Jul 12

Wile_E_Coyote-Dont_Look_Down

CEO Of Europe’s Largest Insurer Pops The Utopia Bubble: “Nothing Is Solved And Everybody Knows It” (ZeroHedge, July 11, 2014):

It’s one thing for a tinfoil fringe blog to repeat, month after month, that nothing in Europe has been fixed, that Draghi’s disastrous policies are merely concentraing and stockpiling even more unresolved problems – for now ignored courtesy of the gentle sprinkle of ZIRP, or rather NIRP “fairy dust” – and that just like Portugal showed panic can grip the entire continent literally overnight because everyone knows this. It is something entirely different for the CEO of Europe’s largest insurer to make the same statement.

From Bloomberg:

When asking Allianz SE’s chief investment officer about the euro area’s sovereign debt woes, be prepared for an emphatic response.

The fundamental problems are not solved and everybody knows it,” Maximilian Zimmerer said at Bloomberg LP’s London office. The “euro crisis is not over,” he said.

While extraordinary stimulus from the European Central Bank has encouraged investors to pile into the region’s government bonds this year, that’s not a sufficient remedy for Zimmerer, who oversees 556 billion euros ($757 billion) at Europe’s largest insurer. Countries are still building up their debt piles, and that’s storing up trouble for the future, he said.

Continue reading »

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Jul 04

Largest Austrian Bank Crashes After “Revealing” 40% Surge In Bad Debt Provisions, Record Loss (ZeroHedge, July 4, 2014):

Update: just as expected, the confidence-preservation brigade is quick on the scene:

  • HUNGARY LOAN-REFUND LAW VIOLATES RULE OF LAW: BANK ASSOCIATION 
  • HUNGARY LOAN-REFUND LAW DAMAGES INVESTOR CONFIDENCE, BANKS SAY

Because clearly marking loans to fair value would crush investor confidence. And clearly investors are dumb enough not to realize that it is precisely by hiding what is beneath the surface, that they have zero confidence in the system.

* * *

Ever since 2012, when we first revealed that the biggest problem plaguing Europe’s financial sector is the $2 trillion+ in bad debt on the books of European banks (not our numbers, the IMF’s), it became clear that the only way Europe can avoid a complete financial meltdown coupled with currency disintegration, is if it can constantly keep rolling over said bad debt (obviously the only way to do that would be to create an epic debt bubble leading managers of other people’s money to do idiotic things like buy Spanish debt at 2.75%). This is why not only the BOJ launched its mega QE in 2013, but why Draghi also kicked in with NIRP a month ago: the logic – do anything and everything to reflate the biggest credit bubble possible as otherwise European banks will have no choice but to face up to their trillions in bad loans. Continue reading »

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Jun 07

Exactly what I’ve been looking for.

Many thanks to Wolf Richter.

See also:

- Even The Record Stock-Market Bullishness Is Fake (Testosterone Pit, June 6, 2014)


Selling Your European Stocks Before Everyone Sees This Chart? (Testosterone Pit, June 7, 2014):

Flogging savers until their morale improves, that’s how ECB President Mario Draghi is going to fire up the economy in his bailiwick. Among other things, he announced that the ECB would lower key interest rates from nearly nothing to next to nothing and impose negative deposit rates on the reserves that banks stash at the ECB.

The goals beyond destroying savers? Hammering down the euro, but given the efforts by the Fed, the Bank of Japan, and others to hammer down their own currencies, it’s going to be a slog. And motivating over-indebted companies to borrow even more to invest in worthy projects that don’t exist – because if they existed, banks would have already gone after them, awash in liquidity as they are. Continue reading »

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Jun 06

- NIRP Has Arrived: Europe Officially Enters The “Monetary Twilight Zone” (ZeroHedge, June 5, 2014):

Goodbye ZIRP, hello NIRP. Today’s decision by the ECB to officially lower the deposit facility rate to negative (as in you pay the bank to hold your deposits) is shocking, but not surprising: we previewed just this outcome precisely two years ago in “Europe’s “Monetary Twilight Zone” Neutron Bomb: NIRP

Here is what we wrote in June 2012 about Europe’s unprecedented NIRP monetary experiment.

Just because ZIRP is so 2009 (and will be until the end of central planning as the Fed can not afford to hike rates ever again), the ECB is now contemplating something far more drastic: charging depositors for the privilege of holding money. Enter NIRP, aka Negative Interest Rate Policy.

Continue reading »

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May 31

The Euro currency sign is seen in front of the European Central Bank (ECB) headquarters in Frankfurt

- Here Comes QE In Financial Drag: Draghi’s New ABCP Monetization Ploy (David Stockman’s Contra Corner, May 30, 2014):

You can smell this one coming a mile away:

The European Central Bank and Bank of England on Friday outlined options to reinvigorate the market for bundled bank loans, which was “tarnished” by the global financial crisis, saying a better-functioning market for asset-backed securities can help boost lending to the private sector, particularly small businesses.

Yes, the ECB is now energetically trying to revive the a market for asset-backed commercial paper (ABCP) – the very kind of “toxic-waste” that allegedly nearly took down the financial system during the panic of September 2008. The ECB would have you believe that getting more “liquidity” into the bank loan market for such things as credit card advances, auto paper and small business loans will somehow cause Europe’s debt-besotted businesses and consumers to start borrowing again  thereby reversing the mild (and constructive) trend toward debt reduction that has caused euro area bank loans to decline by about 3% over the past year.

What they are really up to, however, is money-printing and snookering the German sound money camp. That is, the ECB is getting set to launch QE in financial drag by purchasing or discounting ABCP while loudly proclaiming that it’s not “monetizing” any stinking sovereign debt! Continue reading »

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Apr 29


Added: Apr 25, 2014

Description:

Trends Guru and forecaster extraordinaire Gerald Celente joins Sheila Zilinsky the Weekend Vigilante on his plan for a one-two punch to the globalist agenda and we take back the greatest country in the world

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Apr 19

- “Everything we are told about deflation is a lie” (The Cobden Center, April 9, 2014):

“The European Central Bank has given its strongest signal yet that it is prepared to embrace quantitative easing to prevent the euro zone from sliding into deflation or even a prolonged period of low inflation.”
- ‘Draghi strengthens QE signal’, Financial Times, April 4, 2014.

Yes, heaven protect Europe’s embattled citizens and savers from a prolonged period of low inflation. How could they possibly survive it ? Continue reading »

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Feb 07

- German Top Court Finds ECB’s OMT Is Illegal, Then Promptly Washes Its Hands Of Final Decision (ZeroHedge, Feb 7, 2014):

In what was a shocking and disappointing at the same time decision, overnight the German Constitutional court, which had been contemplating the legality of the ECB’s still non-existent OMT program, conceived in July 2012 to prevent the collapse of the Eurozone and still only existing in Mario Draghi’s head as it has zero legal documentation supporting it, said that, in its judgment, the ECB’s Outright Monetary Transactions program likely exceeded the central bank’s powers.

“There are important reasons to assume that [the OMT] exceeds the European Central Bank’s monetary policy mandate and thus infringes the powers of the member states, and that it violates the prohibition of monetary financing of the budget,” the German court said Friday. “Subject to the interpretation by the Court of Justice of the European Union, the Federal Constitutional Court considers the OMT decision incompatible with primary law,” the German court said.

Continue reading »

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Feb 06

- Germany’s DAX Halted On Draghi-Driven Dump (Zerohedge, Feb 6, 2014):

No sooner had the ECB statement been released with its disappointing lack of unsterlizied QE or negative rate promises than European stocks mini-flash-crashed. Most notable was Germany’s DAX which collapsed over 200 points only and was promptly halted in the futures markets. Only to magically re-appear after the halt almost unchanged…

201402056_DAX_0

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Sep 29

- Berlusconi Has Last Laugh As Italy Scrambles To Contain Fallout From Government Collapse (ZeroHedge, Sep 29, 2013):

Following yesterday’s unexpected (if not shocking) news that ministers from Berlusconi’s PDL have resigned en masse in order to push for new elections, leading to the latest Italian government crisis (in a long and distinguished series), Italy’s premier Letta and president Napolitano are scrambling to preserve some stability, and not only they but moments ago Ansa reported that the management and supervisory boards of Italian megabank Intesa are set to meet at 6 pm, as not even the most optimistic see an easy way out of the political dead end Italy has found itself in now.

Continue reading »

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Jul 12

Europe’s debt-crisis strategy is near collapse. The long-awaited recovery has failed to take wing. Debt ratios across southern Europe are rising at an accelerating pace. Political consent for extreme austerity is breaking down in almost every EMU crisis state. And now the US Federal Reserve has inflicted a full-blown credit shock for good measure.

A leaked report from the European Commission confirms that Greece will miss its austerity targets yet again by a wide margin Photo: Reuters

- The wheels are coming off the whole of southern Europe (Telegraph, July 10, 2013):

None of Euroland’s key actors seems willing to admit that the current strategy is untenable. They hope to paper over the cracks until the German elections in September, as if that is going to make any difference.

A leaked report from the European Commission confirms that Greece will miss its austerity targets yet again by a wide margin. It alleges that Greece lacks the “willingness and capacity” to collect taxes. In fact, Athens is missing targets because the economy is still in freefall and that is because of austerity overkill. The Greek think-tank IOBE expects GDP to fall 5pc this year. It has told journalists privately that the final figure may be -7pc. The Greek stabilisation is a mirage.

Italy’s slow crisis is again flaring up. Its debt trajectory has punched through the danger line over the past two years. The country’s €2.1 trillion (£1.8 trillion) debt – 129pc of GDP – may already be beyond the point of no return for a country without its own currency.

Standard & Poor’s did not say this outright when it downgraded the country to near-junk BBB on Tuesday. But if you read between the lines, it is close to saying the game is up for Italy.

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May 08

- Godfrey Bloom of UKIP: Central Bankers Should be Arraigned as “War Criminals” (Liberty Blitzkrieg, May 7, 2013):

Coming off the heels of a fantastic performance in recent local elections, the UKIP under the leadership of Nigel Farage continues to make waves in both the UK and the Continent itself. In this case, I refer to a recent powerful performance at the European Parliament courtesy of Godfrey Bloom (UKIP), member of the European Parliament.

For many years, I have stated that Ben Bernanke was and is committing crimes against humanity, and would one day stand trial much like the war criminals at Nuremberg. It appears I am no longer alone in echoing such sentiments, as Mr. Bloom has just done so before the European Parliament.

I once said that Nigel Farage is Category 5 political hurricane.  That hurricane has landed.

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May 05


YouTube Added: 03.05.2013

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May 04


YouTube Added: 29.04.2013

Commentary:

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
- Alan Greenspan

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
- John Maynard Keynes

Quantitative easing = printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!

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Apr 15

- Which Country’s Gold Will Be Sold Next? (ZeroHedge, April 15, 2013):

The first time the Status Quo/Troika tried to force a (not so) stealthy gold confiscation on an insolvent European country was back in early 2012, when as part of the most recent Greek bailout MOU, it was disclosed that “Greece’s lenders will have the right to seize the gold reserves in the Bank of Greece under the terms of the new deal.” However, the public outcry was so loud that the Troika had no choice but to shelve its plans and proceed with a full scale bondholder restructuring instead. Fast forward to last week, when Europe’s appetite for physical gold came back with a bang, this time as part of the Cyprus “Debt Sustainability Analysis“, and subsequent comments from Mario Draghi, demanding that tiny Cyprus, whose opposition, already weakened by the confiscation of uninsured deposits would be far less vocal than Greece’s, sell off €400MM, or virtually all of its sovereign gold, over 10 of its 13.9 total tons, to cover the excess costs of its ever ballooning sovereign bailout. Continue reading »

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Apr 12

- Cyprus Central Bank In Shambles Following Third Board Member Resignation (ZeroHedge, April 12, 2013):

Perhaps the most underfollowed story of the day is the blatant takeover of the Cypriot Central bank by the ECB, which as we reported earlier, has been ordered to sell their gold by the ECB’s Mario Draghi, even though the disposition decision of the “independent” central bank of the now insolvent nation is supposedly theirs. First it was this:

  • PANICOS DEMETRIADES SAYS CYPRUS CENTRAL BANK INDEPENDENCE UNDER ATTACK,
  • DEMETRIADES SAYS GOVT WANTS TO SELL GOLD WITHOUT CONSULTATION.

And now we learn that not one, not two, but three board members of the central bank have called it a day:

  • THIRD BOARD MEMBER OF THE CYPRUS CENTRAL BANK RESIGNS – CYBC

We are sure there are at least a few more board members who can resign topped off by Panicos himself bailing, before the entire central bank implodes, and there is nobody left in charge of the now obsolete monetary policy apparatus. What happens then: will Goldman appoint a new “technocratic” Board and governor, or will the country finally confirm that all European lies about member bank Independence is just one big lie?

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Apr 12

- Mario Draghi Orders Cyprus To Sell Gold To Cover Bailout “Shortfall” (ZeroHedge, April 11, 2013):

Update, and sure enough:

  • PANICOS DEMETRIADES SAYS CYPRUS CENTRAL BANK INDEPENDENCE UNDER ATTACK,
  • DEMETRIADES SAYS GOVT WANTS TO SELL GOLD WITHOUT CONSULTATION.
  • CYPRUS CENTRAL BANK GOV DEMETRIADES SAYS HE AND HIS FAMILY RECEIVED DEATH THREATS

As a reminder, Panicos holds the now obsolete position of head of the Cyprus Central Bank.

* * *

As was noted two days ago (so certainly not the news catalyst for today’s gold sell off as some are trying to make it appear) as part of its bailout expansion by 35%, Cyprus announced, then refuted, then re-admitted, it would need to fund a portion of the incremental €7 billion in cash demands by selling €400 million, or nearly all 13.9 tons, of its central bank gold. Today, we learn that this demand came from none other than the head of the ECB Mario Draghi. Bloomberg reports: “European Central Bank President Mario Draghi said the profits of any gold sales by the Cypriot central bank must be used to cover losses it may sustain from emergency loans to Cypriot commercial banks.”

Of course, to make it seem that the Cyprus central bank is “independent”, the “European creditors today left a possible gold sale in the hands of the Cypriot central bank, which manages 13.9 metric tons of the metal, according to the World Gold Council.” Naturally, it would not be very politically correct to give the impression that it is none other than the collateral and asset-starved European central bank that is effectively running local monetary policy of its member states, and certainly would not make Cypriots, already devoid of their uninsured bank deposits, happy that the next demand by the ECB for the privilege of staying in the EUR is for them to hand over the only real asset their country has.

More from Bloomberg:

“The decision is going to be taken by the central bank,” Draghi said after a meeting of euro-area finance officials in Dublin. “What’s important, however, is that what is being transferred to the government budget out of the profits made out of the sales of gold should cover first and foremost any potential loss that the central bank might have from its ELA.”

Continue reading »

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Mar 27


YouTube Added: 19.03.2013

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Mar 24

- Rampapalooza As Cyprus-Troika Reach Deal (Updates) (ZeroHedge, March 24, 2013):

UPDATE: It appears the ‘deal’ to default/restructure the banks has been designed to bypass the need for parliamentary votes, since it is theoretically not a tax.

While we have little color on what kind of carnage the President of Cyprus had to accept to his fellow countrymen, the news is that :

  • *CYPRUS, TROIKA REACH AGREEMENT IN PRINCIPLE, EU OFFICIAL SAYS
  • *DEAL MADE AT DINNER WITH DRAGHI, LAGARDE, VAN ROMPUY, BARROSO

The terms, unsurprisingly what zee Germans wanted, are:

i) Laiki to be wound down;

ii) Bank of Cyprus to survive but with deposit haircuts, and

iii) deal would see secured deposits in Laiki moved to Bank of Cyprus.

In other words, a deal far worse then the original on proposed by the Eurogroup last week – when the banks still existed. The key appears to be the ‘saving’ of the insured depositors (crucial to avoid a pan-European bank run) and the crushing of the ‘whale’ depositors.

Continue reading »

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Mar 12

- 150,000 Greek Public Sector Job Cuts Pending As Greece Launches Another Grexit “Plan B” Movement (ZeroHedge, March 12, 2013):

The eye of the hurricane over Southeast Europe may soon be shifting, exposing Greece to the same 150 mph gale turmoil everyone has grown to love and expect over the past three years as soon as this month, when a new proposal by Greece is due on how to cut a massive 150,000 public sector jobs: a move which will result in an immediate surge in public unrest, and an exponential jump in strike activity. As Bloomberg reports, “Greece is locked in talks with international creditors in Athens about shrinking the government workforce by enough to keep bailout payments flowing. Identifying redundant positions and putting in place a system that will lead to mandatory exits for about 150,000 civil servants by 2015 is a so-called milestone that will determine whether the country gets a 2.8 billion-euro ($3.6 billion) aid installment due this month. More than a week of talks on that has so far failed to clinch an agreement.”

Continue reading »

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Feb 14

- First Monte Paschi Banker Arrested With $54mm Stash (ZeroHedge, Feb 14, 2013):

Unfortunately for the apparently not quite big enough to not fail Italian bank’s former leaders, the Monte Paschi derivative debacle just won’t go away. As Reuters reports today, the first (or many) arrests have been made. Gianluca Baldassarri and four other people suspected of criminal conspiracy to commit fraud were arrested after police seized EUR40mm of apparently ill-gotten gains. The alleged fraud and bribery case charges Baldassarri (who left shortly after the arrival of the new CEO in Jan 2012) of misleading regulators over the true nature of a secret derivative contract that was found in a safe by the bank’s new management in October 2012. Echoing JPM’s London Whale, they uncovered a ‘systematic overshooting of risk limits’ in the management of the group’s EUR24bn prop book. Baldassarri was arrested quickly after the police found evidence that he was trying to cash in securities worth over EUR1mm soon after the funds were seized. Continue reading »

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Feb 12

From the article:

“So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We’re literally at most a few months, and very likely just a few weeks from Europe’s banks imploding, potentially taking down the financial system with them. Think I’m joking? The Fed is pumping hundreds of BILLIONS of dollars into EU banks right now trying to stop this from happening.”


- WARNING: the EU Crisis is BACK and Will Be Worsening in the Coming Weeks (ZeroHedge, Feb 12, 2013):

I want to issue a major warning to investors: the EU Crisis is going to get worse in the coming months.

I realize that most investors and analysts believe that the EU Crisis is over. Then think that because the S&P 500 is closing in on its all-time highs that things are fine in the system.
They are wrong.

The only item that held Europe together in 2012 was the credibility of EU politicians and ECB President Mario Draghi. Please note that nothing fundamental improved for the EU’s financial system: EU GDP has since re-entered a recession and EU unemployment has a hit a new record.

Indeed, the only reason things even looked better was because various Government engaged in massive interventions. In the case of Spain, this included raiding 90% of their social security fund to buy Spanish bonds so that yields would fall.

Continue reading »

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Jan 31

- LEAKED: Mario Draghi And His Triumvirate Shut Up German Finance Minister To Keep Cyprus From Blowing Up The Eurozone (ZeroHedge, Jan 28, 2013):

The state-sponsored chorus about the end of the debt crisis in the Eurozone has been deafening. It even has feel-good metrics: the Euro Breakup Index for January fell to 17.2%—the percentage of investors who thought that at least one country would leave the Eurozone within twelve months. In July, it stood at 73%. For Cyprus, the fifth Eurozone country to ask for a bailout, the index fell to 7.5%. “A euro breakup is almost no issue anymore among investors,” the statement said.

Just then, in a fight over whether or not to bail out Cyprus, top Eurocrats exposed what a taxpayer-funded con game they thought these bailouts really were—and how fragile the Eurozone was.

Continue reading »

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Jan 29

- Labor Minister Says France Is “Totally Bankrupt” (ZeroHedge, Jan 28, 2013):

Things in France must not be very serious, because the French labor minister accidentally let the truth come out a little earlier today. As the Telegraph reports, France’s labour minister sent the country into a state of shock on Monday after he described the nation as “totally bankrupt.

Remember: France is one of the supposedly stable countries in Europe.

“Michel Sapin made the gaffe in a radio interview, which left French President Francois Hollande battling to undo the potential reputational damage. “There is a state but it is a totally bankrupt state,” Mr Sapin said. “That is why we had to put a deficit reduction plan in place, and nothing should make us turn away from that objective.” It appears that once one wipes out the propaganda and the smooth politico talk, things are bad and getting worse at Europe’s core. “Data from Banque de France showed earlier this month that a flight of capital has already left the country amid concerns that France’s Socialist leader intends to soak the rich and businesses. The actor Gérard Depardieu has renounced his French citizenship and decamped to Russia in protest, while David Cameron said Britain will “roll out the red carpet” to attract wealthy individuals. Pierre Moscovici, the finance minister, said the comments by Mr Sapin were “inappropriate”.”

At least France can hike the tax on the millionaires to 75% to generate more money. Oh wait, no it can’t.

But if capital is leaving France, where is it going? The FT has the answer: Continue reading »

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Jan 26

You can’t make this stuff up!


- Italian Scandal Widens As Italy’s Third Largest Bank Set To Get Third Bailout In 3 Years; Draghi, Monti Implicated (ZeroHedge, Jan 26, 2013):

While little has been said in the mainstream western press about the ongoing fiasco surrounding Siena’s Banca Monte dei Pasci, Italy’s third largest bank and the world’s oldest which may get its third bailout in three years - or even be nationalized – as soon as today, for fears that it may break the thin veneer of “recovery” in the European financial system, the situation on the ground in Italy is getting more serious by the minute, and will have implications on both next month’s general election, on Mario Monti, on Silvio Berlusconi, on frontrunner for the Prime Minister post Pier Luigi Bersani, and reach as far up as the head of the ECB – Mario Draghi.Several hours ago, on Saturday morning, the four-member board of the Bank of Italy – this time without its prior president Mario Draghi – met to consider the position of scandal-hit bank Monte dei Paschi di Siena and decide whether to authorize its request for 3.9 billion euros ($5.3 billion) of state loans.

Continue reading »

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Dec 12

- How A Handful Of Unsupervised MIT Economists Run The World (ZeroHedge, Dec 12, 2012)

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Nov 08


YouTube

Description:

Gerald Celente, the founder of the Trends Research Institute, at the Marriott Hotel in Munich, Germany, on November 3rd, 2012. Celente was holding a presentation later on on the Internationale Edelmetall- und Rohstoffmesse, the largest precious metals conference in Europe. You can find Gerald Celente at trendsresearch.com and trendsjournal.com.

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Oct 26

- Ireland urges ECB to commit to bond-buying (Financial Times, Oct 26, 2012):

Dublin has asked the European Central Bank to commit to buying Irish government bonds to help smooth the country’s exit from its international bailout at the end of next year.Michael Noonan, Ireland’s finance minister, said on Thursday that the government had asked its international lenders to outline “confidence-building measures” to drive down Irish bond yields as it prepared its long-term return to markets.

Continue reading »

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Sep 25

- Is Draghi’s Bond-Buying Dream Circling The Drain As ECB/Bundesbank Lawyer Up? (ZeroHedge, Sep 24, 2012):

Following closely on the heels of our recent (now must read) discussion of the potential illegality of Draghi’s OMT, Reuters is reporting the somewhat stunning news that the ECB and Bundesbank are getting lawyers to check the legality of the new bond-buying program. Germany’s Bild newspaper – via the now ubiquitous unnamed sources – said in-house lawyers were checking both what proportions the program would have to take on and how long it would have to last for it to breach EU treaties (that specifically ban direct financing of state deficits).While Draghi – full of bravado – likely said whatever he felt was necessary at the time to stop the inversion in the Spanish yield curve, it is becoming clearer that, as usual, the premature euphoria (in the complacent belief that central banks can solve every problem with a wave of the magic CTRL-P wand) was misplaced.

Bild goes on to note that this matter could be referred to the European Court of Justice – and the ECB/Buba were preparing for such an event. Of course, since every other rumor in recent months, most of which have originated in credible media, has proven to be a lie, it is likely this is also merely leaked disinformation to push the German case, i.e. anti-Europe.

Via Reuters:

BERLIN, Sept 25 (Reuters) – The European  Central Bank and Germany’s Bundesbank central bank are getting lawyers  to check the legality of the ECB’s new bond-buying programme, a German  newspaper said on Tuesday.

German tabloid Bild, which did not name  its sources, said ECB and Bundesbank in-house lawyers were checking  both what proportions the programme would have to take on and how long  it would have to last for it to breach EU treaties.

Continue reading »

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Sep 23

- Former ECB Chief Economist Says ECB Is In Panic, As Czech President Warns The End Of Democracy Is Imminent (ZeroHedge, Sep 22, 2012):

If anyone thought the bad blood between Germany and the rest of the insolvent proletariat, aka the part of the Eurozone which is out of money (most of it), and which has been now confirmed will be supporting Obama (one wonders what the quid for that particular quo is, although we are certain we will find out as soon as December), complete collapse of the Greek neo-vassal state of the globalist agenda notwithstanding, had gone away, here comes former ECB chief economist Juergen Stark to dispel such illusions. In an interview with Austrian Die Presse, the former banker said what everyone without a PhD understands quite well: “The break came in 2010. Until then everything went well…”Then the ECB began to take on a new role, to fall into panic…. Together with other central banks, the ECB is flooding the market, posing the question not only about how the ECB will get its money back, but also how the excess liquidity created can be absorbed globally. “It can’t be solved by pressing a button. If the global economy stabilises, the potential for inflation has grown enormously… It gave in to outside pressure … pressure from outside Europe” Why, whichever bank headquartered at 200 West, NY, NY might he be referring to?

From Telegraph:

He added that “panic” about the eurozone breaking up was “nonsense” but that the only way to end the crisis was for member states to bring down their debts and implement structural reforms to boost economic growth.

“Governments have recognised that returning to budgetary discipline is indispensable. Markets focus much more on whether states will be able to service their debts in five years’ time,” he said.

Mr Stark quit in late 2011, following in the footsteps of former Bundesbank head Axel Weber, who stepped down earlier in the year from Germany’s central bank because of unease about the ECB’s policies.

Mr Weber’s successor Jens Weidmann was the only member of the ECB’s policy-setting governing council to vote against the bank’s new programme earlier this month.

“Weidmann’s arguments … should not be made light of,” Mr Stark told Die Presse. “The way in which his position has been publicly commented upon by the ECB leadership has crossed the line of fairness.”

And speaking of continuing takeover of the world by a few not so good banks, a loud warning that the advent of globalist influences (i.e., bankers) is taking over Europe and that the “destruction of Europe’s democracy is in its final phase” comes not from some European (or American… or Zimbabwean) fringe blog, but from the 71 year old president of the Czech Republic, someone who certainly knows about the difference between communism and democracy, Vaclav Klaus. In an interview with The Sunday Telegraph, “Václav Klaus warns that “two-faced” politicians, including the Conservatives, have opened the door to an EU superstate by giving up on democracy, in a flight from accountability and responsibility to their voters. “We need to think about how to restore our statehood and our sovereignty. That is impossible in a federation. The EU should move in an opposite direction,” he said.”

Continue reading »

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