On GRExit, SPAilout, And Draghi’s White Knight

On GRExit, SPAilout, And Draghi’s White Knight (ZeroHedge, Aug 13, 2012):

Via Mark E. Grant, author of Out of the Box,

“There was a free lunch just once. It was when Eve gave the apple to Adam and we all know how that turned out.”

-The Wizard

As I stare out at the Maginot Line I will endeavor to predict the upcoming events in Europe for the balance of the year. I called Greece, Ireland and Portugal correctly so I have some standing here and while we all are only as good as our last call; I have my own small pin on which to dance. I think first and foremost that Greece falls by the wayside. I think as a matter of political reality, given the German polls, that Berlin will refuse to adequately fund Greece and that they will be forced back to the Drachma as a matter of Ms. Merkel’s desire for re-election. When this happens it will be a quite messy affair with some $1.3 trillion going into default which will also require the re-capitalization of the ECB and there will be a $90 billion hit in derivative contracts which may well affect certain banks past the point of what is currently recognized. The Greek banks, bankrupt now, will train off into the abyss and will be replaced by other European institutions. The honest truth is that the Greek debts have become so large and so impossible to pay that unless there is absolute debt forgiveness, which I think is politically impossible in Germany and a number of other European countries; the country must roll over as a matter of fiscal reality.

Read moreOn GRExit, SPAilout, And Draghi’s White Knight

Belgian National Bank Governor Gets It: Bailing Out Spain ‘Makes No Sense’

Belgian National Bank Governor Gets It: Bailing Out Spain “Makes No Sense” (ZeroHedge, Aug 11, 2012):

A week ago we explained quite clearly why instead of encouraging self-defeating, short-termist behavior by promising to save Europe’s insolvent countries if and when needed, which does nothing to resolves Europe’s problems and make it worse in exchange for a brief respite from bond selling, the ECB should be doing precisely the opposite: encouraging local governments to understand that there is no magic bazooka from the central banks. Specifically we said that “this Catch 22 of confounding cause and event can continue seemingly indefinitely, although in reality it can’t. Because fundamentally what the bond market does is keep sovereigns “honest” – just as Schauble said a week ago, Spanish yields at 7% are not the end of the world – instead what they are is a signal to the country to get its spending in control in order to reduce its deficit, and fundamentally get its house in order – yes, that means getting government spending to a sustainable level and firing hundreds of thousands of workers, as well as probably raising taxes even more. It also means pain all around, but the pain is inevitable and will only be worse the longer reality is denied.” This logic is so clear that only a lifelong economist, PhD or Goldman apparatchik can not grasp it: sadly that accounts for most of the people “in charge.”

Which is why we were delighted to read that at least one person “gets it” – Belgian national bank governor Luc Coene, the same Belgium that is also the clogged heart of the Burtonian bureaucratic labyrinth known as the EU, who told Belgium’s two largest newspaper that “buying the bonds of these countries would only serve to weaken the ECB and do nothing to resolve underlying issues of competitiveness.  “It makes no sense for the ECB to start financing those countries,” said Mr Coene, “It would only lead to the ECB taking on the whole public debt of Spain and Italy onto its balance sheet.” Bingo. And not a moment too soon – we really were starting to pull a Mogatu here.

Read moreBelgian National Bank Governor Gets It: Bailing Out Spain ‘Makes No Sense’

Greece Now Prints It’s Own Euros, The ECB Approves, The Bundesbank Nods: No One Wants To Get Blamed For Kicking Greece Out

Greece Prints Euros To Stay Afloat, The ECB Approves, The Bundesbank Nods: No One Wants To Get Blamed For Kicking Greece Out (ZeroHedge, Aug 8, 2012):

A lot of politicians in Germany, but also in other countries, issue zingers about a Greek exit from the Eurozone and the end of their patience. But those with decision-making power play for time. They want someone else to do the job. Suddenly Greece is out of money again. It would default on everything, from bonds held by central banks to internal obligations. On August 20. The day a €3.2 billion bond that had landed on the balance sheet of the European Central Bank would mature. Europe would be on vacation. It would be mayhem. And somebody would get blamed.

Read moreGreece Now Prints It’s Own Euros, The ECB Approves, The Bundesbank Nods: No One Wants To Get Blamed For Kicking Greece Out

THE GERMAN PRESS Responds To Mario Draghi: ‘Vengeance Will Be Bitter’

The German Press Responds To Draghi: “Vengeance Will Be Bitter” (ZeroHedge, Aug 5, 2012):

As a reminder from March: Mario Draghi Is Becoming Germany’s Most Hated Man

More from Spiegel:

Germany has long been wary of ECB bond purchases and opposition has only grown since the Frankfurt-based central bank largely ceased buying sovereign bonds last year. Jens Weidmann, head of Germany’s central bank, the Bundesbank, has been particularly vociferous in his criticism of bond purchases, saying they rewarded debt-ridden countries without demanding reforms in return. Draghi even mentioned Weidmann’s opposition to the program in his Thursday press conference.

Read moreTHE GERMAN PRESS Responds To Mario Draghi: ‘Vengeance Will Be Bitter’

‘Eurozone Crisis: The Bankers Are Happy To Play Nero As Europe Burns’ (Guardian)

Not just one generation will be thrown into poverty.


To prop up the euro – whose survival is vital only for the banks’ balance sheets – a generation is thrown into poverty


In Athens, Angela Merkel is seen handcuffed on the cover of the magazine Crash. The headline demands that European leaders be ‘tried for genocide of the Greeks’. Photograph: Thanassis Stavrakis/AP

Eurozone crisis: the bankers are happy to play Nero as Europe burns (Guardian, July 31, 2012):

While Rome burned, Nero put on fancy dress, stood on a tower and played his lyre. He sang of the Sack of Ilium and roasted Christians at the stake to light up his party. The people were taxed to pay for his extravagance, but he appeased them with games of ever increasing spectacle and sadism. He clad slaves in deerskins and had lions eat them. It was immensely popular. When Nero duly fell from grace and committed suicide, he cried: “What an artist dies in me.”

I like the Olympics now that athletes have taken over from fatcats on centre stage, but the media coverage is disproportionate, idiotic and Orwellian. Never has the BBC in particular purveyed such nationalistic opium to the people. Is it really necessary to ignore all news of the city burning for the duration?

Last weekend a small island off the coast of Schleswig-Holstein saw the American treasury secretary, Tim Geithner, and the German finance minister, Wolfgang Schäuble, attempt a feat as yet unknown to the Olympics. It is called “save the euro”. This marathon is being played simultaneously and in real time by bankers and politicians in all Europe’s capitals, while a claque shouts “two weeks to save the euro” over and over again.

Read more‘Eurozone Crisis: The Bankers Are Happy To Play Nero As Europe Burns’ (Guardian)

Five Years Ago, The Credit Crunch Began; Today It’s Worse. How Long Will It Last?

This is the ‘Greatest Depression’:

65 Signs That The Economic Collapse Is Already Happening

Prepare for collape.


There have been small bursts of growth and confidence, but the road to recovery still looks long

Five years ago, the credit crunch began; today it’s worse. How long will it last? (The Observer, Aug 5, 2012):

Unhappy anniversary. Five years ago this week the world woke up to the fact that a credit crunch was definitely happening. On 9 August 2007, central bankers became so alarmed by banks’ reluctance to lend to each other that they took emergency action. The European Central Bank and the US Federal Reserve injected a combined $90bn into financial markets.

For the ECB, it was its first intervention since the 9/11 terrorist attacks six years earlier. The central bank called it a piece of “fine tuning”, but investors knew it was far more serious. The FTSE lost 121 points that day, and in the US the Dow Jones average fell by 387. A squall that had appeared at two French investment funds exposed to US sub-prime loans was about to develop into a hurricane. Adam Applegarth, boss of Northern Rock, where queues would form the next month, later called 9 August “the day the world changed”.

Even so, at the time few would have predicted that half a decade later the world, or at least the western part, would still be struggling with the consequences.

Read moreFive Years Ago, The Credit Crunch Began; Today It’s Worse. How Long Will It Last?

Spain And Italy Are Toast Unless Germany Allows The ECB To Print Trillions Of Euros

Spain And Italy Are Toast Unless Germany Allows The ECB To Print Trillions Of Euros (Economic Collapse, Aug 2, 2012):

The financial chess game in Europe is still being played out, but in the end it is going to boil down to one very fundamental decision.  Is Germany going to allow the ECB to print up trillions of euros and use those euros to buy up the sovereign debt of troubled eurozone members such as Spain and Italy or not?  Nothing short of this is going to solve the problems in Europe.  You can forget the ESM and the EFSF.  Anyone that thinks they are going to solve the problems in Europe is someone that would also take a water pistol to fight a raging wildfire.  No, the only thing that is going to keep Spain and Italy from collapsing under the weight of a mountain of debt is a financial nuke.  The ECB needs to have the power to print up trillions of euros and use that money to buy up massive amounts of sovereign debt in order to guarantee that Spain and Italy will be able to borrow lots more money at very low interest rates.  In fact, this is probably what European Central Bank President Mario Draghi has in mind when he says that he is going to “do whatever it takes to preserve the euro”.  However, there is one giant problem.  The ECB is not going to be able to do this unless Germany allows them to.  And after enduring the horror of hyperinflation under the Weimar Republic, Germany is not too keen on introducing trillions upon trillions of new euros into the European economy.  If Germany allows the ECB to go down this path, Germany will end up experiencing tremendous inflation and the only benefit for Germany will be that the eurozone was kept together.  That doesn’t sound like a very good deal for Germany.

Right now, the yield on 10 year Spanish bonds is above 7 percent and the yield on 10 year Italian bonds is above 6 percent.

Those are unsustainable levels.

The only thing that is going to bring those bond yields down permanently to where they need to be is unlimited ECB intervention.

But that is not going to happen without German permission.

Meanwhile, the situation in Spain gets worse by the day.

An article in Der Spiegel recently described the slow motion bank run that is systematically ripping the Spanish banking system to shreds….

Capital outflows from Spain more than quadrupled in May to €41.3 billion ($50.7 billion) compared with May 2011, according to figures released on Tuesday by the Spanish central bank.

In the first five months of 2012, a total of €163 billion left the country, the figures indicate. During the same period a year earlier, Spain recorded a net inflow of €14.6 billion.

If those numbers sound really bad to you, that is because they are really bad.

At this point, authorities in Spain are starting to panic.  According to Graham Summers, Spain has imposed the following new capital restrictions during the last month alone….

  • A minimum fine of  €10,000 for taxpayers who do not report their foreign accounts.
  • Secondary fines of  €5,000 for each additional account
  • No cash transactions greater than €2,500
  • Cash transaction restrictions apply to individuals and businesses

How would you feel if the U.S. government permanently banned all cash transactions greater than $2,500?

That is how crazy things have already become in Spain.

Read moreSpain And Italy Are Toast Unless Germany Allows The ECB To Print Trillions Of Euros

Hyper Mario And Germany On Verge Of All Out Warfare

Hyper Mario And Germany On Verge Of All Out Warfare (ZeroHedge, Aug 2, 2012):

Back in March we wrote “Mario Draghi Is Becoming Germany’s Most Hated Man” for one reason: a few months after the former Goldman appartchik was sworn in to replace Trichet with promises he would not “print” Draghi did just that in a covert way via $1.3 trillion in LTROs, that immediately hit the economy and sent inflation across Europe soaring. We said that: “Slowly but surely the realization is dawning on Germany that while it was sleeping, perfectly confused by lies spoken in a soothing Italian accent that the ECB will not print, not only did Draghi reflate the ECB’s balance sheet by an unprecedented amount in a very short time, in the process not only sending Brent in Euros to all time highs (wink, wink, inflation, as today’s European CPI confirmed coming in at 2.7% or higher than estimated) but also putting the BUBA in jeopardy with nearly half a trillion in Eurosystem”receivables” which it will most likely never collect.”

Read moreHyper Mario And Germany On Verge Of All Out Warfare

September: Crunchtime For Europe And Germany


So get your popcorn ready!

Related info:

CDU’s Michael Fuchs: ‘Greece Cannot Be Saved, That Is Simple Mathematics’

Greece To Run Out Of Money And Go Bankrupt By August 20

Spain Is Out Of Money In 40 Days … And ‘Spain Has No Plan B’ (FAZ)


September: Crunchtime For Europe And Germany (ZeroHedge, July 30, 2012):

September will undoubtedly be the crunch time,” one senior euro zone policymaker said. “In nearly 20 years of dealing with EU issues, I’ve never known a state of affairs like we are in now,” one euro zone diplomat said this week. “It really is a very, very difficult fix and it’s far from certain that we’ll be able to find the right way out of it.”

As Europe’s fight with the twin demons of logic and math continues, time is running out. And as eurocrats take their mandatory vacations for a job well done and spend the next two weeks lounging on some Mediterranean island or listening to opera, Europe will enter hibernation mode, courtesy of a slow down in sovereign bond issuance, all of which however will change very quickly once September rolls in which as Reuters describes, “is shaping up as a “make-or-break” month as policymakers run desperately short of options to save the common currency.” It is then that we will find if all that money spent on newsletter promoting active prayer to push the hands of central planners in that direction or the other, was well spent, or just thrown in the same cash black hole which is the final restring place for hundreds of billions in “bailout money” which has achieved nothing but perpetuating the same destructive behavior that it was meant to change.

Reuters explains why September will also be known as the popcorn month:

Read moreSeptember: Crunchtime For Europe And Germany

Eurogroup Head Confirms ‘It Has Become Serious’, As He Is Back To Lying

Eurogroup Head Confirms “It Has Become Serious”, As He Is Back To Lying (ZeroHedge, July 30, 2012):

The insolvent banana continent is back. Recall back in May 2011:

When it becomes serious, you have to lie.” Jean Claude Juncker

Ergo, things in Europe are very serious again because the Eurogroup’s head, who until recently promised he was quitting his post because “he had gotten tired of the Franco-German interference in managing the region’s debt crisis”, only to spoil the fun and say he was lying about that too, is back to doing what he does best – lying. To wit: “the euro countries are preparing together with the bailout fund EFSF and the European Central Bank to buy government bonds if necessary clip euro countries.” And now cue Schauble: “Federal Finance Minister Wolfgang Schaeuble has rejected speculation about impending purchases of government bonds by Spanish EFSF and ECB.”

From Suddeutsche Zeitung:

“No time to lose”: The chairman of the €-group sees a crucial point of the debt crisis has arrived. Jean-Claude Juncker supports plans by ECB chief Draghi for the purchase of government bonds – and Germany are partly to blame for the crisis. Berlin treats the euro area “as a branch.” Also called “chatter on the withdrawal of Greece” is not helpful.

Juncker confirmed that the euro countries are preparing together with the bailout fund EFSF and the European Central Bank to buy government bonds if necessary clip euro countries. Because there is no doubt, he said. “It is still necessary to decide exactly what we will do and when.” This depended “on the developments of the next few days and from reacting as fast as we need.”

And to think only yesterday the only person whose opinion matters, Germany’s Finance Minister,  “denied plans for a new aid program for Spain, according to newspaper Welt am Sonntag, after the media reported European Union leaders aim for Spanish government bond purchases by the European rescue fund and the European Central Bank.”

We leave it up to readers to figure out which of the above two is telling the truth, but in the meantime, here are some other soundbites from the man who is back to desperation pleading with markets:

Read moreEurogroup Head Confirms ‘It Has Become Serious’, As He Is Back To Lying

ECB’s Draghi Repeats The Party Line, Forces Another Brief EUR Squeeze, Sends Futures Soaring

ECB’s Draghi Repeats The Party Line, Forces Another Brief EUR Squeeze, Sends Futures Soaring (ZeroHedge, July 26, 2012):

When you can’t act, you talk. Sure enough, here we go again:

  • DRAGHI SAYS ECB WILL DO WHATEVER NEEDED TO PRESERVE THE EURO
  • DRAGHI SAYS THE EURO IS IRREVERSIBLE
  • DRAGHI SAYS YIELD DISRUPTING POLICY TRANSMISSION ARE IN ECB REMIT
  • DRAGHI SAYS SHARING SOVEREIGNTY ON EU LEVEL TO COME
  • DRAGHI SAYS LAST EU SUMMIT WAS MOMENT OF RECOGNITION

And of course the weak hands cover until they realize Draghi just said absolutely nothing, as at this point everything is in Germany’s hands. And not only has Germany not said anything, and won’t until September when the constitutional court will approve or deny the ESM, but in fact they have been saying overnight that Spanish bonds are not eligible for EFSF purchases. In the meantime, Europe has devolved from a continent of coordinated action to coordinated jawboning.

Read moreECB’s Draghi Repeats The Party Line, Forces Another Brief EUR Squeeze, Sends Futures Soaring

And Here Is What Former Goldman Sachs Managing Director And ECB President Mario Draghi CAN Do, In His Own Words

Mario Draghi (Wikipedia):

Draghi was then vice chairman and managing director of Goldman Sachs International and a member of the firm-wide management committee (2002–2005). A controversy existed on his duties while employed at Goldman Sachs. Pascal Canfin (MEP) asserted Draghi was involved in swaps for European governments, namely Greece, trying to disguise their countries’ economic status.


And Here Is What Draghi CAN Do, In His Own Words (ZeroHedge, July 26, 2012):

For those stunned that the market is reacting as euphorically as it is to remarks which are basically a rehash of prior Draghi statements and are nothing new, or that bond yields are ripping in on the implicit threat that Draghi may reactivate the SMP, in the process further subordinating bondholders and cramming them down forcing even more selling, here is a sampling of previous Draghi statements explaining what he can do, and more importantly, what he is allowed to do under the existing European framework. Which is why we find it not very surprising that Draghi waited until all usual German suspects are on vacation and are thus unable to immediately issue a press release as to the structural limitations of what Draghi can do. Because when in doubt, ask this: does export-heavy Germany want a strong or a weak euro?

Read moreAnd Here Is What Former Goldman Sachs Managing Director And ECB President Mario Draghi CAN Do, In His Own Words

This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied – THE SEQUEL

This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied – The Sequel (ZeroHedge, July 19, 2012):

Two years ago, in January 2010, Zero Hedge wrote “This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied” which became one of our most read stories of the year. The reason? Perhaps something to do with an implicit attempt at capital controls by the government on one of the primary forms of cash aggregation available: $2.7 trillion in US money market funds. The proximal catalyst back then were new proposed regulations seeking to pull one of these three core pillars (these being no volatility, instantaneous liquidity, and redeemability) from the foundation of the entire money market industry, by changing the primary assumptions of the key Money Market Rule 2a-7. A key proposal would give money market fund managers the option to “suspend redemptions to allow for the orderly liquidation of fund assets.” In other words: an attempt to prevent money market runs (the same thing that crushed Lehman when the Reserve Fund broke the buck). This idea, which previously had been implicitly backed by the all important Group of 30 which is basically the shadow central planners of the world (don’t believe us? check out the roster of current members), did not get too far, and was quickly forgotten. Until today, when the New York Fed decided to bring it back from the dead by publishing “The Minimum Balance At Risk: A Proposal to Mitigate the Systemic Risks Posed by Money Market FUnds“. Now it is well known that any attempt to prevent a bank runs achieves nothing but merely accelerating just that (as Europe recently learned). But this coming from central planners – who never can accurately predict a rational response – is not surprising. What is surprising is that this proposal is reincarnated now. The question becomes: why now? What does the Fed know about market liquidity conditions that it does not want to share, and more importantly, is the Fed seeing a rapid deterioration in liquidity conditions in the future, that may and/or will prompt retail investors to pull their money in another Lehman-like bank run repeat?

Here is how the Fed frames the problem in the abstract:

Read moreThis Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied – THE SEQUEL

ECB Chief Mario Draghi: Eurozone Is ‘Unsustainable’

– Mario Draghi (Wikipedia):

Draghi was then vice chairman and managing director of Goldman Sachs International and a member of the firm-wide management committee (2002–2005). A controversy existed on his duties while employed at Goldman Sachs. Pascal Canfin (MEP) asserted Draghi was involved in swaps for European governments, namely Greece, trying to disguise their countries’ economic status.

See also:

How To Lose All Your Money With Goldman Sachs

And now: How to take down Europe with Goldman Sachs!


Eurozone is ‘unsustainable’ warns Mario Draghi (Telegraph, May 31, 2012):

The head of the European Central Bank hit out at the political paralysis gripping the region as he warned the eurozone’s set-up was “unsustainable”.

Mario Draghi said the central bank could not “fill the vacuum” left by member states’ lack of action as it was claimed the zone is on the point of “disintegration”.

Amid escalating talk of a potential bail-out for Spain, the president of the ECB said the central bank was powerless to stop the debt tornado. “It’s not our duty, it’s not in our mandate” to “fill the vacuum left by the lack of action by national governments on the fiscal front,” he said.

Luis de Guindos, Spain’s Economy Minister, urged Berlin to “assume its part” in restoring the health of the eurozone. He said: “The battle of the euro is being fought right now in Spain and Italy. The future of the euro is at stake in the next weeks.”

Christine Lagarde, the head of the International Monetary Fund, last night denied that an IMF bail-out of Spain was being prepared.

Read moreECB Chief Mario Draghi: Eurozone Is ‘Unsustainable’

Euroland Will Pay For This Monetary Madness

Don’t miss:

The REAL STORY Your Governments, MSM And The Central Banksters Completely Forgot To Tell You About: ‘The Race To Debase In All Its Glory’ (Chart)

Euroland will pay for this monetary madness (Telegraph, Mar 1, 2012):

When something looks dangerous, it generally is. And few things look quite so high-wire right now as the European Central Bank’s efforts to hold the euro together by flooding the banking system with free money.

This week, the ECB injected a further 529.5 billion euros via “long-term refinancing operations”, or LTROs, bringing the tally to more than 1 trillion euros.

When Mario Draghi, the new ECB president, embarked on the programme shortly before Christmas, it was hailed as a masterstroke which had saved the eurozone from financial and economic calamity. Even the Jeremiahs of Germany’s Bundesbank, proud keepers of the sacred flame of monetary conservatism, were stunned into grudging acquiescence by the evident seriousness of the crisis. But now the doubts are beginning to set in, and with good reason.

Read moreEuroland Will Pay For This Monetary Madness

Greece Responds To Troika Deal With Immediate Two Day Strike, Threatens With ‘Social Uprising’

Greece Responds To Troika Deal With Immediate Two Day Strike, Threatens With “Social Uprising” (ZeroHedge, Feb. 9, 2011)

Even as the ECB’s very own Mario Draghi is now peddling Greek deal rumors, which are essentially a reaffirmation that the country will “pledge” to return to GDP growth in 2013, we are already seeing real, not pledged, or promised, consequences of this deal, whether real or not (ignoring that Venizelos just said that it would actually take up to 15 days to finalize it, something which means the Greek exchange offer is DOA) namely that the crippling economic collapse discussed extensively on these pages is about to get far worse. AP reports: “Angry union leaders announced a 48-hour general strike for Friday and Saturday.” “We are moving to a social uprising,” said ADEDY Secretary Genera Iliopoulos.” Surely this is the fastest shortcut for Greece to meet or beat expectations of halting the 10% drop in its GDP and convert that number to positive. One can only hope that makers of bulletproof vests can compensate the economic collapse as every other part of the economy shuts down.

From PressTV:

The unions, General confederation of Workers of Greece (GSEE) and Civil Servants Supreme Administrative Council (ADEDY), announced on Thursday that their members will go on a two-day strike from Friday in protest at the controversial decision.

“We will hold a general strike on Friday and Saturday along with the civil servants’ union,” said a spokeswoman with GSEE which represents the private sector.

ADEDY’s Secretary General Ilias Iliopoulos described the measures as “painful” which will “create misery for youths, unemployed and pensioners do not leave us much room.”

“We are moving to a social uprising,” said Iliopoulos.

Read moreGreece Responds To Troika Deal With Immediate Two Day Strike, Threatens With ‘Social Uprising’

Davos: 10 Power Brokers To Watch At The World Economic Forum

For your information.


Davos: 10 power brokers to watch at the World Economic Forum (Telegraph, Jan. 7, 2012):

In just two weeks’ time, global power brokers will meet in Switzerland in an attempt to pull the eurozone back from the brink of destruction.

Fur and finance, snow and supremacy: there are just two weeks to go before global leaders converge at the World Economic Forum’s annual jamboree in the Alpine resort of Davos.

Off the piste the heady mix of royalty, billionaire tycoons and top politicians are officially tasked with tackling “The Great Transformation: Shaping New Models”.

Rarely has a conference title had more poignant urgency: the European Union leaders’ summit on the advancing debt crisis follows immediately on January 30. Germany’s Angela Merkel, France’s Nicolas Sarkozy, Christine Lagarde of the IMF and Mario Draghi, the boss of the European Central Bank (ECB), are among those most likely to spend the week crafting mechanisms to prevent the eurozone sliding off a precipice.

Read moreDavos: 10 Power Brokers To Watch At The World Economic Forum

Goldman Sacks EUROPE

See also:

Masonic Goldman Sachs Controls Europe (France 24 – Video)

Chairman Of The European Branch Of The Trilateral Commission And Bilderberg Member Mario Monti Member Is Italy’s New Prime Minister

Goldman Sachs International Advisor Mario Monti Is Italy’s New Prime Minister – In Under Two Weeks, Goldman Has Taken Over The ECB And Italy

Adrian Salbuchi For RT: Socializing Losses: Trilateral Commission Takeover Of Europe?

You already know this. This is just as a reminder who really calls the shots here.

And guess who will have to suffer?


The Goldman Saching of Europe (ABC News, Dec. 7, 2011):

I don’t want to sound alarmist but it looks like Goldman Sachs has taken over Europe.  The continent has succumbed to the dictates of global finance, there was no choice. The bankers are holding us all to ransom and have done since the beginning of the GFC in 2008.

Read moreGoldman Sacks EUROPE

Senate Votes To Let Military Detain Americans Indefinitely, White House ‘Threatens Veto’ (Oh, SURE! Here is Obama In 2009 Calling For Indefinite Detention!)

Flashback:

Rachel Maddow on Obama’s Indefinite detention ideas 5-21-09

YouTube Added: 24.05.2009

See also:

Senate Bill Would Allow US Military To Indefinitely Detain Americans Without Charge Or Trial Anywhere In The World:

“The Senate is going to vote on whether Congress will give this president—and every future president — the power to order the military to pick up and imprison without charge or trial civilians anywhere in the world. The power is so broad that even U.S. citizens could be swept up by the military and the military could be used far from any battlefield, even within the United States itself,”writes Chris Anders of the ACLU Washington Legislative Office.

And now it is happening in front of our eyes …


Senate Votes To Let Military Detain Americans Indefinitely, White House Threatens Veto (Huffington Post, Nov. 29, 2011):

WASHINGTON — The Senate voted Tuesday to keep a controversial provision to let the military detain terrorism suspects on U.S. soil and hold them indefinitely without trial — prompting White House officials to reissue a veto threat.

The measure, part of the massive National Defense Authorization Act, was also opposed by civil libertarians on the left and right. But 16 Democrats and an independent joined with Republicans to defeat an amendment by Sen. Mark Udall (D-Colo.) that would have killed the provision, voting it down with 61 against, and 37 for it.

“I’m very, very, concerned about having U.S. citizens sent to Guantanamo Bay for indefinite detention,” said Sen. Rand Paul (R-Ky.), one of the Senate’s most conservative members.

Read moreSenate Votes To Let Military Detain Americans Indefinitely, White House ‘Threatens Veto’ (Oh, SURE! Here is Obama In 2009 Calling For Indefinite Detention!)

Chairman Of The European Branch Of The Trilateral Commission And Bilderberg Member Mario Monti Member Is Italy’s New Prime Minister

See also:

Goldman Sachs International Advisor Mario Monti Is Italy’s New Prime Minister – In Under Two Weeks, Goldman Has Taken Over The ECB And Italy


NEWSMAKER-“Italian Prussian” Monti enters political storm (Reuters, Nov. 14, 2011):

Mario Monti, the economist who will head an emergency Italian government following the departure of Silvio Berlusconi, brings credentials earned in a decade of battles as a European Commissioner from the 1990s.

He is chairman of the European branch of the Trilateral Commission, a body that brings together the power elites of the United States, Europe and Japan and is also a member of the secretive Bilderberg Group of business leaders and other “leading citizens”.

Goldman Sachs International Advisor Mario Monti Is Italy’s New Prime Minister – In Under Two Weeks, Goldman Has Taken Over The ECB And Italy

Goldman Sachs International Advisor Mario Monti Is Italy’s New Prime Minister (ZeroHedge, No. 13, 2011):

Not on even a Sunday is the headline barrage over:

  • MARIO MONTI ASKED TO FORM NEW ITALIAN GOVERNMENT
  • MONTI TO MAKE COMMENTS AFTER ACCEPTING OFFER TO LEAD ITALY
  • MARIO MONTI THANKS NAPOLITANO FOR OFFER TO FORM GOVERNMENT
  • MARIO MONTI SAYS ITALY MUST BE PROTAGONIST IN EUROPE
  • MARIO MONTI SAYS HE’LL ACT TO SAVE ITALY FROM CRISIS

And so the international advisor to Goldman Sachs drones on. In the meantime, the €300 billion in BTP sales is set to resume in just over 13 hours.

Yet the reason why the EURUSD is less than jubilant on the news is that Silvio apparently has just come back from the dead and has treatened to “pull the plug” on Monti.

From the FT:

The markets may soon discover that the Bocconi University professor’s room for manoeuvre will be limited by the political realities of a parliament where Silvio Berlusconi’s People of Liberty party remains the largest force.

The public humiliation of Mr Berlusconi on Saturday night – his motorcade chased through the streets and crowds of thousands screaming abuse as he handed in his resignation – reflect the extent of the ex-prime minister’s fall from grace.

But as he defiantly told a party leadership meeting hours earlier, they still retain the “golden share” in Mr Monti’s enterprise, particularly in the senate.

“We are ready to pull the plug,” Mr Berlusconi was quoted as saying.

While many are talking of the end of the Berlusconi era and one man’s dominance of Italy’s centre-right politics for almost 18 years, Vittorio Feltri, an editor close to the departing prime minister, cautioned that the “death of Berlusconismo and the centre-right is exaggerated”.

From accounts of Mr Berlusconi’s two-hour meeting with Mr Monti over Saturday lunch it was clear that the 75-year-old billionaire media baron placed his own personal and party interests above those of the nation as he tried, but apparently failed, to extract concessions in exchange for his support.

One condition was that Mr Monti, in implementing austerity measures and reforms, would stick to the contents of the “letter of intent” presented by Mr Berlusconi to last month’s eurozone summit. That would rule out the emergency measures of a wealth and property tax, and possibly an overnight raid on bank deposits, which Mr Monti is said to be considering if Italy is denied access to financial markets.

However, although Mr Berlusconi may be talking tough his reality is that his party risks splintering and that any threat to “pull the plug” and force Italy into early elections, perhaps next spring, would be vetoed by the markets.

The squid abides:

But on the political fringes there are already those portraying Mr Monti – who is listed by Goldman Sachs, the investment bank, on its board of international advisers – as a tool of the “masters of the universe”, along with Mario Draghi, head of the European Central Bank and former Goldman Sachs executive.

This is the band of criminals who brought us this financial disaster. It is like asking arsonists to put out the fire,” commented Alessandro Sallusti, editor of Il Giornale, a Milan daily owned by the Berlusconi family.

From the most recent Goldman annual report:

Translation: in under two weeks, Goldman has taken over both the ECB and Italy.