ECB Officially Announces Easing Of Collateral Rules, Confirms Europe Has Run Out Of Assets
Goodbye European Central Bank. Hello Salvation Army Bank.
or in other words:
"THE ECB RATES THIS SPIDERMAN TOWEL-BACKED CURRENCY AAA+++
Latest European Bailout Plan Fizzles In Record Time
They
came, they spoke, they spiked EURUSD; but now just over 90 minutes
later the full force and furor of the 3 horse-men (and 1 woman) of the
Euro-zone have tried and failed to get any market belief in their
constant tirade of the same facts and denials. No matter what Monti,
Hollande, and Rajoy say, Merkel's reply summarizes to: "No Free Lunch"
and while markets exhibit their 'spasmodic' response function to any
comment from Europe, sooner now (rather than later) we revert to
pre-bullshit levels. As a reminder, the half-life of the Spanish Bailout
was 7 hours as we noted here which must make this total reversion particularly worrying for the 'elite'.
Spain Utters The B-Word, Ruins The Party.... Update - False Alarm: The Taxpayer Rape Will Continue
Update: we have entered full retard rumor territory again:- GUINDOS SAYS NO PLAN TO APPLY LOSSES ON JUNIOR BANK BONDHOLDERS
* * *
Spain just uttered the "B" word and ruined the party:
- SPAIN SAID TO WEIGH IMPOSING LOSSES ON JUNIOR BANK BONDHOLDERS
Merkel Reminds Europe Of The Golden Rule
After a series of idiotic pleadings by Europe's broke insolvent countries that everything is now all fixed, Merkel decided to put some order into the house and reminder everyone who actually still has money:- MERKEL SAYS DIRECT BAILOUT FUNDING OF BANKS VIOLATES TREATIES
- MERKEL SAYS GERMAN TAXPAYERS WANT GUARANTEE ON HOW AID SPENT
Photos From A "Fixed" Greece
Greece may have a new government that is the same as the old government, but what is important is that it is "fixed".
On The Energy Cliff's Early Warning Signal
The
XLE closed yesterday at 63 - only a buck above the June 1 lows. For
the year, XLE is now down a whopping 8 bucks. And of course oil, which
started the year at 103 and peaked at 110, has dropped to 78. Jefferies'
David Zervos offers some critical insight into the energy sector
bloodbath in the last few months, which of course begs the question -
what in the world is going on? Shouldn't all this accomodative policy by
the Fed, ECB, SNB, BoE and BOJ be sending commodities to the moon? The
answer, he believes, is straightforward - central banks are NOT being accomodative enough.
These downward trends in the energy and commodity complex should be a
warning sign to anyone with a "price stability" mandate. For now we
should look at this energy cliff as an early warning sign for stress in the system.
And as such we should expect the usual central bank backstopping to
come out in force if this trend picks up material steam! Its the same
old story, reflation or bust - and Zervos is still betting the central bankers deliver the former!Diagnosing Liquidity Addiction
Over
the last few weeks markets have recovered from the significant
stresses that were building towards the end of May (until yesterday's
slow realization). The recovery has been in no small part due to
expectations of intervention and that fresh rounds of QE and their
equivalents will soon be implemented around the developed world.
Deutsche Bank believes that markets are now addicted to stimulus and can’t function properly without it.
There is little evidence yet to suggest that markets in this post
crisis world have the ability to prosper in a period without heavy
intervention, though empirically asset prices benefit from liquidity but
that the environment remains fragile enough for them to struggle to
maintain their levels when the liquidity stops. Critically, they agree
with us that the structural problems the West faces mean that
QE and its equivalents and refinements will likely need to be around
for several years to come to ensure that the financial system and its economies don’t relapse into a depressionary tail-spin. There is no evidence that we are currently close to being able to wean ourselves off our liquidity addiction.
The hope would be that with further injections we can prevent the
worst case scenario but the base case remains for the stress and
intervention cycle repeating itself as far as the eye can see. Central
banks still have much to do.The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap
When the US Dollar is ultimately dethroned as the world's reserve currency (and finally gets rid of all those ridiculous three letter post-Keynesian economic "theories") nobody will have seen it coming. Well, nobody except for the following headlines: ""World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says", "India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees." And while the expansion of the "dollar exclusion zone" was actually quite glaring to anyone who dared to look, one thing was obvious: it was confined to Asia. No more courtesy of the following FT headline: "Brazil and China agree currency swap." More: "Brazil has provided a vote of confidence in China’s efforts to promote the renminbi as a reserve currency by becoming the biggest economy yet to agree a swap deal with Beijing. Brazil and China announced the R$60bn (US$29bn) local currency swap after a bilateral meeting between Wen Jiabao, the Chinese premier, and Dilma Rousseff, Brazil’s president, on the sidelines of the Rio+20 environmental summit in Rio de Janeiro."
India Is Not A Place For Foreigners To Invest
Admin at Jim Rogers Blog - 59 minutes ago
You have a balance of trade problem, you have an inflation problem. India
is a single best country in the world but it is not a place for foreigners
to invest, at least not for me. - *in NDTV*
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest on Bloomberg and CNBC.*
The Process of Capitulation In The Commodity Markets Has Begun
Eric De Groot at Eric De Groot - 2 hours ago
Faber suggests the commodity bulls may have finally 'thrown in the towel',
but it still looks as if it needs more time and pain. The ebb and follow in
the commodity market follows time and price. The probability of reversal
increases as price (chart 1,2,3) and money flow concentrations (chart 4)
push into the extreme. Chart 1: CRB Spot And Year-over-Year (YOY) Change I
agree...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]Waiting For Godot
In
the next days Greece will present her magic tricks at court and while
the Dukes and Barons cheer in the wings it will be up to the Red Queen,
this would be the bearer of the Holstein emblem, to decide if the
tricks performed are worth the cost. There is a very good chance of the
hand wave of dismissal here and then the theatrical event of the
season, “Off with their Heads,” will begin. Then the savant of Madrid
will be allowed in to show his wares claiming they are all of silk but
coarse wool is closer to the truth. The money, if it comes, will be
provided by the EFSF by the way because the ESM is not yet in
existence. Then the plan is to transfer the loan to the ESM which will
be senior to the holders of the Spanish sovereign debt. So this morning
you must rush out and by the debt of Spain. You love to be subjugated;
you delight in the masochism of the whip. Losing money is what you
live for and why you breathe. Oh no; this is not you? Well then; maybe
better not.Frontrunning: June 22
- Mario Monti: We Have a Week to Save the Eurozone (Guardian)
- Europe Central Bank Prepares to Relax Collateral Rules (WSJ)
- EU Banks' Risk in Eyes of Beholder: Worry Is That Lenders Are Boosting Gauge of Their Health (WSJ)
- Europe finally learns about subordination: Bailouts' Creditor Hierarchy Scares Private Bondholders (WSJ)
- Merkel Isolated in Race for Euro Crisis Solution (Spiegel)
- Fed’s Re-Twist May Lift Treasury Repurchase Agreement Rates (Bloomberg)
- China Said to Propose Keeping Limit on Local Government Loans (Bloomberg)
- Moody’s Downgrade Hits 15 Top Banks (FT)
- IMF Challenges Berlin’s Crisis Response (FT)
- Colombia to Auction Rights in 2013 to Gold and Coal, Not Coltan (Bloomberg)
Citi Doubles Down Goldman Sell Call, Says Market "Heading Lower... Liquidity Support Around 1285"
Even though it was one of the first to call for a coordinated market crash (remember XO going over 1000 bps?) last month before a coordinated policy response can come into play, today Citi's Mohammed Apabhai has doubled down on yesterday's market moving Goldman call, once again making it quite clear that only a collapse can bring the much needed policy "salvation." The bogey? 12% down according to Citi, before the "liquidity put" comes in play and 1285 could "indicate liquidity support." In other words: in order to go up, first the market must go down.Forward! Obama’s Vision for the United States!
Here are a few things that Obama supporters should so feel proud of as they move forward:- Obama started wars, like invading Libya, without Congressional approval.
- Obama gave a no-bid contract to Halliburton. You know, Dick Cheney’s favorite war profiting company.
- Obama has waged wars against medical marijuana. He got his blow, but he does not want you to have yours.
- Obama supports and rewards repeating tax cheaters like Tim Geithner. Made him in charge of the agency that enforces tax laws.
- Obama gave tax dollars to AIG executives.
- Obama helped increase the national debt by $4 trillion.
- Obama takes pride in killing U.S. citizens without giving them judicial process. Watch out for those armed drones.
- Obama ordered a private company, Boeing, to fire 1,000 employees.
- Obama gleefully stole money from retired teachers and police officers.
- Obama supported the release of a convicted serial killer from prison.
- Obama forced union to drop health insurance for employees’ children.
- Obama made the TSA more abusive and more ridiculous.
- Obama violated Freedom of Information Act
- Obama supported new bailouts for speculators who caused housing bubble.
- Obama wants unlimited detention for U.S. citizens, his enemies, without due process.
- Obama supports warrentless wiretapping.
Main Source for these facts and more: danfromwquirrelhill.wordpress.com
Today’s Items:
This humorous video pretty much sums up
the European crisis. I really like how they emphasize the Europeans, who
owe billions of dollars, do not like people, who owe trillions of
dollars, lecturing them. I also like how they have to pretend that
Greece, and the other PIIGS have an economy, and not just a pretty flag
and a local tourist office.
Sugar Daddy Bernanke, in his attempt to
keep spurring the economy has not addressed on an important detail.
While trying to keep the stock market going up, 30 year treasury rates
are going up faster. In fact, these long bonds are nearly three times
greater than that of the broader equity market in 18 short months! So,
instead of money going out of the bond market, investors could see much
higher yields on the horizon as the money printing continues.
Centralized authorities face an impossible
double-bind in regards to technology, specifically, the internet: Limit
the internet and economic growth is doomed where the authorities are in
danger from popular uprisings. Leave it alone and knowledge of their
criminal activities emerges and they are in danger.
In an 8-0 decision, the Supreme Court
ruled against the FCC’s policy regulating curse words and nudity on
broadcast television. Well, at least the fining thereof. The justices,
though, declined to issue a broad ruling on the constitutionality of
the FCC indecency policy. In addition, the court said the FCC is “free
to modify its current indecency policy” in light of the ruling.
Here are a few…
1. Trust no one that you do not personally know.
2. Keep your prepping to yourself.
3. Get out, and stay out, of debt.
4. Get Educated And Stay Flexible.
1. Trust no one that you do not personally know.
2. Keep your prepping to yourself.
3. Get out, and stay out, of debt.
4. Get Educated And Stay Flexible.
There were three official reasons why Genetically modified crops were developed.
1. Increase the size of the harvest of the crop.
2. Make the crops more resistant to adverse weather conditions.
3. Make the crops more resistant to insects.
well, it now turns out that our little friends have adapted and now are enjoying themselves; therefore, there is trouble on the food horizon. Oh, I forgot the unofficial fourth reason… To control the food supply and reduce the human population.
1. Increase the size of the harvest of the crop.
2. Make the crops more resistant to adverse weather conditions.
3. Make the crops more resistant to insects.
well, it now turns out that our little friends have adapted and now are enjoying themselves; therefore, there is trouble on the food horizon. Oh, I forgot the unofficial fourth reason… To control the food supply and reduce the human population.
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