Deutsche Bank: "The Spanish Recapitalization Is Not Working" - A Market Shock Is Required
This weekend, everyone's attention will be on the Greek elections,
however it is Spain that has now become the "fulcrum security" of
Europe. As such, events in Greece are merely a catalyst that will set
off a chain of events that will have an impact not only on Spain, but
on all of Europe, and thus, the world. As we pointed out last week
after the Spanish bailout announcement, based on a preliminary analysis
which had been compiled by Deutsche Bank's europhiles hours before the formal announcement, and one which just happened to be a carbon-copy of what was proposed as the 'final (and failed) Spanish solution',
it appears that the events in Europe are if not orchestrated by the
largest German bank, then certainly receiving part-time advice. Which
brings us to the present, where we find that even Deutsche Bank has
given up hope for interim solutions, having realized that the market
will no longer accept transitory, feeble arrangements. Instead DB is
now formally calling for a big bang resolution, one coming from the
ECB. Here is the punchline: "ECB has room for manoeuvre, but needs
political cover for a ‘big’ policy" or said otherwise, "A shock is required to get a liquidity response."
In other words: Europe's only real hope for even a stop gap
solution... is a wholesale market crash, not surprisingly the very same
conclusion that Citi reached on May 19 when they warned that only Crossover (XO) at 1000 bps or wider could push Europe into acting... Basically stated, anything less than a controlled market crash, one
that finally gets the ECB involved with Germany's persmission of
course, merely pushes the market higher on nothing but hope of an
intervention that said market lift makes even more improbable, as now
both Citi and DB admit, which can and will lead to an uncontrolled
market collapse, one from which not even the ECB will be able to extricate Europe.
Deepening
splits between Angela Merkel and François Hollande erupted into the
open on Friday as the German chancellor attacked Paris for allowing the
French economy to stall.
By Bruno Waterfield, The Telegraph:
Mrs Merkel warned the policies of the new Socialist president could
destroy the eurozone by bringing the sovereign debt crisis to France
itself.
The bleak assessment came on the eve of an important weekend that
will see elections in Greece and France and a key G20 meeting of world
leaders in Mexico.
“Europe must discuss the growing differences in economic strength between France and Germany,” she said.
Tensions are running so high that Jean-Marc Ayrault, the French prime
minister, was forced to deny that Paris had broken off the
Franco-German partnership, following Berlin anger at a Franco-Italian
summit in Rome on Thursday.
There was a growing sense of crisis in European capitals after David
Cameron, the Prime Minister, took part in a tense conference call with
Mrs Merkel, Mr Hollande and Mario Monti, the Italian prime minister.
Read More @ Telegraph.co.uk
Europe's Dilemma: "Probability Vs Impact"
When it comes to the future of Europe, one simply has to look at the
foundations or the so called "euro-architecture" which as the past two
years have shown us, are in dire need of strengthening lest everything
topples over. Mere talk will no longer cut it. Simplifying things
further, one can distribute the potential outcomes facing Europe along
two axes: Impact, or an event's likelihood of actually doing something to change the current "sinking ship" status quo, and Probability,
i.e., how much resistance, mostly political, will a given plan face,
primarily from Germany which over the past year has fallen into its
rightful place - that of Europe's fiscal, and monetary - because even
the ECB will not move without German approval - paymaster. Obviously the
two are inversely correlated. Whether or not the European crises ends,
will depend on precisely which of the 9 listed outcomes below Europe
decides upon (or all). However, as is well-noted on the chart, There are
"No obvious game changers." Which is why anyone
hoping for a Deus Ex, before much more pain is first experienced, as
Deutsche Bank explained earlier, will be bitterly disappointed.
Deepening
splits between Angela Merkel and François Hollande erupted into the
open on Friday as the German chancellor attacked Paris for allowing the
French economy to stall.
By Bruno Waterfield, The Telegraph:
Mrs Merkel warned the policies of the new Socialist president could
destroy the eurozone by bringing the sovereign debt crisis to France
itself.
The bleak assessment came on the eve of an important weekend that will see elections in Greece and France and a key G20 meeting of world leaders in Mexico.
“Europe must discuss the growing differences in economic strength between France and Germany,” she said.
Tensions are running so high that Jean-Marc Ayrault, the French prime minister, was forced to deny that Paris had broken off the Franco-German partnership, following Berlin anger at a Franco-Italian summit in Rome on Thursday.
There was a growing sense of crisis in European capitals after David Cameron, the Prime Minister, took part in a tense conference call with Mrs Merkel, Mr Hollande and Mario Monti, the Italian prime minister.
Read More @ Telegraph.co.uk
When it comes to the future of Europe, one simply has to look at the foundations or the so called "euro-architecture" which as the past two years have shown us, are in dire need of strengthening lest everything topples over. Mere talk will no longer cut it. Simplifying things further, one can distribute the potential outcomes facing Europe along two axes: Impact, or an event's likelihood of actually doing something to change the current "sinking ship" status quo, and Probability, i.e., how much resistance, mostly political, will a given plan face, primarily from Germany which over the past year has fallen into its rightful place - that of Europe's fiscal, and monetary - because even the ECB will not move without German approval - paymaster. Obviously the two are inversely correlated. Whether or not the European crises ends, will depend on precisely which of the 9 listed outcomes below Europe decides upon (or all). However, as is well-noted on the chart, There are "No obvious game changers." Which is why anyone hoping for a Deus Ex, before much more pain is first experienced, as Deutsche Bank explained earlier, will be bitterly disappointed.
By Bruno Waterfield, The Telegraph:
Mrs Merkel warned the policies of the new Socialist president could
destroy the eurozone by bringing the sovereign debt crisis to France
itself.The bleak assessment came on the eve of an important weekend that will see elections in Greece and France and a key G20 meeting of world leaders in Mexico.
“Europe must discuss the growing differences in economic strength between France and Germany,” she said.
Tensions are running so high that Jean-Marc Ayrault, the French prime minister, was forced to deny that Paris had broken off the Franco-German partnership, following Berlin anger at a Franco-Italian summit in Rome on Thursday.
There was a growing sense of crisis in European capitals after David Cameron, the Prime Minister, took part in a tense conference call with Mrs Merkel, Mr Hollande and Mario Monti, the Italian prime minister.
Read More @ Telegraph.co.uk
Europe's Dilemma: "Probability Vs Impact"
When it comes to the future of Europe, one simply has to look at the foundations or the so called "euro-architecture" which as the past two years have shown us, are in dire need of strengthening lest everything topples over. Mere talk will no longer cut it. Simplifying things further, one can distribute the potential outcomes facing Europe along two axes: Impact, or an event's likelihood of actually doing something to change the current "sinking ship" status quo, and Probability, i.e., how much resistance, mostly political, will a given plan face, primarily from Germany which over the past year has fallen into its rightful place - that of Europe's fiscal, and monetary - because even the ECB will not move without German approval - paymaster. Obviously the two are inversely correlated. Whether or not the European crises ends, will depend on precisely which of the 9 listed outcomes below Europe decides upon (or all). However, as is well-noted on the chart, There are "No obvious game changers." Which is why anyone hoping for a Deus Ex, before much more pain is first experienced, as Deutsche Bank explained earlier, will be bitterly disappointed.
Global addiction of central banking stimulus: Contagion spreads to Spain as 10-year edges to 7 percent
Life in a perpetual quantitative easing world
from MyBudget360.com
Financial markets around the world are now desperately dependent on
central bank stimulus. The US recovery is largely dependent on the Federal Reserve
funneling loans into the system via the quantitative easing process and
other archaic forms of money development. It is interesting how the
Greek stock market rallied this week merely on the notion that
pro-bailout parties will be elected and thus allows even more debt to be injected
into the system. Yet this does not solve the core problem that too
much debt is swimming in the system. Central banks do not create any
real tangible product in the economy. They have the incredible power to
inject resources into banks and thus create “money” in the real
economy. Yet this only happens if banks lend this out to consumers
instead of using the funds to speculate in complicated global money making schemes. The whipsaw behavior of the market highlights the massive addiction to central banking stimulus we are in.
Read More @ MyBudget360.com
from MyBudget360.com
Financial markets around the world are now desperately dependent on
central bank stimulus. The US recovery is largely dependent on the Federal Reserve
funneling loans into the system via the quantitative easing process and
other archaic forms of money development. It is interesting how the
Greek stock market rallied this week merely on the notion that
pro-bailout parties will be elected and thus allows even more debt to be injected
into the system. Yet this does not solve the core problem that too
much debt is swimming in the system. Central banks do not create any
real tangible product in the economy. They have the incredible power to
inject resources into banks and thus create “money” in the real
economy. Yet this only happens if banks lend this out to consumers
instead of using the funds to speculate in complicated global money making schemes. The whipsaw behavior of the market highlights the massive addiction to central banking stimulus we are in.Read More @ MyBudget360.com
Saudi Arabia's Prince Nayef, Next In Line To Throne, Dies; Saudi Shares Plunge
Coming
into the weekend, most were focusing on key events coming out of
Greece and France, possibly Egypt, but nobody expected that Saudi Arabia
would be thrown into the fray. That just happened, however, following
news that Saudi Arabia's Crown Prince Nayef bin Abdulaziz al-Saud has
died in Geneva, according to Saudi state television, citing a royal
court statement. The news has sent Saudi shares sliding, because now
89-year-old King Abdullah must nominate a new heir for the second time
in nine months. And the last thing the middle-east region needs, not to
mention the world's biggest oil producer, needs is more geopolitical
uncertainty.dutch banks downgraded/Holland;s retail sales contract badly/poor usa Empire number/ Poor Michigan consumer confidence number/
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 2 hours ago
Good
morning Ladies and Gentlemen;
Before I commence with my commentary, it saddens me to report that we
have 3 new entrants who on Friday took their last breath as they
succumbed to the wishes of the FDIC and entered our hallowed morgue.
1. Farmers Bank of Lynchburg Tennessee
2. Security Exchange Bank of Marietta Georgia
3. Putnam State Bank from the great metropolis Palatka Florida.
Gold
Let Spain, Greece Go Bankrupt
Eric De Groot at Eric De Groot - 3 hours ago
Rising debt burdens created this economic mess, so bailouts funded by
additional debt only augment the problem. Intermarket analysis suggests
risk-off money flows. Negative divergences and weakening trend increases
the probability of a sharp decline if confidence breaks. If confidence
breaks, oil will head lower. I expect the invisible hand to accumulate any
sharp decline (see chart)....
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content, and more! ]]
Ebb Will Turn To Flow In Commodity Markets Eventually
Eric De Groot at Eric De Groot - 3 hours ago
Beef won't be the only expensive thing for dinner when ebb turns to flow in
the commodity markets. Chart: CRBFoodstuffs And Year-over-Year (YOY) Change
Headline: Beef: It’s What’s (Expensive) for Dinner Throwing a few steaks
and burgers on the grill, you might have noticed, has gotten more expensive
as the cost of beef has climbed over the past year. And it's only going
higher, say...
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content, and more! ]]
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I'm PayPal Verified Energy Prices & Natural Gas
Admin at Jim Rogers Blog - 4 hours ago
If I had to buy energy today it would be natural gas. - *in a recent video
interview *
*
*
*Related: United States Natural Gas Fund (UNG);*
*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.*
Oil Can Go Down For A While, But...
Admin at Jim Rogers Blog - 4 hours ago
Jim Rogers gives his oil price outlook on the floor of the NYSE.
Related:
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.What Peak Oil?
I’m
not lying awake at night worrying about imminent peak oil. There’s
plenty of extractable oil, and renewable energy will eventually
supplement and replace it. But will politics get in the way of energy
extraction? The United States has huge hydrocarbon reserves, yet
regulation is preventing drilling and shipment, leaving America
dependent on foreign oil. And the oil companies themselves are largely
to blame — after Deepwater Horizon, should anyone be surprised that
politicians and the public want to strangle the oil industry? If there’s
an imminent energy crisis, it will be man-made. It will come out of the
United States’ dependency on foreign oil.
Or out of an environmental catastrophe caused by mismanagement and
graft (protected cartels like the energy industry always lead to
mismanagement). Or out of excessive red tape. Or war.
from RTAmerica:
Daniel Klaidman, a former editor for Newsweek, has produced a short video promoting the use of drones. The video hints that Muslims in Pakistan are grateful for US drone strikes even if it means the death of innocent people. Abby Martin has more.
by Lois Romano, Politico:
Sarah Palin ridiculed President Barack Obama at a conservative
bloggers conference Friday for his “cocaine snorting” and eating dog as a
child.
“That cocaine snorting, and what he ate — Fido? Rufus?” the former Alaska governor said, alluding to Obama’s memoir, “Dreams From My Father,” in which he admits both to cocaine use and being served dog by his stepfather in Indonesia. “I think it’s funny that the cocktail circuit gives me a hard time for eating elk and moose. Anybody here have a pet moose? There’s a difference.”
It was part of a 30-minute speech at the RightOnline conference, in which she criticized the “permanent political class” and the “lamestream media” while applauding conservative bloggers for doing “what too many people in the old media won’t do, can’t do, and that’s tell the truth.”
Read More @ Politico
Sarah Palin ridiculed President Barack Obama at a conservative
bloggers conference Friday for his “cocaine snorting” and eating dog as a
child.“That cocaine snorting, and what he ate — Fido? Rufus?” the former Alaska governor said, alluding to Obama’s memoir, “Dreams From My Father,” in which he admits both to cocaine use and being served dog by his stepfather in Indonesia. “I think it’s funny that the cocktail circuit gives me a hard time for eating elk and moose. Anybody here have a pet moose? There’s a difference.”
It was part of a 30-minute speech at the RightOnline conference, in which she criticized the “permanent political class” and the “lamestream media” while applauding conservative bloggers for doing “what too many people in the old media won’t do, can’t do, and that’s tell the truth.”
Read More @ Politico
by Susanne Posel, Info Wars:
Hillary Clinton, US Secretary of State has announced that the Obama administration is working with the United Nations (UN) to approve, through the US Congress, the Small Arms Treaty (SAT).
Clinton affirmed that the US would facilitate talks with the UN in the Conference on the Arms Trade Treaty, as long as it “operates under the rules of consensus decision-making. Consensus is needed to ensure the widest possible support for the Treaty and to avoid loopholes in the Treaty that can be exploited by those wishing to export arms irresponsibly.”
This global gun control scheme, concocted by the UN, is called the International Arms Control Treaty (IACT). Disguised as a way to combat terrorism, insurgents and international criminals, this document endeavors to secure the world’s citizens cannot defend themselves.
Read More @ InfoWars.com
Hillary Clinton, US Secretary of State has announced that the Obama administration is working with the United Nations (UN) to approve, through the US Congress, the Small Arms Treaty (SAT).
Clinton affirmed that the US would facilitate talks with the UN in the Conference on the Arms Trade Treaty, as long as it “operates under the rules of consensus decision-making. Consensus is needed to ensure the widest possible support for the Treaty and to avoid loopholes in the Treaty that can be exploited by those wishing to export arms irresponsibly.”
This global gun control scheme, concocted by the UN, is called the International Arms Control Treaty (IACT). Disguised as a way to combat terrorism, insurgents and international criminals, this document endeavors to secure the world’s citizens cannot defend themselves.
Read More @ InfoWars.com
from Testosterone Pit.com:
While we’re sitting on the edge of our chairs, waiting breathlessly for the Greek election, or for Fate to swallow Greece and send financial Armageddon over the Eurozone, stock markets rallied. Not because of a sudden plethora of good economic news, but in anticipation of how central banks might react to the Greek vote—that’s how far this farce has come! As if sheer artificial liquidity could wash away the putrid odor of decomposing debt.
They lined up on Friday to give their spiel. ECB President Mario Draghi would “continue to supply liquidity to solvent banks where needed.” Bank of Japan governor Masaaki Shirakawa was “prepared to take all possible measures” but denied rumors that central banks around the globe would take coordinated action. The Bank of England spoke up. The Swiss National Bank confirmed its iron determination to keep the flood of euros at bay, with capital controls, if it had to; its currency peg would hold, come hell or high water.
Read More @ TestosteronePit.com
While we’re sitting on the edge of our chairs, waiting breathlessly for the Greek election, or for Fate to swallow Greece and send financial Armageddon over the Eurozone, stock markets rallied. Not because of a sudden plethora of good economic news, but in anticipation of how central banks might react to the Greek vote—that’s how far this farce has come! As if sheer artificial liquidity could wash away the putrid odor of decomposing debt.
They lined up on Friday to give their spiel. ECB President Mario Draghi would “continue to supply liquidity to solvent banks where needed.” Bank of Japan governor Masaaki Shirakawa was “prepared to take all possible measures” but denied rumors that central banks around the globe would take coordinated action. The Bank of England spoke up. The Swiss National Bank confirmed its iron determination to keep the flood of euros at bay, with capital controls, if it had to; its currency peg would hold, come hell or high water.
Read More @ TestosteronePit.com
from KingWorldNews:
The KWN Weekly Metals Wrap – We have added new segments to the KWN
Weekly Metals Wrap covering gold, silver, trading and a plethora of
other factors affecting the precious metals markets. I am giving King
World News listeners globally access to what has long been my secret
weapons in researching where gold and silver are headed directionally
along with the COT Report. We Cover the Commitment of Traders Report in
detail as well as a number of other factors which can influence the gold
and silver market price action.
LISTEN NOW @ KingWorldNews.com
The KWN Weekly Metals Wrap – We have added new segments to the KWN
Weekly Metals Wrap covering gold, silver, trading and a plethora of
other factors affecting the precious metals markets. I am giving King
World News listeners globally access to what has long been my secret
weapons in researching where gold and silver are headed directionally
along with the COT Report. We Cover the Commitment of Traders Report in
detail as well as a number of other factors which can influence the gold
and silver market price action.LISTEN NOW @ KingWorldNews.com
from FinancialSurvivalNetwork.com:
Greg Hunter of www.USAWatchDog.com joined
FSN for the first time yesterday. Greg is a former mainstream media
news reporter who woke up one day and realized the USA was quickly
becoming a kleptocracy. When he started interviewing truth tellers like
John Williams (ShadowStats.com) and Jim Sinclair, his contract wasn’t
renewed, in spite of his high ratings and popularity. So Greg Hunter did
what so many of us are doing now; he started a blog and transferred his
vast media experience to the Internet. Now he’s got thousands of
viewers around the world. As that old show used to say, “The truth is
out there.” Greg’s getting it out, the best he can, and so is the
Financial Survival Network.
Click here to listen
Greg Hunter of www.USAWatchDog.com joined
FSN for the first time yesterday. Greg is a former mainstream media
news reporter who woke up one day and realized the USA was quickly
becoming a kleptocracy. When he started interviewing truth tellers like
John Williams (ShadowStats.com) and Jim Sinclair, his contract wasn’t
renewed, in spite of his high ratings and popularity. So Greg Hunter did
what so many of us are doing now; he started a blog and transferred his
vast media experience to the Internet. Now he’s got thousands of
viewers around the world. As that old show used to say, “The truth is
out there.” Greg’s getting it out, the best he can, and so is the
Financial Survival Network.Click here to listen
from KingWorldNews:
Gerald Celente: Founder & Director of the Trends Research
Institute – Gerald discussed gold at length and predicted, “a tidal wave
entrance into gold,” as well as other important global trends with KWN.
Many consider Gerald to be the top trends forecaster in the world.
Gerald has been quoted and interviewed in media throughout the world
such as, CNBC, Fox, CBS, ABC, NBC, BBC, Time Magazine, New York Times,
Wall Street Journal, Business Week, FT, U.S. News, World Report, The
Economist and more.
LISTEN NOW @ KingWorldNews.com
Gerald Celente: Founder & Director of the Trends Research
Institute – Gerald discussed gold at length and predicted, “a tidal wave
entrance into gold,” as well as other important global trends with KWN.
Many consider Gerald to be the top trends forecaster in the world.
Gerald has been quoted and interviewed in media throughout the world
such as, CNBC, Fox, CBS, ABC, NBC, BBC, Time Magazine, New York Times,
Wall Street Journal, Business Week, FT, U.S. News, World Report, The
Economist and more.LISTEN NOW @ KingWorldNews.com
by Kurt Nimmo, Info Wars:
Obama’s latest outrageous violation of the laws of the United States demonstrate that the nation has arrived at its destination: a dictatorship lorded over by an imperial ruler.
On Friday, Obama instructed the government to ignore an influx of illegal aliens streaming over the border. The move was implemented to sway Latino voters into the Obama camp in preparation for the upcoming election against fellow establishment candidate Mitt Romney.
Obama’s violations of law and the Constitution make his predecessor look like a piker by way of comparison. Since he was voted into office by deluded citizens who believed he would pay for their rent and food, Obama has enacted by fiat or worked with Congress to pass a number of bills that have increased the power of the executive and the unconstitutional authority of the federal government.
Read More @ InfoWars.com
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Obama’s latest outrageous violation of the laws of the United States demonstrate that the nation has arrived at its destination: a dictatorship lorded over by an imperial ruler.On Friday, Obama instructed the government to ignore an influx of illegal aliens streaming over the border. The move was implemented to sway Latino voters into the Obama camp in preparation for the upcoming election against fellow establishment candidate Mitt Romney.
Obama’s violations of law and the Constitution make his predecessor look like a piker by way of comparison. Since he was voted into office by deluded citizens who believed he would pay for their rent and food, Obama has enacted by fiat or worked with Congress to pass a number of bills that have increased the power of the executive and the unconstitutional authority of the federal government.
Read More @ InfoWars.com
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