card or Godfather like Fed or ECB.
http://feedproxy.google.com/~r/FdaCalenderStockWatchlistHomepage/~3/8gxs...
Time for Spain to go crawling, hat in hand ,begging Merkel's forgiveness and declaring their allegiance Germany.
This is just one more example of how the little guy can profit off the big boy's (CB's) idiocy and the huge distortions in currency markets the CB's are wreaking. The big guys will all know when the news of the Spanish banking system's bailout is about to be released. So it will be mostly priced in, and they'll know that. So when the announcement occurs, only the relatively little guys will dump the Euro, in fear/panic, and the big guys will quickly BTFD. So the way for the little guy to play it is to wait for that dip, and BTFD (buy EUR/USD.) The dip will occur within about 30 fucking minutes of the formal announcement and it'll be back up to at least where it was before the announcement, within about an hour or two.
You mean to the ECB. Despite being the strongest country economically in the Eurozone, everyone knows Germany can't bailout everyone. Only the ECB can print debts away. Germany is just a front.
Germany will bail out. They shouldn't but they shouldn't have put $2 trillion to the debt problem in the first place. Merkel is all in. She had chances in 2010 and 2011 to walk away, no way she walks away now. She does not want the Great Unraveling to begin on her watch. She will talk tough but cave in the end and give the PIIGS whatever they need.
The bailout will come, but surely the sovereign debt interest rate baseline rules the EU setup will have to change.
Bernanke probably has a twitchy index (computer mouse) finger whenever he dreams at night about being given the job of manipulating the EU bond rates down near zero.
It seams like such a simple solution - near zero bond yield rates - to keeping the proverbial can kicked down the road, right...???
Japan has it. USA has it. Why not the EU, and the rest of the G20...???
Don't we all feel stimulated by 0.00% interest rates? I know I do. Not a day passes that I'm not amazed how well this 0.00% is turning everything around.
Ben, Mervyn and Mario shovel 0.00% money to the banks and it shows up as 16.87% on my card. What's not to like about this system?
It's all coming up roses
Brazil it is then!http://www.youtube.com/watch?v=dO1cAatNJIM remember...it's all about an exit strategy. trust me...if you can baffle them with this these moves...you win!
WHAT POLITICIAN FAILED TO TELL THE WIDE AUDIENCE - THE BANKING SYSTEM IN SPAIN NEEDS AT LEAST 200 BILLIONS NOT 100 AS ORIGINALLY THOUGHT...GOOD LUCK FRAU MERKEL
How can you morons think that somebody SANE will hand over that much money? Hello?
Exactly ... There is nobody same at the wheel.If memory serves me correctly Hank Paulson got a pretty good chunk of money for his friends.
Yes he did, and he should be tried for TREASON. Barofsky's BAILOUT tells a good story of that prick bastid.
Yes he did, and he should be tried for TREASON. Barofsky's BAILOUT tells a good story of that prick bastid.Another great story is CREATURE FROM JEKYLL ISLAND 5th Edition, I am so tired of typing this.
Already read it..... Twice. I recommend watching "The Money Makers" it's older but still relevant.
Money Masters perhaps? Is it on YouTube?
Is this what you are talking about?
http://www.youtube.com/watch?v=H56FUHgqRNE
Yeah that is it. It's been a while.
I'll watch the remaining two hours some other night. Thanks.
with the ongoing bank run make that 300 billion!
Wake me up when Today is THE Day. Moron bloggerz.....
Yes you dickweed.
Who is the bigger moron? The blogger or the moron who reads something he finds little value in?
Or the blogger who calls bloggers morons? duh
Unless you read something how can you determine if it is useless?
I suggest the moron is the one who decides a priori the value of a message,book,article.
Well oh clever one the person who made the comment about the blog has been a member for over two years. If it takes over two years to find out that the material in the blog is useless then I would suggest that they are the moron..... or perhaps it's the person who comments without knowledge of the facts.
" ..... or the moron who reads something he finds little value in? ..Dr. Engali.
The biggest moron is the one who writes in one sentence a totally contradictory statement . The lesser morons are all those who thought the reasoning was sound.
This post rightly points out that Spain needs €40bn to roll over its debt between now and the end of the year. What this post doesn't take into account is that the in addition to rolling over the debt, this year's budget deficit is going to be much higher than the Spanish government, the troika or the mainstream media are letting on, which I wrote about last week:
http://dareconomics.wordpress.com/2012/08/28/spain-will-request-a-bailout/
A Spanish budget deficit of about 10% is in the cards for 2012, which implies another €50bn or so in additional financing for the rest of the year. The biggest customer for Spanish sovereign bonds is the Spanish banking system. The run on deposits means that the banks will not be able to purchase as many bonds as forecast just a one month ago.
Spain is effectively shut out of the debt markets for longer maturity bonds, so I bet that Spain sells nothing but short-term bills for the rest of the year in order to forestall a bailout request as along as possible. If this plan works, Spain will still have to request a bailout sometime next year.
One caveat to my analysis, with a full-scale bank run in progress, anything can happen now. Fire up the magic money machine, Super Mario, and get that checkbook out, Angie. They ate all the tapas and drank all the wine, but guess who's getting stuck with the bill?
This 'short term only' approach will synch up perfectly with the scope of the soon-to-be-announced ECB bond buying program. The ECB will only buy short term bonds and Spain will from now on only run it's finances with short term bonds. Win-win!
Who says there is no more can to kick?
Or using another analogy - guess whos the pusher who gave them 'credit' so they could be hooked on the needle ? But the pushers didnt know that Greece or Spain couldnt pay back ? Guess theyll just be forced to take their sovereignty and make their people debt slaves in the European branch of the New World Order.
I love how the DXY tanked on the announcement that the Bernak was printing....oh wait he can't with commodities at these levels. Must be the ECB is going to increase the USD supply then.....
Send Columbus on another journey to find another country that will bail out Spain.
I almost made a similar comment then I figured I'd get corrected by somebody pointing out that actually Leif Eiriksson or some group from Siberia beat Columbus to north America.
Don't forget the Chinese -1422
Aha! So it's Chinese Citizenism after all. Nobody saw that coming...
If there is a Spanish default, the US stock markets will soar into the stratosphere, bullishly. Think of all the derrivatives contracts that will pay out that have bets placed on a sovereign Spanish default.
derrivatives contracts paying out??? ...sober up dude, remember the farce that ensued just with little 'ol Greece
exactly
DOW $50,000
but 1 oz priced in Gold
Bullish!
Bullish!
Will Spain run out of cash?
Will niggers run out of food stamps?
ctrl p/ ctrl p/ ctrl p/ ctrl p
Print it fellas.
Can white trash ever learn to be civilised?
I am so glad we do not have Spains problems. We just keep skipping along whistling past the pretty flowers.. What? Oh, those flowers are in the graveyard. Ohh!
I see more and more people maxing out their credit cards and then simply refusing to pay them. I have not asked them about their mortgages but wonder if they apply the same "strategy."
I'm waiting for someone (Barry, pelosi, Reid, other) to forgive all student loans ($1 trillion) and pass the losses onto the taxpayers...
Hezbollah puts the US and Israel on notice, that any attack on Iran will result in massive-retaliation, to both, and even an invasion of Northern Israel could occur, and a bombardment of Israeli cities.
--
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We are definitely getting closer to a big regional war, as the ultra-boring insipid US election drags it's sorry-ass toward November. Virtually every significant power with a dog in the fight is explicitly warning the other sides of "massive retaliation" if anyone attacks Iran, intervenes in Syria, or bombards Lebanon.
The tension is now so acute, that a major international missile war and sustained heavy bombardment of several countries could break-out, without warning.
But first, a word from our sponsor...
God, let's get on with taking care of that rats nest too, the only thing I'm more tired of waiting for, then the bailout train, is this fucking attack on Iran!!!!!
Will someone grow the balls and attack these sociopaths already, ALL of them, Iran, Syria, Lebanon, fuck Egypt if need be, but just get the fuck on with it!!!!
And we don't need to put a boot on the ground, reign fire from the sky, until they think fucking Allah is coming back his damn self!!! Don't leave a fucking ship afloat, an airplane intact, a military base standing, a fucking tank intact in the whole fucking region!!!! Cruise missiles, bunker busters, drones flying by the thousands dropping bombs 24/7 until the smoke, fire, and death is so overwhelming, even John McCain says enough!!!!
Hit those fuckers until the Russians don't have anyone left to sell all those weapons too!!!
Looking to test out the bugout plan you worked so diligently on after watching Doomsday Preppers? You'll wish those vats of grain were never needed to be opened.
Seems you're suggesting the "Usual American Solution" i.e. bomb the living daylights out of anyone that doesn't quite come up to "your standard".
And everyone wonders why the Yanks are so reviled worldwide (even the Brits hate you - something to do with the "Special Relationship" - whilst you were happy to "regulate the UK economy to your advantage" via support of the IRA). Used to work in London during the height of "The Troubles" as (what would no doubt nowadays be called) a migrant worker
Never mind, any combatants could well benefit in remembering the Wartime quip - "When the Germans flew over, the British took cover; When the British flew over, the Germans took cover. But - when the Americans flew over, EVERYONE took cover!!"
Disclosure - no family or financial interests in the UK, EU or for that matter the USA!!
Everyone doesn't hate the US. They understand our trechery but they also understand realpolitik and our military power and act accordingly. Yet even through our treachery we have aided more people than any country that ever existed. It's only the socialist revisionist who have totally distorted our value .... it's a tough,dangerous world and we must play the game.
Your lack of knowledge is not unusual for someone with .."no family or financial interests in the UK, EU or for that matter the USA!!
Just what allegience do you have and to what philosophy?
"Everyone doesn't hate the US"
Indeed
Saudis love you so much they hold your hand.
In fact most dictatorships think the USA is lovely as long as you keep funding them.
Oh i nearly forgot israel, she dont love you she just says she does so you give her pocket money.
Just STFU and keep paying your taxes to haliburton to pay lorry drivers in iraq four times the wages of the captain of the convoy guard unit who keeps them safe from harm.
Sick sad world.
I don't think everyone hates the US either. But your moral authority has totally gone. The bright beacon that was the US has gone out.
Who would ever have thought even 10 years ago that the President of the United States would have a kill list on his desk to figure which 'enemies' living outside the US would be murdered by drone strike that week. Just imagine if the Iranians had a base in Cuba and did that to you.
And to watch Obama overseeing the assination/murder of the Osama person in Pakistan was equally obnoxious. What ever happened to the rule of law? You acted like the world bully right there which is what you've always railed against. No other country would dream of doing that. Imagine if some Pakistan hit team flew into Washington and killed Obama while their president oversaw the operation by video.
After 9/11 you had the sympathy of the whole world and you squandered it. You could have taken the moral high ground and treated the terrorsits with the contempt they deserve but oh no. You had to willingly fall into their trap, totally over-react and start 2 wars. I used to be proud that New Zealand was an ally of the US. Now I'm just embarrassed.
We've been supporting your pointless war in Afganistan for nearly 10 years now and lost 10 soldiers. What a fucking waste. And all for some stupid misguided sense of loyalty to some obolete ideal. We kept out of your criminal Iraq adventure and hopefully we won't get involved in your next one.
Good luck with your game.
Well said bro! It's the filthy scum in Washington that's totally destroying the reputation of the USSA all over the world.
They are hand-in-gove with the central banking network, not with the US Constitution.
Hey, u should think 'bout boomerang, mate
and, if you kill'em all, who will buy US weapons?
oh, war pay all scores?
I pointed out two days ago the very difficult position obama has placed Israel in by withdrawing almost all diplomatic and military support.
Your conttribution is excellent. I would add that Hezbollah, just right across an imaginary line in Lebanon has 40,000 such missiles. However it won't take any Israeli action for there to be a highly coordinated attack on Israel by all the surrounding Islamic (now all radical in extremis) a la when Israel became a state (1948) and 1967,1973 and many other times. Like Hitler they want the Jews wiped off the face of the Earth. A tiny democratic country surrounded by ruthless despotic Muslims who will literally enslave you or kill you if you do not convert.
By this administrations action Israel, because of Washingtons withdrawl of support, Israel by necessity will have to use nuclear weapons.
This is not welcome talk by a surprisingly vocal faction of Jew haters here on ZH...but even if they didn't hate Jews they seem indifferent to nuclear war,as if it wouldn't accelerate the cascade of world problems currently overhanging all of us. Perhaps they are just playing the devils advocate...that was not my impression.
Yesterday I said this years October surprise will be a nuclear ME war and it is now rather more focused than ever. Egypt has moved large numbers of tanks very close to Israel. Other Muslim countries are also prepositioning arms and men.
The worst foe to have in the world is still the USA. It's also the most treaherous ally. We can not be trusted. Just ask the people of Europe who had to live behind the Iron Curtin for decades. Ask the Cubans, ask the South Vietnamese, Taiwan, the American Indians with whom we never honored ONE treaty, ask England from 1939 until very late in 1941 how we helped them, Ask how we honored Walter J.Duranty and how Truman sold out Europe to the Soviets ...the list of our treachery is long and distinguished and we're set to add to the count.
Good post Habu. So many commentors on this site just wanna blow their true amerikan idol Alfred 'H' Kissinger...
REAL POLITIK BitChez!
Thanks for the kid words. I was very active (and in the CIA) during the '73 war. I had previously been to the ME and Israel on a number of occasions.
And Kissinger. Let me dilate a bit on my tangential interaction with him. April of 1975 and Saigon is going down. Kissenger delays giving the word to evacuate the thousands of South Vietnamese we promised to get out if things ever went bad. Heck, they were risking it all helping US Intelligence, Kissinger delayed because of EGO. He believed that even with zero leverage left he could talk the North into halting their assault. He failed and the word came too late for most of those thousand (around 8-10k) who I am sure were tortured and killed.
I was sent to Saigon to get some vital information out but the Chief of Station,Thomas Polgar,CIA, asked Langley if he could use me for a few days. I was there for five. Little sleep, very high tension as a society was crumbling. I left 36 hours before the fall of Saigon via Air America to Thailand, then commercial through Paris .London and finally DC.
Of course the USA had long since removed all our troops and a Democratic (party) government finally removed all funding. Hanoi won and our treachery was well known and reinforced worldwide.
I was a young man but I learned quickly from that experience that you can not trust the USA. So far nothing I've seen has changed my mind since those days ..and of course the Yom Kippur War. Another cheesy US performance.
It seems that you'd know better than I ... but given that Kissinger deliberately delayed arms approvals to Israel during the Yom Kippur War (allegedly, Kissinger wanted Israel to "suffer a while first" and only released promised arms supplies when Golda Meir threatened to send 'kamikaze' pilots armed with nukes against Damascus, Amman and Cairo), I'd say he was fully intending that those South Viets be killed off ... purely for some vicarious Luciferian pleasure. He's not a homo sapiens.
Looking at history through the anecdotal lens and blaming individuals, even very powerful ones, does not exonerate a huge ideological policy called PAx Americana from its recurrent sins playing out accross the globe over sixty years; like Charles Vth Holy Empire resuscitated.
The ME is about OIL. Period. That PAx Americana built its local strategy around a Wahhabist Saudi regime, lynchpin to easy access of this strategic treasure trove, conjointly with support to a Zionist state, under HOME oligarchical lobby group pressure, continuation of Pax Britannica Balfour declaration legacy; albeit a democratic state with respect to its prime ethnic population, and totaly apartheid minded relative to the other local presence; constitutes the political SIN that has befuddled and criminalised all recurrent US administration actions in that region.
It is the lethal political powder keg that the US has concocted in Arab world, along with the CIA 1953 caper and subsequent Shah mayhem in Iranian world, the OTHER oil kingdom. Its a pure US administration hegemonial play and responsibility lies squarely in DC for this. Nowhere else.
Both in Iranian and Arab zones the PAx Americana legacy has created a cauldron for western interests, as subsequent actions in hubristic PAK/AFGH surrogate string pullings and drone killings have done since thirty years.
Its a repeat of VIetnam hubris, not of ONE man, but of a multigenerational MINDSET of US elites. This time though its in the key zone of the one commodity that makes the whole world go round.
By polluting this construct, by opening the PAndora's box of Near Asian zonal regression to feudal theocratic illogic and worse, the US is digging the collective grave of first world. The theocratic, totalitarian mindset now flies the flag of regional patriotism against the "colonialist invader"; just like in Vietnam. Making the Commies then, as Wahhabis now, look and worse, truly ACT like the Patriots, is the unkindest cut of all to western civilization interests. Pax Americana stands on its head big time! I'm being mild...
All the eggs in one stinking basket whose weave is the sign of bad workmanship, shoddy design and corrupt mindset.
Just like the fiat money rhapsody, that is now playing out in debt broke-back mountain WS/DC and EUro lands, brings the hubristic golden fleecing to its very heartland of the power construct, like deadly chickens coming home to roost.
And you would have preferred instead a Soviet hegemony in the entire ME? The lense throught which you present your "facts" is totally devoid of any mention of ther Soviets tremendously aggressive push worldwide during the period you and the left are so quick to call PAX Americana.
Well my friend politics,particualrly geopolitics will not tolerate a vacuum. It was only our policies that prevented most, if not all of the ME oil from coming under the Soviet boot.
You do remember the Soviets? They tried to park nuclear missile 90 miles from US soil, and their list of aggressions post WWII is too vast to list here. Our mistake was not taking them out with nuclear bombs immediately after WWII.
Your not being mild, just totally FUBAR'ed.
The soviets were an empire made to implode. Don't sing that stupid song. Your bogey man cold warrior shenanigans were proven all wrong. What made the Soviet empire strong was NAzi aggression and their own patriotic war. Millions died in Russia to defend their own soil. It made them united even under a Stalin! But the sequel showed how sterile that construct truly was. It hollowed out in 10 years!
That's exactly what happened in Vietnam under Ho chi Minh after French and then subsequent US aggression. There was NO cause for gulf of Tonkin criminal fabrication by LBJ and MIC.
If they parked missiles 90 miles from Florida in Cuba its AFTER the CIA, your blood brothers of Allen Dulles ilk, botched the Bay of Pigs, to control Cuba and REMAKE it a Mafia casino, like in old days. Another blatant criminal hegemonial play.
The USSR had no way of controlling arab oil. Anyway it was arab and should have stayed arab/iranian under the likes of Mossadegh and Nasser. In those days the US was an oil exporter. So the US Saud connection was pure cold war logic; it should have stayed that, arms length geo politics, not become the paranoid construct it did.
You sound like the type of guy who would justify operation Phoenix that your buddies in the CIA concocted to save the free world. Remember that great piece of geopolitical thinking. You were there when it happened. What more needs be said?
Phoenix Program - Wikipedia, the free encyclopedia
Takes two to tango.
--
Soviet Premier Nikita Khrushchev was persuaded, in May 1962, of the idea of countering the United States' growing lead in developing and deploying strategic missiles by placing Soviet intermediate-range nuclear missiles in Cuba. Khrushchev was also reacting in part to the Jupiter intermediate-range ballistic missiles which the United States had installed in Turkey during April 1962.[12]
https://en.wikipedia.org/wiki/Cuban_missile_crisis
In October 1959, the location of the third and final Jupiter MRBM squadron was settled when a government-to-government agreement was signed with Turkey. The U.S. and Turkey concluded an agreement to deploy one Jupiter squadron on NATO's southern flank. One squadron totaling 15 missiles was deployed at five sites near ?zmir, Turkey from 1961 to 1963, operated by USAF personnel, with the first flight of three Jupiter missiles turned over to the Türk Hava Kuvvetleri (Turkish Air Force) in late October 1962, but USAF personnel retaining control of nuclear warhead arming.
https://en.wikipedia.org/wiki/PGM-19_Jupiter
Khrushchev's October 24, 1962 letter to President Kennedy stating that the Cuban missile crisis blockade "constitute[s] an act of aggression..."
On October 23 at 11:24 am EDT a cable drafted by George Ball to the US Ambassador in Turkey and the US Ambassador to NATO notified them that they were considering making an offer to withdraw what the U.S knew to be nearly obsolete missiles from Italy and Turkey in exchange for the Soviet withdrawal from Cuba. Turkish officials replied that they would "deeply resent" any trade for the US missile's presence in their country.[41] ...
At 9:00 am EDT on October 27, Radio Moscow began broadcasting a message from Khrushchev. Contrary to the letter of the night before, the message offered a new trade, that the missiles on Cuba would be removed in exchange for the removal of the Jupiter missiles from Italy and Turkey. At 10:00 am EDT, the executive committee met again to discuss the situation and came to the conclusion that the change in the message was due to internal debate between Khrushchev and other party officials in the Kremlin.[53]:300 ...
You are disturbed over Cuba. You say that this disturbs you because it is ninety-nine miles by sea from the coast of the United States of America. But... you have placed destructive missile weapons, which you call offensive, in Italy and Turkey, literally next to us... I therefore make this proposal: We are willing to remove from Cuba the means which you regard as offensive... Your representatives will make a declaration to the effect that the United States ... will remove its analogous means from Turkey ... and after that, persons entrusted by the United Nations Security Council could inspect on the spot the fulfillment of the pledges made.
The executive committee continued to meet through the day.
Throughout the crisis, Turkey had repeatedly stated that it would be upset if the Jupiter missiles were removed. ...
The group argued that the letter should be underscored with an oral message to Ambassador Dobrynin stating that if the missiles were not withdrawn, military action would be used to remove them. Dean Rusk added one proviso, that no part of the language of the deal would mention Turkey, but there would be an understanding that the missiles would be removed "voluntarily" in the immediate aftermath. The President agreed, and the message was sent. ...
On October 27, after much deliberation between the Soviet Union and Kennedy's cabinet, Kennedy secretly agreed to remove all missiles set in southern Italy and in Turkey, the latter on the border of the Soviet Union, in exchange for Khrushchev removing all missiles in Cuba. [61] ...
In his negotiations with the Soviet Ambassador Anatoly Dobrynin, US Attorney General Robert Kennedy informally proposed that the Jupiter missiles in Turkey would be removed "within a short time after this crisis was over."[63]:222 The last US missiles were disassembled by April 24, 1963, and were flown out of Turkey soon after.[64]
The practical effect of this Kennedy-Khrushchev Pact was that it effectively strengthened Castro's position in Cuba, guaranteeing that the US would not invade Cuba. It is possible that Khrushchev only placed the missiles in Cuba to get Kennedy to remove the missiles from Italy and Turkey and that the Soviets had no intention of resorting to nuclear war if they were out-gunned by the Americans.[65] Because the withdrawal of the Jupiter missiles from NATO bases in Southern Italy and Turkey was not made public at the time, Khrushchev appeared to have lost the conflict and become weakened. The perception was that Kennedy had won the contest between the superpowers and Khrushchev had been humiliated. This is not entirely the case as both Kennedy and Khrushchev took every step to avoid full conflict despite the pressures of their governments. Khrushchev held power for another two years.[62]:102–105
https://en.wikipedia.org/wiki/Cuban_missile_crisis
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One-eye views or justifications for geopolitical events does not cut it in an age where when you make an error, on that level, you destroy both polarities, and everything else in between.
Appeals to polarisation are in your own mind, not necessarily present in the real world, and such polarisation is not survivable by technological society, if that error were to bare fruit.
I think you know why
Certainly Habu,
But Israel shit in their own nest a very long time ago.
And in the early 1990s the Norwegian sponsored peace-process was offered, and the Palestinians came to the party, and Clinton pushed like shit to get a solution before leaving office.
And what happened? The Israelis had been stringing everyone along, and thus shit in their own nest again.
That was their last chance at peaceful co-existence, but they just can't help themselves, they are what they are.
But I would say, that the first nuclear power that starts mass-murdering other non-nuclear states, with nukes, is going to get turned into cigarette ash, about 15 minutes later.
The real-politic of that, is that Moscow is not going to let a shitty little varmint state of Israel get away with nuclear mass-murder, of anyone
That will be Israel's final existential act.
I also wouldn't rule-out a combined Pakistan and Iranian response of Armageddon like proportions and intensity on Israel.
Funny thing is you see, I had a look for where you say you said this, and found nothing.
So where did you say this?
woooooooooooooooooooooooa really scary?
hezbollah is a little bitch comared to israeli army. FACT
if israeli can conduct the war how they want, hezbollah would be matter of past in 5 minutes
And israel a few minutes later
I just love a ponzi scheme falling apart sniff in the morning. Here comes more of the same, Fiat printing and a new version of kick the can so when this BITCZ comes completely unglued we will be twice as bad off. How far do you stretch the truth before you realise you are insane?
Another great article by ZH. And on Labor Day too.
Let's see if I were a crooked Spanish politician or banker I'd be creating new pathways for the fresh bailout funds to flow by upping the amount needed or discovering overlooked debt that must be paid first.
When it rains it pours.
Say brotha, can ya spare a Bankia bailout?
Don't let the banksters get away with all the loot, buy Gold and Silver!
Chain Rule Equation Bitchez
Paging Don Quixote.. Paging Don Quixote. Please go your nearest white courtesy phone for detailed information.
they didn't build that..
if only frau merkel would understand
The game is afoot.
Release the hounds!
Bring back the peseta and peg it to a taco.
The bamksters just put this out on CNBC:
As John Cusak asks, "Is Obama just another ivy league A-hole."
- Provide another dose of No-Hope and Change (for the worse) perhaps? The way things are going, it seems the survival rate for EVERYONE is heading for zero, pretty quickly (screw the long timeline, apologies to ZH!!)
Remember folks, we DON'T want WW3 - if nothing else, radiation REALLY fades your genes VERY badly . . . . . .
Spain who has been bankrupt like 10 times in the last 100 years should have never allowed to be in the EU, and Greece is friggin joke.
I love Spain though, good Gin, actually the best, kills Dutch Gin. Anyway Mario will ensure civil strife if he prints like the madman he is
Germany hang those balls around his neck. It's all up to you.
Or chaos will reign, probably will anyway...
http://dealbreaker.com/2012/05/thank-god-someone-came-to-work-today/
FMD
...a marriage made in the German image of Rosemary's Baby, but now the last name has ''changed'', the ''S'' is now silent. LMAO. It's a Berlin thing, a New World Order, very hip with the dipshit voter crowd and the Pinko BDU clad lads. Such a proud bunch, all it takes to turn them on is a speech in front of the seat of Satan. Lol.
Obama sez:
YouTube - Tower of Babel? You didn't build that!
Some other Biblical Jew made that happen!
SPANISH GOVERNMENT: RESCUE AN OPTION
http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&i...
http://www.welt.de/debatte/article108947819/ESM-verstoesst-gegen-Gesetz-...
Nice article on how the ESM violates all legal boundaries and is essentially a Coup d'Etat
Federal Reserve audit results: $16 trillion in secret bank giveaways worldwide.
http://www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3
the Parasite Club props itself up
No problem here, Helicopter Ben has the authority to buy Spanish bonds, Italian bonds, Greek bonds, any damn bonds he likes, and he doesn't have to answer to anyone when he does it. He said just last week he was going to buy bonds, he just didn't tell us WHO'S bonds he would be buying. Buyer of last resort, remember?
Cash? What is cash again?
Oh yeah, that paper representation of binary reality, that non-reality reality which can be created with Ctrl-P.
You pay, I pay, all the proles pay - and the bankers and politicians collect.
Why do they even bother doing accounting?
Why don't they just say it is all paid off?
Why not say they have a surplus?
What is this insanity?
Insanity would be a major improvement over this.
Derp
Summer break is over, now the real fun begins...maybe even too much fun.
is ZH running out of interesting stories. The majority is recylced crap on how the end of the world is coming (hello Jehova's witnessess) and luckily now and than an original post (thanks Bruce).
Then why are you here? Do you have a liking for recycled crap? Or do you just follow Bruce? (maybe just ask him to email you his statist solutions to save you some time).
Germany bashing again. So predictable.
FRANKFURT (Reuters) - Leading German bankers clashed over plans to give the ECB new supervision powers on Tuesday, with the co-head of Deutsche Bank saying oversight would only work if the central bank was allowed to monitor a broad range of banks, not just Europe's biggest.
The row has burst into the open a week before the European Commission unveils new proposals for creating a "banking union" in Europe, a step which is seen as vital for breaking the link between failing banks and indebted governments.
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Like I said, Germany is just being used by the central planners, like the ECB, for a power grab.
Spain's days of financing explorers like Christopher Columbus are over.