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Swiss, Germans Set To Unleash Capital Controls As European Companies Prepare For Euro End
Even as Eurozone leaders attempted to instill some meager sense of accomplishment following the latest (but certainly not last) Euro summit culminating with yet another 7-page term sheet which achieved absolutely nothing, and in fact succeeded in alienating the UK even more, the real game continues behind the scenes. And it is a game which the euro looks set to lose. As Bloomberg reports, in the aftermath of the Telegraph's latest report confirming what has been said here all about the collateral crunch in Europe, Europe's CEO are now actively preparing for the worst case outcome: the end of the Euro (despite UBS' and other banks' repeated calls that such an event would result in an end of the world). To wit: "Grupo Gowex (GOW), a Spanish provider of Wi-Fi wireless services, is moving funds to Germany because it expects Spain to exit the euro. German machinery maker GEA Group AG is setting maximum amounts held at any one bank. “I don’t trust Spain will remain in the euro zone,” said Jenaro Garcia, founder and chief executive officer of Madrid- based Grupo Gowex, which provides Wi-Fi access in 15 countries. “We moved our cash and deposits to Germany because Spain will come back to the peseta"... Contingency planning for an unraveling of the currency involves cutting investment, moving money to Germany, transferring headquarters to northern Europe from southern, and even going out of business." And to all the chatterboxes on CNBC repeating ad inf that a Eurozone collapse would be "manageable" here is a person who actually knows what he is talking about: "“How do you control an explosion in a controlled way?” Fiat SpA (F) Chief Executive Officer Sergio Marchionne told reporters in Brussels on Dec. 2. “That’s a contradiction in terms. This will be an implosion of some size with potentially disastrous consequences." He is right, and while the outcome is certain, it will not stop Europe's financial leader Germany from intervening in an attempt to prevent a surge in Deutsche Marks once the currency returns, and will likely set up capital control measures - that last bastion to every failing monetary system - to halt what is sure to be a record inflow of post-collapse DEM appreciating capital.
From Bloomberg:
The Bundesbank, Germany’s central bank, registered capital inflows of 11.3 billion euros ($15 billion) from non-banks in September, according to the breakdown of its current account published Nov. 9. That helped transform a deficit of 47.3 billion euros in Germany’s balance of other capital flows in August to a surplus of 700 million euros in September.
In another bid to end the debt crisis, European leaders added 200 billion euros to their warchest and tightened anti- deficit rules in what they called a “fiscal compact” at a meeting in Brussels. European stocks dropped and the euro was little changed as the plan disappointed some investors.
And confirming the case for capital controls, is Handelsblatt which reports that Switzerland is preparing contingency plans in the event that the €-crisis escalates.
The government would oppose a flight to the Swiss franc. In this context, a working group is examining and negative interest rates and capital controls, the Swiss Finance Minister Eveline Widmer-Schlumpf said in Parliament yesterday. At negative interest rates of foreign assets in CHF are subject to a penalty tax.
"We are certainly prepared for possible alternatives," Widmer-Schlumpf said on questions of deputies, the government would like to respond. To capital controls or negative interest rates, she said: "These are questions which are examined in this Task Force on the franc strength."
But just like any other centrally panned intervention this one too shall fail. What is more important, is that now that the concept of a EUR end is tangible, it will likely become a self-fulfilling prophecy:
Companies switched gears from preparing for a possible exit by Greece to some sort of currency breakdown after Italian Prime Minister Silvio Berlusconi’s government collapsed and 10-year Italian bond yields rose past 7 percent in November.
“A couple of weeks ago I would never have thought about having conversations on the probability of the euro disappearing, but now there is more speculation on such a scenario,” Wolters Kluwer NV (WKL) CEO Nancy McKinstry said in a Nov. 29 interview at the company’s headquarters outside Amsterdam.
The board of Wolters Kluwer, Europe’s largest tax and legal publisher with offices in Frankfurt, Milan, London and Phoenix, has spent more time on scenario planning, she said.
“We obviously have plans in place if something happens,” ABB Ltd. (ABBN) CEO Joe Hogan said in Zurich on Dec. 1. “They can never be as robust as you’d want them to be but we certainly are prepared if there is a crisis.”
The Swiss engineering company “updated what we would do” in the past few weeks, Hogan said. “We just keep updating and making our plan more and more detailed.’
Bayerische Motoren Werke AG, the world’s largest maker of luxury cars, has honed its plans developed following the 2009 financial crisis and is prepared to act if markets dive, Chief Financial Officer Friedrich Eichiner said in November.
The Munich-based carmaker’s response would include reducing production by as much as 30 percent and using its banking unit to directly tap central bank reserves. The company also has reduced its leasing portfolio to manage risks in case used car values decline.
In other words, what is certain is that nobody has any certainty what will happen, and the result would be a massive deleveraging wave of epic proportions. What is also certain is that the global central banking cartel (sans the ECB in the post non-EUR world), would do everything to halt said deflationary vortex, and will just hit the CTRL+P combination on every possible device in its arsenal to stave off the inevitable. What is then absolutely sure, is that the second to last step will be the realization of Bernanke's theoretical threat to dump money out of helicopters... with the final outcome being history repeating itself once again, in that no civilization has ever collapsed from a deflationary collapse but always from the authoritarian response to it, yet which has seen hard assets survive in fair value form for over 20 centuries.
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Here's a very simple question, Q: How can the ECB "Print Money" and not have it EQUAL in terms of each county's weighting? Think ETF. You're going to change the weight of the EU? Good luck with that. Adding money INCREASES weight, think Germany likes that? PS- France can go um, look tuff to Spain or Italy, or Iran......
If you are talking about tariffs on German exports then you are talking about more than a break up of the Euro - you are then into a break up of the EU. The EU as a common market existed before the Euro and it will exists after it,
200 million Pesetas = 1 DM
Price of oil in pesetas?
50 Million per barrel?!
I loved the Lira, I really did. Only time in my life I was a millionaire.
Hey, I miss the peseta. We used to fondly call them 'potatos' [or 'potatoes,' for Dan Quayle].
In Andorra, the Spanish peseta and French franc circulated in parallel. You could pay your cafe bill in either one; they didn't care.
And so the past is future ...
I miss the pusseta
"Potatoes" is the plural of potato in America. http://www.merriam-webster.com/dictionary/potatoes
"Potatoes" is the plural form of potato everywhere.
OK, thanks. I didn't know if other English speaking countries had a different spelling.
I just do not see the advantage of anyone leaving the "Euro." Its all fiat anyway.
If there was a real sense of this "danger" then PIIGS parliaments would be talking default.
Greece had a chance. Epic Fail.
Italy. "Mi sono addormentato."
Spain. I don't hear; "!Ya Basta!"
You are talking 57 years of Bilderberg catering for nothing?
The whole point of all this 'US of Europe;' Treaty of Rome, Maastrict, ECB is to have a central tax authority collecting taxes on behalf of an unelected aristocracy. You have to have a "crisis" to inaugurate Bayern levy-men inside Barcelona bodegas.
Genius. Add a little side of Carbon Taxes to wet your beak.
At this stage of the game you either go 'Iceland' or STFU.
I don't see Texas adopting the Peso or Utah minting 'Mormon Dollars.'
I don't see the Euro/0.
Though the rest of your comment carries some weight (and, I might find somewhat persuasive) including Texas & Utah to provide some comparison is foolish in the extreme.
The EMU is a dozen years old; the USD has been the currency for TX & UT for a couple hundred.
And when was the last war between TX and/or UT, and/or the other states?
All a bit far-fetched...
Don't forget about the transaction taxes and Basel III to hasten the process of normalization on the common man.
But you're right, the € is going nowhere, they just need to get rid of the pesky citizen empowerment clauses in the treaty to govern us properly.
bankonzhongguo
I don't see Texas adopting the Peso
Why not, we have assumed most of the rest, adopt it, and take it over.ALL of it.
I'd give Mexico about 30 days against Texas........before surrender.(the people would be WAY ahead).
heh heh--should you have the good fortune to visit San Antonio someday, drop by the Alamo. You'll be left with the impression from the <strike>holy relics</strike> exhibits that the Texans actually won the battle against superior forces (when in fact they lost.) A visit to the surrounding countryside between the Alamo and the border will confirm this today (and personally, my favorite part of Texas, as real Mexican food can be had for a pittance and the people are infallingly polite and generous. South Texas = Old Mexico.)
**edit**
I need to add, I'm not knocking the people of Texas or its history--I'm just going along with the self-deprecating view gently held by the natives I've known. I have the pleasure of knowing one of the decendants of William Travis, defender of the Alamo--and the inside joke in that family goes like this:
"Old Uncle Trav. Yep... **swigs from beer, pause** -- couldn't count, you know..."
In a word........ICELAND.
I'm with you here. There will never be a better time to introduce the IMF world currency then in the midst of chaos, need, panic in Euroland. The banking cartel is not so dumb as to let a catastrophic circumstance be used to their advantage. They have been practicing for ages.
Does this also mean spanish, portuguese and italian banks are rehypothocating their clients money to germany as well.
no
rumour mill grinds on. What a show this is. The sun also rises; whatever the currency. Maybe those who are scared are the ones who will get shot, run over first. Stampedes take a big toll of innocent bystanders, and scared headless chickens.
the sun also rises - alas,... only the shadow knows
Come on already! Papa needs his apartment in Paris, BEOTCHEZ!
EDIT: HIGH LIFE drunken misspelling.
IMPLOSION vs. EXPLOSION
Implosion is like a collapse into itself, Explosion is like the top floor of WTC1 blowing upwards like a 4th of July fireworks show. WTC7 IMPLODED, understand the difference?
VIVE la DIFFERENCE! One is purposely SET, and the other is PURPOSELY set. Got it?
BLOW ME
SUCK ME
I simplify.
lol...I always give a greenie for humor.
But to technically complicate matters even further, blowing just dries it off ;-)
I'm still fucking laughing. That works in so many ways.
I hope they sleep better at night thinking they're prepared. They're not. They don't know what their respective banks' exposure is.
CEO's are becoming currency traders, that probably wont end well... I heard a good analogy the other night about the inaction of the ECB - "just because someone has not jumped out of the way in a game of chicken with a train, does not mean they wont eventually". Lets face it, its going to happen, they should get it over with ASAP; the sooner we get below parity when German goods are fairly priced the better. Both for the Germans in the long run, and the rest of Europe immediately. Germany is milking that demented cow like a goodun, that’s why we hear the war drums when things heat up…its got nothing to do with potential disharmony in Europe, fuck that, it has all to do with Germany being paid >20% above what it should get for its pretentious automobiles. Print!!
Most German cars sell for substantially more in Europe than the same comparable equipped one sells for in the U.S. A comparable Toyota or Honda is not demonstrably cheaper than a VW. Ditto a Lexus vs. a BMW.
I think the core will keep the EUR. so the EUR will survive. the banking system will collapse though, so almost every country will nationalise its banks (the countries that keep the EUR, and also the countries that abandon the EUR). the next decade may be the era of the state-owned, centrally planned banking system in Europe.
the problem reached a point where no bank could survive a systemic meltdown if occured, even if never touched that sovereign shit. the confidence-collapse would affect everyone. more exposed, less exposed, not exposed to sovereign debt - does not matter. it's in the domino phase.
http://www.reuters.com/article/2011/12/10/us-eurozone-idUSTRE7B30AO20111210
French President Nicolas Sarkozy told reporters the ECB's move to provide unlimited three-year funds to cash-starved European banks would be more effective, by enabling them to continue buying government bonds.
"This means that each state can turn to its banks, which will have liquidity at their disposal," he said.
Analysts said the notion that commercial banks could step up their purchases of government bonds looked optimistic given the same banks are being asked to deleverage and recapitalize
Eurozone wants to have the same ability the FED has to monetize via the banks if it wishes. Why not, it is an implicit subsidy to the banks and it guarantees sovereign funding. Question is: What will the penalties be if they don't comply (should have said WHEN they don't comply) with the deficit spending limitation?
yep,... and look how well the fed has worked for u[?]s
" What will the penalties be if they don't comply (should have said WHEN they don't comply) with the deficit spending limitation?"
..........................................
The Maastricht Treaty of 1992 requires the following criteria, among others... I believe you are already seeing the "or else" being applied to Greece. In a word, austerity.
The question you posed is an 'Are Else' one.
The real question you should ask is 'how much austerity will the people stand for before serious turmoil begins, governments topple, anarchy and martial law ensues?'
What happens when the garbage is no longer picked up due to strikes? What happens when the sewage treatment plants shut down due to strikes? What happens when water is no longer available at any tap? What happens when retired workers pension payments stop coming? What ALWAYS HAPPENS when people get hungry? Add infinum. And remember, TPTB need all these services as much as the other 99% need them.
The following is from Wiki... Very few, if any, of the countries that signed the Maastricht Treaty are meeting any of the criteria.
"Annual government deficit:
"Government debt:
How do you control an explosion?
One controls an explosion by putting a barrel around it, putting a projectile in front of it, and aiming it at the other SOB/thing as needed. It's called a bazooka.
I started a new page called the best lies of nuclear.
This is original material created by me, not just regurgitation. Stop by, visit, leave a comment, klik some ads each click is worth around a buck, and that helps pay the bills to fight nuclear.
http://oahutrading.blogspot.com/p/best-lies-of-nuclear.html
I love nuclear. I hate so-called green energy.
Capital Controls,,,, There goes the U.S.A......It's about time,,Guns,Gold,Water,Food, and good aqua soil. Man this shit is tireing me out.
http://www.youtube.com/watch?v=GPYLJoq_40Y
Our hotel is 5 star. Every luxury is offered to the guests of Le Boom. We offer boiled and filtered water for drinking. (sorry, not bathing) We aspire to have the widest possible range of paper currency from the world's former nations for our guests toilet. Please stay away from the windows, because without glass, the fumes will come in if you move around. Do not use the lights after dark for it invites lead pellets toward you and our fine hotel. Payment is in advance by an accepted commodity. Armored or underground transport is available to points of interest, contact your concierge. We want you to have a wonderful stay.
Which bank would you pick as the best victim once the slide down begins?
any/all
When danger or illusion becomes a reality, it must be met head on.
Taylor I had respect for your postings .Leave United States of Europe alone and write shit about your Anglo Currencies .
Anglo currencies suck and they'll be slowly and engaging in some stealth like printing...now back to the Euro, which comes first collapse or the legal framework for printing (and then every other central bank hit print x 10 to keep up)?
Taylor
Digging a Hole, Filling It In:Payments Arrears to the Fund
Come join our Fund, membership has its privileges. Think of our Fund as a 5 Star Hotel, you'll get everything you need & we'll comp those special expenses. We encourage you to tell others about the Fund privileges. Sign up two new countries within the next 30 days, the Fund will credit you Two Trillion in SDR deferred payment arrangements that can be exchanged towards future Carbon Tax Credits.
Do you people read the story before you comment?
Pavement - Strings Of Nashville
Nope, we didn't read one iota of this ZH publication. I couldn't resist my sarcasm.
what article? I came here for pavement links.
My Bloody Valentine Never Say Good-Bye
http://www.youtube.com/watch?v=XjWRKbp77q0
Paul to the Lakers!
Can we fit some Sonic Youth in here too? http://www.youtube.com/watch?v=SCTn7LcpVog
"Do you people read the story before you comment?"
............................
Odd you ask. I was wondering if you read the article.
Not to worry, threads usually get derailed here within the first few comments.
If you search the comments you will find a little useful information mixed in with a lot of trolls, hyperbole, and honest to goodness bull shit.
I come for the girlie pix and stay for the flame wars. Why? Was this article interesting or such like?
OT. Ron Paul's new Web Ad is awesome and you don't have to read it.
http://www.youtube.com/watch?&v=XKfuS6gfxPY#!
The financial news will be wild this week. With governments and banks rushing to save their own hides, the collapse of the Euro will be a compelling made-for-TV drama. If that hints that currency collapses are planned and executed, it should draw attention to the fact that they are deliberate. We have been watching record-breaking wealth transfers, all along. The only satisfied people are the con artists in the banking industry. They're not really happy, because they haven't stolen it all, yet.
http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/
the euro iisn't going to collapse until after the new year
Right. Wall Street needs their bonuses first.
Grab your popcorn and get comfortable, the fireworks are about to start.
Anybody have any thoughts as to whether the LTCM meltdown had anything to do with this rehypothecation?
Seems to me, when the LTCM derivative scheme ended, it was short $500 billion to $1 trillion, ie, it was not a zero sum game per the Nobelists that were running the numbers of the hyperleverage. Could this be why? 10 banks had to come up witth 1 Trillion to make good and prevent a chain reacttion to the rest of the economy.
10 years gone
Everything old is new again.
Laughing about this shit is the only way to remain sane.
Most of us here are as prepared as possible, but we're all fucked in the end.
Psychopaths got us to this point and psychopaths will rule the future.
Meet the new boss, same as the old boss.
I still get pissed on occasion. For the most part, I try to expose their fraud and intermingle humor.
No, no they won't.
Precautionary behavior is not a predicter of world economic events.
Jumping to radical conclusions now is certainly premature.
It is the Brits who have made an unnecessary error in their handling of this crisis. They will come to regret it.
I'd check that premise we're all fucked. After a hypothetical currency collapse and "reset" at least the Pound Sterling name has some cachet to it. Its like this, after a big collapse would you trust a cheque written by Coca-Cola or by Tab? (if any at all)
tab
Bullshit.
@ratso
What airport do you want to fly into? Heathrow, Gatwick? We'll pick you up and take you to places where folks don't give a fuck about the Euro or you. Don't regret the open invitation. Let me know when your ready to travel into the UK.
Frankly, I'm surprised the Dm is not in open trade yet....it will be in direct competition with the swiss....In fact...if I were the Germans..I would announce I was a much 'safer' haven than the swiss..not subject to the whims of other countries economic demands. They could easily be the next banking capital with a side of industry....double safe in the investor mind. The CHF could be quickly brought down...
peg the chf and reissue the dm lol
I've been saying that for months. If I say so myself.
Tax the capital inflow by negative interest rates.
do what
All new money entering Switzerland recieves -5% interest.
Simples.
if you are going to be dramatic peg the chf to gold and take investents
Excellent idea.
Force everyone who wants to move their wealth to Switzerland to "really" move their wealth to Switzerland.
Which, if I understand you correctly, is this.
First convert your Fiat to Gold. Then we will accept your deposit.
All the rest get a negative 5% interest on deposits.
time to satrt a bank
Hendrix and Wellington's
note to investors, we do not rehypohocate loans
Not you overlook the spiderweb set to catch the fly harboring unpaid taxes.
Switzerland - Tax Treaty Documents
http://www.irs.gov/businesses/international/article/0,,id=169682,00.html
It is all about Political economy War . If Euro survive USA reserve currency status is gone !
http://www.nytimes.com/2011/12/11/world/europe/euro-crisis-pits-germany-and-us-in-tactical-fight.html?_r=1&hp
.
agreed,
save the whales
You people are so funny.
The Euro will of course not fail. This was simply a Test run to see how much sovereignty the EU States are willing to give up and apparently, evident by the UKs Dramatics, its not enough, yet.
Ergo: Let the crisis run its way until the people are scared enough to not veto the founding of the U.S.E.
It was plain to see. Cameron arrived in a Car. Expect a solution as soon as he arrives on his knees.
the brits are screwed like the rest but they don't need the euro
Today, at The Café Americain, Jesse answers The Big Question: Are Funds At US Financial Firms Safe? Here’s Jesse:
The short answer is 'maybe.' It is more of a buyer beware situation than most had thought, and still think.
It is nice to see someone in the mainstream media addressing this situation intelligently and without making an apology for what is apparently a criminal act and surely an egregious abuse of the public trust.
It is an axiom that it is not the initial crime that does the greatest and most widespread damage, although in this case it appears likely that someone in MF Global is due for jail time.
The damage is going to be to the US and British financial systems, Wall Street and the City of London, and in a large part because of the capture of political process by the monied interests.
This week the Senate led by Richard Shelby turned down the appointment of Richard Cordray to head the Consumer Financial Protection Bureau. They have vowed to block any appointee until they can change the law that authorized the Bureau in the wake of the financial crisis in order to provide 'accountability.' For them that means the ability to control the Bureau and starve it of funds in order to protect their banking cronies on Wall Street.
Nothing is ever perfectly safe in this world. But some things are safer than others and there are steps one can take to diversify their wealth and avoid higher risks.
'A wise person does at once, what a fool does at last. Both do the same thing; only at different times.' --Lord Acton
If I am correct, there are even bigger scandals to come when the tide goes out again, although there will be great efforts made to cover them up and excuse them 'for the sake of public confidence in the system.' The derivatives market is a scandal-in-process, and is likely to rock the US banking system and the Dollar to their foundations when it topples.
There may be even larger losses and anxiety for the unsuspecting who have misplaced their trust in false ideologies, slogans and theories promoted by a self-serving oligarchy.
http://jessescrossroadscafe.blogspot.com/
Sure the US and UK financial sector is totally save. It matters not a bit that the Us and UK have no manufacturing Base to speak of and that they actually do nothing productive at all in real world terms.
Sure, once the financial web of the world collapses the Bankers on Wallstreet and in the City will still do Business as usual.
Also the Dolphins will leave the Oceans of this World and fly back to their own homeplanet, because its too boring here anyway.
Right-O, Johnny B Good. It’s like Jim Willie said last week, the Q.E. never stopped - ”the proof is not movement of lips by central bankers, but the data from the monetary aggregate.”
Says Jim:
The sinkholes are so broad and dispersed that even run of the mill analysts are beginning to see the light. They are concluding more and more that the credit-based system is collapsing…
Always trust Ludwig, our reliable patron saint of money whose epistles combat the evil forces of fiat money. Von Mises said that inflation always has been a matter of money growth. It always will be. Notice in the yearly monetary aggregate chart, where ticks are full years, that the 2010 and 2011 years show a steady linear growth. The money supply never stopped growing in summer 2011. The June deadline came and went, and nothing changed, only the words from the increasingly desperate central bankers, led by the hack economist professor Ben Bernanke. If the public were ever to glimpse at what passes for Economics Dept research at universities, they would vomit at its abstruce uselessness. Phony money not only produces phony wealth, but phony faculty research and phony integrity of financial systems. Over one third of all university professors with chaired posts are funded by the USFed, if truth be known. They perpetuate their mental muck…
The money supply is still growing. The data contradicts the premise that the QE program was terminated. Easily explained. The initiative turned global to produce Global QE. The USFed has been accommodating the Europeans and Wall Street banks, so that the broken insolvent big Euro banks can be propped with more phony money. The Euro Central Bank is printing money heavily or else borrowing in heavy volume from the USFed Dollar Swap Facility. Without bond market buyers, the EuroCB has reluctantly filled the void and has been buying the Italian Govt Bonds. Recall that big Euro banks are huge sellers of sovereign bonds. The USFed never stopped printing money to buy USTreasury Bonds, which ramps up each month as USGovt debt piles up each month. Recall that foreign creditors are net sellers of USTBonds. The USTBond auctions have not failed, and for a reason. The USFed is buyer of last resort. Where the bids came from has been kept quite secretive. It is the USFed, which never stopped QE. In fact, Global QE is the mainline policy nowadays, and it has turned into hyper-inflation under the sleepy eyes of both investors and the financial press. Why the investment community relies upon the central bank liars and the financial press dimwits is proof of national stupidity in my view. Intelligent people are wondering if QE3 will emerge when QE never ended!!
THE ONLY THING THAT CHANGED SINCE JUNE 2011 WAS THE USFED DOES NOT TALK ABOUT THEIR VAST MONEY PRINTING AND DEBT MONETIZATION. THE DULL MENTAL CAPACITY OF THE MASSES IS ASTONISHING…
The Operation Twist was a USTBond redemption plan built around QE3 designed to buy all what foreign central banks sold. They sold it as a pause in the pattern. Dull witless people bought the notion. The Jackass called it for what it was from the start, a smokescreen to cover for foreign bond sales. Foreign creditors were big net sellers of USTBonds. It is right there in the data published by the same liars at the USFed and USDept Treasury. TAKE A LOOK. THEY NEVER STOPPED PRINTING. My respect for the American financial sector has never been lower, and that includes the investment community. For three years, the Jackass has been advising to remove funds from the system, which would be at risk of pilferage. The MFGlobal event has sealed both the reputation of the US financial sector and the outcome of the implosion.
The big Euro banks are selling boatloads of bonds. But on the other side of the table, the Euro Central Bank is buying only truckloads. The net is still an exodus, thus rising bond yields… The European Govt Bond market is in freefall. The only way to stop it is vast recapitalization of the entire US & London and European banks at a cost of $4 to $5 trillion... When the Powerz and Technocrat generals flip the switch and make the decisions, Gold will then go to $3000 then rest, then go to $5000 later on. Similar for silver, going to $80 then rest, then go to $150. In the interim, the objective is to beat down Gold & Silver by whatever deception. …
http://www.marketoracle.co.uk/Article31845.html
And, just as you say, so says Willie: "Unless and until the USGovt with a powerful initiative set forth by the USCongress works to return a signficant portion of its forfeited factory and industrial base, this recovery is forever doomed and a bit of a rancid joke."
to Johnny B Goode, I see you're familiar with the game "my country's (edit) re-hypothecated assets are better than yours"
I am familiar with the principle that when one country is good at pushing Ones and Zeros from one book into the other and the other country is producing real goods, the latter still has its Facilities and Products and Know-How when all the Ones and Zeros in the World are losing their meaning, and they are ... fast.
Thanks for the fsih and by the way the answer is 43..
And it will.
The CFPB is the creepiest thing to come down the pike in a long time.
"CFPB" is merely Orwellian newspeak, translated, it is the money police. Run by the Fed, funded by the Fed, for the Fed, and operating inside the Fed, to dictate financial activity to all us little people. Created by congress, but without any accountability or oversight by congress. The new congress is now fighting to have congressional oversight over the CFPB. The CFPB has authority by the Fed to monitor, in real time, all transactions of private citizens, including ATM transactions, and to forbid and prevent private contracts between people, "for our protection", meaning no loans or capital except from banks. The CFPB can regulate and make irreversible financial laws without input from congress.
CFPB is the ultimate tool for financial repression, confiscation, and elimination of competition against the big banks and TPTB from credit unions and private individuals loaning money. CFPB is already discredited, progenitor Elizabeth Warren made a big power grab before the CFPB was even open for operations and befor it had any authority when she tried to bully all the state AGs into going along with her proposed regime for collection of private information. That is why she is out. The new guy is trying to get congressional approval but is being held up as congress is hoping to reign in the CFPB with congressional oversight.
The net tightens and revelations like you’ve just provided help spread the alert. Thanks, gwar5; your word is as good as gold.
Don't worry the black messiah will do a recess appointment.
guess that's why wall street is doing all they can to keep her out of office, and make sure she didn't get appointed. sorry but your version doesn't sit with facts
When do we get a story about where else the Greeks, Italians, etc are moving their cash to?
Their italian and greek banks are moving their money to the ECB.
The people... they've always had it under the floorboards.
The banking cartels ensure that some have long memories in europe.
Should the world be held to ransom and continue printing just to appease them? Is it because they control the government and the media?
Is Merkel the only economist and politician after sustainable growth? Why ignore Ron Paul? Fiscal discipline seems to be a dirty word.
Out-a-the-park grandslam.
Or...goooooooooooooaaaaaaaallllllll...as the case may be ;-)
The only two countries that will leave the Euro are Germany and the Netherlands. It will be relatively painless for them. German financial institutions will have euro assets and liabilities for all non Germans and Germans will see their Euro assets and liabilities converted back into New Marks. All of the German government debt held by foreigners will continue to be in Euro's which from a German perspective means that the Governments effective debt burden will go down.
I think when we were only talking about Greece it was possible to think about a single country leaving (never did buy it then) but now when one is talking about the PIIGS plus Beligium and possibly France makes more sense for them to keep the Euro which allow for an effective devaluation against the Germans.
BTW Switzerland had negative interest rates in 1979. Worked for a private Swiss bank then and all we did was take globs of SF currency and put it in a safety deposit box for our clients.
Thanks for clearing up what was puzzling about the article. If people or companies transfer their Euros to Germany, what difference would that make if the Euro goes kaput. If the Euro goes to par with US$ or even self destructs, it would seem the Euros are toast whether they are in Spain or Germany. But your post seems to clear this up by indicating that Germany might only covert Euros to Deutchse Mark for citizens or companies in Germany...not late arrivals from other EU countries.
I have a MF slurpee that expires on December 13, 2011. What do I do? LOL
Bush's fault
black peoples fault
Is that you trav?
Satires fault...lol.
Slack peoples fault
You know what is the scary part. Not the breakups, not the insolvency, not even the lies and deceit from politicians world wide. But the ignorance of most of the people in this country. The thought to keep doing what they have been doing for years, and it will all be OK> They have no idea what is transpiring and the carnage that will be wrought on our society.
That...is the part that scares me.
What country? Most people in the U.S. should be more worried about the brutal American police state than whatever is happening in Europe. What's happening in Europe is as relevant to most Americans as the atmospheric contents of Mars to a man on a sinking ship.
Furthermore, the EU will not break up. It is an impossibility because that would be counter to the attainment of one world government under the New World Order. This is merely a show to convince the sheeple of Europe to cede all national sovereignty to their United States of Europe.
The E.U. will never be allowed to break up. That would be contradictory to attaining one world government under the New World Order. All these head lines and dramatizations are merely for the purpose of convincing these still partially sovereign nations to cede all sovereignty to the supranational European Union.
Just a show you see. Smoke and mirrors. Don't look behind the curtain though, all you'll see is a bunch of 70+ year old men dreaming of global domination and accelerating their plans before the last of them takes the dirt nap. Of course their children are prepared to take up the mantle of running the NWO. In fact, that is the point, to secure a place for their descendants amongst the eternal neo-feudal aristocracy that will rule humanity forever if their dreams become reality (seems likely, there are only a couple of things that could stop them at this point).
The only flaw with their grand designs is human mortality. But after that is solved we peasants will have the honor of being truly ruled forever by an immortal group of God-Kings. Finally the dream of tyrants since the dawn of time will be achieved through science.
Ever wonder what breaking up looks like? It looks like this.
The international financiers "are using capitalist money to destroy capitalism," in the words of Communist Party official Alexander Trachtenberg. And your description of government-sanctioned stealing from the people on a Leviathan scale and their NWO intention is spot on. But the curtain on the final act in the Financiers' Plot to Destroy Western Civilization is still to go up. The people are beginning to fight the noose that is tightening around their necks; the number of informed patriots of sovereign counties is increasing, they are the true Hope. Exposure is our greatest weapon
imo it comes down to to what family out of NWO will win, the european or the one in the us....
Please stop smoking.
This is your GOD-KING speaking.
I don't see how the end of the Euro is a bad thing...can someone explain how this is an implosion/explosion? Seems like a good thing if weak countries leave.
They aren't separate rafts; they all agreed to bundle their logs and rope them together into one raft, and the seas are rough.
They agreed to bundle their money together, not their lives and sovereignty. It has always been the fatal flaw.
Now, the elites are workin on that little misstep...see JR's above.
Check out last night's piece on re-hypothecated gold bullion and Wednesday's on re-hyothecated banking collateral. If the EUR collapses so do all the banks in the world or they come clean and print and oil will go to 120, 130, 150 in short order (as all the other central banks will begin to print to keep up).
edit I should say the other central banks will openly print, the cat will really be out of the bag so to speak.
It's not a bad thing for the people of the world and the sovereign nations that they have built. It is a horrible thing for the New World Order elite and their push towards global tyranny.
That's why it will never happen.
The dissolution of the European Union would be the greatest thing for human liberty and dignity since the Enlightenment because it would signify the failure of the New World Order.
Watch out guys. This massive panic generated by the Euro break up will just fill bank's pockets. They sell trillions of OTC and they make billions of revenues. Look at the report of OCC, 1Q2011 and 2Q2011 were astonishing in terms of trading revunues.
http://www.occ.gov/topics/capital-markets/financial-markets/trading/deri...
I would be very carefull in buying out of the money vol.
This will be like 911 time a hundred
I hope, or should say pray, the EU does collapse. The more postal bombs the better! Why? Please. Next thing you'll know they'll have us here in the US combined with Canada and Mexico(which technically mexico is already here). Screw the NWO.
My question is........China and Russia aren't going to play along with this bullshit so how the hell were they ever going to have a one world order? It's as if they we're pretending those 2 just don't exist.
Since this massive economic recovery has pretty much ruined everything I ever worked for id just assume have a complete collapse here in the US as well, asap. Just for the simple reason if we don't they will drag this out for decades preaching recovery the entire time and everyone will be in complete misery the whole time. Let's just get it over with now while im still young enough to beat someones ass.
there is always a backup plan. i am not sure which is the a plan and which is the b, but one is war and the other is just let everything collapse
I am unsure where Russia and China fit into the NWO. The Muslim world is being beaten into submission as we speak. That much is obvious. Adjacent to that is large amounts of Muslim immigration into Europe and the U.S. to assimilate them into our culture. That is why, despite 9/11 and the supposed "threat of terrorism", Muslim immigration into the U.S. has only grown (that's an over simplification, it's a complex topic that I don't have time to fully explain right now).
It seems that the NWO has made amends with China or we wouldn't be sending them trillions of dollars and building them up technologically. There is nothing fundamentally wrong with China from the perspective of the NWO elite. In fact, they wish the West were more like China - productive workers that can't talk back. The NWO is about global conquest via peaceful means, not warfare. There is no reason that China couldn't be the cornerstone of an "Oriential Union" sort of organization. It will simply take time to level standards of living and do extensive social engineering on the nations involved.
Russia seems like a wild card, but the solution to them seems to be complete economic dominance. They simply can't afford to fight back via conventional means and they're being boxed in on all sides. Surrounded by NATO countries, anti-missile weapons, military bases. Russia has little foreign policy influence anywhere in the world today. All they have are their nukes...and if they are REALLY that stubborn I'm sure the NWO would allow Russia to stay there, impoverished, with nothing but Vodka and nukes....at least until technology were developed that could disable or otherwise counter those nuclear weapons. After all, if there were a global economic union, how long could one nation remain apart from it and keep pace technologically?
That's true of any nuclear armed nation, actually. Once a nation goes nuclear they are, geopolitically, an immovable object. That's why we fight so hard to keep nations from getting nukes, not because we're afraid they'll use them - but because once they have them there's nothing we can do to them because they WILL use them in retaliation.
You're right about North America, though. The erasure of the Southern border of the United States is a precursor to further integration between Mexico/Canada/U.S. into the North American Union. After all, when the U.S. is 50% people of Mexican descent in 2050, why WOULDN'T the two nations join together more closely? Meanwhile the elite get cheap labor and destroy the American middle class. Win/win/win.
Russia has a potential to be a tool to squeeze desirable result out of dependent on russian energy resources parties. Whoever gets control there(it is relatively easy as it turns out if you check what's happening there right now with Putin and protests), has a potential to have control of europe and china in some way. the Eu needs them( energy), Chinese the same( other resources besides of energy). China, iran and Russia make a very cozy block now, did in the past and will in the future.
The only way these nations can hedge themselves against the coming disaster is to own gold and silver. Those are the only assets which will retain their value through the coming crash. World markets are going to crumble, but gold and silver will retain value. It only takes someone with half a brain. Seriously!
and thus why gold rests on Central Bank balance sheets
Which is a curiousity that often goes unremarked on.
Don't they have full faith and credit even amongst themselves?
I think we know the answer ;-)
Of course they don't. It's obvious to anyone who even remotely pays attention. But the central banks must protray a image of trust in the fiat currency. Otherwise, the people are likely to also lose faith in the currency. In the end, however, only the PMs will serve as "currency." Once the grand experiment is dead and gone, gold and silver will remain as a store of value.
From my bunker...Hey, have you guys occupied U.S.A.'s natural resources?...No!...Better get to them!...
Be waiting to hear from you.
@ the bunker
Oil & food will rise in those countries. Reinhart and Rogoff address this in their book..first you have a deflationary crisis foolowed by severe inflation.
Was that a fire alarm I heard? Should I look like a fool and rush for the exit? What would people think? It could cause a stampede and I'd be blamed. I think I'll just edge over to the exit nonchalantly. Ooops. I see everyone else is doing the same thing...
They are simply positioning themselves for the Third Great War. Is it really a surprise?? Europe is inevitably headed for another cataclysmic conflict. I'm not surprised. I only hope that the US keeps its forces at home this time. If Europeans want to be morons, then they can do so at their own expense ... no US lives necessary.
"I only hope that the US keeps its forces at home ".........good luck with that, but 11 years of foreign policy says otherwise.
My guess is TPTB don't want the troops home
Capital inflows into the deutchmark allow them to print their way thru a crises. It is better than what the south faces.
Germany could monetize all their debts for a while with little inflation.
Still waiting for the collapse...
if i had a silver round for every time i heard that one i wouldn't need ZH.
Enigma of a free free free market :
US treasury 10 yr bonds : 2-3% yield. USA has the most indebted economy in the world and the biggest off balance sheet private banking bubble ready to burst as amply commented here on ZH. Never mind, Exorbitant privilege rules these markets. No collateral problems here with Uncle Sam? No govt. debt mountain? No muni debt mountain? No banking synthetics debt mountain well hidden? No mega trade deficit every month adding more debt??? Hey their collateral is US FED money !!! ohhhh, okkkk! enuff said.
UK 10 yr bonds : 2 to 3% yields. No govt debt? No private banking synthetic debt mountain? No balance of trade problem? Collateral in banks as good as Virgin MAry??? As the City is surrogate to WS there has to be buddy buddy spill over from unregulated totally ballistic shadow banking UK and WS. Cousins are cousins in financial world. So no collateral problems in UK says the lovelyyyyyy free free market. Capische!
Italy 10 yr bonds : Ohhhhh, these guys don't have decent collateral, ohhhh. Hit them GS cabal, they pay 6-7% yield. Going north every day! Soooooo, the fundamentals of sovereign debt and banking Italy are sooooooooo much worse than UK and USA??? Oh those S&P shills... Now there we are full swing in a freeeeeee market. Hey man, no hanky panky here, these Italos are up to their necks in shit stuff. Not like us in US of A and UK....Yessssssss?????? Is that sOOOOOO?
Germany/France 10 year bond yields : 3-4% Heading Noooorth, PRONTO ! Ohhh, their banks stinks and their propping up Club Med sovereigns, they have to gooooo, Man their collateral is Shitttt! Hit em hard, they'll keel over. Not like US in US of A....! really???
So this is how a free, free freee, invisible handed market works....I get ittttt!!!
Great logic fellas, and the number crunching of Euro debacle goes on...Wow!! some fair market trends we have here!
Of course no such thingeee as a GS led US HF/banking cabal against "sitting duck" europe. No sireee! Maybe we should go ask Sitting Bull's ghost!
Not that I support the Euro bank louts and their inevitable rout...they belong to the same Oligarchy gang as US cabal. They deserve the same medecine. But somehow the free free free logic is a little skew, skew skew, skewyyyy.
Brilliant piece of thought, fp.
This is déjà vu all over again, a shadowy repeat of 1921 when the monsters V.I. Lenin and Trotsky deliberately started a famine in Russia as a political weapon that caused the massive famine of 1921-2, killing an estimated 10 million. Lenin then instituted his New Economic Policy (NEP) that allowed limited free market privileges to farmers.
(The same farmers, according to Dr. Warren H. Carroll in his great work 70 Years of the Communist Revolution, became ten years later the liquidated Kulaks [free farmers] under Joseph Stalin.)
Lenin’s fledgling communist dictatorship would have collapsed then and there without the subsequent infusion of Western credit, plus construction and corporate know-how by the bankers and businessmen who financed Lenin - the likes of Joseph Schiff, Max Warburg, Armand Hammer and John D. Rockefeller, today's Kissingers, Rubins, Blankfeins and Rockefellers.
Lenin was referring to the NEP when he uttered his famous, “two steps forward, one step back.”
The only difference between today and then, IMO, is that it is US of A Lenin financing US of E Lenin.
could this statement be bbacked up by dta or sources:
in that no civilization has ever collapsed from a deflationary collapse but always from the authoritarian response to it, yet which has seen hard assets survive in fair value form for over 20 centuries.
delafation isn't the evil it has been made out to be at all. there are reasons it has been demonized. but it's not a bad thing.
moving to 3rd world..really? the 1st world will be the best place to be.
that said: avoid the grid as much as possible..prepare for HLS thugs on each street corner or as Obuma says the"peoples security force"..sent a chill down my spine when he wanted them armed like our current Army.
(my guess many here on ZH have forgotten that little tidbit)
American land was blessed by climate and farm lands and nat resources that will not change. there are many out of the way towns and areas that will be havens for the resistors or as I like to say: the candidates for re-education camps.
The smartest still come here (ala Indian docs) for a reason.
that comment doesn't work unless you provide a link to your 24/7 spacesuit provider, and probably that massive biodome which you plan to farm within.
Sorry, this was all well thought out eons ago, and Indian doctors are not the barometer by which 'smartness' can be measured(no slur intended againsts I|Ds)
waves of Fukushima radiation which will never be measured by a complicit EPA...all that fallout from taxpayer financed heavy metal chemtrails, the extreme weather phenomema produced by the HAARP manipulations...let's not even talk about the BP Gulf holocaust or other environmental disasters in the making...cause that might ruin a preppers' day by taking events to their LOGICAL conclusion.
What you think WILL NOT CHANGE is changing faster than your "rights" as per the Constitution are eroding...wake up n smell the hopium before you become another carbon monoxide poisoning victim! Obummer...the silent Killer!
that's what i don't get about all these societal collapse advocates.
there are over 440 operating nuclear reactors on the planet that need to be cooled for thousands of years. (stupid ass idea to ever build these, we know)
who cares if you survive a grid collapse if the silent killer gets you in the most horrific way in the coming months? as you watch all sentient beings on the planet perish with you?
A circular firing squad of course with high drama, until someone remembers that Jubilee is the only way in his or her story that this incessant and pissant confunction gets over itself and we move on.
In the interest of timing, at what point do you go to your bank and withdraw your funds in nickels?
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