Greece Issues Exchange Offer Terms; Raises Minimum Acceptance Threshold To 75% From 66%; €10 Billion Buys PSI Killer
Three days ago we recoiled in terror at the stupidity of Greek leaders, when we learned that the Greek exchange offer would be deemed satisfactory if
only 66% of bondholders accept it as valid, as it would mean an
immediate abrogation of UK-law bonds which have a 75% minimum covenant
threshold as specified in the indenture. Apparently this was a
“small oversight” on behalf of the gross amateurs in charge of this
process as according to the just released full exchange offer doc, this
threshold was mysteriously raised to the proper minimum acceptance threshold of 75%. Of
course, it is needless to say that at least 25% of Greek bondholders
will decline the offer, either in the current Greek law exchange, or the
forthcoming UK-law one, which would throw the whole process into a
tailspin. Because here is the kicker, from the release: “if less than
75% of the aggregate face amount of the bonds selected to participate in
PSI are validly tendered for exchange, and the Republic does not
receive consents that would enable it to complete the proposed exchange
with respect to bonds selected to participate in PSI representing at
least 75% of the aggregate face amount of all bonds selected to
participate in PSI, the Republic will not proceed with any of the transactions described above.”
So here’s the math: if one has 25% +1 of the €177 billion in Greek-law
bonds, they can smash the entire process (and give Germany a way out,
wink wink). At today’s price of about 20 cents on the dollar, this means
that one can hold Greece, and thus Europe (assuming Europe
wants Greece in the Eurozone and Germany itself is not the biggest
shadow hold out) hostage for less than €9 billion. Or better
yet, since the total bonds subject to PSI are about €206 billion, this
means UK law bonds of just €29 billion are part of the deal, and one can
buy a blocking stake there, at roughly 30 cents on the euro, for a meager €2 billion in cash out today. Furthermore since many hedge funds already have built up blocking stakes, this almost certainly means that Greece will not get the requisite needed votes to pass the exchange.
Read More @ ZeroHedge.com
Greece's Lenders Have The Right To Seize National Gold Reserves
http://www.goldcore.com/goldcore_blog/greece%E2%80%99s-lenders-have-right-sei...
http://www.zerohedge.com/news/projected-piigs-pillage-32335-tons-gold-be-conf...
IMF Participation in Greek Rescue 'Essential'
http://www.breitbart.com/article.php?id=CNG.0ec34b41a1639e68a33560f385a9c2f3....
A Few More Months Of This And The Economy Is Toast...
http://www.thedailysheeple.com/a-few-more-months-of-this-and-the-economy-is-t...
GE "Forcing" Employees Into Chevy Volts
http://gas2.org/2012/02/20/ge-forcing-employees-into-chevy-volts/
1980 Was a Warmup, Gold to Range $400 a Day
http://kingworldnews.com
Faster than Light Neutrinos? Not so Fast...
http://space.about.com/b/2012/02/22/faster-than-light-neutrinos-not-so-fast.htm
http://www.youtube.com/watch?v=6GeqB38Va8o
Baltic Dry, Dr. Copper Flashing Warning Signs
http://blogs.wsj.com/marketbeat/2012/02/23/baltic-dry-dr-copper-flashing-warn...
Greece's Lenders Have The Right To Seize National Gold Reserves
http://www.goldcore.com/goldcore_blog/greece%E2%80%99s-lenders-have-right-sei...
http://www.zerohedge.com/news/projected-piigs-pillage-32335-tons-gold-be-conf...
IMF Participation in Greek Rescue 'Essential'
http://www.breitbart.com/article.php?id=CNG.0ec34b41a1639e68a33560f385a9c2f3....
A Few More Months Of This And The Economy Is Toast...
http://www.thedailysheeple.com/a-few-more-months-of-this-and-the-economy-is-t...
GE "Forcing" Employees Into Chevy Volts
http://gas2.org/2012/02/20/ge-forcing-employees-into-chevy-volts/
1980 Was a Warmup, Gold to Range $400 a Day
http://kingworldnews.com
Faster than Light Neutrinos? Not so Fast...
http://space.about.com/b/2012/02/22/faster-than-light-neutrinos-not-so-fast.htm
http://www.youtube.com/watch?v=6GeqB38Va8o
Baltic Dry, Dr. Copper Flashing Warning Signs
http://blogs.wsj.com/marketbeat/2012/02/23/baltic-dry-dr-copper-flashing-warn...
by Simone Foxman, BusinessInsider.com:
One
of the biggest macro events we’re watching right now is a meeting of
G20 finance ministers taking place in Mexico City starting today and
continuing into the weekend.
It seems likely the meeting will focus on how to deal with the fallout from an upcoming Greek default—selective or not—but there are few more points we’ll be watching closely:
Read More @ BusinessInsider.com
One
of the biggest macro events we’re watching right now is a meeting of
G20 finance ministers taking place in Mexico City starting today and
continuing into the weekend.It seems likely the meeting will focus on how to deal with the fallout from an upcoming Greek default—selective or not—but there are few more points we’ll be watching closely:
Read More @ BusinessInsider.com
from The Daily Bell:
Europe’s Banker Talks Tough … Draghi Says Continent’s Social Model Is ‘Gone,’ Won’t Backtrack on Austerity … European Central Bank President Mario Draghi warned beleaguered euro-zone countries that there is no escape from tough austerity measures and that the Continent’s traditional social contract is obsolete, as he waded into an increasingly divisive debate over how to tackle the region’s fiscal and economic troubles … In a wide-ranging interview with The Wall Street Journal at his downtown office here, Mr. Draghi reflected on how the region’s travails were pushing Europe toward a closer union. He said Europe’s vaunted social model—which places a premium on job security and generous safety nets—is “already gone,” citing high youth unemployment; in Spain, it tops 50%. He urged overhauls to boost job creation for young people. There are no quick fixes to Europe’s problems, he said, adding that expectations that cash-rich China will ride to the rescue were unrealistic. He argued instead that continuing economic shocks would force countries into structural changes in labor markets and other aspects of the economy, to return to long-term prosperity. – WSJ
The real owners, forget the politicians … you have no choice. You have owners. They OWN you. We know what they want … They want more for themselves and less for you … They’ll get it! The vanishing pension that disappears the moment you come to collect … The game is rigged! … And nobody seems to notice. Nobody seems to care. – George Carlin (one of his last performances).
Dominant Social Theme: We’ve just destroyed the fundaments of post-war Western society. Demolished them. Ho-hum. “Nobody notices. Nobody cares.” You shouldn’t, either.
Free-Market Analysis: This is historic stuff. The end of Dreamtime, folks. We keep hearing one of George Carlin’s last video clips playing over and over in our pointy heads like a bad rock ‘n roll song.
Read More @ TheDailyBell.com
Europe’s Banker Talks Tough … Draghi Says Continent’s Social Model Is ‘Gone,’ Won’t Backtrack on Austerity … European Central Bank President Mario Draghi warned beleaguered euro-zone countries that there is no escape from tough austerity measures and that the Continent’s traditional social contract is obsolete, as he waded into an increasingly divisive debate over how to tackle the region’s fiscal and economic troubles … In a wide-ranging interview with The Wall Street Journal at his downtown office here, Mr. Draghi reflected on how the region’s travails were pushing Europe toward a closer union. He said Europe’s vaunted social model—which places a premium on job security and generous safety nets—is “already gone,” citing high youth unemployment; in Spain, it tops 50%. He urged overhauls to boost job creation for young people. There are no quick fixes to Europe’s problems, he said, adding that expectations that cash-rich China will ride to the rescue were unrealistic. He argued instead that continuing economic shocks would force countries into structural changes in labor markets and other aspects of the economy, to return to long-term prosperity. – WSJ
The real owners, forget the politicians … you have no choice. You have owners. They OWN you. We know what they want … They want more for themselves and less for you … They’ll get it! The vanishing pension that disappears the moment you come to collect … The game is rigged! … And nobody seems to notice. Nobody seems to care. – George Carlin (one of his last performances).
Dominant Social Theme: We’ve just destroyed the fundaments of post-war Western society. Demolished them. Ho-hum. “Nobody notices. Nobody cares.” You shouldn’t, either.
Free-Market Analysis: This is historic stuff. The end of Dreamtime, folks. We keep hearing one of George Carlin’s last video clips playing over and over in our pointy heads like a bad rock ‘n roll song.
Read More @ TheDailyBell.com
by Simon Black, Sovereign Man:
I want to start off today’s letter by thanking the 120+ folks who’ve made the journey down to Chile over the past two weekends to break bread on the farm. Last weekend’s event was a real delight, and I’m looking forward to tonight’s festivities with the new group.
It’s a pleasure to spend time around people with a similar world view, and it was amazing to see dozens of complete strangers forming fast friendships in such a pleasant setting.
On to this week’s questions.
Read More @ SovereignMan.com
I want to start off today’s letter by thanking the 120+ folks who’ve made the journey down to Chile over the past two weekends to break bread on the farm. Last weekend’s event was a real delight, and I’m looking forward to tonight’s festivities with the new group.
It’s a pleasure to spend time around people with a similar world view, and it was amazing to see dozens of complete strangers forming fast friendships in such a pleasant setting.
On to this week’s questions.
Read More @ SovereignMan.com
by Roman Baudzus, GoldMoney.com:
For
the first time in three years the slowdown in the eurozone is
negatively affecting trade with important Asian exporters such as Japan,
China, South Korea and Thailand. Owing to last year’s floods, in Q4 Thailand’s economy suffered a 10.7% slowdown in comparison with the previous quarter. Recent factory closures have also caused difficulties for the Thai economy.
Meanwhile, Japan’s exports dropped by 9.3% in January – a record monthly fall. Japan’s current account deficit now stands at US$19 billion. In order to boost exports the Bank of Japan recently announced a $130 billion expansion of its bond-purchasing programme. This is designed to weaken the yen. The People’s Bank of China is also loosening its monetary policy by lowering bank reserve requirements. Investors are also confident that the US Federal Reserve will follow these steps and announce a third round of bond purchases soon.
Read More @ GoldMoney.com
For
the first time in three years the slowdown in the eurozone is
negatively affecting trade with important Asian exporters such as Japan,
China, South Korea and Thailand. Owing to last year’s floods, in Q4 Thailand’s economy suffered a 10.7% slowdown in comparison with the previous quarter. Recent factory closures have also caused difficulties for the Thai economy.Meanwhile, Japan’s exports dropped by 9.3% in January – a record monthly fall. Japan’s current account deficit now stands at US$19 billion. In order to boost exports the Bank of Japan recently announced a $130 billion expansion of its bond-purchasing programme. This is designed to weaken the yen. The People’s Bank of China is also loosening its monetary policy by lowering bank reserve requirements. Investors are also confident that the US Federal Reserve will follow these steps and announce a third round of bond purchases soon.
Read More @ GoldMoney.com
by Graham Summers, GainsPainsCapital.com:
Now let’s take our analysis from yesterday a step further.
Deutsche Bank trades on US stock exchanges and so has to publish SEC filings on its balance sheet risk. Well, according to Deutsche Bank’s own filings, it had 1.6 billion Euros’ worth of credit exposure to Greece at the end of 2010. True, this is credit exposure not direct exposure to sovereign debt… but it’s still four times what the Guardian claims to the case.
More interesting that this, the term “Greece” is only mentioned twice in Deutsche Bank’s 2010 416-page annual report. Remember, this was the year in which the Greek Euro Crisis nearly took the system down: between January 2010 and June 2001, when the first Greek bailout was announced, the Euro lost 17% if its value. Worldwide, stock markets cratered despite central bank intervention. And it was only the Fed’s promise of QE lite and QE 2 that got the global equity rally rolling again.
Read More @ GainsPainsCapital.com
Now let’s take our analysis from yesterday a step further.
Deutsche Bank trades on US stock exchanges and so has to publish SEC filings on its balance sheet risk. Well, according to Deutsche Bank’s own filings, it had 1.6 billion Euros’ worth of credit exposure to Greece at the end of 2010. True, this is credit exposure not direct exposure to sovereign debt… but it’s still four times what the Guardian claims to the case.
More interesting that this, the term “Greece” is only mentioned twice in Deutsche Bank’s 2010 416-page annual report. Remember, this was the year in which the Greek Euro Crisis nearly took the system down: between January 2010 and June 2001, when the first Greek bailout was announced, the Euro lost 17% if its value. Worldwide, stock markets cratered despite central bank intervention. And it was only the Fed’s promise of QE lite and QE 2 that got the global equity rally rolling again.
Read More @ GainsPainsCapital.com
Treasury Secretary Geithner: Oil & Global Economy
[Ed. Note: Timmy says oil prices are going up because of growth... Iran is the cause of all our future problems.]
Insight on the risk of higher oil prices on the U.S. economy, Timothy Geithner, Treasury Secretary, who says there is no quick fix to reducing oil prices but encouraging Americans to be more energy efficient can lighten the burden. Geithner also discusses the steps the ECB is taking to ensure the world that Europe is taking steps to prevent a catastrophic financial crisis.
[Ed. Note: Timmy says oil prices are going up because of growth... Iran is the cause of all our future problems.]
Insight on the risk of higher oil prices on the U.S. economy, Timothy Geithner, Treasury Secretary, who says there is no quick fix to reducing oil prices but encouraging Americans to be more energy efficient can lighten the burden. Geithner also discusses the steps the ECB is taking to ensure the world that Europe is taking steps to prevent a catastrophic financial crisis.
by Don Miller, MoneyMorning.com:
Don
Miller: Market manipulation has a long and storied history. From the
Tulip Mania of the 1600s all the way to the recent housing bubble,
market manipulators have employed a wide range of tactics to lighten
the wallets of unsuspecting investors.
And even though market manipulation is prohibited in the U.S. under a section of the Securities Exchange Act of 1934 – it’s as American as apple pie.
Everyone from high-ranking government officials to investment bankers have been caught with their hands in the cookie jar.
The list includes scofflaws like Ivan Boesky, Michael Milken, and Jack Abramoff.
Read More @ MoneyMorning.com
Don
Miller: Market manipulation has a long and storied history. From the
Tulip Mania of the 1600s all the way to the recent housing bubble,
market manipulators have employed a wide range of tactics to lighten
the wallets of unsuspecting investors.And even though market manipulation is prohibited in the U.S. under a section of the Securities Exchange Act of 1934 – it’s as American as apple pie.
Everyone from high-ranking government officials to investment bankers have been caught with their hands in the cookie jar.
The list includes scofflaws like Ivan Boesky, Michael Milken, and Jack Abramoff.
Read More @ MoneyMorning.com
How to Become Free – Stefan Molyneux of Freedomain Radio Interviewed by John Bush
by Mike Shedlock, Global Economic Analysis:
The one and only thing that might possibly spare Greece the agony of a completely worthless currency is Greece’s small hoard of 111 tons of gold.
Pact With the Devil
Yet, in the fine print in the latest deal, Greece’s lenders will have the right to seize its gold reserves according to the New York Times article Growing Air of Concern in Greece Over New Bailout.
The one and only thing that might possibly spare Greece the agony of a completely worthless currency is Greece’s small hoard of 111 tons of gold.
Pact With the Devil
Yet, in the fine print in the latest deal, Greece’s lenders will have the right to seize its gold reserves according to the New York Times article Growing Air of Concern in Greece Over New Bailout.
In the fine print of
the 400-plus-page document — which Parliament members had a weekend to
read and sign — Greece relinquished fundamental parts of its sovereignty
to its foreign lenders, the European Commission, the European Central
Bank and the International Monetary Fund.
Read More @ GlobalEconomicAnalysis.Blogspot.comRick Santorum: Radical Big Spender in Conservative’s Clothing
[Ed. Note:
Richard is a fantastically funny and well-informed guy, and his blog
appears to be brand new. We'll be keeping an eye out for his musings.
You can also read his first piece, "Living Well on Gold and Silver". Earlier in the week, we posted a great interview that he did on GoldSeek Radio.]
by Richard Daughty, MogamboGuru.Blogspot.com:
Hello, Junior Mogambo Rangers (JMRs), and welcome to the site of the Mogambo blog, an obligation that I did not want and overtly rejected, and have no intention of living up to any bargain for accepting any responsibilities of any kind, including, but not limited to, personal hygiene, social graces and, especially, blogs, but was given free, as an encouragement, by the folks at GoldSeek.com, for perhaps nefarious reasons that I can only darkly guess at, and shudder at the thought.
But if you wish to waste your time reading this crap and ending up saying, as most everybody does, “What is this Stupid Mogambo Crap (SMC)? I can pull better economic and investing stuff than that out of my butt!”, then fine with me, but you were warned.
And trust me: You won’t get any respect for it, either.
So I thought I would kick things off, in my Charming Mogambo Way (CMW), by telling you that the whole thing is a big scam by this time, as corruption, malfeasance and malignant mal-investment are always pandemic at the end of long monetary and fiscal booms, this one has been going on, full-bore, since Reagan, it’s the biggest boom in American history, and we, alas, cannot stop.
Read More @ MogamboGuru.Blogspot.com
by Richard Daughty, MogamboGuru.Blogspot.com:
Hello, Junior Mogambo Rangers (JMRs), and welcome to the site of the Mogambo blog, an obligation that I did not want and overtly rejected, and have no intention of living up to any bargain for accepting any responsibilities of any kind, including, but not limited to, personal hygiene, social graces and, especially, blogs, but was given free, as an encouragement, by the folks at GoldSeek.com, for perhaps nefarious reasons that I can only darkly guess at, and shudder at the thought.
But if you wish to waste your time reading this crap and ending up saying, as most everybody does, “What is this Stupid Mogambo Crap (SMC)? I can pull better economic and investing stuff than that out of my butt!”, then fine with me, but you were warned.
And trust me: You won’t get any respect for it, either.
So I thought I would kick things off, in my Charming Mogambo Way (CMW), by telling you that the whole thing is a big scam by this time, as corruption, malfeasance and malignant mal-investment are always pandemic at the end of long monetary and fiscal booms, this one has been going on, full-bore, since Reagan, it’s the biggest boom in American history, and we, alas, cannot stop.
Read More @ MogamboGuru.Blogspot.com
Continuing strong tone to gold and silver markets as currency manipulation shenanigans become ever more apparent.
by Julian Phillips, MineWeb.com:
BENONI – New York held the gold price up at $1,779.50. Asia and London held it there too. The euro was stronger at €1: $1.3387 in London.
In London, gold Fixed at $1,778.50 and in the euro at €1,328.230, down €9 on yesterday’s p.m. fix. The euro stayed steady in front of New York’s opening. Ahead of New York gold started to climb again through $1,780 and in the euro to €1.329.10.
Silver opened in London over $35, maintaining a greater strength than gold. Ahead of New York’s opening it stood at $35.56 up another $1 on yesterday.
Read More @ MineWeb.com
You can add We The Sheeplez to the list of who got it right...
Keep Stacking...and BTFD...
by Julian Phillips, MineWeb.com:
BENONI – New York held the gold price up at $1,779.50. Asia and London held it there too. The euro was stronger at €1: $1.3387 in London.
In London, gold Fixed at $1,778.50 and in the euro at €1,328.230, down €9 on yesterday’s p.m. fix. The euro stayed steady in front of New York’s opening. Ahead of New York gold started to climb again through $1,780 and in the euro to €1.329.10.
Silver opened in London over $35, maintaining a greater strength than gold. Ahead of New York’s opening it stood at $35.56 up another $1 on yesterday.
Read More @ MineWeb.com
A
funny thing happened while we all waited for the Fed to announce QE3.
The rest of the world did it for them. Courtesy of Bloomberg’s excellent
Economics Brief, and the n’th time, here is what a multi-trillion dollar liquidity expansion looks like even with the Fed running silent. And this is also what $10 trillion in 2 years pumped
into the markets looks like. Wonder where the market gets its “spring
step” from? Now you know. Thank you Economist PhD’s!
Read More @ ZeroHedge.com
You can add We The Sheeplez to the list of who got it right...
Keep Stacking...and BTFD...
from GoldCore:
Gold’s London AM fix this morning was 1,778.50 USD, 1,328.230 EUR, and 1,125.419 GBP per ounce.
Yesterday’s AM fix was USD 1,754.75, EUR 1,325.04, and GBP 1,116.32 per ounce.
Spot gold hit a 3 month high of $1,787.55/oz yesterday rising gradually for the fourth day in a row. Gold closes in New York at $1,778/oz and has consolidated in Asia and early European trading.
Silver surged over $1.20 yesterday to over $35.50 – up over 3.55% on the day and convincingly breaching recent resistance at the $34.50 level. Next level for resistance is $40/oz and then the record nominal, repeat nominal, high of 1980 at $50/oz.
‘Gold Bullion Or Cash’ was released for public viewing on Wednesday. The video is educating the public internationally about gold bullion and why gold is safer than cash in the long term and in certain circumstances gold will be safer than cash in the short term as well.
Read More @ GoldCore.com
Gold’s London AM fix this morning was 1,778.50 USD, 1,328.230 EUR, and 1,125.419 GBP per ounce.
Yesterday’s AM fix was USD 1,754.75, EUR 1,325.04, and GBP 1,116.32 per ounce.
Spot gold hit a 3 month high of $1,787.55/oz yesterday rising gradually for the fourth day in a row. Gold closes in New York at $1,778/oz and has consolidated in Asia and early European trading.
Silver surged over $1.20 yesterday to over $35.50 – up over 3.55% on the day and convincingly breaching recent resistance at the $34.50 level. Next level for resistance is $40/oz and then the record nominal, repeat nominal, high of 1980 at $50/oz.
‘Gold Bullion Or Cash’ was released for public viewing on Wednesday. The video is educating the public internationally about gold bullion and why gold is safer than cash in the long term and in certain circumstances gold will be safer than cash in the short term as well.
Read More @ GoldCore.com
from RT.com:
Here
in Argentina, when we watch the terrible things that are happening
today in Greece, we can only exclaim, “Hey!! That’s exactly what
happened in Argentina in 2001 and 2002…!”
A decade ago, Argentina too went through a systemic Sovereign Public Debt collapse resulting in social turmoil, worker hardship, rioting and street fights with the police.
Some months before Argentina exploded, then-President Fernando de la Rúa – forced to resign at the height of the 2001 crisis – had called back as finance minister the notorious pro-banker, Trilateral Commission member and Rockefeller/Soros/Rhodes protégée Domingo Cavallo.
Cavallo was the gruesome architect of Argentina’s political and economic capitulation to the US and UK when he was President Carlos Menem’s foreign minister and economy minister in the ’90s.
Read More @ RT.com
Here
in Argentina, when we watch the terrible things that are happening
today in Greece, we can only exclaim, “Hey!! That’s exactly what
happened in Argentina in 2001 and 2002…!”A decade ago, Argentina too went through a systemic Sovereign Public Debt collapse resulting in social turmoil, worker hardship, rioting and street fights with the police.
Some months before Argentina exploded, then-President Fernando de la Rúa – forced to resign at the height of the 2001 crisis – had called back as finance minister the notorious pro-banker, Trilateral Commission member and Rockefeller/Soros/Rhodes protégée Domingo Cavallo.
Cavallo was the gruesome architect of Argentina’s political and economic capitulation to the US and UK when he was President Carlos Menem’s foreign minister and economy minister in the ’90s.
Read More @ RT.com
from Fabian4Liberty:
The false choice of GOP VS. Democrats, Greece has their gold stolen by banksters, and is the U.S. headed towards becoming Detroit? This and more covered in this edition of collapse confirmation news. Thanks for watching.
The false choice of GOP VS. Democrats, Greece has their gold stolen by banksters, and is the U.S. headed towards becoming Detroit? This and more covered in this edition of collapse confirmation news. Thanks for watching.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
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