Mar 08

- Greece “Risks Bankruptcy” As Europe Rejects Varoufakis Payment Plan; Another Referendum Fiasco Ensues (ZeroHedge, March 8, 2015):

There was one reaction by the Eurogroup following the (delayed) submission of the Greek 7-point reform proposal – which includes the brilliant idea to use foreign tourists as wired, part-time tax spies - in advance of the latest Monday finmin meeting: laughter.

Financial Times reports that the reaction from eurozone officials to the tourist plan was received with humor. They thought the proposal was hilarious and even laughed when they read it. “It’s quite hilarious, if it were not so tragic, that this is what a government in an industrialised country comes up with,” said one eurozone official involved in the talks.

There will be little laughter in cash-strapped Greece, however, if the Sunday Times is correct in its report that the “Eurogroup finance ministers are to reject radical reform proposals from Greece at a meeting in Brussels tomorrow.” Continue reading »

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Mar 08

H/t reader squodgy:

“It must be frightening having to continuously cough up endless sums to fund an economically, tactically & militarily bankrupt puppet Government who are up against a patriotic independence movement backed by a genius.”

See also:

- Lord Rothschild Warns Investors: ‘Geopolitical Situation Most Dangerous Since WWII’


- Rothschild Seeks to Advise Ukraine Bondholders in Debt Talks (Bloomberg, March 6, 2014):

Rothschild is seeking to advise Ukraine’s bondholders in restructuring talks with a government struggling to avert default after a year of fighting with rebels crippled its economy.

The company’s Paris-based sovereign advisory team has been in contact with creditors, Giovanni Salvetti, who handles central and eastern Europe and the Commonwealth of Independent States. Bondholders are bracing for harsh terms as the looming debt revamp drove the nation’s $2.6 billion of notes due in July 2017 below 50 cents to the dollar since mid-February. Continue reading »

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Mar 06

I would highly recommend you NOT to visit Japan (for at least the next 250,000 years).

Japan is doomed … on all levels.


- Japan projects to spend 43% of tax revenue just to pay interest on the debt (Sovereign Man, March 5, 2015):

It’s entirely possible that we may see interstellar space travel in our lifetime. And what a dream that would be.

But in the meantime, for anyone that’s losing patience with space technology, I would recommend you visit Japan. Because for anybody that has been here, this place is as close as it gets to being on another planet.

Japan is a land of irony and dichotomy. It is one of the most conservative cultures in the world, while simultaneously being one of the most perverted. Continue reading »

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Mar 05

Related info:

- This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300%


- Only mass default will end the world’s addiction to debt (Telegraph, March 3, 2015):

As global debt rises off the scale, creditors stand to take a huge hit in a threatened tsunami of defaults

In a valedictory speech at the weekend of characteristically Latin American duration a mind-numbing three hours the Argentine president, Cristina Fernandez de Kirchner, claimed that her country was the only one in the world to have reduced its national debt over recent years.

I doubt she is right about being alone in this “achievement” there must surely be others – but even if she is, I’m not sure that reduction in the national debt via the mechanism of default is anything to boast of. Only Kirchner could think this a matter of national pride. Continue reading »

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Mar 03

Related info:

- This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300%


- Global Debt Is MORE THAN TWICE AS BIG As the Entire World Economy … What Does It Mean? (Washington’s Blog, March 3, 2015):

Global Debt Is Almost 3 Times As Big As the World Economy

The Guardian reports that global debt has grown by $57 trillion dollars – to $199 trillion dollars – since the 2008 financial crisis. Continue reading »

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Mar 03

Portugal-flag

- The Fairy Tale Of Portugal’s Successful Turnaround (The Globalist, March 2, 2015): 

For all the attention given to Greece, is Portugal really that much better off?

Even a brief glance at the facts suffices. Portugal is no less bankrupt than Greece. The country’s government debt, at 124% of GDP, might be lower than in Greece. However, government debt is just one – even though important – part of the full debt picture.

On an aggregate level, Portugal’s overall debt level — at 381% of GDP when also including private households and non-financial corporations — is well above Greece’s total debt level (286% of GDP). Continue reading »

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Feb 27

From the article:

“So when is the Greek drama set to make a surprise come back appearance?

Greece is due to pay the IMF 310 million euros on March 6, 350 million on March 13, 580 million on March 16 and another 350 million on March 20.

We suggest readers grab a seat and some popcorn on any of those days, because the inevitable day when Greece finally runs out of not just its own but other people’s money, may arrive as recently as one week from today.”


mr-panos

- Greece Warns It May Default On IMF Loan As Soon As Next Week (ZeroHedge, Feb 26, 2015):

Now that the Greek tragicomedy of the new government “threatening” to leave the Eurozone if it doesn’t get its way, has been postponed for a few weeks, if not months, we can go back to the biggest story involving Greece, one we first covered in October of 2014, when we said that Greece needs about €43 billion through the end of 2015 to cover its funding needs. Earlier today, the broader market finally woke up to precisely this problem for Greece, when MarketNews reported that Greek creditors are now contemplating a third bailout which could be as large as €30 billion. Continue reading »

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Feb 27

Somebody tell them that all those billions were just spent to bail out the banksters …

- ‘Greece Won’t See A Cent Of The GREAT BAILOUT’ (Telegraph) … It’s All For The Banksters!

… but then I am sure they knew it already.


- “NEIN” – Germany’s Bild Has A Message For Greece: “No More Billions For Greedy Greeks” (ZeroHedge, Feb 25, 2015):

One day ahead of a key vote in the German Bundestag whether to ratify the 4-month Greek bailout extension, the biggest-selling, mass-market newspaper (or tabloid as some call it) with a circulation of 2.5 million, Bild, has made it very clear just how it feels about the latest Greek can kicking event.

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Feb 25

- Treasury Collateral Shortage Soars: 2 Year Trades -2.8% In Repo (ZeroHedge, Feb 24, 2015)

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Feb 24

- TRoiKa SToCKHoLM SYNDRoMe…:

TRoiKa SToCKHoLM SYNDRoMe...


yanis schauble shaking hands

Troika “Happy” With Revised List Of Greek Reform Promises: Full Varoufakis Letter (ZeroHedge, Feb 24, 2015):

Update:

  • EU COMMISSION SAYS GREEK LIST `SUFFICIENTLY COMPREHENSIVE’
  • COMMISSION: GREEK LIST STARTING POINT FOR REVIEW CONCLUSION

So one can say that can has been kicked for another four months. Continue reading »

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Feb 24

Well, it’s Not the biggest problem.


- This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300% (ZeroHedge, Feb 23, 2015):

If anyone has stopped to ask just why global central banks are in such a rush to create inflation (but only controlled inflation, not runaway hyperinflation… of course when they fail with the “controlled” part the money paradrop is only a matter of time) over the past 5 years, and have printed over $12 trillion in credit-money since Lehman, the bulk of which has ended up in the stock market, and which for the first time ever are about to monetize all global sovereign debt issuance in 2015, the answer is simple, and can be seen on the chart below.

It also shows the biggest problem facing the world today, namely that at least 9 countries have debt/GDP above 300%, and that a whopping 39% countries have debt-to-GDP of over 100%!

Global debt to gdp Continue reading »

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Feb 21

euro in smoke

- Beppe Grillo: “The Eurozone Chess Game Enters Its Final Stage: Germany Wins In Three Moves” (ZeroHedge, Feb 20, 2015):

With everyone’s attention focused these days on Greece’s Tsipras (and Varoufakis), and also casting concerned glances at Spain’s Pablo Iglesias, head of the poll-leading Podemos party which may well be the next Syriza, many have forgotten that Italy has its own “anti-austerity” voice, that of Beppe Grillo, a voice which had been relatively quiet in the recent past. However, judging by his latest blog post, he too will want to be heard in the seaschange in Europe in the aftermath of the Syriza surge and the resultant chaos that has shaken the Eurozone to its core.

From Beppe Grillo’s blog

The Euro’s up in smoke

The Eurozone chess game has entered its third and final stage. Germany wins in three moves – Euro, deflation and purchase of public debt by the ECB (QE) – and in the last few years it has found a way to maximise its profits and reduce to zero its risks as Europe’s creditor.

Continue reading »

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Feb 20

Russian president Vladimir Putin

- Moody’s “Junks” Russia, Expects Deep Recession In 2015 (ZeroHedge, Feb 20, 2015):

Having put Russia on review in mid-January, Moody’s has decided (somewhat unsurprisingly) to downgrade Russia’s sovereign debt rating to Ba1 (from Baa3) with continuing negative outlook. The reasons:

  • *MOODY’S SAYS RUSSIA EXPECTED TO HAVE DEEP RECESSION IN ’15, CONTINUED CONTRACTION IN ’16
  • *MOODY’S SEE RUSSIA DEBT METRICS LIKELY DETERIORATING COMING YRS

We assume the low external debt, considerable reserves, lack of exposure to US Treasuries, and major gold backing were not considered useful? Moody’s concludes the full statement (below) by noting that they are unlikely to raise Russian sovereign debt rating in the near-term.

*  *  *

Kind of ironic then that Russia is the best performing stock market in the world this year!!

Russia-Stock-Market-2015

*  *  *

Full Moody’s Statement: Continue reading »

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Feb 19

Putin chess

- Russia Dumps Most US Paper Ever As China Reduces Treasurys Holdings To January 2013 Levels (ZeroHedge, Feb 18, 2015):

Back in December, Socgen spread a rumor that Russia has begun selling its gold. Subsequent IMF data showed that not only was this not correct, Russia in fact added to its gold holdings. But there was one thing it was selling: some $22 billion in US Treasurys, a record 20% of its total holdings, bringing its US paper inventory to just $86 billion in December – the lowest since June 2008.

Russian Holdings Of US Treasuries Continue reading »

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Feb 15

- The Only Question About The So-Called “Recovery” (ZeroHedge, Feb 15, 2015):

We were almost eager to swallow the blue pill and admit that the “recovery” is an actual recovery this time (non-GAAP that is, one where all the economic data is first excluded)… and then we happened to glance at this chart, courtesy of Citigroup’s Matt King.

central bank interventions

Ignoring for a second the direct implication of what the chart highlights, namely that due to central bank intervention there is no more net supply of debt left in the world, now that for the first time ever, central banks are set to monetize all global government debt, something we showed previously… Continue reading »

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Feb 13


Feb 7, 2015

Description:

In this Keiser Report, Max Keiser and Stacy Herbert warn Greece to beware bureaucrats and bankers bearing bailouts. In the second half, Max continues with the second part of his interview with Kerry-Anne Mendoza about her new best selling book, “Austerity: The demolition of the welfare state and the rise of the zombie economy.”

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Feb 13


Feb 3, 2015

Description:

In this episode of the Keiser Report back in London, Max Keiser and Stacy Herbert discuss the Greek situation and that a nation is not what it thinks it is but what others attempt to hide about that nation – like the fact that it is bankrupt. They discuss the role Goldman Sachs played in helping Greece hide its debts and, thus, strapping it to the euro and the mispricing of real risk by well-compensated bond investors lending to Greece at ultra low interest rates. They also discuss that, while deflated footballs was the main headline on the nightly news in America, a memo was delivered to Obama outlining the various ways that brokers defraud American investors of years worth of retirement income.

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Feb 10

Yanis Varoufakis Sums Up Europe In One Sentence

Varoufakis Blasts ECB “Has Lost Control Of Monetary Policy” As Germany Tells Greece: “There Is No Way Out” (ZeroHedge, Feb 9, 2015):

“There is no way out” for Greece from its treaty obligations warns German lawmaker Michael Fuchs (Angela Merkel’s deputy caucus chairman) telling Bloomberg TV that conditions set for Greece by The Troika (EU, ECB, IMF) for bailout funds “have to be fulfilled…. That’s it, very simple.” The Greeks remain adamant that they will not ask for an extension to the bailout mechanism with both Tsipras and Varoufakis confirming that a bridge agreement is required and the latter adding “the ECB has lost control of monetary policy,” demanding the Troika structure come to an end. Then German Finance Minister Wolfgang Schaeuble exclaimed at the G-20 meeting that “Greece either has to find a way to get bridge financing, or, if they want to do it with us, they need a program,” seeming to push the door open to possible Russian financial aid for Greece as Europe’s pivot to Putin appears to be rising. Continue reading »

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Feb 10

Greek Bank Bonds & Stocks Crumble To Record Lows (ZeroHedge, Feb 9, 2015):

Just 3 short months ago, Greek bank bonds were trading near par and every over-leveraged, over-confident, over-full-of-propaganda hedge fund was buying them “for the yield” – well, S&P had upgraded Greece and implied ‘all-clear’. Today, Greek bank bonds are trading at 60% of face-value, having dead-cat-bounced last week before re-collapsing today. Greek bank stocks are also careening lower with most at record lows (below the lows reached during the peak of the crisis). The reason to focus on these instruments is that, while somewhat illiquid, they are the most sensitive to the day-to-day headlines and overall sentiment on Greece (and Grexit) as a pure reflection (redenomination risk aside) of trouble ahead

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Feb 10

- Greek Contagion? Spanish/Italian Bond Risk Surge Most In 4 Months (ZeroHedge, Feb 9, 2015):

With Spanish and Italian leaders desperately running around to any and every media outlet to proclaim themselves economically fit and deny deny deny what Greek FinMin Varoufakis said yesterday, it appears the market has a different perspective. Portuguese bond spreads are 16bps wider and Spanish and Italian bond spreads are 12bps wider – their worst day in almost 4 months – as it appears Grexit fears are starting to creep into the rest of the periphery.

 

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