Not every insane act by a "lone wolf" is a political event. A tragedy to be sure, but in this case even if Jared Lee Loughner thought he was making a political statement, it was not a political event. It is an insane event. Yet the MSM insists on making it a political event.
Interestingly, the esteemed economist John Maynard Keynes considered the love of money a form of mental illness. Our need for money becomes the ‘hook’ through which the Big Wetikos (who control the supply and value of money) can ‘yank our leash’ and manipulate humanity.
Like I said, the Euro in its current form is finished. Europe can no longer “kick the can” down the road. SOME KIND of resolution has to happen. And it is likely to happen before the end of February.
All you wanted to know about why the world is bankrupt in many pretty charts.
Just in time for the second crash in housing?
When it comes to providing analytical perspectives and empirical insights into the realm of sovereign deterioration, few come close to the work of Reinhart and Rogoff. Citi’s Willem Buiter is one such man. In his latest summary piece describing in excruciating detail just how bad things are at the sovereign level (and judging by tonight's opening print in the EURUSD more are starting to realize this), Buiter provides a terrific country by country guide of what is now an insolvent world, starting with the merely extremely risky, going through the backstop-baiters, and finishing with the time bombs that have already gone off and everybody pretends not to care. For those who do care, this is a definitive guide to what each individual European (and not only) country can look forward to in an age of global moral hazard. The only open question: with China's interest now to preserve the Euro's viability, how will Beijing act in the next few months as the eurozone finally starts unraveling.
The implications of the crash of 2008 have made one thing very clear. China has emerged as the engine of growth in the world. The US became the land of sub-prime loans, and Europe is the land of finely dressed paupers. The Europe of today is not the Europe of old.
Though the complexities may appear endless, the global economy's coming implosion is really fairly easy to understand: here are four charts which do the heavy lifting.
- Foreclosures May Be Undone by State Ruling on Mortgage Transfer (Bloomberg)
- As expected, retail sales miss blamed on snow, although how icy conditions are preventing web surfing is beyond us: December retail sales dented by blizzard, frugality (Reuters)
- Boehner Vows to Cut Size of Government (FT)
- If at first you don't succeed... Obama renominates MIT economist Diamond for Fed Board (Reuters)
- PBOC Extending Biggest Cash Crunch Since Lehman (Bloomberg)
- Just a little more inflation: Coking Coal Contract Price May Rise 33% on Australian Floods (Bloomberg)
- Andy Xie: This year may start out looking like the last, dipping down later and then resurfacing with hope. (MarketWatch)
- Yes, banks really are doing everything they can to restore shadow banking: JP Morgan Markets Its Latest Doomsday Machine (or Why Repo May Blow Up the Financial System Again) (Naked Capitalism)
- BofA Introduces Fees to Replace Debit-Card, Overdraft Charges (Bloomberg) - we are confident Elizabeth Warren will have a lot to say about this...hopefully she has something to do as well
- Fed Should Stop Buying Bonds; It Is Falling Far Behind the Economy (David Malpass)
Spanish, Belgian CDS Hit Record Wides, Even As China Announces Plans To Buy €18 Billion In Spanish, Greek And Portuguese BondsSubmitted by Tyler Durden on 01/06/2011 05:34 -0500
Today, despite the announcement by Chinese Vice Premier Li Keqiangin in Madrid that China is willing to buy as much Spanish debt as that of Greece and Portugal (but not Ireland), or roughly €6 billion each, CDS in both the core and the semi-periphery, are back to record levels (El Pais and Reuters sources). Spain was last seen trying to catch up with Illinois, somewhere in the mid 300s, while Belgium also took out record wides at 225 bps. On one hand this is beneficial news for Spain, now that China is seemingly instituting its latest sphere of influence, but in reality is just doing all it can to precent the euro from collapsing (and thus killing Chinese exports to its second largest trading partner, the EU) and with net issuance in the country expected at just €47.2 billion, Spain may have well gone the distance to plugging as much as 13% of its net funding needs for the year. However, and what is spooking markets more, is that, as we reported yesterday, today European Commissioner Michael Bernier will publish a “consultation
paper” outlining ways to shield taxpayers from banking crises, chief among which is the renewed floating of the debt haircut idea.
This Mornings News Flow Is Essentially A "Didn't Reggie Tell Us This In Full Detail Up To Two Years Ago" Parade As Indebted Europe Continues To Rip At The Seams!Submitted by Reggie Middleton on 01/05/2011 09:08 -0500
Don't say I didn't tell 'ya so!
"Off With Our Heads!": Bil Gross On How "Future Generations Pay The Price For Their Parents’ Mindless Thrusting"Submitted by Tyler Durden on 01/05/2011 08:28 -0500
- American politicians and citizens alike have no clear vision of the
costs of a seemingly perpetual trillion-dollar annual deficit.
- Policy stimulus is focused on maintaining current consumption as
opposed to making the United States more competitive in the global
- Dollar depreciation will sap the purchasing power of U.S. consumers,
as well as the global valuation of dollar denominated assets.
By Bill Gross
Where is the theft in pensions really taking place?