Infinite Unknown

- “The Truth Gets Out Eventually” (ZeroHedge, May 18, 2012):

Some look at today’s FaceBook IPO flop, the ongoing market rout, and the situation in Europe with disenchantment and disappointment. We, on the other hand, view it with hope: because more than anything, the events of the past few days show that the truth is getting out – the truth that capital markets simply can not exist under the authoritarian rule of central planners, the truth that the stock market is a casino in which the best one can hope for a quick flip, and finally the truth that our entire socio-economic regime, whose existence has been predicated by borrowing from the uncreated wealth of the future, and where accumulated debt could be wiped out at the flip of a switch if things go wrong in the process obliterating the welfare of billions (of less than 1%ers), is one big lie. Continue reading »

Tags: Bank of England, Ben Bernanke, cds, ECB, Economy, EU, Europe, Fed, Federal Reserve, Global News, Government, Politics, Society, U.K., U.S.

Spain’s intelligence services are investigating the role of British and American media in fomenting financial turmoil

Spain’s Prime Minister Jose Luis Rodriguez Zapatero has said that he believes US and English media outlets want to damage the Spanish economy Photograph: Paul White/AP

- Anglo-Saxon media out to sink us, says Spain (Guardian, May 14, 2012):

It is the only economy in Western Europe still in recession: property prices are crashing, unemployment has risen to more than 4 million, and some are already muttering that it could end up with a financial crisis worse than Greece’s.

But at least Spain now has someone to blame: the country’s intelligence services are investigating the role of British and American media in fomenting financial turmoil, the respected El País daily reported .

The newspaper said the country’s National Intelligence Centre (CNI) was investigating a series of “speculative attacks” against the Spanish economy amid bond market jitters about the country’s growing national debt.

Continue reading »

Tags: Bonds, Corporate Media, Debt, Economy, EU, Europe, Global News, Government, José Luis Rodríguez Zapatero, Politics, Spain, U.K., U.S.

- Cost of Greek exit from euro put at $1tn (Guardian, May 17, 2012):

The British government is making urgent preparations to cope with the fallout of a possible Greek exit from the single currency, after the governor of the Bank of England, Sir Mervyn King, warned that Europe was “tearing itself apart”.

Reports from Athens that massive sums of money were being spirited out of the country intensified concern in London about the impact of a splintering of the eurozone on a UK economy that is stuck in double-dip recession. One estimate put the cost to the eurozone of Greece making a disorderly exit from the currency at $1tn, 5% of output.

Continue reading »

Tags: Economy, EU, Euro, Europe, Global News, Government, Greece, Politics, U.K.

And Japan?

- Japan’s WTF Chart … Or Why Japan Is ‘DOOMED’!

- Fitch Cuts Greece as Leaders Spar Over Euro Membership (Bloomberg, May 17, 2012):

Greece’s credit rating was downgraded one level by Fitch Ratings on concerns the country won’t be able to muster the political support needed to sustain its membership in the euro area as leaders began campaigning ahead of the second national vote in six weeks.

Continue reading »

Tags: Bonds, Debt, Economy, EU, Europe, Fitch, Global News, Government, Greece, Politics, Rating

– Spain hires Goldman Sachs to value Bankia: report (Reuters, May 18, 2012):

The Spanish government has hired Goldman Sachs to carry out an independent valuation of Bankia, the ailing bank taken over by the state last week, Spanish newspaper Expansion said on Friday.

The U.S. bank will review Bankia’s and its parent company BFA’s books and determine within a month how much the state should inject to refloat the lender, which had to be rescued after its auditor, Deloitte, identified several gaps in last year’s accounts.

Continue reading »

Tags: Bankia, Banking, Economy, EU, Europe, Global News, Goldman Sachs, Spain

- ECB Stops Monetary Policy Operations To Some Greek Banks (ZeroHedge, May 16, 2012):

Update: some additional color from MNI, as Europe scrambles for damage control:

The European Financial Stability Facility (EFSF) is expected to approve an E18 billion recapitalization disbursement for Greek banks within the next four days, and the banks should get the money within a week, a senior Eurozone official told MNI Wednesda.

Earlier today MNI reported that the European Central Bank was growing nervous about delays in the recapitalization program for Greece and was threatening to suspend its lending to Greek banks as a means of expediting the decision.

“This has been a point of concern for the last month, and it was debated during Monday’s Eurogroup meeting, where ECB President Mario Draghi and EFSF head Klaus Regling were present,” the official said. “Up until then, the EFSF had sided with the Greek Financial Stability Fund, which was delaying the recapitalization process because it disagreed with certain points of the assessment of Greek banks’ eligibility for the funds,” he explained.

Just as we predicted moments ago, and as Dutch Dagblad warned overnight:

• ECB STOPS MONETARY POLICY OPERATIONS TO SOME GREEK BANKS AS RECAPITALISATION NOT IN PLACE -CENBANK SOURCES

From Reuters:

The European Central Bank has stopped monetary policy operations with some Greek banks as they have not been successfully recapitalized, euro zone central bank sources said on Wednesday.

The ECB declined to comment.

The ECB only conducts its refinancing operations with solvent banks. With no access to ECB funds, the banks concerned must go to the Bank of Greece for emergency liquidity assistance (ELA).

It was unclear exactly how many banks were affected.

One person familiar with the matter said four Greek banks’ capital was so depleted they were operating with negative equity capital. According to its own rules, the ECB cannot provide liquidity to banks in such a situation.

The beginning of the end? Or just more political posturing? In the meantime, EURUSD tumbles.

Tags: Banking, Collapse, ECB, EU, Euro, Europe, Global News, Government, Greece, Politics

Related info:

- More Than Half Of All Police Officers In Greece Voted For Pro-Nazi Party Golden Dawn

- ‘Euro Officials Begin To Weigh Greek Exit As Euro Weakens’ (Bloomberg) – Brace Yourself People Of Greece Or Get Totally Screwed By The Elitists

- Stocks Post Loss on Greece, S&P at 3-Month Low (CNBC, May 15, 2012):

Earlier, Greek politicians failed to form a coalition government during their final talks, pushing the Athens Composite Index to a new 22-year low. A caretaker government is likely to be formed pending a new election next month. The euro fell below $1.28 following the announcement and European closed at new 2012 lows.

- Greeks Withdraw Nearly $1 Billion From Local Banks (CNBC, May 15, 2012):

Greek depositors withdrew 700 million euros ($900 million) from the nation’s local banks recently, said President Karolos Papoulias, though the exact timing of the transfer was unclear.

Citing a conversation he had with Greek Central Bank Governor George Provopoulos, Papoulias said “that the strength of banks is very weak right now.” Continue reading »

Tags: Banking, Collapse, Economy, EU, Europe, Global News, Greece, Karolos Papoulias, Politics, Society, Stock Market

Related article:

- Charlie Munger: Gold Is For Holocaust-Era Jewish Families To Sew Into Their Garments; Civilized People Don’t Buy Gold

Got gold and silver?

- Must Read: “Another Perspective” (ZeroHedge, May 14, 2012):

From Paul Brodsky and Lee Quaintance of QBAMCO

Another Perspective (pdf)

Two weeks ago, before Jamie Dimon’s thoughtful diversion, Charlie Munger of Berkshire Hathaway instructed viewers of CNBC that “civilized people don’t buy gold, they invest in productive businesses”. Munger was right in that civilized people invest in productive businesses and was right to imply that gold is a non-productive rock, but, in our humble opinion, he was wrong to suggest that gold does not have significant upside as an investment currently (even more than BRK/A?).

Continue reading »

Tags: Ben Bernanke, Berkshire Hathaway, Bonds, Central Bank, Charlie Munger, China, Debt, Economy, EU, Europe, Fed, Federal Reserve, Global News, Gold, Goldman Sachs, Government, Greece, IMF, Larry Summers, Politics, QBAMCO, Silver, Stock Market, Timothy Geithner, U.S., Unemployment, Wall Street, Warren Buffett

Hmmh.

- Majority Of Neo-Normal Greek Cops Vote Neo-Nazi (ZeroHedge, May 15, 2012):

In a somewhat stunning revelation, especially after our earlier note on the Golden Dawn leader’s ‘position’ on the issues of the day, GreekReporter notes via the news paper To Vima, that more than half of all police officers in Greece voted for pro-Nazi party Golden Dawn in the elections of May 6th. It’s not really for us to judge (well maybe it is) but when some polling stations report Golden Dawn receiving 19-24% of the votes, things are going from the dismal to the horrific (and potentially chaotic) very fast.

ANSAmed: Greece: More than half police officers voted Neonazi party

Upsetting result revealed by newspaper “To Vima”

(ANSAmed) – ATHENS, MAY 11 – More than half of all police officers in Greece voted for pro-Nazi party Chrysi Avgi’ (Golden Dawn) in the elections of May 6. This is the disconcerting result of an analysis carried out by the authoritative newspaper To Vima (TheTribune) in several constituencies in Athens, where 5,000 police officers in service in the Greek capital also cast their ballot. Continue reading »

Tags: Collapse, Dictatorship, EU, Europe, Fascism, Global News, Golden Dawn, Government, Greece, Nazis, New World Order, Police, Politics, Society

Just to put elections in Germany in perspective, here are a few German members of the Bilderberg group:

Helmut Schmidt, Helmut Kohl, Gerhard Schröder and Angela Merkel.

The elitists have always won!

In Germany it’s basically the same situation as in the US (with just a few more small parties in Germany to give you a more sophisticated version of the illusion of choice):

Vote all you want , the flight plan doesn’t change!

As a side note: Sarkozy and Hollande are also both Bilderberg members:

- Francois Hollande Is Another Bilderberg Stooge (Video)

George Carlin sums it up best:

- George Carlin: The American Dream (Video)

- George Carlin: The Illusion Of Freedom – ‘This Country Finshed!’

Now continue to enjoy the election charade in your elitist controlled country!

- Angela Merkel’s party humiliated by shock election defeat (Independent, May 14, 2012):

German voters reject austerity programme in favour of pro-growth opposition in state poll

Angela Merkel’s ruling conservatives suffered a humiliating defeat in key elections in Germany’s most populous state yesterday when voters rejected her party’s austerity policies and handed a resounding victory to her pro-growth Social Democratic Party opponents.

Ms Merkel’s Christian Democrats were shell-shocked by the devastating result they returned in the poll in North Rhine Westphalia, which has a total population of 18 million. Exit polls showed that they secured a mere 25.5 per cent of the vote – their worst performance ever in the state.

Continue reading »

Tags: Angela Merkel, Election, EU, Europe, Germany, Global News, Government, Politics, Society