European Reality Check

ancona

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I am dumbfounded every time I hear someone in the mainstream media talk about this fund that's supposed to be the salvation for all of Europe. The damn thing hasn't even been ratified yet, the German Constitutional Court has yet to say whether or not it is even constitutional for Germany to participate in it, Holland and I believe Finland want collateral first, etc. etc.

How the hell does a fund that does not even exist yet help anything? To add to the hilarity, they're talking about applying leverage to these Euro's that don't exist yet.

Brilliant!
 
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pmbug

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The "Fixit" scenario in which Finland grows tired of German efforts to bail out other eurozone countries got a boost today from Finnish Finance Minister Jutta Urpilainen, who told a Finnish business paper in an interview that Finland "will not hang itself to the euro at any cost and we are prepared for all scenarios" and that Finland won't endorse mutualization of debts:
She also insisted that a proposed banking union would not work if it were based on joint liability.

"Collective responsibility for other countries' debt, economics and risks; this is not what we should be prepared for," Urpilainen said.
...
More: http://www.slate.com/blogs/moneybox...nister_says_finland_might_leave_the_euro.html
 

benjamen

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The problems in Greece are forcing it's youth to look beyond government employment and into starting their own businesses. Their biggest opposition? The Greek government!

http://www.cnn.com/2012/07/13/opinion/keen-greek-entreprenuers/index.html

"The irony of this nascent Greek digital renaissance is that it probably wouldn't have happened without the economic crisis. In pre-crisis Greece, most Greeks grew up wanting to be public servants. But now that the old clientist state cannot offer lifetime sinecures for university graduates, young Greeks coming out of university now have little else to do except invest their labor in start-ups."

"The biggest problem, of course, remains the oppressively bureaucratic Greek state that, in spite of the crisis, continues to be a major obstacle to entrepreneurial innovation. "Failure in Greece in penalized," John Doxaras told me about a system in which entrepreneurs can end up in jail if they bankrupt their companies. And every Greek start-up entrepreneur I met complained bitterly about arcane and ever-changing bureaucratic regulations that make setting up and running a company frustratingly complex and time-consuming."

:popcorn:
 

pmbug

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Yeah, that's going to work about as well as it always has (it never has).
 

DoChenRollingBearing

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Bad as things are here, they are worse in Europe. Yes, Greece, Spain aand Italy now get the most attention.

But, we were just visiting our travel agent just a little while ago. She said that one of her high-end customers (a couple) were just in PARIS and found it menacing, especially at night even in the Five Star Hotel district.

Keep an eye on Europe! They are perhaps a year or so ahead of us. I do not see a solution that avoids LOTS of pain. Some "solutions" will offer MORE pain than others.
 

bushi

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(...)In pre-crisis Greece, most Greeks grew up wanting to be public servants. But now that the old clientist state cannot offer lifetime sinecures for university graduates, young Greeks coming out of university now have little else to do except invest their labor in start-ups."
(...)
...thank you, I have nothing more to add. Get these fecking governments out of our lives, hose them all, useless pain in our necks paper pushers, so they would have NO OTHER CHOICE, than start doing something productive, that somebody would WILLINGLY pay for (or fecking DIE from starvation!), and bang - economy sorted!

...same for financial institutions. Just make them much less profitable, than "the real economy" (properly designed taxes...), and the situation will heal itself.
 

benjamen

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Things are getting very bad in Spain:
http://www.businessinsider.com/eurozone-danger-mounts-as-spain-spins-out-of-control-2012-7

“We can’t keep going like this for another 15 days,” said Prof Miguel Angel Bernal from Madrid’s Institute of Market Studies. “The European Central Bank has to bring out its heavy artillery.”

"There is deep shock in government circles that the €65bn austerity package passed by the Spanish parliament last week amid bitter protests across the country – and imposed by the EU – has failed to make any difference."

Really, they are shocked that they do the same thing over and over and still get the same result... odd

:noevil:
 

benjamen

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pmbug

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...
"If Greece become insolvent and quits the euro zone, Germany should expect a loss of up to 82 billion euros, while if an insolvent Greece remains within the single currency bloc it would cost Berlin 89 billion euros, Germany's Ifo economics institute estimates."

...
Should I stay or should I go now?
If I go there will be trouble
An' if I stay it will be double
So come on and let me know
...
 

pmbug

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Looks like someone isn't riding the gravy train. That's much too honest and populist a position to come from the captured political class.
 

pmbug

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Looks like Monday is going to be risk off for the headline chasers:

When day after day, for three days in a row last week, the ECB spread rumors that it would commence buying Spanish debt in what was in retrospect nothing but a massive bluff (just as we suggested yesterday), what passes for a market postulated that since there was no official German denial, and with Merkel on vacation that would mean a statement from her finance minister sidekick Wolfgang Schauble, that Germany was ok with the reactivation of Spanish bond buying and as a result ramped risk by over 4% in 3 days. All of that is about to wiped out as Schauble has finally spoken. Quote Spiegel: "For days, it is rumored that the ECB will buy Spanish government bonds in a big way. Now Finance Minister Wolfgang Schaeuble has rejected such reports - there was "no truth". And scene. Luckily all the momo chasers who bought stocks last week on hopes their prayer-based strategy will finally play out, will be able to sell ahead of all those other momo chasers who bought stocks last week on hope their prayer-based strategy will finally play out. Or maybe not.
...
http://www.zerohedge.com/news/schau...n-german-finmin-denies-rumors-ecb-bond-buying
 

ancona

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Sunday night should be fun to watch 'Bug. I hope these knuckleheads finally wake up to the reality of a Europe without a Euro. It is inevitable after all, since regular Germans now realize that their hard work is being used to repay the banksters, and not to truly bail anyone out. It is now and always has been about making the bankers whole. Nothing more and nothing less. The banksters must get their vig, irrespective of the damage it is doing to entire societies. When the people finally have had enough, I will take a deep and satisfying Shaudenfreude in watching the People hand the banksters from lamp-posts by their balls.
 

rblong2us

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The euro doesnt need to disappear.

What needs to happen is that all fiat currencies get revalued based on the gold held by the issuing CB, to back it.

The ECB holds a lot of geld and is not afraid to state its current market value on line 1 of its balance sheet.

How to get from the mad money printing to solid gold backed money though ?

Fiats are a fantastic means of exchange but clearly a poor store of value .....
 
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